What Shows Up On A Background Check, And How They Help Make Informed Hiring Decisions

Employers conduct background checks for various reasons, but the overarching goal is to make informed decisions about potential employees. Vetting the candidate becomes particularly crucial considering how employees - even those who handle upper-management positions - lie about their experiences and qualifications. Here, we’ll discuss why screening is an integral part of hiring and what shows up on a background check. 

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Why Employers Should Never Skip Background Checks

One of the most important reasons employers should conduct due diligence is to be in compliance with the laws. For example, Right to Work Checks are their legal obligation to ensure that they are not employing illegally. Depending on the regulations, employers must also run certain checks to safeguard the safety of their employees and clients. 

In general, small businesses and huge companies alike should never skip background checks because they:

Establish the candidate’s suitability for the position

By scrutinising a candidate’s experience, credentials, and qualifications, background checks validate the accuracy of information provided in resumes and interviews. This is especially pertinent for roles that require specific skills, certifications, or a particular educational background.

Protect the company, clients, customers 

Background checks contribute to safeguarding the company's reputation by mitigating the risk of employing candidates with a history of unethical behaviour or criminal activity. Conducting due diligence helps businesses create a secure environment for both their workforce and external stakeholders.

Reveal personality and fit with company culture

Background checks offer insights into a candidate's personality, work ethic, and overall cultural fit within the organisation. Identifying red flags in a candidate's history, such as patterns of interpersonal conflicts or ethical lapses, helps employers make informed decisions that align with the company's values and dynamics. 

Prevent costly mistakes and high turnover rates

Reports mentioned that the cost of employee turnover, which can result from bad hiring decisions, can be as much as twice the candidate's annual salary. This includes expenses related to recruitment, onboarding, and lost productivity during the transition period. Beyond turnover costs, hiring individuals who are not well-suited for their positions can lead to serious mistakes that may prove costly for the company. 

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What Shows Up on a Background Check?

What shows up on a background check depends on the types of checks you want to conduct. Usually, this depends on the industry and specific role, but in general, the following information shows up on a background check for employment. 

The candidate’s government name

Through identity verification, the employers can determine details such as the candidate’s government name and social security number. ID verification aims to ensure that the individual being considered for a position is who they claim to be. It is crucial because it serves as the foundation for all the other checks you want to conduct. 

If you’re hiring globally, you might want to consider partnering with an expert background screening platform like Veremark since the verification may be more challenging due to diverse identification standards, language barriers, and fraudulent documentation.  

Their credit score

A candidate's credit report, which is a part of adverse financial history check, can reveal vital insights into how an individual manages their finances. Red flags such as excessive debt, bankruptcies, or a history of financial irresponsibility can be indicative of a candidate's lack of reliability, especially for positions that involve handling financial matters and confidential information.

Past civil cases and pattern of criminality

Conducting criminal history and civil litigation checks is crucial to safeguard company assets as well as client and customer safety. 

However, the approach to checking criminal history may vary from country to country, so it’s important to comply with local regulations.

In the UK, for example, there are four levels of Disclosure and Barring Service (DBS) check, which is their criminal history check. In most cases, employers are only allowed the Basic Check. 

Likewise check for "ban the box" laws that restrict inquiries into an applicant's criminal history until later in the hiring process.

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The candidate’s educational attainment

Instances of individuals fabricating their educational background are not uncommon, even among executives. Background checks play a vital role in verifying the accuracy of educational credentials, ensuring that candidates possess the qualifications they claim.

In Singapore, for example, diploma fraud is a common problem. As a result, The Ministry of Manpower has accredited expert background check providers, including Veremark, to conduct Educational Verification for employers. 

Their employment history

Employment history checks, coupled with reference checks, offer a comprehensive view of a candidate's professional background. This can help identify any inconsistencies and provide a clear picture of the candidate's work experience.

In Some Cases, Additional Background Checks May Be Necessary 

There are situations where additional verification is required. What does a background check include in these instances? 

Health and Drug Screens

Certain roles, especially those involving safety-sensitive tasks, may require health and drug screenings to ensure that candidates are physically and mentally fit for the responsibilities at hand.

Driving History

For roles that involve driving, checking a candidate's driving history is essential. This helps employers assess the candidate's ability to operate vehicles safely and responsibly, minimising risks associated with company-owned vehicles or job-related travel.

Social Media Screening

Employers may also need to check a candidate's online presence to evaluate professionalism, cultural fit, and potential red flags. This is especially important if the candidate being considered will publicly represent the company should they be hired. 

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Best Practices when Conducting Background Checks

Besides what shows up on a background check, how you can conduct the screening is also important. Below are some of the best practices when running the checks:

Comply with the laws and regulations

Employers must stay informed about relevant laws and regulations governing background checks in their jurisdiction. Compliance is essential to avoid legal complications.

Streamline the process

Efficient background check processes help minimise delays in the hiring timeline. Employers should aim for a balance between thoroughness and expediency, so it might be best to use HR software that caters to hiring and recruitment. 

Consider outsourcing

Given the intricacies involved, many organisations opt to outsource background checks to specialised agencies. This ensures a comprehensive and compliant process conducted by experts in the field.

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What's Next After Background Checks?

After conducting and receiving the results of background checks, the employers must still take some necessary steps, such as Adverse Action Notice and Adjudication. 

If a candidate is adversely affected by the information uncovered in a background check, the employer must provide an adverse action notice, allowing the candidate an opportunity to dispute the findings. Note that this is usually an employer’s legal obligation, so skipping this step may be punishable by law. 

The final step involves adjudication, where employers assess the gathered information in the context of the job requirements and make a well-informed decision about the candidate's suitability for the role.

Trust Veremark for Your Pre-Employment Background Check Needs

If you want to stay compliant with the relevant laws and regulations and better streamline the process of recruitment and hiring, trust Veremark for your background check needs. 

With Veremark, you simply need to provide candidate details and order the checks you want to conduct.Trusted by the world’s best workplaces, our process is fully-automated and can seamlessly integrate into your current system. 

We have the specialised knowledge and resources required to conduct thorough, compliant, and efficient checks so you can make strong hiring decisions.

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