Employee Background Check: Concept, Importance, Steps & Advantages

In case you want to minimize the risks for your business, then Employee Background check is inevitable for you.

In today’s time, several employers are considering the background check of the employees as one of the most important steps in the recruitment process.

The increasing number of crime scenes and fraudulence incidents is one of the major reasons for such companies taking up this particular step these days.

Apart from the crime rates, also the companies are concerned about their rate of employee turnover, employee burnout, employee retention, etc. and hence make sure to get the background of an employee checked before hiring.

In simple words, you can consider Employee Background Check as the best way to recruit the finest.

Let us dig deep into this concept and understand its significance for big and small businesses –

Concept of Employee Background Check

Today, the recruitment process has become quite tough, and an employee needs to cross several sessions ultimately to reach to the final place. Also, it is quite a time consuming because the employers wish to have the best from the many candidates who have come up for the recruitment process.

After the interview sessions are over, still the recruiter takes some time to let the employee know about their joining. This is the time when most of the companies go for the employee background check procedure.

Some of the companies have their team while some other hires external service providers to have a detailed check about the background of the employee. After the employer is satisfied with the check, they finally offer them employee with an appointment letter to join them.

Importance and Advantages Of The Employee Background Check

The companies today go for such checks due to several reasons. There is special importance of conducting such a background check of the employees.

1) Knowing The Authenticity Of The Resume

Some so many employees put up several things on the resume among which some of the points may be considered as fake. Many such employees make use of such techniques so that they can get a good job through such fake recognitions.

But though the candidates may get the job, they will not be able to handle the position well, and hence this can be a difficult situation for the employee as well as the employer at the same time.

Hence, it is very much important to know the things that the candidate has faked out in the resume.

Proper and thorough verification of the background of the employee can unveil all such truths in front of the employer. After knowing the actual details, the employer will be able to take a proper decision that will be better for the company and also for the employee.

2) Knowing About The Nature Of The Candidate

Similar to the faked out details in the resume, the candidates also often have a face mask on their faces while they are attending an interview. Even if they are not, it is quite difficult to know and judge a person in a conversation of a few minutes.

If it is a job profile where the pressure is going to be intense, it is quite important to know whether the person will be able to handle such sort of pressure or not.

The actual behaviour and personality can know this of the person. The experts of the verification check get you a proper detail about the personality, nature, and behavior of the candidate.

You can now judge out whether the candidate can match up the provided job profile or not.  Depending on this, you can either question the candidate further or can take up the decision of keeping him or her or not.

3) Experiences At The Past Offices

When a question is thrown at the employee about their past experiences, normally the employees come up with a diplomatic answer. This is what many of the experts suggest to crack a proper interview session.

But it is very much important to the employers to check out the actual scenario at the post offices. It may happen that the employee had a bad record at the last office, or it may also happen that the employer had fired the employee from the last job.

There can be several things that can happen. Of course, you can offer the candidate a chance to explain, but before it, it is important to get the verification done.

4) Criminal Experience And Legal Support

Having an employee background check is also about knowing whether the person had a criminal experience or not. It can be dangerous for the company to hire an employee with such a background.

Also, it is important to know whether the person has legal support or not. If yes, you should check out whether the candidate has misused the support in the past or not. If the person has misused the support in the form of a lawsuit or so in the past, he or she can do the same for your company too.

What to include in Employee Background Check

1) History of employment

You should check the reference given by the employee, plus, confirming their behavioural and working patterns with previous employers is important as well. This way, you will gauge their general performance, dedication, and inclinations.

2) Criminal background

It is just that the employee you are hiring is not having any criminal history. Mainly for the profiles related to security or trust, it is inevitable.

3) Credit history

Knowing the credit rating of your employees is also important, and you can do this by doing employee background check for the credit history. This demonstrates the honesty of the employees.

4) Terror Watch List

For the businesses running in countries like the USA, checking Terror Watch List of their candidates is very important. Again it is a must for security jobs.

5) Checking Social Security

Businesses should check the legitimacy of Social Security Number. Proper background check of different names, aliases, date of birth, history of addresses, etc. come in this.

This way, you can know if the candidate has been living with other names or anything fishy which is not available in criminal records.

6) Checking public/court records

You can do this to check if the employee is involved in any sorts of court proceedings or not. This is very significant in picking the right candidate that can offer complete dedication to the job profile you are planning to offer.

7) Reference checks

You can opt for two types of reference Employee Background Checks, and they are personal and employment. Choosing both of these will help you checking the trustworthiness, loyalty, dependability, and character of the employee.

8) Checking Sex Offender Registry

You mustn’t be hiring a sex predator, and that is why the Sex Offender Registry check has to be an integral part of the employee background check.

9) Education check

You should do this sort of background check to find out the authenticity of the different credentials provided by the candidate you are planning to recruit.

10) Driving Records

In case your employee would be required to drive a company-owned vehicle, then checking driving records and license is essential for you.

11) Record of Military Service

There can be some key measures that you need to pay attention to while hiring a candidate with military service record. That is why checking military service records of your candidates is also important.

12) Compensation Record

Checking the candidate’s compensation claims from the past employers is also significant before hiring an employee.

Let us now go through the steps that you should follow for doing an employee background check in a hassle-free manner-

Steps to follow for Employee Background Check

1) Having a proper flow chart of different steps

You must have a consistent policy for the employee background check, and for this, responsible authorities should know about the different steps they need to follow for background verification. A flow chart of all the steps would be very useful.

2) Legal Assistance to understand the role of Local Laws in Employee Background Check

Lots of confidential information are involved in the background check, and that is why taking legal assistance will help you in staying away from any sorts of legal complications.

3) Opt for FCRA Compliant Employee Background Check

FCRA (Fair Credit Reporting Act) decides what you can do and what you cannot do in your employee background check proceedings. So, you have to follow their rules and regulation, as FCRA governs all the background checks.

4) In case of any mistake or misunderstanding, allow a candidate to Clear Up that

Sometimes the information that you have received can be incorrect, and that is why giving a chance to candidate to rectify those misunderstandings would be a prudent and productive practice.

5) Being aware of the difference b/w Investigative Consumer Reports and Reference Checks

In case you are rejecting a candidate because of Investigative Consumer Report, you need to give a copy of that report to candidate. While on the other hand, if you get the information via reference check such as asking past employer, then you need not give such details to the candidate.

6) Academic references Checking

Indeed the areas which are easily exaggerated and manipulated are the academic circles in addition to experience and skills are very problematic and at times difficult to identify. Therefore the prospective employer ought to start their reference check from this point.

Undeniably, there is actually no need whatsoever in employing an applicant who is not honest as regards their academic qualification as they would not be productive and are likely to have ill motives. Consequently, they could be a liability to your organisation.

This kind of candidates cannot be trusted at all and therefore there is no need why the employer should. However would be in order to just think such an individual for their interest in your organisation but never should one hire them.

7) Call current and former supervisors.

Although it at times proves difficult to extract any information about an applicant due to some legal handles and the fear of being sued for character defamation or even libel where the information which would be given might be negative especially from either the current or former employers of your prospective candidate, it is worthwhile to just find out as you might be surprised by the information available at your disposal that will allow you to make sound and appropriate decisions for the benefit of both the organization and other members of staff.

8) Checking one’s network of associates

Undeniably, for those who have been in the personnel management department, it is most likely that they have a vibrant network of associates friend colleagues and family members who would be willing to share information about a prospective employee. It is therefore essential and significant to gather information from them. It would not be surprising that one might even get more information from such people.

9) Browse online sites

With the use of internet and using the several search engines or the numerous social sites, one is likely to find crucial and critical information that would go a long way in facilitating the employer get sufficient data about either the applicant or the organisation that they have worked or claim to have worked for.

This information might range from positive to negative thereby allowing the employer to arrive at making the right decision. Without a doubt, the internet is a sure and free source of data that any prospective employer should employ in doing a background check.

Consequently, in doing a background check there are some golden rules that one need to observe in order to avoid any legal and challenges in executing their human resources duties as well as making the background check most effective and efficient. These do and don’ts include but not limited to:

Do’s

• Having a consistent background checks policy and detailing how the policy should be used.
• Getting legal advice on how to conduct background checks under the local legal framework.
• Giving the applicants a chance to make clear up any faults or misconstructions appearing on their documentations and during the interview process that is an inconsistency with your background check.
• Employing the services of background check services compliant with the legal frameworks of your particular region
• Understanding the difference between background checks vis-à-vis investigative consumer reports.

Dont’s

• Avoid making decisions on using the background checks on an applicant-by-applicant basis.
• Avoid the assumption that some parts of the background check process routine
• Avoid making decisions without the letting the applicant a chance to respond.
• Avoid assuming that any companies seeking information about an individual are legally compliant.
• Avoid requesting information about the character or personal and private of an individual while verifying the employment historical facts.

Fundamentally background check is not too viewed superficially as they play an important role in ensuring that neither the employer nor the organisation encounter loss or legal handles in exercising their mandate and role. Consequently, by attracting competency and matching the skills with the tasks employers ensure that their organisations remain profitable and are sustainably productive as well as being competitive in their respective fields.

Finally, the most critical information that these background checks elicit are vital and are diversified in range and scope depending on the tasks to be performed and are as follows:

10) Criminal Records

Indeed background checks are instrumental in providing information about the particular individual which would inevitably be vital especially where the candidate is required to handle or maintain high levels of trust, confidentiality and security. Consequently this kind and level of reliability would not be forthcoming from a person who has a criminal record.

11) Social Security Validation

Apart from and the individual being tax compliant, background checks guarantees the legitimacy of the applicant’s social security number. The Social Security Validation facilitates in and discovering of all the names, as well as aliases and any variations thereof, dates of birth in addition to the history addresses associated with the applicant.

This limit the incidents of the employer contracting an individual whole have a criminal record, or who does not have any legal status of seeking and getting employed in that country or region. Further, still, it provided information on whether the candidate has ever lived in unrevealed places or under other pseudonyms that could divulge unlawful records that wouldn’t have otherwise been established.

12) Address History

Address History background checks help in tracing prior addresses where the applicant could have resided and facilitated the establishment of where else the applicant could have lived mating it easier in the verification of their true identity and may form the basis of further interview questions as well as getting to know the candidate better.

13) Terror Watch List

With the prevalent threat of terrorism and the global danger posed by terrorists, a thorough background check is more likely to establish if your potential employee could have been involved in terror acts or whether he or she is in any countries or even states terror watch list. Although this was explicitly imperative for security jobs it has however been deemed very necessary in almost every profession due to the changing dynamics and tactics employed by terrorists and other criminal syndicates in the twenty-first century.

14) Sex Offender and human trafficking Registry Check

The ever increasing levels of human trafficking, child pornography, organ harvesting, pedophilia and sexual related abuse globally it is paramount that for positions dealing with minors, the marginalized and the most vulnerable through background checks are a necessity rather than just an option in order to ascertain the credibility of the applicant so as to avert and reduce the prevalence of the aforementioned vices.

What do you need to have for doing Employee Background Check?

• For doing a background check, you need to have the full name, date of birth, and Social Security Number.
• If you want to check credit reports, military records, and school transcripts, you need the permission of the candidate.
• If you hire an outside company to do the background check then again you need to take the permission of the candidate.
• In case the candidate denies the permission, you will be entitled to take the candidate out of consideration for that job profile.

Are There Any Disadvantages?

So, there are so many benefits of getting a background check of the employee done. But apart from the advantages, there are also several disadvantages that the background check can have.

One of the major disadvantages that you can see is the wastage of time and money.

The companies invest so much money in conducting such investigations, and most of the time; the person turns out to be a genuine one.

Also, there is a lot of time invested in it. The candidate may think that the company is not interested and hence, he or she may join some other organization in this period.

Secondly, it is not always good to judge a person through his or her background deeds.

It may happen that a person may have got trapped in a criminal offense and in actual sense, he or she is a gem of a person. But when you do not know the candidate personally, you will focus the verification reports and will let a genuine person go.

So, opting for employee background check depends on the type of your business and kind of job profile you are going to hire that candidate.

In Conclusion…

Getting an employee background check has become quite eminent today because there have been so many instances taking place each day.

Getting the verification done get the employer a satisfaction that they are selecting a person who is genuine and will not hamper the reputation and environment of the company.

What points do you find most important for doing the employee background check? Tell us in the comments.