Whether you’re a hiring manager, recruiter or an HR specialist, a background check is a vital tool for protecting your business from potential threats. It can help you make better decisions about whom to hire and who not to hire.
Background checks are regulated by the U.S.’s Fair Credit Reporting Act and state laws. The FCRA protects consumers by limiting what employers can and can’t do with a consumer’s information, as well as how they can use it.
What Does a Background Check Show?
A background check is a detailed look at someone’s past and present. It can reveal anything from a criminal record to credit history, and it’s an important part of any business’s employee screening process.
The results of a background check can be intimidating, but they also provide valuable insight into an individual’s character. The results can also reveal if an individual has any underlying mental health conditions, which can affect their ability to perform their job duties.
While the main reason for conducting a background check is to protect your business, it’s important to remember that background checks are not always accurate. In fact, research has shown that many people with criminal records are often misrepresented or inaccurately reported in their background searches.
One of the most common reasons for a bad background check is investigators faking or omitting information from the reports. Another common issue is that the results aren’t used in a fair and impartial manner.
It’s important to keep in mind that the FCRA requires that any company that conducts a background check on a candidate must first obtain written consent from the subject of the check. This should be in the form of a signed release.
After you receive the subject’s permission to run a background check, you should inform them of what they can expect. This will include the specific type of background check you will be conducting, as well as the expected length of time it will take to complete the process.
Then, you must notify them of their rights under the FCRA, including their right to file a dispute if they feel that their results are inaccurate. Finally, you must wait for a minimum of five business days to issue an adverse action notice.
A good background check will tell you if a person has any pending lawsuits or civil matters in their past. These are a good indication that they may have been arrested or have been involved in legal matters, and can be a red flag for an employer.
If a candidate has a bad credit history, it’s important to find out if they are a high risk for identity theft or other problems. This is especially true if the candidate will be managing money or using your company’s funds.
If the results of a background check show that a candidate has a criminal record, it’s best to exclude them from consideration for employment opportunities. This will protect your business from potential risks and help ensure that you hire only high-character people.