The hiring process starts with tapping into a professional network, collecting resumes, getting potential employees on board, and then the final interview, which is the last step. However, more often than not, there’s one more step before an employer hires: a background check.

Not every employer runs employee background checks, and most aren’t required to. Nonetheless, employers use them as a tool to verify information-like education and past employment-and check criminal records, employment history, and more.

It might sound intimidating, but these are a normal part of the hiring practice, and knowing what employers look for in a background check might help in providing a clearer picture.

Index What is Background Verification? Why do employers opt for background verification? How does background verification benefit employers? How do employers conduct background verification? Conclusion F.A.Qs

What is Background Verification? 

An employee background check is a formal process that verifies personal and professional information. Employers either through a third party or in-house-investigate identity, work history, education, social media, criminal record, and any other relevant information according to the job’s requirements. 

Employers are legally allowed to require background checks, companies can’t conduct a check based on race, disability, or citizenship, and they have to give potential employees a formal notice stating they might use the background check information for a hiring decision. 

Why do employers opt for background verification?  

Hiring is a vital process in team building and each employee adds to the growth of the organization. Similarly, wrong hiring can cause damage to the company's image and disrupt the environment. This is why conscientious companies opt for background verification yet, the scope of what a background verification might reveal varies greatly depending on the employer's requirements, the type of job, industry regulations, and federal and provincial laws. Here's an overview of what a typical background check might reveal:

• Criminal History
  Employers want to ensure a safe working environment for all employees. Knowing the criminal history of potential hires helps assess whether they might pose a risk to others in the workplace.
  For example, people with violent criminal histories or those involved in workplace crimes might be considered risks. Still, many employers take into consideration the nature of the crime and whether the job candidate received a criminal conviction. Alternatively, it's essential to keep in mind that various industries require a clean record. For instance, jobs in finance, healthcare, education, or caregiving.
  
  
• Education Verification
  Through education verification, employers want to ensure that the information provided is accurate and truthful. It's a crucial step in evaluating qualifications and honesty. It can also influence compensation decisions. Additionally, many employers verify education credentials, and some go the extra mile by asking to show certificates of achievement or awards. If a candidate has been honest while giving information about themselves, then this check shouldn’t be worrisome. 
• Drug and Alcohol Levels
  A background check for employment may include a drug and alcohol test, but this depends on the employer's policies and the nature of the job. This testing is often separate from the standard criminal, education, and employment history checks that comprise most background checks. Drug and alcohol testing is more common in industries where safety is a critical concern, such as transportation, healthcare, law enforcement, and manufacturing.
  
  
• Credit History
  Employers typically look for insights into a potential employee’s financial responsibility and reliability. When employers conduct a credit check, they can typically review information including payment history, credit history, and credit inquiries. Having subpar credit isn't typically a deal-breaker unless applying for a financial position or a job that requires handling money, yet it does reflect on an individual’s sense of responsibility. Another instance where credit history might be of interest to employers is if the job allows access to the business's finances.
  
  
• Driving Records
  If a job offer requires driving on the job, an employer may run a motor vehicle record check. Employers will be able to check if the candidate has an active driver’s license. They can also check driving history, including any accidents, convictions and violations. 
  
  
• Employment History Check
  As part of a background check, employers may contact past employers to confirm the dates of employment and find out the employee’s previous salary and the reason for leaving.
  
  

How does background verification benefit employers?  

Background checks offer a wide range of benefits to employers. They help hire the right staff and contribute towards the overall success of an organization, whether that means higher profits or improved reach. Listed below are 5 key benefits of background verification for employers: 

1. Enhance Job Applicant Quality
   Adopting pre-employment front and centre at the recruitment stage discourages people who hope to hide serious issues. This strategy also encourages applicants to submit accurate and authentic resumes removing any discrepancies & misstatements. Candidates with a genuine background and verifiable qualifications come forward, attracting applicants who feel encouraged by the fact that an employer is thorough and values honesty and integrity. The flip side of this initiative deters poor candidates or applicants with something to hide in their employment history or personal record. Either way, these screenings increase the quality of job applicants.
   
   
2. Avoiding Negative Publicity and Cost to the Company
   Dishonest staff could cost an organization, damaging its reputation and incurring negative publicity. There may also be financial losses resulting from bad press due to a rogue employee. Background checks verify employment records and discover illegal or criminal activity that applicants may otherwise hide from view. Vetting all aspects of a prospective employee makes all the difference between a good and a bad hire.
   
   
3. Ensuring a Safe Workplace and Staff Security
   Employers are responsible for providing security to their staff, this also includes the selection and behaviour of other staff members, which can affect workplace safety. If it comes into the limelight that an organization has been responsible for negligent hiring, there could be serious legal repercussions. To combat such scenarios it is important to make informed hiring decisions through background checks. 
   
   Background checks reduce the risk of a negligent or bad hire and protect companies from liability lawsuits. They allow employers to make the right decisions with all the information necessary about an applicant’s poor employment record or personal issues.
   
   
4. Preventing Employee Dishonesty
   Employee fraud results in an average loss of 5% of annual revenue. The numbers are even more alarming for small companies, which face 28% higher chances of fraud loss and 30% of business failures. Besides the financial cost, employee dishonesty negatively affects staff morale, productivity, and company reputation. For financial and company culture reasons, it’s not worth bringing on dishonest workers, hence pre-employment background checks can help employers hire better employees. 
   
   
5. Reducing Staff Turnover
   Hiring staff and taking time to train and upskill them is expensive.  Not only that, but a high staff turnover sends the wrong message about a company and will put off the caliber of people one should be attracting.  Auditing and adjusting recruitment protocols to select quality staff is one of the known fixes for high staff turnover. Far better to get it right in the first place and invest in the right people, by recruiting after pre-employment background checks. 
   

How do employers conduct background verification? 

Companies often conduct professional background checks with third-party organizations. Larger organizations might also conduct them internally. Here’s more about each method and how it works:

• Third-party background checks
  Third-party businesses like Check Xperts help employers research potential employees. If an employer chooses this route, they’re legally required to notify employees, in writing, so they can give written consent. The notification should clearly outline what information employers are looking for and why.
  
  
• In-house background checks
  An employer might have designated staff in human resources (HR) to check an employee's background, but this isn’t as common because it’s easier to outsource the task. Employers might also conduct screenings, where they check employee’s social media, education, and work history independently. This is different from a background check because it’s less formal and doesn’t include a criminal record. A potential employer isn’t required to notify before conducting a screening unless they use a third party. 

 

Conclusion 

Conducting a background check is relatively hassle-free and involves minimal cost. However, employers must put in a lot of time in manual work to individually reach out to the concerned authorities and acquire and validate the information provided by a candidate. Ideally, such a process requires several weeks of consistent effort. 

Check Xperts mediates the mentioned issue and saves employers from hours of manual work making the hiring process affordable and hassle-free for companies of any size while eliminating all related risks. 

F.A.Qs 

1. Do employers check my social media before hiring?
   Yes, many employers review candidates' social media profiles as part of the hiring process to gain insights into their character, preferences and professionalism. However, this practice must comply with privacy laws, and employers are typically required to inform candidates if social media will be considered in their hiring decisions.
   
   
2. Does employment verification include reasons for leaving?
   Yes, employment verification often includes asking previous employers about the reasons for a candidate's departure. Why they might have left a previous job may be very relevant information for a prospective employer. This helps employers understand the candidate's work history and any potential issues that might impact their suitability for the new role.
   
   
3. Does the background check show termination? 
   Yes, a background check can reveal if a candidate was terminated from a previous job, particularly if the prospective employer contacts past employers directly during employment verification. This information helps employers assess any concerns related to the candidate's employment history and reasons for job changes.