Every recruit brings new opportunities for productivity, but it also brings new risks to the company. Pre-employment background checks can help you confirm your hiring decision while also ensuring the profitability and productivity of your company.
-How does an employment background check reveal information?
What shows on a background check depends on the type of search you conduct because there are numerous different sets of records and data to pull from. An employment background check may show information such as identity verification, employment verification, credit history, driver’s history, criminal records, education verification, and more. Employers gather a wealth of information to evaluate a candidate’s character and prevent making the wrong hire. Continue reading to learn about the many types of employment background checks, what they could reveal, and why they’re important.
-How does a background check work?
Even though there are many other types of background checks, employers are usually interested in the top three searches. The most common pre-employment searches are as follows:
1.Identity and social security number verification
By checking comprehensive databases such as the Department of Homeland Security and Social Security Administration records, a background check for employment can show whether or not a Social Security number is real, who it belongs to, and if it’s been used in the past. Identification verification can also be used to verify an address, which can then be compared to information provided by a job applicant to discover any discrepancies.
Credit bureaus produce credit reports based on data from various sources. For example, credit card companies and financial data submit information to credit bureaus, which maintain customer records. Although credit reporting agencies may not always have the same information, the following are the types of information that typically show in a background check:
-Recognizing Information Information such as a person’s name, date of birth, and address can be obtained from credit bureaus.
-Questions about credit
-A list of past credit inquiries appears on credit reports, indicating which retailers, financial institutions, and other lenders have requested a consumer’s credit report.
Tradelines represent accounts with lenders. The account’s opening date, type (mortgage, auto loan, credit card, etc. ), loan amount or credit limit, current balance, and the borrower’s payment history could all be included. Public records Credit records may show previous bankruptcies. Credit checks can reveal a lot of potential red flags in an applicant, especially if they will be managing money regularly. Financial irresponsibility can be indicated by high debt levels or excessive asset spending.
If an employer is aware of — or should have been aware of — an employee’s relevant criminal background, they may be held accountable for negligent hiring if the employee is accused of further crime. Identifying criminal conviction records, and what shows on a background check for employment could help protect business owners. Criminal background checks for employment applications may show criminal, state, and federal violations. The following are examples of offenses that can be reported:
-Recently filed charge
-Convictions for misdemeanors
-Convictions for felonies
-Charges were dropped.
-Charges were dropped.
Employers should exercise caution when assessing what shows on this type of background check for employment. Depending on the type of job they are looking for, employers may want additional information from candidates and seek more information on their background checks for employment. Motor vehicle and driving records, employment history, education verification, reference checks, and drug testing are all options for extra searches. “Fingerprint background check” is a bit of a catch-all phrase. As the name implies, it entails the use of a candidate’s fingerprints, as well as other personal information, to retrieve historical information. A fingerprint search has the benefit of guaranteeing that all records associated with a particular set of prints belong to the individual in question.
The nature of a fingerprint search can vary depending on the type of information required by the employer and the databases used by the screening company. For fingerprint checks, the FBI criminal records database is commonly used, but other, smaller Automated Fingerprint Identification System (AFIS) database systems can be used instead of or in addition to it.
-Is it relevant to what a background check reveals?
]The consequences of making the incorrect hire are significant. According to a recent CareerBuilder poll, roughly 27% of employers say a single bad hire has cost them more than $50,000. The US Department of Labor backs up this notion, noting that a bad hire can cost up to 30% of a person’s first-year pay. Depending on the salary rate for the position, this may easily exceed tens of thousands of dollars. What makes these costs so high? Termination costs. If your former employee decides to file a lawsuit, you may be responsible for additional healthcare expenditures as well as, in some cases, litigation fees. Replacing bad hiring can be pricey; you’ll almost certainly have to provide training classes, employment tests, orientation services, and other services.
So, how can modern business owners get a better picture of their job seekers so they don’t hire the wrong person? Pre-employment background checks are available. Employers can use a variety of pre-employment screening techniques, and what appears on a background check depends on the service selected:
1.A regular background check company may be able to supply a wealth of information, including military records and license verification. Despite their thoroughness, these packaged services are often costly and time-consuming, forcing small business owners to pay for background checks that aren’t necessarily necessary.
2.A type of do-it-yourself background check that reveals publicly available information is an online people search. Employers can type a job candidate’s name into a search engine and look for results on business pages or social media sites. While most background checks are free, they frequently contain inaccurate, out-of-date, or out-of-context information.
You can use criminal reports, credit history, and identity verification to confirm your hiring decision and ensure your application meets your needs.
-To understand more about your applicant’s background, run a criminal background check.
Criminal background checks on job applicants assist protect your company, employees, and customers, which should be a top priority. According to TransUnion data, one out of every four reports shows a criminal history. Checking your applicant’s criminal background is important if you’re hiring for a job that requires direct contact with the public or the handling of cash, sensitive financial data, or sensitive personal information. Almost all background checks include a criminal history check, which is based on information provided by the candidate, including their Social Security number. Felony and misdemeanor convictions, as well as any pending criminal proceedings and adult incarceration history, will all be revealed by criminal background checks. Arrests that are still under investigation might also be reported.
-Obtain a picture of your applicant’s financial status via a credit report.
What are the benefits of checking a job applicant’s credit history? While bad credit alone isn’t enough to disqualify a candidate, their credit history, financial patterns, and behaviors can give you a better candidate of who they are. You can better determine the risk by learning more about your applicant’s financial background. You may wish to determine more stringent financial requirements on applicants who will be handling money regularly, and a credit report can assist you in determining whether or not your application is financially sound.
Employers usually analyze a job applicant’s credit history to assess their level of responsibility, but good financial habits are also important in certain industries and professions. Is the position in question one that demands dealing with money? Will your new employee have access to sensitive financial information? Knowing if a candidate manages their finances responsibly will help you determine if they will manage the finances of your company responsibly as well.
-Verification of Identity Ascertains if the applicant is who they say they are.
Identity theft reached an all-time high in 2016. Identity theft affected 15.4 million people in some form, according to new data from Javelin Strategy & Research. In recent years, roughly 1 in every 16 adults has been a victim of identity theft. What does this mean for your company? As an employer, you should feel confident that you know exactly who you’re hiring. To ensure that job applicants are honest and upfront about their history, it is vital to verify their identity.
-There Must Be A Background Check
The best approach to preparing for a background check is to know what information an employer might find.
1.Obtain a copy of your credit report.
Get a copy of your credit report ahead of time to check sure your background information is correct. Any false information should be challenged by the creditor or another source.
2.Double-check your records
Check your state’s department of motor vehicles for a copy of your driving record. Carry out the same procedure with your other documents, such as school records, court records, and so on.
3.Review your personnel records
Also, ask previous employers for copies of your personnel files. Make sure you understand how your recommendations will reflect on you.
4.Protect your personal information safe.
Also, be careful what you post on social media and in other online outlets. Someone will almost certainly uncover information that could jeopardize your job. Your best bet is to be cautious about what you post and to assume that whatever you post is public, regardless of your privacy settings.
5.Tell the truth
Above all, double-make your resume and job applications for accuracy and completeness. If you lie, you may not get caught right away, but the truth will eventually come out. If you don’t get hired—or fired—because you thought your resume could be better, it’s not worth it.