Subscribe for updates
Get talent acquisition best practices, trends, and news delivered directly to your inbox.
By entering your email, you agree to receive marketing emails from JobScore
A background check is an impactful way to make a more informed hiring decision. It allows you to go beyond resume claims and interview impressions to verify a candidate’s identity, credentials, and suitability for employment.
Specific screenings can vary by role, allowing you to get the information you need without adding unnecessary time or expense. For example, a criminal screening and employment verification might be appropriate for most roles, though you might add a driving record check and drug screening for candidates who would be operating a company vehicle if hired.
Carefully consider the advantages and disadvantages of background checks before deciding whether — and how — to use them. Done correctly, they can be a valuable complement to your hiring process.
Advantages of background checks
Background checks offer many benefits for employers looking to make informed hiring decisions. When implemented properly, they can significantly improve your hiring outcomes while protecting your company’s best interests.
Verify qualifications and experience
Background checks allow you to confirm that candidates have the qualifications and experience listed on their resumes. Verifying things like education credentials, previous employment, and professional licenses help ensure you’re hiring someone with the skills needed for the position.
Protect workplace safety
Background checks that include criminal history can help identify potential red flags that might put your team members at risk. While past behavior doesn’t necessarily predict future actions, having this information allows you to make more informed decisions about candidates who may pose a safety risk.
Protect company assets
Background checks can help protect your physical and intellectual property from internal threats. For example, credit history and criminal records can help you identify candidates with financial red flags or histories of theft or fraud. These screenings are particularly important for positions with access to financial accounts, sensitive customer information, or valuable inventory.
Comply with regulatory requirements
Some industries have specific compliance requirements that mandate background checks for certain positions. Conducting appropriate background checks ensures your company meets these legal obligations and avoids potential fines or penalties.
Improve quality of hire
Background checks give you a more complete picture of each candidate, enabling you to make better hiring decisions. It’s no surprise that 69% of large organizations are confident that running background checks improves their quality of hire.
Disadvantages of background checks
While background checks offer numerous benefits, they also come with potential drawbacks to consider. Understanding these challenges helps you implement a balanced approach that maximizes benefits while minimizing negative impacts.
Increased hiring costs
Background checks add expense to your hiring process, with reputable providers costing $30-100 per candidate depending on the depth and breadth of the search. These costs can add up when screening multiple candidates for several positions.
Weigh the cost of the background check against the potential cost of the turnover, theft, or lost productivity that could occur with a bad hire.
Extended hiring timeline
The background check process can add 3-5 days to your hiring timeline, sometimes taking longer for more complex screenings. This can increase your vacancy costs as the position remains unfilled longer.
Consider whether the longer timeline makes sense for your organization, and if there are other stages in your recruitment process that you could reduce instead.
Potential for discrimination claims
Improper use of background check information can lead to discrimination claims if you apply standards inconsistently across candidates or disproportionately screen out protected groups.
To protect your company, create clear, job-related standards for evaluating background information and apply them consistently to all candidates for the same position. Document your reasoning for any adverse hiring decisions based on background check results.
Regulatory compliance complexity
Background check laws vary by state and locality, creating a complex compliance landscape for employers. Staying current with these evolving regulations requires ongoing attention and sometimes legal consultation.
Limited predictive value
Background checks provide historical information but have limited ability to predict future job performance or behavior. A clean background doesn’t guarantee an employee will perform well, just as a minor issue in someone’s past doesn’t necessarily indicate they’ll be a bad hire.
Over-reliance on background checks might cause you to overlook promising candidates with unconventional backgrounds or put too much confidence in candidates with clear records. Background checks should complement thorough interviews, skills assessments, and reference checks — not replace them.
Potential loss of qualified candidates
Some highly qualified candidates may drop out of your hiring process if they find your background check requirements too invasive or burdensome.
Finding the right balance between thorough screening and respect for candidates’ privacy and time can help minimize this risk. Consider whether each element of your background check is truly necessary for the specific position you’re filling and communicate with candidates so they understand the purpose of each screening.
Background check best practices
If you find that the advantages of background checks outweighs the drawbacks, following some best practices can help you get the most out of them.
Create a consistent written policy
Develop a written background check policy that outlines which background checks you’ll conduct for each position in your company. This documentation ensures consistency across hiring managers and provides transparency for candidates.
Your policy should specify which positions require which types of checks, when in the hiring process checks will occur, and how results will be evaluated. For example, you might require credit checks only for positions with financial responsibilities while conducting education verification for all roles.
A well-documented policy helps defend against discrimination claims by demonstrating that your practices are consistent and job-related.
Get candidate authorization
Ask for written consent from candidates before conducting background checks in order to maintain compliance with the Fair Credit Reporting Act (FCRA). This disclosure should not be part of any other form, including your employment application.
Work with reputable screening providers
Partner with reputable background check providers that help you maintain compliance, provide a positive candidate experience, and make more informed hiring decisions.
JobScore integrates with both Checkr and Verified First to provide a streamlined background check process.
Follow adverse action procedures
If you decide not to hire someone based on information found in their background check results, follow the FCRA’s adverse action procedures carefully.
This two-step process requires first sending a pre-adverse action notice with a copy of the background check report and a summary of the candidate’s rights. After a reasonable waiting period (typically 5-7 days), you can send the final adverse action notice if you still decide not to hire the candidate.
These steps give candidates the opportunity to dispute inaccurate information and protect your company from compliance violations.
Stay current with changing regulations
Background check laws evolve constantly at the federal, state, and local levels. Assign responsibility for monitoring these changes to someone in your organization, or rely on your background check provider for regulatory updates. Pay particular attention to “ban-the-box” legislation, which restricts when criminal history can be considered.
Consider continuous screening
Consider implementing a continuous screening program that periodically rechecks employees after hiring. This approach is particularly valuable for roles with significant safety responsibilities, financial authority, or access to vulnerable populations. Continuous screening helps identify new issues that may affect an employee’s suitability for their position.
If you implement continuous screening, clearly communicate this policy to employees, obtain appropriate consent, and apply the program consistently across similar positions to avoid discrimination claims.
Provide transparency throughout the process
Maintain clear communication with candidates throughout the background check process. Explain what checks you’re conducting and why they’re necessary for the position. Provide realistic timeframes for completion and update candidates if delays occur. If issues arise in a background check, give candidates the opportunity to explain discrepancies before making a final decision. This transparency builds trust and improves the candidate experience, even for candidates who aren’t selected for the position.
Final thoughts on incorporating background checks in your hiring process
Background checks can be a powerful tool in building a skilled, reliable team while mitigating risk. Consider whether they might be a worthwhile addition to your hiring process and how you can tailor a program to meet your specific business needs. Track your hiring metrics over time to ensure that you’re seeing the desired outcomes, and make adjustments to your hiring process as needed.
