Background Checks in Hiring

For business owners managing an employee workforce, conducting thorough background
checks is a fundamental step in the hiring process. Background checks can help you make
informed decisions, ensure workplace safety, and protect your company's reputation. However,
navigating what to look for in these checks and understanding their importance can sometimes
seem complex. Let’s demystify the process by outlining why background checks are crucial and
what specific aspects you should focus on.

Why Background Checks Are Essential
1. Safety and Security:
Conducting background checks helps ensure that you are not unknowingly hiring someone with
a history that could pose a risk to your business, other employees, or customers. This is
particularly important in roles that require handling sensitive information, financial
responsibilities, or working closely with vulnerable populations.
2. Integrity and Trustworthiness:
Background checks verify the accuracy of the information provided by candidates. By confirming
past employment, education, and professional credentials, you can determine whether a
candidate has been honest in their application and resume.
3. Legal Compliance:
Certain industries have strict regulatory requirements about who can or cannot be employed in
specific positions. Background checks help ensure compliance with these regulations, avoiding
legal penalties and safeguarding your company’s eligibility for certain contracts or business
licenses.
4. Quality of Hire:
By thoroughly vetting candidates, background checks can lead to higher quality hires. Knowing
more about a candidate's history can help you make a better-informed decision, ultimately
impacting team dynamics and productivity positively.

What to Look for in Background Checks
1. Criminal History:
This is often the first element business owners consider when conducting background checks.
It's crucial to investigate any past criminal behavior that could impact a candidate’s ability to
perform the job. Note that compliance with the Equal Employment Opportunity Commission
(EEOC) guidelines and the Fair Credit Reporting Act (FCRA) is essential when using this
information.
2. Employment History Verification: Confirming a candidate’s previous employment helps validate their work experience and
integrity. This check ensures that the information provided about job titles, responsibilities, and
duration of employment is accurate.
3. Education and Certification Checks:
For positions that require specific educational qualifications or certifications, verifying these
credentials is crucial. This step confirms that the candidate has the necessary knowledge and
skills for the job.
4. Credit History:
Although not relevant for all positions, credit checks can be important for roles that involve
financial responsibilities. A credit history check can provide insights into a candidate's financial
stability and reliability. However, this must be done in compliance with FCRA regulations.
5. References:
Contacting references provided by the candidate can offer additional insights into their work
ethic, personality, and professional abilities. It's a valuable component of the background check
process, providing real-world perspectives on a candidate’s capabilities and character.

Implementing Background Checks in Your Hiring Process
1. Establish a Standard Procedure:
Develop a consistent process for conducting background checks to ensure fairness and legal
compliance. Clearly communicate this process to all candidates.
2. Ensure Legal Compliance:
Understand and adhere to all relevant laws, including the FCRA, state laws, and EEOC
guidelines, which govern how you can use the information obtained through background
checks.
3. Use Reputable Services:
Employ reliable and FCRA-compliant background check providers to ensure that the information
you receive is accurate and legally obtained.
4. Respect Privacy:
Maintain confidentiality throughout the process. Ensure that all personal information is securely
handled and only used for the purposes of making a hiring decision.

Background checks are a vital part of the hiring process, providing a deeper insight into a
candidate’s past and helping to predict their future at your company. When conducted correctly,
they not only enhance the quality of your hires but also contribute to a safer and more compliant
workplace. As a business owner, investing in thorough background checks is an investment in
your company's future success and integrity.