Tips to Remember When You Conduct an Employment Background Check

Before you hire an employee, it is imperative that a background check is carried out. Although most HR professionals do conduct these checks, at times they may not be conducted properly. In such cases, your organization will end up hiring individuals who will adversely affect the growth and environment of the company.

Background checks may sound like a simple procedure, but it is not. There are several factors that should be paid attention it, else it can result in a lawsuit for negligent hiring. Hiring an employee without conducting appropriate background checks could place the lives and work of existing employees in harm’s way. The following are the top four tips that you should consider when you conduct a background check on a potential employee.

employment background check

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Adhere to FCRA Regulations

One of the standard ways to conduct a background check is to investigate an employee candidate’s credit history. This will give you an adequate picture of whether the candidate is financially stable. But, this cannot be done on the whims and fancies of a recruiter. To protect employees, there is a regulation known as the Fair Credit Reporting Act that employers have to adhere to while conducting a background check.

Credit checks can be conducted only for valid reasons such as promoting, firing, hiring or reassigning an employee. This means that unless there is a business interest, it is illegal to conduct credit checks. Another stipulation regarding financial checks is that employers can go through with it only if they have a written consent from the candidate.

Contact and Confirm References

Every organization requires candidates to provide references which can be a previous employer or anyone who can confirm the ability of the candidate in regard to a particular job. As a recruiter, it is important to contact the individuals given as references as it will give you a clear idea of what they are like in a business setting.

More often than not, employers neglect checking all of the references. This is an important part of recruitment as you can never know whether the details given are accurate or not. Confirming and contacting the references provided in the resume will allow you to verify the employment details and working behavioural pattern of the candidate.

Maintain Consistency with Background Checks

Conduct the same type of background checks on all the candidates rather than providing preferential treatment to some. A failure to do so could result in a lawsuit of employment discrimination. For instance, if you carry out a credit check on one candidate and not another when both are vying for the same position, it could land you in a spot of trouble.

Establish a Rapport with a Potential Employee

Although you can conduct several background checks, make sure you establish a rapport with the candidate beforehand. At times, issues that can provide a potential reason for rejecting a candidate can be cleared with simple explanations. These can be documented for proof if the candidate has the ability and the qualifications required for the job.

About the Author: Penny is an expert associated with CV Insight, which provides guidelines on how to vet candidates. The site provides information on how to perform background checks and the regulations attributed to them.

The Importance of Background Checks

The increasing competition amongst candidates is causing many to lie on their resumes, a step potentially dangerous for any business. Performing background checks on future employees is an essential step that all organisations must take to ensure that their business is protected against theft and fraud.

Failure to perform such checks can lead to several legal complications and cost your company a lot of money in the long run. Investing in thorough employee checks today can help you save substantial long term costs.

background checks

Potential risks of negligent hiring

As many organisations are in a hurry to hire professionals, experts advise businesses to take background checks seriously. Some of the most common facts that are tweaked in a resume include education level, university attended, job responsibilities, skill levels and previous salary drawn. Most candidates include falsified information in their resume to either gain advantage over other candidates or to mask their intentions. The risk of employee fraud increases if the hiring company fails to conduct its due diligence.

Negligently hiring employees could result in violence and assaults at the workplace. It also increases the risk of employee turnovers and job related accidents. Any liability charges filed because of the employee’s actions may cost the company millions owing to negligent hiring. The possible influence of drugs and alcohol can tamper employee productivity, leading to more losses. Theft and fraud committed by employees can cause a company millions. It is estimated that embezzlement costs companies billions each year.

Responsibilities of the employer

The potential risks of hiring an employee without performing thorough checks can be damaging to a company and its reputation. As an employer, it is your responsibility to know your employee. Employees with past accounts of violent incidents, alcohol and drug abuse and criminal records should be carefully dealt with. Any damage caused by an employee’s known or unknown past record will make the company liable.

If an employee has a past record of negligent driving or drunk driving, the organisation should not allow him/her to use company cars. Similarly, candidates with a history of violent outbursts are not suited for client interaction or personalised home visits. It is every employer’s responsibility to learn of any undesirable traits the candidate may possess. Performing a background check on an employee is not considered a violation of privacy.

Using professional services

Instead of spending days on performing background verification, many companies opt for the services of businesses that specialise in gathering such information. Professionals in background checking offer concise and detailed reports regarding the authenticity of information provided on the resume and interview. Detailed background checks include clarification in criminal history, illegal activities, financial background, educational background, credit history, and reference verification.

Benefits of background checks

One of the biggest benefits of performing detailed background verification is the satisfaction of hiring a promising employee. Including productive employees in your company not only boost your revenue but also reduces employee turnover (the ratio of employees that were replaced in a specific time period). Background checks help candidates be more honest about their qualifications and create a transparent relationship between the employee and the organisation.

About the Author: Penny is an expert associated with CV Insight, a leading group of employment screening specialists. If you are looking for services like background checks on candidates, contact our professionals for helpful advice. CV Insight also specialises in screening your employees to help you hire qualified candidates.