What is an Employment Background Check?

You’re itching to hear back from that job you applied to, but then you remember you haven’t yet gone through the interview sessions, nor have you undergone an employment background check. What is an employment background check, anyway, and why is it essential for hiring?

An employment background check is a standard procedure that companies undertake to verify the background information of new hires and ensure that it is complete, accurate, and not misleading. It is an integral part of a hiring process that helps potential employers find the right candidate for the job and verify that the applicant is a trustworthy and reliable fit for the company.

Why Do Employers Use Background Checks?

In 2020, the average cost of a bad hire was $17,000 per individual, according to Human Resource Today. Companies want to minimize the likelihood of making such costly hiring mistakes and use background checks to get a better understanding of an applicant's past behavior and potential warning signs.

Employment background checks typically include verifying the candidate's educational background, employment history, credit scores, criminal records, and other personal data. These checks are classified into three categories: basic, standard, and advanced screening.

Basic Screening

A basic screening process, also known as a level-one check, is the most straightforward form of a background check. It involves verifying an applicant’s basic information, such as their social security number, address, and any historical names used. Basic screenings may also include checks for bankruptcy, liens, motor vehicle records, and a domestic database search. These checks usually cost between $20-$50.

Standard Screening

A standard screening process, or level-two check, is more in-depth than a basic check and may include the applicant’s educational history, job history, driving record, and any credential verifications. These checks are necessary for higher-profile jobs in sectors like education, health care, and finance. They may also include criminal history checks, government watch-list checks, and drug tests. These checks typically cost $50-$150.

Advanced Screening

An advanced screening process, known as a level-three check, is the most comprehensive background check option. It includes everything from the basic and standard checks and may include more in-depth reviews, such as credit checks, education verification, professional license checks, global watch-list checks, and more. Advanced screenings are recommended for applicants who need a Top Secret or Secret Security Clearance. These checks typically cost $200-$400.

What do Employers Look for During the Background Check?

Employers want to learn as much as possible about potential employees, primarily their employment and educational history, criminal records, credit history, and professional licenses. They also look for red flags that might indicate the applicant may not be a suitable fit for the job, including bankruptcy, fraud, substance abuse, and negative social media exposure.

Employers must be compliant with federal, state, and local laws during the background check process. The Fair Credit Reporting Act (FCRA) outlines guidelines and requirements that employers must follow, such as providing applicants with written consent to conduct a background check and giving them a copy of the report.

How Can Applicants Prepare for a Background Check?

It can be daunting to realize your potential employer will check every aspect of your past, documents, and work history. However, there are steps you can take to prepare for an employment background check, including:

1. Verify your identity. Double-check your name, social security number, and date of birth on all applications and documents you submit to ensure everything is correct.

2. Gather the necessary documents. Collect and compile all your necessary documents like college transcripts, diplomas, and certificates to ensure accuracy.

3. Be honest. Don’t risk lying on your application. It’s better to be transparent about past issues than to get caught in a dishonest web of lies.

4. Clean up your digital footprint. Google yourself and take down any compromising pictures, controversial posts, or any other material that could raise questions from a potential employer.

5. Be proactively communicative. If there are skeletons in your closet, disclose them to your potential employer before they show up in the background check results.

Are Background Checks Flawless?

While background checks can raise red flags in the hiring process, they’re not entirely mistake-proof. Sometimes, errors occur in the process, leading to applicants being labeled as high-risk candidates when they’re not. For example, a wrongly reported criminal background check or a mismatched identity can be common errors. It’s important to stay vigilant and appeal these errors if they ever occur.

In conclusion, employment background checks are critical in the hiring process as they reduce the risk of hiring a candidate who falsified their work history, education, or any other critical information that could affect their ability to perform the job.
Yes, these checks can be extensive and thorough, but they serve a necessary purpose in ensuring companies protect their resources and hire reliable and trustworthy employees. As an applicant, it’s vital to prepare accordingly, remain transparent, and know your rights when it comes to background checks.