Background Investigation: A Complete Guide to Know What It Entails
When you are going about hiring new employees, renting out property, or laying the groundwork for a business partnership, it is necessary to have an understanding of the people you will be dealing with. A thorough background investigation can provide crucial information regarding criminal records, financial standings, and past behavior. But, what exactly is a background investigation, what are the different types, and how is it conducted? Let's delve into the intricacies of this crucial process.
What is a Background Investigation?
A background investigation is a systematic search and analysis of a person's past, typically for the purposes of employment or criminal proceedings. It is a vital process that helps you make informed decisions and identify any red flags relating to the person you are investigating.
Most investigations are conducted to verify the identity, employment history, and education qualifications of the subject. It typically focuses on checking criminal records, driving records, financial history, credit reports, and social media profiles. The information collected by the investigation may be used for pre-employment screening or other risk assessments.
Types of Background Investigations
The type of background investigation required depends on the scope of the process and the purpose for which it is needed. Here are the different types of background investigations:
1. Criminal History Investigation - This type of inquiry focuses on the criminal background of the subject and includes a check of county, state, and federal criminal records.
2. Employment History Investigation - This type focuses on the employment details of the person, like the job titles held and duration of employment.
3. Education History Investigation - Education verification is conducted to validate the degrees and certifications claimed by the candidate.
4. Financial Background Investigation - This involves checking the credit rating, tax records, bankruptcy filings, and other financial history of the subject.
5. Social Media Investigation - This type of investigation involves examining the subject's online presence, including social media profiles.
How is a Background Investigation Conducted?
The process of a background investigation varies, depending on the type and scope of the inquiry. Below are the general steps involved:
1. Gathering Information - The investigator collects relevant information, such as the subject's full name, date of birth, and Social Security number.
2. Check Identification - The investigator verifies the identity of the person whose background is being investigated by checking their identification (ID) documents.
3. Check Criminal Records - The investigator checks the subject's criminal record, starting with county records, through state records, and finally federal records.
4. Verify Employment History and Education Credentials - The investigator confirms the candidate's previous employment details, including job titles and duration of employment. Similarly, they verify the person's qualifications and education credentials.
5. Check for Financial Issues - The investigator examines the candidate's financial history, including the credit score, tax records, and bankruptcies.
6. Examine Social Media Profiles - This is done to check if there is any online activity that violates company policies or compromises the reputation of the business.
Why is a Background Investigation Essential?
A background investigation is essential to protect the interests of businesses and individuals. Here are some reasons why:
1. Reduces Hiring Risks - Hiring the wrong person can have significant financial and operational consequences, and background investigations are an essential tool for identifying potential risks in this regard.
2. Provides a professional image - Conducting background investigations shows that your company takes hiring procedures seriously. I can also create a level of professionalism and demonstrate a commitment to hiring the right people.
3. Maintains a Safe and Secure Workplace - By checking for criminal history, you can ensure that you are not exposing employees and customers to potential dangers.
4. Enhance Partner and Investor Confidence - Businesses often undertake background investigations to appease investors and partners. This process shows stakeholders that you take your business seriously and are doing everything in your power to mitigate risks.
Conclusion
To sum up, a background investigation is a crucial process for hiring new employees, renting out property, or laying the groundwork for business partnerships. It provides employers with vital information on a subject's criminal history, financial past, and employment and education records. A background investigation helps businesses make informed decisions, reducing hiring risks while creating a safe and secure workplace. To be successful in today's world, businesses need to consider the importance of background investigations as a part of their recruitment and risk assessment procedures.
