The term “employee background check” may ring a bell to many of us, especially if we’ve ever embarked on the journey of job hunting. But, if you’re not familiar with the team, this is a comprehensive review conducted by employers on potential candidates to verify their credentials and suitability for the role. In other words, it’s like doing a “deep dive” into a person’s character, professionalism, and integrity, all crucial traits for fostering a positive work environment.
If this kind of check has you feeling alarmed, don’t panic. A background check on a company is actually simple and straightforward and nothing to worry about.
This article includes valuable, in-depth information about employee background checks – what they entail, what to expect, and how to prepare – which can help you approach this part of the job application process with more confidence and knowledge, bettering your chances of success.
What’s the Purpose of a Background Check on a Company?
One of the first things to understand about background checks is why organizations bother to conduct these. The main reason is risk management.
Companies want to maintain a safe work environment for their employees and safeguard their reputations and resources. Failing to carry out due diligence on a potential employee could lead to far-reaching negative consequences, such as negligent hiring liability.
In summary, an employee background check serves as a pivotal tool for employers to validate the integrity of potential hires, ultimately aiding in the creation of a productive and safe work environment.
The importance of this process cannot be overstated, and it becomes a stepping stone to a trustworthy professional relationship between employers and employees.
What Employers Can See in a Background Check
As part of an employee background check, employers dig into several aspects of your history and personal life. Don’t worry; their scope is not limitless, and proper norms are followed.
Keep in mind that all these checks are typically carried out for the safety of the organization and its employees and to verify the information provided by the candidates. It’s important that every job applicant is aware of these potential checks when they enter the process.
Let’s check out some of the things an employer looks at when conducting a background check.
Verification of Personal Information
One of the starting points in a background check is the verification of your personal information. This includes making sure the details like your name, contact information, and social security number provided by you are accurate. It’s like putting together the pieces of a jigsaw puzzle where your identity is confirmed.
Employment History
Yes, your past does matter, especially when it comes to your work experience. Employers will want to investigate your employment history to verify that you’ve worked where you say you have. For example, if you list Company XYZ as a previous employer, your prospective employer may contact Company XYZ to confirm you were indeed an employee there and held the role you specified.
Education
On a similar note, your past educational qualification validation also forms a part of a typical background check. For example, if you’ve noted that you graduated from a particular university, the employer may verify this aspect to ensure you have the degree or credentials listed in your application or resume.
Criminal Record
This is likely one of the more well-known aspects of background checks. Employers might look into your past to check whether there have been any criminal proceedings against you, your involvement in illegal activities, or any charges filed against you. The aim is not to judge but to ensure that their work environment remains safe and secure.
Credit History
This may not apply to every job but could be relevant for jobs such as finance-related positions, where the management of money is integral to your role. Employers might want verification that you’re financially responsible. They would only request this information if relevant and permitted by state laws.
Driving Record
If the job involves driving responsibilities like a transport manager or delivery personnel role, employers would be interested to see if you have a history of safe driving.
What Employers Are Restricted From Seeing in a Background Check
We’ve talked about what employers can see on background checks. However, there are also some things that they can’t see.
Now, I do have to make it clear that background check laws vary by country, state, and city, and what may be standard in one location may not be in another. However, there are some general restrictions across most locations, many of which are to ensure the protection of your rights and to reduce incidents of discrimination.
All these restrictions are in place to ensure a fair process that respects your privacy rights. It also encourages hiring decisions to be made based on your abilities and qualifications rather than your past mistakes or personal life.
Remember, transparency is often the best approach when you’re applying for a job. Being open about your history can create an environment of trust, which could increase your chances of success.
That being said, let’s go over a few of these restrictions.
Sensitive Information
Under the guidelines of The Fair Credit Reporting Act (FCRA) and the Equal Employment Opportunity Commission (EEOC), certain aspects of your life are deemed private and thus are off-limits to potential employers.
This includes sensitive information such as your age, race, color, religion, and genetic information. For instance, your potential employer might not be able to access your medical records without your explicit permission due to these legal protections.
Personal Details
While some background checks might involve a peek at your financial affairs, they are not allowed to reveal specific personal details. Your birthdate and marital status, for instance, are not accessible during an employee background check. The reported information would typically focus on your fiscal responsibility, but it won’t encroach on deeply personal matters.
Financial History
Your financial history is protected to some extent, as bankruptcies that are ten years old or older cannot be reported in pre-employment screenings. The FCRA also states that any negative information, aside from criminal convictions, cannot be reported after seven years.
Sealed or Expunged Records
These are usually off the table. These records may exist, but they aren’t available for public viewing. This means that an employer should not gain access to any part of your criminal record that has been legally sealed or expunged, in other words, officially cleared or hidden in the eyes of the law.
Exceptions
Some exceptions might exist, especially for jobs requiring high levels of trust and safety. For example, employers may gain access to more extensive records if you’re applying for positions such as a school teacher, daycare worker, or a job that requires the handling of guns.
What Employers Look For In An Employee Background Check
In our journey to understand background checks at the workplace, we’ve arrived at a crucial juncture—what exactly do employers look for when they decide to delve into your past?
Remember, the purpose of a background check is not to invade your privacy but to ensure you are a trustworthy individual and a good fit for the role at hand. Here are a few things that employers will typically keep an eye out for when looking over a background check.
Truthfulness and Consistency
For example, if you’ve claimed to have worked at a specific firm for a certain duration, this will be cross-verified with your previous employers. Inconsistencies in such vital information can plant seeds of doubt regarding your reliability and can significantly hurt your chances of bagging the job. Therefore, accuracy in providing details is paramount.
Confirmation of Job-Essential Info like Qualifications
If you’ve applied to be a software engineer and stated that you hold a degree in computer science, then expect employers to verify this with your university. They aren’t simply looking for the degree but the validity of your claim.
If you say you have a specific certification, make sure you truly do because this dubious claim can be verified, and if it turns out to be untrue, it portrays you in poor light.
Risk Assessment
Employers need to know if you have any records that might put the company or its employees at risk. A typical instance is a criminal record. Employers generally perform a criminal history check to ensure workplace safety. Having a minor offense may not automatically disqualify you, but having a recent history of serious or repeated offenses might.
Legality of Work Your Work Status
This is particularly important for roles that require security clearances or licenses or when there is a statutory requirement to confirm an employee’s immigration status.
How Employers Perform Background Checks
Navigating today’s complex job market is not without challenges, and part of that journey involves understanding how prospective employers carry out background checks.
Rest assured, these checks are a normal part of the hiring process, designed to ensure a safe and secure workplace for all.
Employers typically perform background checks in one of three ways:
- In-house background checks
- Through third-party agencies
- Using online checks
Let’s take a deeper look at each of these methods.
In-House Background Checks
Companies who opt for this have their human resources department take the lead, verifying items such as education, previous employment, and perhaps performing basic criminal record checks.
For example, if you’ve applied to a smaller company or a startup, the HR manager might contact your former employers directly to confirm your employment history and reason for leaving.
Third-Party Agencies
In many instances, companies choose to utilize third-party screening agencies. These specialized entities have the resources and expertise to conduct more thorough checks and vetting processes.
They can access robust databases, verify credentials, check criminal and financial records, and much more, all while ensuring the process is within the legal and ethical considerations set by authorities like the Fair Credit Reporting Act (FCRA).
For instance, if you’ve applied for a position with a large corporation or a role requiring a certain level of security clearance, anticipate that a more comprehensive background check may be conducted.
Online Checks
Today’s digital world has made it relatively easy for employers to check an applicant’s digital footprint. Employers may look at publicly available online information such as social media (LinkedIn, Facebook, Twitter, etc.) to gain insight into a candidate’s character and personal life.
Therefore, be mindful of what you post online. A simple rule of thumb is not to post anything you would not want your potential employer to see.
Tips to Prepare for a Background Check
As you prepare to embark on your job search journey, one hurdle you are likely to encounter is the background check. These checks can be daunting if you’re not sure what to expect.
So, how do you prepare for a background check? Let me go over a couple of quick tips to help you out.
Be Truthful
Honesty is always the best policy when it comes to a background check. If there are aspects of your history that you suspect will mar your record, it’s far better to bring them up to your potential employer from the beginning. Downplaying or hiding critical aspects of your past can have severe consequences.
For example, if you have a gap in your employment, don’t gloss over it—instead, explain it. Employers appreciate candor and authenticity more than flawless records.
Know What’s on Your Record
Before you even begin your job search, ensure you’re well aware of what information your background check will reveal. Sites like AnnualCreditReport.com and even certain public records databases allow you to view your record. By doing this, you’ll be one step ahead should anything questionable come up.
Clean Up Your Social Media Accounts
Think of your social media profiles as an extension of your resume. Employers often turn to platforms like Facebook, LinkedIn, Instagram, and Twitter to get a broader sense of who you are as a person outside of a formal interview. Make sure your profiles reflect what you’d like potential employers to see.
Notify Your References
Another essential step in preparing for a background check is to inform your references that they may be contacted. Not only is this a common courtesy, but it also helps them prepare responses that favorably reflect their abilities and qualifications for the job.
What Happens if You Deny a Background Check
Okay, let’s say an employer says they need to conduct a background check, and you’re not comfortable with this.
Firstly, it’s essential to understand that as a potential employee, you do have the right to deny a background check. However, it’s equally important to recognize the potential consequences of such a decision.
So, let’s say you’re in a situation where the employer asks for your permission to conduct a background check, and you refuse. What happens next?
In most cases, a refusal to consent to a background check could result in the termination of your application process. It’s like hitting a roadblock in your journey toward landing that job.
Remember, though it is within your rights to turn down a background check, it does have its potential repercussions. This is why it’s particularly important to think this decision through and weigh your options carefully.
How Do You Fail a Background Check?
Failing a background check can feel like a distinctly disheartening roadblock, but it’s important to understand what it really means and why it happens.
Before we delve into this topic, let’s remember something essential – everyone has the ability to learn, grow, and change. Past mistakes do not define your future.
If you fail the background check, it’s not necessarily the end of the line. You must be given a chance to review the report, rectify any inaccuracies, and explain any problematic findings. My advice as a career coach is to always be upfront about your past. Authenticity and transparency can make a significant difference, and many employers will appreciate your honesty.
Now, in the event that you do fail a background check, it’s often due to one of the following issues.
Incorrect Information
Did you provide inaccurate details on your application about your job history, education, qualifications, or skills? For instance, perhaps you’ve exaggerated your experience or position at a former company. If an employer’s background check reveals these inaccuracies, it will likely lead to a failure. Honesty is integral, always.
Criminal History
Let’s say you were convicted of theft five years ago, but you didn’t disclose this information during your application process for a bank teller job, a position that requires handling money. Your employer might see this as a significant red flag in the background check.
Poor Credit History
For roles that involve financial responsibility, employers often carry out credit checks. If you have a poor credit history, you might fail the background check. Suppose you’re applying to be an accountant but have declared bankruptcy in the past. This could potentially be seen as a red flag to employers.
Other Red Flags During an Employee Background Check
When your potential employer conducts a background check, a few things might stand out and send up red flags. It’s critical to remember that these areas of concern can be quite diverse. They are not limited to any criminal history you might have. Other elements, ranging from discrepancies in your resume to questionable social media posts, can also raise concerns.
Here are a couple of examples of potential concerns for employers when conducting a background check.
Employment Gaps
Employment gaps can also be red flags if not appropriately addressed. Employers understand that everyone has different career paths. Perhaps you took time off to care for a family member, continued your education, or even traveled the world. The key is to provide a brief explanation for the gap in your cover letter or during the interview process.
Social Media
Social Media can help you showcase your personality outside work, but inappropriate posts can be a red flag to potential employers. Be mindful of what you post. Inappropriately extreme opinions, hateful comments, or evidence of illegal activities can all be deterrents to potential employers.
What Happens if You Fail an Employee Background Check?
When a job offer is on the line, one of the most nerve-wracking aspects of the process can be the employee background check. Many people wonder: “What happens if I fail?”
Let me assure you, it’s not the end of the world, and there are usually ways forward.
Possible Rescinding of a Job Offer
If you fail an employee background check, it’s not as simple as an automatic disqualification. What happens next tends to depend on what was found and how it relates to the job you’ve applied for.
For instance, if you’re applying for a finance-related position and your background check reveals a history of bankruptcy or significant credit issues, this could be seen as relevant to your ability to handle the responsibilities of the position. The employer might rescind their job offer as a result.
Opportunity to Dispute Inaccuracies
Employers follow due process. You will always have the right to know what has been found and have an opportunity to dispute any inaccuracies. Employers are required by law to send you a pre-adverse action notice, along with a copy of the background check and a summary of your rights.
For example, let’s say your background check mistakenly showed a criminal record due to a namesake. In such situations, you could respond to the pre-adverse action notice, stating that the criminal record doesn’t belong to you, and provide the necessary proof. This is why it’s extremely important to review all the information for accuracy.
Opportunity to Discuss the Matter with Your Employer
Should an employer consider retracting a job offer based on the results of a background check, they should give you an explanation. This provides you an opportunity to discuss the matter before they finalize their decision.
For example, if an employer was considering rescinding a job offer because a drug conviction was found on your record, they would generally discuss this with you first. If this conviction was from many years ago and it doesn’t pertain to your ability to perform the job tasks, you could discuss this with your potential employer.
Everyone makes mistakes, and the key here is openness and honest dialog.
Relax and Ace Your Background Check
Getting ready for a background check can indeed seem daunting. At first glance, it feels as if your entire background is under scrutiny. But remember, a background check is primarily a tool for your potential employer to verify the information you’ve given them and ensure a safe and productive workplace.
Ultimately, the keys to navigating an employee background check are honesty and preparation. Verify the information on your resume, know what’s on your public record, and be ready to discuss any potential red flags with honesty and confidence. Remember, the goal isn’t perfection. It’s about proving you’re a credible, trustworthy candidate who’s up for the job.
Do you need more tips and tricks to aid you in your job search? Check out our other posts to get all the information you need to start a new career.
