Background Checks in HR: Why They're Important

This post was updated in August, 2019

Anybody who pursues a career in HR will come across the concept of background checks at some point. Many businesses run background checks on potential new talent before extending an offer letter to see if candidates have any serious criminal or financial issues before writing an offer letter.

Even the most extensive application process doesn’t validate any employment or education experience without some deeper digging. The phrase “trust, but verify” is a great mentality to have when approaching the hiring process. HR departments large and small can still make mistakes. That seemingly perfect candidate with suitable skills and experience can turn out to be a sharped-tongued liar. 

By running simple background checks on your employees, you can ensure every hire you make is a great fit and decrease your turnover rate in no time. Not convinced? Read on.

Background screenings save you money, time, and stress

Today’s hiring market is extremely competitive, and once a qualified candidate accepts your job offer, it can feel like a blessing. Unfortunately, some job applicants falsify information on their resumes and applications. 

Weeding out hazardous candidates during the onboarding process saves you time, money, and the stress that otherwise come with an ill-fitting employee. At best, your new employee exhibits some enthusiasm for their new position before they see what the bare minimum is to keep their job. At worst, they’ll engage in time theft or even workplace violence. Combining a verified background screening with a structured onboarding process ensures your new hire is who they claim to be and that they fit well into your company culture. 

Make smarter hiring decisions during the onboarding process

Any job that involves working with children, cash, or sensitive information is a no-brainer for running background checks on employees. But companies in other industries can still benefit greatly from a thorough background check. If you work with a company like Verified First, like Dominion does, you have the option to tailor the report to information pertinent to their position and your company culture. In fact, we include an option during our Onboarding process that let’s employers run background checks within our onboarding software. With Verified First, you can build a package that’s perfect for your business and gather the information you want to ensure you’re hiring the best possible candidate.

Stay ahead of the curve 

Popular opinion has shifted on certain background-related questions during the interview and screening process. In many states it is now illegal to ask about a candidate’s current or former salary history. The laws aim to end the cycle of pay discrimination and give all candidates the chance to earn a salary based on their true competencies and experience. 

Public opinion, along with state law, has eased on the use of recreational marijuana. Now legal in 11 states, employers need to consider how they handle a positive drug test for marijuana if the drug is legal to use in the states where their employers work. Background screening agencies can’t make these decisions for you, but they can keep you abreast of the latest legalities and trends in the screening process. 

Maintain privacy for all candidates

For employers who are concerned about invading a candidate’s privacy, remember that the Fair Credit Reporting ACt (FCRA) puts standards in place across the nation to mandate what information cannot appear in background checks. Some examples of what is excluded include:

  • Bankruptcies - After ten years

  • Civil lawsuits and records of arrest - After seven years

  • Paid Tax Liens - After seven years

  • Accounts placed for collection - After seven years

  • Other negative information besides criminal convictions - After seven years

*For jobs with an annual salary greater than $75,000, these restrictions do not apply.

Keep the following in mind

There are a few important things employers should know if they’re going to run background checks on their job candidates. Employers have to ask for a candidate’s consent before running the report and inform the candidate that the results may affect whether or not they receive the job. This notice must be in writing, not in the employment application. Additionally, you’ll want to make sure that the report is conducted from a certified and respectable screening company, such as Verified First.

Finally, keep in mind that the Equal Employment Opportunity Commission (EEOC) makes it illegal for you to discriminate against job candidates because of information related to the candidate’s race, national origin, sex, religion, sexual orientation, age, or any other genetic information that is gleaned from the check cannot be a factor in the decision-making process.


 
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