Why conduct background checks

With a tight employment market, the appeal of overstating educational qualifications or enhancing job histories, for example, can grow. For example, if an employer hires someone who harms another employee, the employer may face claims for negligent hiring if, for example, the employer had reasonable cause to believe that the employee might be dangerous to others or the employer failed to conduct a reasonable investigation to discover whether the employee is unfit for the position or may cause harm to others.

Workplace Theft Employers know that most business theft today is performed by insiders. A background check can help employers to make intelligent and informed hiring decisions to help reduce their risk of theft. So what exactly are employers looking for when conducting background checks?

There are many reasons for employers to conduct background checks. Jobs that involve work with children, elderly people, those with disabilities, or handling confidential information are examples of jobs requiring background checks. Depending on the reason for the background check, different data will be available. For employment screening, some of the information that can be found in the following:. Before making any employment decisions, including hiring, retention, promotion, or reassignment, make sure to comply with the Fair Credit Reporting Act FCRA.

The FCRA has national standards for employment screening, which means that some information does not appear in background reports. However, the law only applies to background checks performed by an outside company, meaning the law does not apply in situations where the employer conducts background checks in-house.

The FCRA states that the following information cannot be included in background checks or consumer reports:. Keep in mind that laws vary from state to state, so employers should always make sure to do their research before running a background check on an applicant or current employee.

Employees need to know whether the employer decides to conduct a background check, as the employee has legal rights. When information can be attained digitally, the process can be very short. But, if manual searches are required, or if other organizations need to be consulted, the process can take longer.

The FCRA requires employers to receive permission from candidates to conduct a background check, in writing. The FCRA also has requirements related to adverse action rules employers must follow if the background check reveals information that may negatively impact the hiring decision. EEOC guidance seeks to prevent employers from conducting background checks in a manner that could deny equal opportunity to job applicants in accordance with Title VII of the Civil Rights Act, based on protected categories such as age, race, color, national origin, sex including sexual orientation and gender identity, as the Supreme Court recently ruled , religion, and disability.

Ban-the-box laws emerged in Hawaii was the first state to pass a law prohibiting the practice of employers asking job applicants about their criminal histories until after a conditional offer is made. Since then, a number of other states have followed, with a focus on removing barriers that make it difficult for people with criminal records to get jobs.

GoodHire eases the burden of compliance by automating many compliance workflows, saving you time and giving you confidence that nothing will be missed. Background check service accreditation means an organization has met strict guidelines and professional standards for compliance and interactions with employers, candidates and others. To be accredited by PBSA, GoodHire must meet rigorous accreditation standards, comply with current regulations and laws about background checks, and submit to regular auditing of our practices and procedures.

Yes, GoodHire background checks can be used for international employees, as long as they currently reside in one of these countries. It is important for companies to conduct international background checks when considering candidates who have lived, studied or worked in another country. International background checks work similarly to other background checks, but the databases used are foreign databases containing information not available in the US, and typically require additional, specific documentation.

These background checks help employers obtain information they might have been unaware of, or that might have been difficult for them to attain on their own. There are many kinds of background checks, from background checks for employment to background checks for purchasing firearms, and fingerprint checks.

There are several different types of background checks used for different situations. To help you understand each type and what is in a background check, this article will look at the 10 most common types of background checks and what they each consist of:.

A background check is a process a person or company uses to verify that a person is who they claim to be. GoodHire is an accredited professional background screener and FCRA-compliant consumer reporting agency CRA offering background checks for employment—we may not provide all types of background checks listed here. Employers run background checks to avoid hiring someone who may pose a threat to the workplace or become a liability to the employer.

An employment background check typically takes place when someone applies for a job, but can also happen at any time the employer deems necessary. For example, an employer may require annual or semi-annual employment drug testing or criminal background checks for their employees to help create a safe and secure workplace. Typically, an employment background check includes information and records from the past seven years, although some states allow up to 10 years.

Learn more about how far back background checks go in your state. If the position is specialized, applicants and employees may undergo further screenings. Further, the Fair Credit Reporting Act FCRA requires employers to comply with certain regulations to ensure that the background check process is done fairly.

For example, employers must get written permission from applicants and employees and let them know how they might use information found in decisions about their employment. With this advance notice, the candidate has a chance to review the report for errors as well as explain negative information, such as gaps in their employment history, convictions, and criminal offenses.

Employers typically outsource employment background checks to a third-party company that has access to the necessary databases, including police records, civil court records, credit reports, and more. The cost of an employment background check can depend on what the employer wants to include for review. Many employment screening vendors, including GoodHire, offer discount pricing for bulk orders. A criminal background check is often required in situations where a person or organization needs to know about major criminal activity, including violent or sex crimes, fraud, embezzlement, or felony convictions before making a decision regarding employment, adoption, military enlistment, a firearm purchase, and more.

Depending on the industry, such as healthcare, there may be regulations against hiring certain felons if their conviction is relevant to the job. However, for the formerly incarcerated, a criminal record is a barrier to reentering the workforce, making it much more difficult for ex-felons to rehabilitate into society. In an effort to increase employment opportunities and decrease recidivism rates , the federal government offers incentives to employers for hiring convicted felons through the Work Opportunity Tax Credit program.

Different states have different variations of criminal background checks. Examples include a level 1 background check, which is a state-only name-based check and employment history check and a level 2 background check, which is a state and national fingerprint-based check and consideration of disqualifying offenses.

Often, many of these searches are included in a basic background check. Why is this important, from a recruitment standpoint? For one, your candidate will be thoroughly screened to ensure that all the experience and credentials listed are accurate for the needs of each job order. Whatever your policy is for conducting an employment background check, you want to make sure that policy is clear and that you apply it consistently. If you do find something negative on a background check during the recruiting process, you may want to implement a policy of having a conversation with the candidate about what you find.

A single mistake that has a rational explanation and is not likely to be repeated is usually not a good reason to give up an otherwise qualified candidate. Several possible ways to conduct background checks are to use a third-party service or a background screening software to augment your current recruitment process.

This can help make the criminal and drug screen more efficient while you focus on the work history and educational verification. In some cases, your talent management software will include the feature to run a background screen with the proper legalese to get permission from each candidate.

Alternatively, you can ask candidates to submit to a criminal background and drug screen at their own cost, to be reimbursed upon successful passing and employment.