After identifying your preferred candidate and completing the interview process, the next step is often a background screening. Sometimes, when the results come in, youโ€™ll notice that a report highlights certain details that donโ€™t quite match up with the information a candidate provided earlier in the process. These instances, known as background check discrepancies, are flagged by screening providers for you to review during your final hiring considerations.

Discrepancies are simply inconsistencies between a candidateโ€™s reported information and what is found through official checks or records. They might be as minor as a small date difference or as notable as missing credentials. While not every discrepancy is cause for concern, understanding why they occur and what they might mean can help you approach your decisions more confidently.

In this article, weโ€™ll explore what background check discrepancies are, some of the most common reasons they happen, and what you might keep in mind as you review flagged items in a candidateโ€™s report.

What is a Background Check Discrepancy?

A background check discrepancy refers to any inconsistency between the information a candidate provides and what a background check reveals. Discrepancies can range from minor errors, like an employment date thatโ€™s off by one month, to major red flags, like a fabricated work history.

While not all background check discrepancies are cause for concern, itโ€™s worth knowing why they occur, so you can handle them fairly. Discrepancies can happen for many reasons, but they usually fall into one of two categories: candidate-provided information or external factors.

Candidate-Provided Information

The information a candidate provides can result in a discrepancy for these reasons:

  • Inaccurate data. If the candidate submits inaccurate or incomplete information on an application, it can lead to a data discrepancy on a background check. Employers typically have their own standards for the discrepancies they consider acceptable, depending on the industry and position. For example, employers may allow for a two- to three-month discrepancy on employment dates, while diploma dates usually need to be accurate.
  • Intentional falsification. Unfortunately, some candidates lie on their applications or fail to report the required information. One recent study found as many as one in three people lie on a resume or in a cover letter. Discrepancies can occur when candidates intentionally falsify or omit information about their past employment, education, and criminal history.

External Factors

Sometimes, background check discrepancies occur because of external factors, which can include:

  • Outdated records. Records accessed from databases or past employers may be incomplete or outdated, which can cause background screening discrepancies. Background check companies should have primary source verification procedures to help reduce these types of discrepancies. 
  • Clerical errors. Sometimes, simple clerical errors, such as inaccurate data entry, can cause a background check discrepancy.

Common Background Check Discrepancies

Background check discrepancies can show up in various parts of a pre-employment background check. Knowing about these common discrepancies and what they mean can allow you to make better-informed hiring decisions.

Employment Verification

When you hire someone, you want to be sure they have the skills and experience they claim to have. An employment discrepancy occurs when thereโ€™s a mismatch between a candidateโ€™s provided work history and the employment verification portion of their background check report. For example, a background check might show a job title discrepancy.

Some employment discrepancies are relatively insignificant. For example, a candidate with an imperfect memory may have listed the wrong employment dates by a month or two. In addition, applicants who work for temp agencies may list the end employer on their resumes instead of the staffing agency.

Other employment discrepancies can be more substantial. These can happen when a candidate inflates their experience level or lies about a position they never held. If this happens, you should look into the discrepancy further to learn why it occurred and how it may be relevant to the position you are hiring for.

Education Verification

Along with past employment, many background checks include education verification. This screening can result in various discrepancies, ranging from incorrect graduation dates to unconfirmed degrees.

Similar to employment discrepancies, these inconsistencies can be minor or significant, depending on the employer, industry, and position. In some industries, such as healthcare and education, employees must have the appropriate education qualifications to meet professional or regulatory standards. 

Professional License Verification

When hiring for a role that requires licensure, you need to make sure the applicant has the right credentials. Professional license verification checks a candidateโ€™s credentials to make sure theyโ€™re active and in good standing.

Discrepancies in this area may arise from incorrect license numbers, expired credentials, or suspended licenses. Hiring a candidate without the correct licensure can put a company at risk, so get to the bottom of the discrepancy before moving forward.

How to Handle Background Check Discrepancies

Not every discrepancy is a red flag, but you need to know how to handle these inconsistencies fairly. A rushed or incomplete process can lead to poor hiring decisions or even legal risks.

To handle background check discrepancies, follow these tips:

Confirm the Discrepancy

Before making a decision, verify the discrepancy. Check the source of the information or contact your background screening provider. You can also reach out to the candidate about the discrepancy and give them a chance to explain or offer clarifying information.

Consider the Type and Severity of the Discrepancy

Determine whether itโ€™s a minor discrepancy or a major concern. Consider different factors as you weigh the severity, such as your companyโ€™s industry and the position. Does the mistake affect the candidateโ€™s ability to do the job? Does it reflect poorly on their character? Take these factors into consideration as you handle a discrepancy.

Have a Consistent Process

Make sure your organization has a consistent process for dealing with discrepancies. Treating similar discrepancies differently among candidates can lead to accusations of bias. An inconsistent process can also result in potential violations of Title VII of the Civil Rights Act or other similar state anti-discrimination statutes, which prohibit discrimination based on protected characteristics, like race, sex, and national origin.

Minimize these legal risks by having a written procedure for evaluating discrepancies fairly. Train HR staff on this policy to make sure itโ€™s applied consistently in your organization.

Know Candidatesโ€™ Rights

Candidates have the right to know if their background check affects your hiring decision. Under the Fair Credit Reporting Act (FCRA), if you choose not to move forward with a candidate because of a discrepancy on their background check report, you need to comply with the adverse action process, which includes:

  • Providing a pre-adverse action notice
  • Giving the candidate time to respond
  • Sending a final adverse action notice

For a full breakdown of the adverse action process, check out our related blog: What is Adverse Action? Everything Employers Need to Know

Work with a Background Screening Provider

Partner with a screening provider that can help you navigate background check discrepancies. A good provider will not only deliver reliable background check reports, but they can also provide guidance on discrepancies when they occur. A background check provider can help you confirm the discrepancy, verify information, and offer compliance support.

Handle a Background Check Discrepancy Fairly with InCheck

A background check discrepancy can occur for various reasons, and it doesnโ€™t necessarily mean a candidate has been dishonest or withheld information. However, these discrepancies require careful review to verify information and make informed hiring decisions.

At InCheck, we provide accurate, timely screenings designed to reduce background check discrepancies. We verify information directly with primary sources and access up-to-date databases. Additionally, our friendly and responsive team can provide guidance on the best practices for handling discrepancies and offer compliance support.

If you need more confidence in your background check process, reach out to learn how InCheck can help you build a fair, compliant screening program for your hiring needs.

Disclaimer: This blog is for general informational purposes only and should not be construed as legal advice.

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