Why Use an Employee Background Check Service in Hiring

If you are a business owner or partner who is considering, or is required to conduct, background checks on new hires, then think about utilizing an employee background check service to simplify this process.

With a third-party service dedicated to reviewing candidates’ possible criminal backgrounds, you can focus on other matters of the hiring process. You also will not have to wait for candidates to schedule their background checks, which can be delayed due to schedules or lack of funds if candidates are required to pay for their screening.

A background screening provider simply takes the information of a job candidate, who grants permission to do so, and researches global background checks such as public records, inmate and criminal background checks, drug testing history, educational verifications, employment history, data from law enforcement, and even credit scores. There are tons of different pre-employment background checks that you can choose from.

How to conduct a background check

After working with an employee background check service, the next step is to gain written consent from all candidates who will be undergoing this process; this also includes employees who are already working for your company. You must follow all state and local laws, and keep your team well informed on the background check process as well as their rights. Every screening needs written permission, even if one candidate or employee goes through multiple background checks.

How long does a background check take?

Background checks can typically take between 48-72 hours, but this estimated time depends on what your company orders to be reviewed. Keep in mind that background check services have to contact all the entities from which you are requesting information.

Timeframes can be at the mercy of schools, past employers, drug test centers, and courthouses. And if the potential candidate provides incorrect information, the process can take even longer. This is another reason why relaying transparent disclosures, notices, and education to candidates is important.

A company’s best defense

Sometimes, as business owners or hiring managers, we may not want to do all of the tasks required in a hiring process, particularly if our companies are short-staffed. It is much easier to trust someone’s word and get that person working right away. However, this lack of due diligence can open your business up to lawsuits and headaches.

Mitigating risks means partnering with a compliant employment background check service and using all the tools you have to cross-check potential hires.

Unfortunately, companies have been exposed to fraud and have been sued because they did not thoroughly verify who they were hiring. This lack of concern not only opens your company up to harm, but also your other employees, who can initiate lawsuits as well.

Think of fields such as K-12 education, where sex offender status is extremely important to know, and finance, which can be a gold mine for expert fraudsters. The rise in cyber attacks is also another example of checking for criminal records of possible hackers.

No company wants to lose money or its reputation, so taking the time to use a reputable pre-employment background check company would be in the best interest of your business.

Free background check service vs. paying a background check provider

Using a free pre-employment background check service can be tempting, especially if your company is still establishing its footing and saving money. However, this is NOT a good idea!

To start, companies that claim to be free can be deceptive, and you will end up paying for background reports anyway. If the background checks are free, you will not get the full picture needed for the hiring process, and the background check information may not even match the potential candidate if the “provider” did a quick online search. People do have the same name!

Furthermore, per federal law, the Fair Credit Reporting Act (FCRA) recognizes free information for hiring as illegal. The FCRA requires permission from the candidate as well as certified background screenings through the local court system and other verified entities.

Certified pre-employment background check providers must be verified through county courts. This means that the background check companies directly work with courthouses to cross-reference applicant information. This work does come at a cost for the background check provider, but the process gives you pertinent information that free background screenings lack, such as national sex offender standing, employment history, and credential verification.

Hidden costs of negligent hiring

Remember earlier when we said it can be easier to trust someone’s word to get them working immediately? Oftentimes, when companies rush through hiring, it is because they are stressed about potential revenue losses, an unhappy, overworked staff, or an increasing mountain of work left undone.

Yet, not considering the consequences of a quick hire with no background screening can cost companies more than what they were afraid of losing before the hiring.

Obtaining an employee’s background check not only can reveal a criminal record, but it can also verify work history to see if the new hire is being honest about their knowledge and skills. New hire training typically always comes with onboarding, but if a job requires someone to have experience, and that someone is not, then there can end up being some very disgruntled team members along with delayed work.

Costs of firing

Once you find out that someone was dishonest about their abilities in doing a job, going through the process of letting them go can be a costly process in itself. Legal requirements and company procedures must be followed carefully to avoid costly legal battles such as wrongful termination.

Working through the discipline and termination process can possibly leave you with an incompetent and likely annoying employee much longer than if you took the time in the beginning to go through a valid background check process.

Meeting and maintaining compliance

A legitimate company that performs pre-employment background checks ensures that it is compliant with federal, state, and local regulations. This can help prevent your company from paying hefty fines due to being noncompliant. You cannot use ignorance of the law as an excuse to avoid legal issues.

Selecting a compliant background screening company

Choose a background check company that has solid reviews and has been around for some time. Ensure that the company can thoroughly explain its pre-employment background check process to you, including how it follows compliance. Ensure that the company is transparent toward you, your employees, and potential new candidates.

Ask questions such as:

How long have you been in business?

What regulations do you follow?

How do you verify your background checks?

Do you have any professional credentials or belong to any professional trade associations?

Do you send your work to a third-world country for processing?

Is your pricing on the website?

Do you offer live support?

Three compliance rules that need to be followed

A reputable background check company should follow all FCRA regulations that emphasize notices and disclosures and obtaining accurate legal information. Ask if a company follows these procedures:

Record Confirmation

FCRA regulations require information found at the local level to be verified through identity confirmation. To do this, a provider should verify the background checks they receive with county courts. This is accomplished by providers contacting the court that charged an applicant and requesting criminal records directly from that court.

Identity Confirmation

How does a background check company verify an applicant’s identity who has the same name and/or birth date as someone else? Especially since FCRA regulations require, at the very least, first and last names and birth dates.

To accurately confirm records, a legitimate background check company uses many proprietary tools to ensure the correct person is being reviewed. The company also stays current with legal ordinances such as the 7-year rule.

The 7-Year Rule

While no longer a federal law, the 7-Year Rule states that background information obtained on an applicant should stay within a seven-year timeframe. Any information past that can lead to legal concerns. The FCRA used to enforce this time limit, but it no longer does; however, many states and counties still follow it.

The U.S. Equal Employment Opportunity Commission, though, does consider records past seven years old. Most background check companies will stay at seven years to stay compliant, yet also ensure safe hiring.

How much does it cost a company to do a background check?

The cost of a background check can vary depending on how many screenings you request and how many courthouses are involved in verifying information. Remember, different courthouses have different pricing for running criminal records that they charge to the background screening company.

You will also pay for the costs of services and tools provided by the background screening company.

Prices can be based on packages and can range from under $100 to well over $100. Discuss with the background screening company what you need and what your options are. Discounts may be given on a case-by-case basis.

However much the cost, do not discount a professional background screening; it is much safer and much more cost-effective to be proactive in your hiring rather than reactive.