What is an Employment Background Check and How is it Used by Employers? What Information Can be Obtained from an Employment Background Check?

An employment background check is a powerful tool that employers use to gather information about a job applicant’s past. The information gathered from an employment background check can be used to verify the accuracy of the applicant's resume, to investigate potential legal or financial issues, and to assess the suitability of a candidate for the position. In this article, we will explore the ins and outs of employment background checks, including what information can be obtained, how they are used, the benefits and challenges of conducting a background check, tools and technologies for effective background checks, and best practices for managing the process.

What is an Employment Background Check?

An employment background check typically involves looking at an applicant's criminal history, educational credentials, employment history, credit score, and driving record. The background check may also include a check for any professional licenses, certifications, or memberships. The information obtained from a background check is used to determine whether an applicant is qualified for the position, and whether they have any potential issues that might make them a risk to the employer, their colleagues, or their clients.

How is it Used by Employers?

Employers use background checks to assess the suitability of a candidate for the position, and to verify the information provided in their resume. The information obtained from a background check can also identify potential legal or financial issues that may affect the employer, such as a history of fraud, embezzlement, or other criminal activity. Employers may also use background checks to verify an applicant's citizenship or legal work status, and to conduct drug testing.

What Information can be Obtained from an Employment Background Check?

The information obtained from an employment background check can vary depending on the position being applied for and the employer's requirements. However, the following are some of the most common types of information that can be obtained:

Criminal History: A criminal history check can reveal any prior convictions, arrests, or pending charges. This is particularly important for jobs that require security clearance or handling sensitive or confidential information.

Educational Credentials: An educational background check can confirm the accuracy of the applicant's educational credentials, such as diplomas, degrees, or certificates.

Employment History: An employment history check can confirm past employment and ensure the accuracy of the information presented in the applicant's resume.

Credit Score: A credit score check can reveal information about the applicant's financial history, such as whether they have a history of late payments or outstanding debts. This information can be particularly relevant for accounting or finance positions.

Driving Record: A driving record check can confirm whether the applicant holds a valid driver's license, and whether they have any prior driving-related convictions or accidents.

Challenges of Employment Background Checks and How to Overcome Them

One of the biggest challenges of employment background checks is balancing the need for information with the potential legal liabilities associated with gathering personal information about an applicant. Employers must comply with federal and state regulations that govern background checks and ensure they do not discriminate against applicants.

Employers must also balance the cost of conducting background checks with their budgetary constraints. One way to address these challenges is to use a reputable third-party background check provider that has experience in conducting background checks and can help navigate the legal and regulatory requirements.

Tools and Technologies for Effective Employment Background Checks

Technologies such as artificial intelligence have made it possible to conduct more in-depth and personalized background checks, while also reducing the time and cost associated with the process. AI-powered tools can perform much of the manual work associated with background checks, such as verifying educational credentials, scanning social media profiles for relevant information, and conducting online searches for public records.

Best Practices for Managing Employment Background Checks

Employers should adopt a clear policy regarding background checks that is communicated to job applicants before any screening begins. Employers should also ensure that they are in compliance with all relevant laws, including the Fair Credit Reporting Act (FCRA), which governs the use of background reports in employment decisions.

Employers should also ensure that background checks are conducted consistently for all applicants, and that the information obtained is used only for legitimate employment purposes. Finally, employers should ensure that the information gathered is accurate, and that all discrepancies are resolved before any hiring decisions are made.

Conclusion

While employment background checks can be a valuable tool for employers, they are not without their challenges. Employers must strike a balance between gathering the information necessary to make informed hiring decisions while also ensuring that they are in compliance with relevant laws and regulations. By adopting best practices, using the right tools and technologies, and working with reputable third-party providers, employers can conduct effective and legally compliant background checks that benefit both the employer and the job applicant.