What Is A Background Check? (2024)

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A background screening or background check is a deep dive into the history of a candidate. The background check uses third-party resources to look into public records, law enforcement, credit bureaus, academic records and previous work history. Employers generally pay a flat fee for a comprehensive background check that can take several days to complete.

Among other things, a background check can uncover information about an individual, such as employment history, criminal records, credit history and more. The purpose of a check can be to confirm that an individual is who they say they are, uncover any potential conflicts or a combination of both.

More than ever, business owners must trust employees with the keys to the kingdom. That might sound like hyperbole but think about it this way. An employer who hires someone to handle cash will want to know that the person doesn’t have a criminal history. Other scenarios include employees who are given access to trade secrets and proprietary data—you want to be able to trust that the employee will properly handle themselves, given the nature of the information.

A background check is no guarantee you’ll get the right person, but it is a step in the right direction to better understand who you are hiring.

If an employer doesn’t conduct a background check, the only information they have to go on is the information provided by the employee. This can be lacking for obvious reasons—people want to put their best foot forward and don’t want to disclose negative information.

You found a candidate that you like. The next step is running a background check to see if there is anything in their history that will change your impression of them. It is important to ensure that background checks are run consistently among candidates to avoid human resources violations. Because background checks cost money, many employers wait until a candidate is offered a job to run the background check. Here are some simple steps to follow.

1. Make an Offer

   Screen applicants and find the one whom you really like and to whom want to extend a job offer. Make the offer in writing as conditional employment. By waiting to do the background check until you make an offer, you have a clear threshold of who gets screened and who doesn’t. It’s not arbitrary.

2. Explain the Screening

   ProcessExplain to the prospect that a background check is required and that the information discovered in the background check is reviewed as part of the applicant’s screening for employment. While all notices should be on the consent form, review with the applicant what information is obtained and how you review it. This is also a good time to ask the applicant if there is anything in their background that they’d like to disclose so that there are no surprises and they have a chance to explain their side of the story.

3. Obtain Consent in Writing

   Inform the candidate that the next step for them to sign an authorization for the background check. This includes authorization for a credit check so that you follow the laws set forth by the Fair Credit Reporting Act (FCRA). The authorization must notify applicants that a third-party screening will be conducted and what is involved.

   A sample is offered by the state of Texas, but check with your legal team to ensure you are complying with all applicable laws. As the example shows, the consent form doesn’t need to be long to be effective. If the prospect refuses to sign the consent, that is their prerogative, but you then must notify them that their application will not be processed further if that is the case.

4. Be Consistent on Who Is Screened

   This can’t be iterated enough because you want to comply with human resource laws. For example, the Equal Employment Opportunity Commission (EEOC) provides guidance on looking at criminal history when making employment decisions. All employment decisions must be related to job-related duties. For example, you might withdraw the offer for a company driver if the person has too many tickets on their driving record.

5. Work With a Legal Team if Necessary

   If you decide not to offer employment based on the background check you must provide a notice of adverse action. This needs to be done properly and be based on facts. Talk to a lawyer about what steps you need to take to properly notify the applicant of an adverse action. This generally includes a letter that cites the reason found in an objective and concise fashion.

Bottom Line

Background screenings are a necessary tool that helps employers get a complete understanding of the candidate they are thinking about hiring. It discloses information that generally won’t be disclosed in an interview or on an application. Background checks can be done to verify employment history, academic history, credit history and criminal history.