Background checks may be a standard part of hiring, but conducting this screening is often more complex than it seems. It requires balancing speed and accuracy with compliance requirements, which can change quickly and vary by state.
For employers, knowing some background check best practices can make all the difference. By following these guidelines, you can create a fair, efficient screening process that protects your organization and helps you bring the right people on board.
In this article, we’ll go over 10 background check guidelines for employers with helpful tips for building a screening program that works for your business.
10 Background Check Best Practices for Employers
While there’s no standard checklist for building a background screening program, there are some guidelines you can follow for a smoother, more efficient process. These guidelines can help you manage risk, maintain compliance, and create an optimized screening program for both your hiring team and your candidates.
Here are 10 best practices for background checks:
1. Create a Background Check Policy
Your company needs to have a clear, documented background check policy for screening applicants and employees. This policy is the roadmap you can use to perform background checks fairly and consistently.
A background check policy should include these elements:
- Types of background checks: A background check policy should explain what types of checks you’ll perform, including specific checks for different positions. For example, you may only run motor vehicle record (MVR) checks on employees with driving responsibilities.
- When to conduct checks: Some states and local jurisdictions have rules about when companies can perform background checks during the hiring process. Your policy should explain when you’ll do this screening. If you conduct post-hire monitoring, it should also detail how often you’ll perform this screening.
- How you’ll use the results: A comprehensive policy should include what information you’ll use to make hiring decisions, taking federal and local laws into account.
Once you have a written background check policy, make it accessible to anyone involved in hiring. Train managers on the policy so they’re familiar with the process. A thorough background check policy can lead to more transparent hiring practices.
2. Perform Relevant Checks
Not every background check returns the same information. You can choose from different types of employment background checks, which include:
- Criminal records: Standard background checks usually include criminal records, which can show misdemeanor and felony convictions and sex offender status.
- Employment verification: This type of screening verifies a candidate’s past employment, including job titles and employment dates.
- Education verification: Similarly, education verification confirms a candidate’s degree or diploma.
- MVR report: Common for driving-related roles, MVR reports provide information about driving violations, accidents, and related convictions, like DUI.
- License verification: For positions requiring licensure, this verification ensures candidates have the right credentials.
- Reference check: Background screening can include reference checks, which involve contacting a candidate’s professional references for additional information.
- Credit check: An employment credit report shows information about a candidate’s financial history. These checks do not include a credit score, nor do they affect candidates’ credit scores. Employers typically use these reports to evaluate an applicant’s responsibility and reliability, particularly for jobs that involve managing money or handling sensitive financial information.
Performing multiple types of screening checks can offer a complete picture of a candidate. At the same time, each screening you conduct should serve a legitimate purpose.
For example, there’s probably no need to perform an employment credit check on a warehouse worker who has no access to company finances. If you’re screening a healthcare provider, however, you will want to verify their education and licensure to comply with regulatory requirements.
3. Follow Compliance Guidelines
When you conduct background checks on applicants or employees, you must comply with federal, state, and local laws. At the federal level, the Fair Credit Reporting Act (FCRA) outlines employers’ responsibilities for conducting background screening. Specifically, the FCRA requires employers to do the following:
- Notify the applicant or employee about a background check in writing and get their written consent.
- Follow the adverse action process if deciding to take an adverse action, like denying employment, based on information in a background check report.
Many states and local jurisdictions also have their own laws related to background checks. For example, some states have “ban the box” laws, which specify when employers can run pre-employment criminal background checks. Make sure you know the local regulations in your area.
4. Choose a Background Screening Provider
Working with a background screening provider can make the entire process easier and more efficient. When searching for the best background check company for your business, take these factors into consideration:
- Compliance support: A screening provider should be well-versed in background check compliance. They should provide resources and support to help your business navigate complex requirements.
- Flexibility: Look for a provider that can customize background screening services for your company’s specific needs.
- Customer service: When you have a question, you shouldn’t have to wait on hold for hours or even days. Choose a screening company that offers personalized service with a dedicated team you can easily reach.
- Turnaround time: Background check delays can bring the hiring process to a halt. Work with a screening company that balances quick turnaround times with thorough, accurate screening.
5. Keep Candidate Experience in Mind
A transparent, efficient background screening process can give applicants a positive impression of your employer brand. A clunky, unclear, and frustrating process can do exactly the opposite.
When you’re ready to move forward with a background check, communication is key. Notify the candidate about the checks you’ll be running and how you plan to use the information. Provide realistic timeframes and keep the candidate updated if anything changes.
You can also help prepare applicants with some background check tips. Explain what they can do to make the process as easy as possible. With open communication, you can improve the overall candidate experience and strengthen your employer brand.
6. Avoid Common Background Check Mistakes
The most well-intentioned employers can sometimes make mistakes that lead to problems. When conducting background checks, make sure to avoid these mistakes:
- Not notifying candidates about background checks: The FCRA requires employers to provide a standalone written notice to notify a candidate or employee about a background check.
- Not getting written consent: Employers must get written permission from a candidate or employee before proceeding with a background check.
- Not following the adverse action process: If you decide to deny, withdraw, or terminate employment based on a background check report, you must follow the adverse action process. This includes sending a pre-adverse action notice, waiting a reasonable time for the person to review it, and sending a final adverse action notice.
- Not following a consistent policy: An inconsistent screening process can lead to potential discrimination and legal challenges. Make sure you’re applying a screening policy consistently for all similar positions.
7. Handle Discrepancies Consistently
Sometimes, a background check report may flag a discrepancy between the information a candidate provided and the results of the screening. When this happens, you should handle the discrepancy fairly.
Under the FCRA, candidates have the right to dispute the information in their background check reports. If this happens, pause the hiring process until the dispute is resolved.
After the waiting period, review the corrected or updated information before making a decision. If you ultimately decide not to move forward with the candidate, follow the adverse action steps carefully to avoid penalties or legal problems.
8. Consider Post-Hire Monitoring
Background checks don’t need to be a “one-and-done” process. You can continue to screen employees after they have been hired. In some regulated industries, such as healthcare and transportation, it’s necessary to conduct post-hire monitoring to maintain compliance.
Some common types of post-hire checks include:
- Criminal records monitoring
- MVR checks
- License verification
- Drug screening
- Social media monitoring
If you choose to do post-hire monitoring, include it in your screening policy. Decide how often you’ll conduct checks, such as once a year. Additionally, take time to notify employees about the policy so they know what to expect.
9. Train Staff on Best Practices for Background Checks
Anyone involved in the screening process should receive training on background check best practices. Outline the company’s policy and compliance requirements. Make sure everyone understands the importance of consistent background screenings.
You can also provide ongoing training to staff as laws change or the business grows. Regular training sessions can keep the whole team up-to-date on current requirements and guidelines.
10. Monitor Your Screening Program
Once you have a screening program in place, review it regularly to make sure it’s working for your organization. Track various metrics, such as turnaround times, dispute rates, and candidate experience. These indicators can show you what’s working well and what you can adjust moving forward.
Regular monitoring also allows you to evaluate the return on investment (ROI), so you can make sure you’re getting the most value from a background screening program.
Follow Background Check Best Practices with InCheck
These background check guidelines can help you develop a fair screening process, maintain compliance, and improve hiring outcomes. If you’re ready to implement these background check best practices, we’re here to help.
At InCheck, we provide pre-employment screening packages tailored to your company’s unique needs. We offer personalized service combined with compliance expertise and industry knowledge. Working together, we can build a screening program that works for your business.
Ready to get started? Reach out today to learn more about partnering with InCheck on your background check program.