Hiring the right employees is crucial to the success of any business, and conducting background checks is an essential part of the hiring process. However, it's important to understand the dos and don'ts of conducting background checks to ensure that you're not violating any laws or infringing on the privacy of potential employees.
In this article, I'll be sharing with you the dos and don'ts of conducting background checks on potential employees. From the legal considerations to the best practices, you'll learn everything you need to know to conduct effective background checks that are both legal and ethical.
So, whether you're a small business owner or an HR professional, read on to discover the dos and don'ts of conducting background checks on potential employees.
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The Legalities of Conducting Background Checks
Before you even begin conducting background checks on potential employees, it's important to understand the legalities involved. The first thing you need to do is ensure that your background checks comply with federal and state laws.
The Fair Credit Reporting Act (FCRA) is a federal law that regulates the collection, dissemination, and use of consumer information, including background checks. It's important to note that the FCRA applies to third-party background check companies, but it also applies to employers who conduct their own background checks.
To comply with the FCRA, employers must obtain written consent from the employee or applicant before conducting a background check. In addition, employers must provide the employee or applicant with a copy of the report and a summary of their rights under the FCRA. Employers must also take steps to ensure that the information obtained through the background check is accurate and up-to-date.
Dos of Conducting Background Checks
Now that we've covered the legalities, let's dive into the dos of conducting background checks on potential employees. Here are some best practices to keep in mind:
1. Be Consistent
When conducting background checks, it's important to be consistent. Develop a clear policy for conducting background checks and apply it to all employees and applicants. This will help ensure that you're not discriminating against any particular group or individual. This includes the adverse action process.
2. Verify Relevant Information
Make sure that the information you're verifying is relevant to the position the employee will be filling. For example, if you're hiring a driver, it's important to verify their driving record. If you're hiring someone to handle money, it's important to verify their credit history.
3. Be Transparent
Be transparent with employees and applicants about the background check process. Let them know what information you'll be verifying and why. This will help build trust and ensure that everyone is on the same page.
Don'ts of Conducting Background Checks
Now that we've explored the dos of conducting background checks, let's take a look at the don'ts. Here are some practices to avoid:
1. Don't Discriminate
It's important to conduct background checks on all employees and applicants equally. Don't use background checks as a way to discriminate against certain groups or individuals.
2. Don't Violate Privacy Rights
Make sure that you're not violating the privacy rights of employees and applicants. Only collect information that is relevant to the position and make sure that you're storing that information securely.
3. Don't Rely Solely on Background Checks
Background checks are an important tool, but they shouldn't be the only tool you use to evaluate potential employees. It's important to also consider their skills, experience, and fit with your company culture.
Types of Background Checks
There are several types of background checks that you can conduct on potential employees. Here are the top 20 background check services:
1. Criminal Background Checks
Criminal background checks are one of the most common types of background checks. They involve searching for any criminal convictions or arrests in the applicant's past. This check should include National, State, and local level.
2. Employment Verification
Employment verifications involves confirming the applicant's work history, including their job title, salary, and dates of employment. At GBS, we help conduct
3. Education Verification
Education verification involves confirming the applicant's educational background, including their degrees and certifications.
4. Credit History Checks
For positions involving financial responsibilities, a credit history check may be necessary to assess the applicant's financial stability and responsibility. By law, employers are not able to view your FICO score.
5. Driving Record Checks
For positions that require driving, a driving record check is essential to ensure the applicant has a valid driver's license and a safe driving history. Depending on the state and purpose these checks go back 3-7 years.
6. Professional License Verification
Professional license verification is necessary for positions that require specific licenses or certifications. This check verifies the applicant's license status and ensures it's valid and up-to-date.
7. Social Media Checks
A social media check can help assess an applicant's online presence, including their behavior and appropriateness on various platforms, which may impact the company's reputation.
8. Drug Screening
A drug test may be conducted to ensure the applicant does not have any illegal substances in their system, promoting a safe and drug-free work environment. If your require government regulated DOT drug testing, it's important to have a provider that provides compliant and user-friendly mobile ordering for your applicants.
9. International Background Checks
For applicants with a history of living or working in other countries, an international background check verifies their criminal, employment, and education history abroad, ensuring a thorough evaluation.
10. Reference Checks
Reference checks involve contacting the applicant's previous employers, colleagues, or other professional contacts to gain insights into the applicant's skills, work ethics, and overall fit for the position.
11. Civil Records Checks
Civil records checks provide insight into an applicant's involvement in non-criminal legal disputes, such as lawsuits or restraining orders, which can help assess their overall responsibility and potential risk.
12. Bankruptcy Checks
A bankruptcy check can be useful for positions involving financial decision-making or handling sensitive financial information. This check reveals any past bankruptcies filed by the applicant.
13. Workers' Compensation History
A workers' compensation history check helps identify any previous workers' compensation claims filed by the applicant. It can be useful for assessing potential risks and ensuring workplace safety.
14. Military Service Verification
For applicants with a history of military service, a military service verification check confirms the accuracy of their service record, including branch, rank, and discharge status.
15. Sex Offender Registry Checks
A sex offender registry check is crucial for positions involving interaction with vulnerable populations, such as children or the elderly. This check verifies whether the applicant is listed on any sex offender registries.
16. Healthcare Background Checks (FACIS Level I, II, III)
Healthcare Background Checks involve a comprehensive screening of healthcare professionals to ensure patient safety and maintain industry standards. The Fraud and Abuse Control Information System (FACIS) is a widely used system with three levels of screening:
- Level I: Checks for basic sanctions and disciplinary actions taken against healthcare professionals in their specific state.
- Level II: Includes Level I checks, plus searches for disciplinary actions taken against healthcare professionals in other states.
- Level III: Combines Level I and II checks and adds nationwide database searches, including OIG (Office of Inspector General) and SAM (System for Award Management) exclusion lists, to provide the most comprehensive healthcare background check. Order a FACIS Search Now
17. Adverse Media Searches
Adverse media searches involve scanning various online sources such as news articles, blogs, and social media platforms to identify any negative media coverage associated with the applicant. This check can help assess potential reputational risks and maintain a positive company image.
18. National Fingerprinting Services
National Fingerprinting Services provide a biometric-based background check that uses the applicant's fingerprints to search for criminal records in national databases like the FBI's Integrated Automated Fingerprint Identification System (IAFIS). This check ensures a high level of accuracy and security when searching for criminal records.
19. Company Background Checks
Company Background Checks are useful for businesses that are looking to establish partnerships, evaluate vendors, or conduct due diligence on potential acquisitions. These checks provide insight into a company's financial health, legal history, ownership structure, and overall reputation, helping businesses make informed decisions and reduce risks.
20. Volunteer Background Checks
Volunteer Background Checks are specifically designed for individuals applying for volunteer positions, especially in organizations working with vulnerable populations, such as children, the elderly, or individuals with disabilities. These checks typically include criminal background checks, sex offender registry checks, and reference checks to ensure the safety and well-being of those the volunteers will be interacting with, while maintaining the integrity and reputation of the organization. At GBS, we offer three Volunteer Background Check Packages
Factors to Consider When Conducting Background Checks
When conducting background checks on potential employees, there are several factors to consider. Here are a few:
1. Relevance
Make sure that the information you're verifying is relevant to the position the employee will be filling.
2. Accuracy
Take steps to ensure that the information obtained through the background check is accurate and up-to-date.
3. Fairness
Conduct background checks on all employees and applicants equally and avoid discriminating against any particular group or individual.
How to Conduct Background Checks Ethically
Conducting background checks ethically is important for building trust with employees and applicants. Here are some tips for conducting background checks ethically:
1. Obtain Written Consent
Obtain written consent from the employee or applicant before conducting a background check.
2. Be Transparent
Be transparent with employees and applicants about the background check process. Let them know what information you'll be verifying and why.
3. Protect Privacy
Make sure that you're not violating the privacy rights of employees and applicants. Only collect information that is relevant to the position and make sure that you're storing that information securely.
Common Mistakes to Avoid When Conducting Background Checks
When conducting background checks on potential employees, there are several common mistakes that you should avoid. Here are a few:
1. Failing to Verify Information
Make sure that you're verifying all relevant information, including employment history, education, and criminal background.
2. Discriminating
Don't use background checks as a way to discriminate against certain groups or individuals.
3. Violating Privacy Rights
Make sure that you're not violating the privacy rights of employees and applicants. Only collect information that is relevant to the position and make sure that you're storing that information securely.
Tips for Successful Background Checks
Here are some tips for conducting successful background checks on potential employees:
1. Use a Professional Service
Consider using a professional background check service like Global Background Screening, a tech-first screening provider for on-demand background checks for small to large businesses. They can help ensure that you're obtaining accurate and up-to-date information while complying with all legal requirements.
2. Be Thorough
Take the time to thoroughly verify all relevant information, including employment history, education, and criminal background.
3. Be Consistent
Develop a clear policy for conducting background checks and apply it to all employees and applicants.
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