Introduction

Prior to hiring an employee, companies perform background checks to ensure the candidate is suitable for the job. Background checks include a thorough examination of an applicant's criminal history, education, and employment history, as well as credit checks and more. An employment background check is used by employers to verify information provided by the candidate and to ensure that the candidate meets the required criteria for the position.

What is an Employment Background Check?

An employment background check is a process through which employers verify information given by a potential employee. The investigation is conducted with the goal of finding out whether the candidate meets the requirements for a specific job. Employers usually hire a third-party background screening company to conduct the investigation and deliver a report detailing their findings.

When is an Employment Background Check Conducted?

Employers will conduct an employment background check before offering anyone a job, particularly in roles that require high trust and responsibility and require a lot of interaction with customers or handle sensitive data. Other roles that typically undergo background checks include finance and health care roles.

What Does the Employment Background Check Cover?

Employment background checks involve a number of areas of inquiry into the candidate’s background. Some of these areas include:

1. Criminal History Check: Employers conduct criminal history checks to verify that the candidate does not have a criminal record. Depending on the job and the company, the check covers federal, state, and local criminal records, as well as sex offender registries.

2. Employment Verification: Employers verify the candidate's employment history to ensure they're truthful about their previous positions and work experience. This information includes a candidate's job title, start and end dates, salary information, and reasons for leaving each job.

3. Education Verification: Employers verify the candidate's educational background to ensure they have the qualifications and skills listed on their resume or cover letter. Verification also includes verifying that the candidate's degrees and transcripts are genuine.

4. Professional Reference Check: Employers will use references to verify previous work experience and obtain outside perspectives of the candidate's work style, communication, and general character. However, it is important to note that references may be partial since they're provided by candidates themselves.

5. Credit Check: Credit checks are often required in jobs that have access to large amounts of money or sensitive information. Credit checks inform the company of any existing debts, bankruptcy, or other financial issues, which might be a red flag, particularly in financial roles.

6. Drug Tests: Employers also conduct drug tests to verify that a candidate does not use drugs.

How can employers use an employment background check?

1. Compliance with laws and regulations: Employers perform background checks to comply with legal requirements. For instance, employers may require candidates to pass a criminal history check before working in certain industries such as banking, healthcare, or government.

2. Determine eligibility for employment: Employers perform a background check to assess a candidate's eligibility to work in a company. This includes verification of education, work experience, and criminal background, as well as other relevant factors.

3. Reducing the risk of criminal activity and other liabilities: Employers use background checks to ensure that candidates are trustworthy and have no criminal history that might affect their job performance. This is important in roles that require access to sensitive information, financial transactions, or positions of high trust.

4. Protecting the company’s reputation: Conducting background checks helps protect companies from the risk of negative publicity and litigation. Negligent hiring can expose employers to risks like lawsuits, theft, and criminal activity as well as reputational damage.

Conclusion

Employment background checks play a critical role in helping employers determine the suitability of candidates for various roles. The checks also protect the company's reputation and mitigate the risks of criminal activity, theft, and fraud. Therefore, the process of conducting background checks in screening candidates is beneficial for both the employer and the potential employee, in ensuring a safe and productive work environment.