What’s Included in an Employment Background Check

Selecting the right employee is crucial for any workplace, and human resources departments implement several steps to ensure they find the best-suited candidates for each role. Before the formal interview and assessment stages, candidates often go through an initial screening process. This preliminary check verifies essential details like age, education, skills, and work experience to determine if the candidate qualifies for further rounds where their suitability for the position is evaluated more thoroughly. 

Hiring the right candidates is important because it helps improve the office environment and reduces the likelihood of workplace conflicts caused by hiring mistakes.

In addition to initial screenings, many companies today also conduct background checks, especially for positions where experience, trustworthiness, and loyalty are critical. Background checks offer employers a deeper understanding of the candidate, providing important information that helps in making final hiring decisions.

Background checks can take place at various stages of the hiring process:

• After a Conditional Job Offer: Commonly, background checks are conducted after an offer is extended, contingent on passing the screening.
• Before the Final Interview: In industries requiring high security or compliance, a background check may occur before final interviews to verify critical credentials.
• During Initial Hiring Stages: For specific roles, background checks might be done early to ensure that key criteria are met.
• Ongoing Employment Checks: For positions with strict regulatory or security requirements, background checks may be repeated throughout employment.

Background checks are a standard part of the hiring process and play a vital role in whether a candidate is ultimately hired. Employers conduct these checks to avoid costly mistakes, ensuring they bring on the right talent who meets all the qualifications and integrity standards for the role. State and federal laws recognize the importance of background checks, allowing companies to conduct them as a safeguard.

Let’s explore more about what’s included in employment background checks and why they’re an essential step in hiring.

What’s Included in an Employment Background Check?

During an employment background check, several aspects of a candidate’s background are reviewed to accurately assess their suitability for the job. Here’s a quick breakdown of what’s typically checked and why each matters:

• Education History: This verifies the candidate’s educational qualifications, like their degree or certification, to ensure they meet the role’s requirements. For example, if the position needs a degree in accounting, the employer will check that the candidate actually graduated from an accredited school with the necessary credentials.
• Work Authorization: Ensures that the candidate is legally allowed to work in the country. This is crucial because companies don’t want to deal with legal issues later on. If someone’s visa or permit is expiring soon, the HR team needs to be aware of this to avoid compliance problems.
• Employment History: This confirms the candidate’s previous job roles, positions, and duration of employment. For instance, if a candidate claims to have five years of experience as a project manager, this check validates those details with past employers.
• Document Proof for Experience: Employers may ask for physical proof of certain achievements or roles, like a recommendation letter or an employment verification document. This is particularly important when hiring for senior or specialized positions where hands-on experience is essential.
• Driving Records: For roles that involve driving or operating vehicles, like delivery or transportation, employers will check driving records to confirm the candidate has a clean record and a valid license.
• Medical Records: In some cases, especially for jobs requiring physical activity or involving health risks, a medical check ensures the candidate is physically fit and won’t face any health issues that might affect job performance. Note that medical checks are handled with confidentiality and follow privacy regulations.
• Criminal Records: For roles that require high levels of trust or involve security access, a criminal background check is often conducted. This check verifies whether the candidate has any criminal history, ensuring the safety of the workplace. For example, it’s critical for jobs in finance or healthcare where employees handle sensitive data.
• Credit Records: In positions involving financial responsibility, such as roles in banking or accounting, an employer might review the candidate’s credit history to gauge their financial reliability. A good credit history can indicate a candidate’s responsibility with money and resources.
• Social Media Profiles: Some employers might review publicly available social media profiles to understand the candidate’s online presence and ensure it aligns with the company’s values. For instance, a candidate for a customer-facing role may be expected to maintain a professional and positive online presence.

These elements of a background check provide a fuller picture of the candidate and help employers make informed hiring decisions based on verified facts.

Limitations on Background Checks

Under the Fair Credit Reporting Act (FCRA), employers face specific restrictions when using background checks in their hiring process, particularly when employing a third-party agency. If a third party is involved, the employer must provide a separate authorization form for the candidate’s consent, in addition to other application materials.

However, if the employer conducts background inquiries directly, no formal authorization is legally required. This means employers may reach out directly to a candidate’s former employer, review their public social media profiles, or contact educational institutions to verify academic records without additional permissions.

Rules and Regulation Changes

Laws and regulations across various areas, including employee background checks, are subject to change over time. To ensure compliance, employers must stay informed about any updates to these background check regulations, understanding any new limitations or requirements. Likewise, employees should be aware of these changes to prepare for potential checks. For instance, recent updates to criminal background check regulations are especially relevant for employers.

To stay up-to-date, employers can follow official regulatory websites, track updates from industry leaders on platforms like Twitter/X, or attend webinars hosted by HR experts on the Compliance Prime platform. Many of these webinars are available on demand, while others offer live sessions where attendees can interact directly with experts. These resources offer valuable insights, helping employers and employees alike navigate regulatory updates with confidence.

How to prepare for a background check?

1. First understand the legal requirements: So, checking someone’s personal data is always subject to some restrictions even for governments. So, before you start your background check on some candidate or current employee do check all federal, state and local laws to ensure compliance and avoid any legal issue. 
2. Develop a step-by-step procedure for background checks: This is important because planning helps people prepare for different situations. Develop a standardized background check policy that outlines time, levels, procedures, compliance steps, and criteria for evaluating results. Clearly state whether the checking will be conducted by the company itself or by an outside agency.
3. Obtain consent from the candidate or employee: If the background check requires prior consent, ensure you obtain it before starting the process. Certain checks require consent regardless of whether you are using a third-party agency or conducting it internally. Try to obtain written consent, as it can be helpful if any legal issues arise in the future; verbal consent is not sufficient from an evidentiary perspective.
4. Prioritize privacy: Personal information is highly sensitive, so ensure that the candidate’s data remains secure and confidential. Protecting their privacy not only builds trust with candidates and employees but also safeguards against potential legal issues.
5. Select a reputable agency: If you hire an outside agency for background checks, ensure that it is reputable and follows all compliance requirements in its background checking procedures.
6. Use the same standards: To promote fairness and avoid bias, you need to use the same standards for each candidate or employee, regardless of their age, race, gender, or experience. If you do not, you risk either increasing the chance of hiring the wrong employee or discriminating against other candidates or employees. Therefore, use the same standards every time in your background checks.
7. Communicate Transparently: It’s essential to keep candidates informed about the background check process. Clearly outline what aspects will be reviewed and explain how the results may influence hiring decisions. This transparency not only fosters trust but also helps candidates understand the importance of the checks in the overall hiring process. For current employees, it clarifies how these checks can impact their ongoing position within the company.

How long does a background check take to complete?

So, there is no single answer to the question of how long a background check will take, as it can vary for different candidates or employees. There are different types of background checks, such as basic background checks, comprehensive background checks, in-depth background checks, and specialized background checks. Additionally, who conducts the background check influences the time it takes; for example, it can be performed by an in-house team or an outside agency, and their efficiency can also affect the duration of the background check. The speed of responses from different organizations, such as schools and companies, can either increase or decrease the time required for background checks. However, it usually takes 1 to 3 days to several weeks.

What things can cause problems on a background check?

Several factors can complicate the background check process:

1. Response Time: The speed at which you receive replies from employers, universities, or other organizations can significantly impact the timeline.
2. Data Quality: The type of data you receive from these organizations and how complete that data is can affect the accuracy of the background check.
3. Team Efficiency: The efficiency of your in-house team in processing background checks plays a crucial role in how quickly and accurately the process is completed. If there are issues with the effectiveness and efficiency of the in-house team, it can lead to problems in the background check process.
4. Agency Performance: If you hire an outside agency, their efficiency and effectiveness can also influence the overall background check process. If they are not effective, it can cause issues in the background check.
5. Cooperation: The cooperativeness of the candidate and the organizations involved can either facilitate or hinder the background check.
6. Compliance and Rules: Sometimes, due to laws and regulations, certain important checks can’t be done, causing problems in the overall background check process and potentially making it incomplete.
7. Prior Consent: In some cases, obtaining prior consent from the candidate is crucial; failure or delays in getting it can hinder the background check process.
8. Geographical Considerations: If a candidate has lived in multiple states or countries, retrieving their background information can take longer and may require additional checks, complicating the background check process and causing issues.
9. Technological Issues: Technical problems with databases, systems, or online platforms used to conduct background checks can cause delays and hinder the overall process.

Conclusion

In summary, conducting thorough employment background checks is essential for making informed hiring decisions. These checks help employers verify candidates’ qualifications, assess their integrity, and ensure compliance with legal requirements. By understanding what’s included in a background check, preparing appropriately, and staying updated on regulations, companies can streamline the process and mitigate potential risks. Ultimately, a well-executed background check not only protects the organization but also fosters a trustworthy and safe workplace for all employees.