ENSURING SAFETY AND COMPLIANCE: THE IMPORTANCE OF EMPLOYEE BACKGROUND CHECKS

The job of a Human Resource personnel isn’t easy. They spend countless hours crafting the perfect job description, sifting through hundreds of resumes, and conducting a marathon interview session. But once it seems they have found someone who checks all the boxes, they find there is more to the story than meets the eye.

Do you know that nearly 70 million people, or about one in three Americans, have a criminal record? What if your perfect candidate has a hidden past that could pose a serious threat to your company, your clients, and even your employees?

Unfortunately, this is a harsh reality that businesses face every day.

Applicant background checks are one effective way to stop you from making a bad hire and risking your company’s time and resources — and most important of all, its reputation.

With more and more people working remotely, pre-employment screening services are more important than ever to protect the increasing globalized workforce.

What are Some Common Areas that Employee Background Checks Can Reveal?

Employee background checks are a vital tool for employers to assess a candidate’s suitability for a position. These checks explore the various aspects of a candidate’s history, providing a more comprehensive picture beyond resumes and interviews. Here’s a deeper look at the key areas employee background checks can explore:

• Identity Verification: This confirms if the candidate is who they say they are by checking their Social Security number, address history, and other identifiers against public records databases.
• Criminal History: This is a major focus, especially for jobs that involve handling money or valuables, working with children or vulnerable populations, or operating machinery. The check typically reveals convictions, but depending on the provider, may also include arrests.
• Drug Screening: This process includes testing for drugs such as marijuana, cocaine, opioids, amphetamines, and other controlled substances.
• OFAC Terrorist Checks: This is a check against the Office of Foreign Assets Control (OFAC) lists to ensure the candidate is not involved in terrorism or related activities. This involves screening for individuals and entities that are part of economic and trade sanctions programs.
• Employment Verification: Employers want to confirm previous work experience as listed on the resume. This includes job titles, dates of employment, and reasons for leaving.
• Education Verification: Similar to employment, this checks if the candidate’s degrees and diplomas are legitimate by contacting the issuing institutions.
• Professional Licenses: Certain professions require specific licenses to operate legally and ethically. The check verifies if the candidate holds the necessary licenses and that they are current and in good standing. This is very important for roles like doctors, engineers, or financial advisors.
• Driving Record (for applicable positions): For jobs that require driving, like delivery drivers or transportation personnel, employers might check driving records to assess an applicant’s:
  • Driving history, such as whether there have been any accidents or violations.
  • License status, whether valid or suspended. This helps gauge a candidate’s behind-the-wheel safety and compliance with traffic regulations.
• Credit History (for specific roles): In some cases, employers may check credit history to assess financial responsibility, particularly for positions involving financial transactions. However, there are strict regulations around credit checks in employment screening (FCRA).

Why Employee Background Checks Matter for Your Business

While resumes and interviews offer a glimpse into a candidate’s qualifications, they don’t always paint the whole picture. An applicant background check is an important investment for your organization’s well-being.

Here are some ways they can protect your company, clients, and employees:

Preserving Your Company

An employee background check safeguards your company on multiple fronts, shielding you from potential threats and creating a secure environment for your employees, clients, and partners:

• Reduced Risk of Theft and Fraud: Companies are chock-full of sensitive data, from financial records to client information. Employee background checks can unearth past criminal activity related to theft, embezzlement, or fraud. By identifying individuals with a history of dishonesty, you can prevent them from infiltrating your digital vault and causing major financial losses.
• Enhanced Workplace Safety: It is essential for businesses to maintain a workplace free from violence and aggression. Employee background checks can be a vital tool in this effort. They can reveal red flags like a history of violence or assault, helping you avoid hiring someone who could pose a threat to the physical and emotional safety of your team.
• Improved Client and Partner Trust: Your reputation is everything, especially when it comes to client trust. By showing a commitment to thorough employee background checks and screening, you build bridges with clients. They know they’re working with a company that prioritizes integrity and hires individuals they can rely on with sensitive information and projects.
• Lower Risk of Legal Liability: Nobody wants to be entangled in a legal battle, especially one stemming from negligent hiring. Employee background checks are a documented effort towards due diligence. If something goes wrong, a comprehensive screening process can help show you took reasonable steps to mitigate risks and potentially shield your company from legal repercussions.

Safeguarding Your Clients

The ripple effect of a bad hire can extend far beyond the confines of your own company. When dealing with clients, particularly those entrusting you with sensitive information or vulnerable populations, the stakes are even higher.

Here’s how background checks play a vital role in safeguarding your clients:

• Protecting the Most Vulnerable: Certain positions, like those involving children, the elderly, or individuals with special needs, demand the utmost trust and a commitment to safety. Background checks can be a critical line of defense. By uncovering any red flags in a candidate’s history, you can ensure you’re placing individuals with a clean record around these vulnerable populations. This creates a safe and secure environment where clients and their loved ones feel protected.
• Client Data Confidentiality: In this age of ever-increasing data breaches, data security is a top priority. Many roles involve access to sensitive client information, be it financial records, medical data, or confidential business strategies. A background check can be a very important safeguard in such scenarios. By identifying candidates who may pose a security risk due to a history of fraud or data breaches, you can prevent potential leaks and safeguard your clients’ confidential information.
• Upholding Your Brand Reputation: Your reputation is the cornerstone of your client relationships. A single bad employee decision can snowball into a PR nightmare, damaging the trust you’ve built with your clients. Background checks are a proactive measure to prevent such disasters. By showing a commitment to thorough employee screening, you send a clear message to clients that you prioritize their security and well-being. This builds stronger client relationships and protects the brand image you’ve worked hard to cultivate.
• Boosting Service Quality: Background checks play a key role in elevating your service quality by ensuring you hire trustworthy and ethical individuals. When employees are properly vetted, they’re more likely to prioritize client satisfaction, handle sensitive information responsibly, and conduct themselves with integrity. This means your team will consistently deliver exceptional service, creating trust and loyalty with your clients.

Protecting Your Employees

Building a successful team goes beyond just finding qualified candidates. It’s about creating a work environment where employees feel safe, supported, and empowered to realize their full capabilities. Applicant background checks can help to achieve this by:

• Building a Foundation of Trust: Imagine a team where everyone feels comfortable and confident working together. Background checks help establish this trust by verifying the information provided by candidates, allowing employees to focus on their work without unnecessary anxieties.
• Promoting a Culture of Collaboration: Conflict can be a major drain on productivity and morale. Background checks can help mitigate this risk by identifying individuals with a history of disruptive behavior. This allows you to create a team that is built on collaboration and respect.
• Cultivating an Inclusive Environment: A fair and unbiased background check process shows your commitment to diversity and inclusion. By focusing on skills and qualifications, you create a workplace where everyone feels valued and has the opportunity to contribute, regardless of past experiences.
• Reducing Turnover: High turnover costs companies dearly. Background checks help you hire the right people from the start, reducing the risk of bad fits leaving quickly. This creates a more stable, trusting work environment where employees feel valued. By investing in a long-term team, you save money, boost productivity, and promote a culture of success.

Essential Employee Background Check Compliance for Employees

Hiring the right talent is essential for a business, but just as important is the need to ensure compliance with background check regulations.

Here are some key players you need to keep in mind when it comes to background check compliance:

Fair Credit Reporting Act

The Fair Credit Reporting Act (FCRA) is a critical federal law for applicant background check compliance. Enacted in October 1970, the FCRA protects consumers by ensuring accurate reporting of their credit information. Before this law, credit reports often contained unregulated and erroneous data, leaving consumers powerless.

The FCRA mandates that employers must disclose their intent to conduct a background check and obtain written consent from the candidate. If the background check results in an adverse action, employers must notify the candidate in writing, provide a copy of the report, and allow time for the candidate to dispute any inaccuracies.

The FCRA doesn’t stop there – it also dictates specific actions you must take if you decide not to hire someone based on the background check findings. By understanding and following FCRA regulations, you can ensure a legal and ethical hiring process for all involved.

This law has been pivotal in ensuring that employers respect consumer rights during the hiring process. Even after more than 50 years, the FCRA remains a fundamental piece of legislation, upholding privacy and accuracy in employment-related background checks.

Equal Employment Opportunity Commission

The Equal Employment Opportunity Commission (EEOC) enforces workplace civil rights laws and combats employment discrimination. One way the EEOC fights discrimination is by issuing guidance on background checks to ensure compliance with federal laws that protect applicants and employees.

Employers must administer background checks equally, without discriminating based on race, gender, religion, or other factors. Any policy leading to discrimination can result in an EEOC lawsuit. To avoid this, all job finalists should undergo the same background check process.

The EEOC also addresses “disparate impact,” where a policy unintentionally disadvantages certain groups. For example, refusing to hire candidates with criminal records can disproportionately affect minorities. Employers should instead focus on convictions relevant to the job. For instance, consider a shoplifting conviction for retail positions but not for web design roles.

Employers should also weigh factors like the time since the conviction and whether the candidate is a repeat offender, giving less weight to older convictions with an otherwise clean record.

Ban the Box

Ban the Box compliance requires certain employers to remove the criminal history question from job applications. This movement aims to give ex-offenders a fair chance during the hiring process by delaying criminal history inquiries until later stages, often after a conditional job offer.

Ban the Box laws do not prevent employers from conducting background checks but delay when they can ask about criminal records. Without these laws, employers can inquire about criminal history on applications or during initial interviews. Ban the Box policies, however, require waiting until after a conditional job offer to conduct these checks.

This legislation helps candidates showcase their qualifications without the stigma of a criminal record. Many hiring managers have unconscious biases against ex-offenders, making it hard for even the most qualified to succeed.

As of June 2022, 37 states and numerous localities have adopted Ban the Box policies, with some extending to private employers. Employers must stay updated on these laws to ensure compliance.

To stay compliant, employers should regularly review all federal, state, and local regulations. Partnering with a reputable background check company that understands the legal landscape is essential for this.

To make sure your business thrives, you need to develop clear and consistent background check policies that comply with all applicable regulations. Implementing procedures for notifying applicants about background checks, obtaining consent, and addressing any disputes show you are committed to fairness throughout the hiring process.

Finding the Right Employment Screening Service Who’s Got Your Back

Applicant background checks are an essential layer of security for any business, but it’s only as strong as the service behind it. Although you may find a thorough employee vetting process quite intimidating, partnering with the right employment screening service can a strategic investment.

But don’t settle for just any provider. Here are the qualities to look for in your background check partner:

• The PBSA Seal of Approval: The Professional Background Screening Association (PBSA) sets the gold standard for the industry. Choose a PBSA-accredited background company like TruDiligence to make sure your applicant screening service is comprehensive and compliant service.
• Compliant with FCRA: The Fair Credit Reporting Act (FCRA) outlines the legalities of employee background checks. A reputable provider will be an expert in FCRA background check regulations, ensuring your screening process is squeaky clean.
• Tech Savvy and User-Friendly: Gone are the days of paper trails. Look for an applicant screening service with a user-friendly online platform for submitting and tracking employee background checks. This streamlines the process for you and keeps your applicants in the loop.
• No Contracts or Set Up Fees: Don’t get locked into a employee background check service. Look for providers with pay-as-you-go options and no upfront fees. This lets you adjust screening based on your hiring volume and avoid unnecessary costs. Focus on finding the best talent, not managing contracts.
• Great Customer Service: Let’s face it, sometimes things go awry. Having a dedicated customer support team readily available to address any questions or concerns is essential for a smooth screening experience.

Bottom Line

Building a successful business requires more than just finding qualified candidates. It’s about creating a secure and thriving environment for your team, your clients, and your entire organization.

Employee background checks are a powerful tool in achieving this goal. They provide a complete picture of your candidates that goes beyond resumes and interviews, helping you make informed hiring decisions that minimize risk and maximize success.

TruDiligence is your trusted partner in offering reliable employee background checks. We are a PBSA-accredited company with a proven 30-year track record of compliance and expertise. Our user-friendly platform makes employee background checks seamless, while our commitment to FCRA regulations ensures a fair and transparent process.

Don’t gamble with the safety and security of your business. Choose TruDiligence and invest in peace of mind.

Contact us today to learn more about our applicant background check solutions.