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Companies conduct pre-employment background checks to ensure a good fit, safety, and competence. These checks can include reference checks, consumer investigative reports, credit reports, criminal history, physical exams, drug tests, and lie detector tests. Laws govern what employers can consider and the types of checks that can be performed.
There are many reasons why companies want to conduct a pre-employment background check. When a new employee is hired, companies want to ensure that they are a good fit, do not pose a risk to other employees, and are competent to do the job required. A pre-employment background check can help answer some of these questions, depending on the extent.
Some companies conduct a pre-employment background check on their own. They can do very simple things like checking if employees worked at companies listed in their work history. When this is the only question, this is called a reference check. These checks can become more extensive if the company chooses and the prospective employee agrees to allow greater background scrutiny.
Employers may, with applicants’ permission, run a consumer investigative report. This allows employers to request more specific information from previous employers, such as the candidate’s job performance. Not all companies will provide this information due to some liability concerns. A consumer investigative report may also include interviews with identified references or friends and family of the applicant.
Another common part of a pre-employment background check is running a credit report. Companies that hire cash handlers may want to be sure that employees are not at risk of theft due to poor financial conditions. Alternatively, people may see those with low credit as irresponsible and not want to hire them. This can be an irrational judgment, since unemployment, which drives many to look for work, can quickly cause bad credit, and unemployment is not always the employee’s fault. As in consumer investigative reports, companies must obtain applicants’ permission to run a credit check.
Other aspects of a pre-employment background check can get trickier. Companies may want to research criminal history. Unless the person is applying for certain types of jobs that require fingerprints, most companies do not have access to databases that look up criminal history at the state or national level. Instead, they may limit themselves to combing through public records in areas the employee previously lived to ensure the candidate was never charged with or convicted of a crime.
Companies may perform some other pre-employment background check methods. They may ask applicants to submit to physical exams, take drug tests, or take lie detector tests. This can be expensive, and many companies just do a reference check. Some companies subcontract these checks to other companies that specialize in background checks, but again this depends on the needs of the company and the types of jobs available.
There may be strict laws that govern what an employer can consider when looking to hire another person. There are also many laws about the types of background checks that can be performed and the types of permits required to legally check backgrounds. It is wise to research local, state, and federal laws to determine the employer’s and candidate’s legal rights in this regard.
Asset Smart.
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