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It is important for business owners to not only understand the resources available to them to hire the right candidates, but they also need to know how to use them. Employee background checks help employers narrow down the pool of candidates to the most deserving individuals. Read on to learn more about background checks, why they’re important, what they’re involved in, and how to do them.
Table of Contents
Publisher Summary:
- Employee background checks help verify a job applicant’s identity, work history, and education and may reveal any past criminal activity or breach of contract.
- Some employers wait until the conditional job offer stage to conduct employee background checks. Check your state’s laws to see when you can ask about an applicant’s criminal history.
- To perform an employment background check, you typically need the applicant’s full name, social security number, and date of birth.
- You may be asked to provide consent to obtain an applicant’s credit report and other documents, such as school transcripts, under the Fair Credit Reporting Act (FCRA).
- It can take 48 hours to five days to receive employee background check results.
What are employee background checks?
A background check is an assessment method that employers use to determine the validity of the information that job applicants provide in their job applications. It highlights any potential warning signs to a candidate before further consideration for a position.
According to a 2019 study, 86% of employers conducted employee background checks on full-time employees and 67% on part-time employees. These checks include criminal background checks and social security number searches. Nearly 60% only conduct checks during the hiring process, while 11-12% do so by law or for other reasons. Some companies wait until the conditional job offer stage to complete their screening, and depending on the type and extent of the test, waiting time and cost are two of the challenges employers face. used in this process.
Benefits of a Business Background Check
Employers conduct background checks to ensure they select the best candidates to contribute to their business. They also need to ensure they are protecting their business from people engaging in fraudulent or reckless behavior in the workplace.
In addition to minimizing the impact of disastrous hiring, compliance with state and federal regulations is a major benefit. It depends on the industry and type of position, but you can use a background check to show you’ve done your due diligence. Good record-keeping is essential, and it is your responsibility to demonstrate that your business complies with regulatory standards so that it does not lose credentials or reputation.
Finally, background checks improve safety in the workplace. In 2018, workplace fraud was 21%, double that of 2002. Accidents and workplace violence are also reduced thanks to this process.
What you need to complete the Job Background Check
The basic information you need is the applicant’s full name, social security number, and date of birth. You may need permission to obtain a potential employee’s credit report and other documents, such as school transcripts, and you may also request a social media ID to check eligibility and the candidate’s online presence.
Here are some of the factors the background check reveals:
Social Security Check
By checking the validity of an applicant’s Social Security Number (SSN), you confirm and determine if they are honest about his identity and that he has the right to work in the country. You can access your Social Security records through the Department of Homeland Security or the Social Security Administration.
Criminal Records
You may need to look for evidence of a criminal record to ensure that applicants have not previously engaged in fraudulent activity or are currently under arrest warrants.
Drug testing
Drug testing can be an essential part of the background check process to prevent workplace productivity shortages and increase employee turnover.
Credit Check
Credit Check allows you to verify small information about an applicant, such as name, address, and contact details. Credit checks can also help you determine their level of liability for the amount. This is important, especially if they are applying for a finance position or a role that requires money management.
Work history
Background checks also verify employment history. Something as simple as an Internet search can confirm or deny a company’s validity and a candidate’s qualifications.
Motor Vehicle Records
If applicants are required to drive as part of their job, it may be necessary to review motor vehicle records to check for violations of poor driving habits, speeding, or driving while intoxicated.
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