As the job market becomes more competitive, employers have to be strategic in hiring the right talent. One way that they can do this is by conducting background checks. Background checks are essential for employers to ensure that they are not hiring anyone who might pose a threat to the business's safety, reputation, or finances. This article will explore how employers can use background checks in the hiring process.

**What are background checks?**

Background checks are the verification of a person's identity, employment history, education, criminal record, and other relevant information. Employers can use different types of background checks depending on the job requirements. Common types of background checks include:

- Criminal history check
- Credit check
- Employment history verification
- Education verification
- Reference check

**Why do employers use background checks?**

Employers use background checks to mitigate risk. By conducting background checks, they can ensure that they are hiring trustworthy and qualified candidates. Background checks can help employers:

1. Avoid liabilities: Employers need to make sure they are hiring candidates who don't have a previous history of violent behavior, stealing, or drug abuse. Conducting a criminal background check can help employers avoid liabilities associated with negligent hiring.

2. Protect their reputation: Hiring someone with a bad background can damage a company's reputation. For example, if a company hires a CEO with a history of embezzlement, it can cause a loss of trust among stakeholders.

3. Ensure workplace safety: Employers have a responsibility to provide a safe workplace for their employees. Conducting criminal background checks can help identify any potential threats to the workplace safety.

**How can employers conduct background checks?**

Employers can conduct background checks in several ways. They can hire a third-party background check company or conduct the check in-house. Here are some options:

1. Hire a third-party background check company: There are many background check companies that employers can hire to conduct background checks effectively and efficiently. These companies use different verification methods and can customize the checks based on the job requirements.

2. Conduct the check in-house: Some employers prefer to conduct background checks in-house to save money. However, this requires a lot of resources, including the expertise to conduct the checks effectively.

**What are the legal requirements for conducting background checks?**

Employers need to be aware of the legal requirements for conducting background checks. The requirements vary depending on the country and state. Here are some important legal considerations:

1. Follow the Fair Credit Reporting Act (FCRA): In the United States, the FCRA sets guidelines for background check companies. Employers need to follow these guidelines while conducting background checks.

2. Get written consent: Employers need to get written consent from candidates before conducting background checks. The consent should be separate from the job application.

3. Avoid discrimination: Employers need to follow anti-discrimination laws while conducting background checks. They cannot discriminate against a candidate based on their race, gender, or religion.

**Real-life examples**

Here are some real-life examples where employers used background checks:

1. Uber: In 2018, Uber conducted criminal background checks on more than 1 million drivers. The company implemented a continuous background check system, which alerts Uber if a driver is charged with a crime.

2. Walmart: In 2020, Walmart announced that it would stop using criminal background checks for some job positions. The company said that it wants to provide opportunities for people who have been convicted of minor offenses.

**Conclusion**

Background checks are an essential part of the hiring process. Employers can use background checks to mitigate risk, protect their reputation, and ensure workplace safety. Employers need to be aware of the legal requirements for conducting background checks to avoid liabilities. By conducting thorough background checks, employers can make hiring decisions with confidence.