June 20th 2023.
What is a Background Check?
A background check is an important tool used by businesses to verify the identity of a job applicant or employee by taking a comprehensive look at their employment, criminal, financial, and educational histories. Most companies conduct background checks as part of the pre-employment screening process, but it can be done at any time, even after an employee has been onboarded.
Businesses rely on job applicants to provide accurate information in their resumes, but verifying the facts is essential. It also provides an opportunity to be aware of any issues that could compromise the safety or integrity of the workplace. Background checks have become a standard practice in most businesses, and they are legally required in certain industries like childcare.
To perform a background check, employers must obtain the employee's full legal name, date of birth, physical address, and social security number. In most cases, consent from the applicant or employee is also required, typically by signing an authorization form. However, there are some exceptions.
What are the Benefits of Employee Background Checks?
Employee background checks can provide multiple benefits to businesses. Here are the top reasons to consider them as part of the hiring process:
Help Protect Workplace Safety - The primary purpose of background checks is to screen out potentially dangerous employees. According to a U.S. Department of Justice survey, workplace violence results in a loss of 1.75 million workdays and $55 million each year. Criminal background checks identify any previous violent criminal activity to help avoid hiring someone who may become a threat in the workplace. Drug screenings also help ensure employees are not using illegal drugs. These checks are particularly important when hiring someone to work with children or other vulnerable populations.
Reduce Your Liability - Business owners can be liable if they fail to run a background check on an employee with a criminal past and they go on to commit an act of violence in the workplace. Insurance companies may also require drug screenings to reduce the chances of an employee-caused accident in certain jobs.
Hire Top Candidates - Background checks provide a full and accurate picture of where potential employees have worked, for how long, and who their primary supervisors were. This helps employers to verify the information provided in resumes or applications is true and accurate. It also identifies any exaggerations or false references.
Protect Your Brand - Employees represent a company and its brand. A background check can help ensure they understand and respect that responsibility. It can also reveal any inflammatory remarks or posts on social media that could be detrimental to the brand.
Promote a Positive Workplace Culture - Knowing that a new hire passed a background screening process can give employees peace of mind and help foster a positive and empowering workplace culture.
What are the Drawbacks of Employee Background Checks?
While employee background screening is the standard of modern business, it does have some disadvantages. Here are the primary concerns with conducting background checks:
Costly & Time-Consuming - The costs of an employee background check can range from $30 to several hundred dollars. It can also take time to compile the paperwork, ensure accuracy, and submit the background check. Depending on the company, it can also take several days to get the results back.
Legal Compliance Concerns - Every state has different laws and regulations regarding employment background checks. It's important to be aware of these laws and ensure compliance with the Fair Credit Reporting Act.
Doesn't Give a Complete Picture & Can Cause Unfair Bias - A background check might include a criminal record, but it won't necessarily include what steps an individual took toward rehabilitation and self-improvement. It can also cause unfair bias if employers make hiring decisions based on incomplete or inaccurate information from an unreliable company.
What are the Best Background Check Companies?
There are many background check companies available. Here are the top 10 that offer reliable services: GoodHire, Checkr, AccurateNow, PeopleG2, Onfido, Sterling, ClearStar, HireRight, InfoMart, and IntelliCorp. Each company offers different services and pricing models, so it's important to research the best solution for your business needs.
What is a Background Check?
A background check is an important step in the pre-employment screening process. It verifies a person's identity by taking a comprehensive look at their employment, criminal, financial, and educational histories. By conducting a background check, employers can ensure they know all the facts before bringing in someone new.
Most businesses trust that employees are honest and forthright in their résumé, but verifying the information is complete and correct is essential. You also want to be aware of any issues that could compromise the safety or integrity of the workplace when bringing in someone new. Background checks have become a standard practice at most businesses and are legally required in some industries, such as childcare.
To perform a background check, employers must obtain the employee's full legal name, date of birth, physical address, and social security number. In most cases, you also need the applicant or employee's consent, typically by signing an authorization form. However, there are some exceptions.
What are the benefits of employee Background Checks?
Employee background checks provide a range of benefits for businesses. Protecting workplace safety is one of the primary reasons businesses conduct background checks. According to a U.S. Department of Justice survey, workplace violence results in a loss of 1.75 million workdays and $55 million each year. Conducting a criminal background check and drug screening can identify any previous violent criminal activity and help avoid hiring someone who may become a threat in the workplace.
Background checks also help reduce a business' liability. A business owner could be liable if they fail to run a background check on an employee with a criminal past, and that employee goes on to commit an act of violence in the workplace. Background checks can also verify the information provided in the résumé or application is true and accurate. This includes places of employment, dates, and the listed skills, certificates, or licenses.
Employee background checks can also help protect a company's brand. Your employees represent you and your business, so hiring employees who don't understand and respect that responsibility could open you up to the devaluation of your company's brand identity. In addition, background checks can promote a positive workplace culture by ensuring all employees feel safe and secure.
What are the drawbacks of employee Background Checks?
While employee background screening has many benefits, it does have some disadvantages. The costs of an employee background check can run anywhere from $30 to several hundred dollars. There are many costs associated with hiring new employees and running background checks adds to those risks.
In addition, every state has different laws and regulations regarding employment background checks. The laws are also constantly changing, which can make it difficult for employers to ensure FCRA compliance. Background checks might also give an incomplete picture of a person and can cause unfair bias. Finally, it's important to work with a reliable background check company to ensure accuracy and avoid potential legal issues.
What are the Best Background Check Companies?
Our list of the top 10 background screening companies includes GoodHire, Checkr, and AccurateNow. GoodHire provides a convenient online portal for employers to conduct pre-employment screening with easy-to-use interface and excellent customer service. Checkr is known for its powerful API and caters to the tech industry. AccurateNow offers reasonably priced background checks with no monthly minimums and a "pay-as-you-go" pricing model.
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