An Important Guide for Hiring Managers on Background Checks

Understanding the Importance of Background Verification

Background investigations are vital to the hiring process, offering insights into a candidate’s history that may be absent from their resume or interview performance. 

These checks can verify a candidate’s credentials, uncover potential red flags, and help ensure a safe and productive work environment. 

Conducting thorough checks is not just a matter of due diligence for hiring—it’s the organization’s and its employees’ responsibility. 

Legal Considerations for Background Checks

Before delving into the process, it’s crucial to understand the legal landscape surrounding background investigations. 

In the United States, the Fair Credit Reporting Act (FCRA) governs many aspects of background checks for employment purposes. Additionally, various state and local laws may impose further restrictions or requirements.

Key legal considerations include:

• Obtaining written consent from the prospective employee before conducting a background check
• Providing a clear disclosure that a background check will be performed
• Following specific procedures if you decide not to hire based on background check results
• Comply with any applicable ban-the-box laws restricting when you can inquire about criminal history

Hiring managers should also work closely with their legal department or consult with employment law experts to ensure 100% compliance with all relevant regulations.

Types of Background Investigations

These checks can encompass various areas, depending on the position and industry. Common types include:

• Criminal history checks
• Employment verification
• Education verification
• Professional license verification
• Credit checks (for certain positions)
• Driving record checks
• Drug screening
• Social media screening

It’s essential to tailor the scope of your background investigations to the specific requirements of each position. A one-size-fits-all approach may need to be more efficient and expose the organization to unnecessary legal risks.

Best Practices for Conducting Employment Background Check

Here are a few of the most effective methods of carrying out a background investigation.

Develop a Clear Policy

Create a comprehensive, written policy outlining when and how the checks will be used in your hiring process. Ensure consistency in application to avoid discrimination claims.

Be Transparent

You must also communicate to prospective hires that a background verification will be part of the hiring process. Explain what information will be sought and how it will be used.

Obtain Proper Consent

Use a standalone disclosure and authorization form that complies with FCRA requirements.

Choose a Reputable Provider

Select an employee background check provider that meets legal requirements and industry best practices. Ensure they provide accurate, up-to-date information.

Individualized Assessment

If negative information is uncovered, conduct an individualized assessment. Consider the nature of the past offense, its relevance to the job, and how long ago it occurred.

Provide an Opportunity for an Explanation

If considering adverse action based on check results, allow the candidate to explain or dispute the information.

Maintain Confidentiality

Treat all background check information as confidential, sharing it only on a need-to-know basis.

Stay Current

Study and update your background check policies regularly to ensure compliance with applicable federal and state laws and best practices.

Interpreting Background Check Results

When reviewing these results, it’s crucial to approach the information objectively and in context. Consider these:

Relevance to the Position

Does the information uncovered directly impact the candidate’s ability to perform the job?

Recency and Frequency

How long ago did any concerning incidents occur? Is there a pattern of behavior, or was it an isolated incident?

Subsequent Rehabilitation

Has the candidate shown evidence of positive change since the incident?

Remember, the goal is not to find a perfect candidate but to make an informed decision about whether the individual is suitable for the specific role and your organization.

Balance Thoroughness with Efficiency

For managers, conducting a fast background check is a critical responsibility that requires a balanced approach. 

Remember, the goal is not just to screen out unsuitable candidates but to gain a comprehensive understanding of each potential hire, ensuring a good fit for both the position and your organization.