Uncovering the Past Before You Hire Asking questions sooner can save you pain and money later.
By Kimberly Seten
The words "background check" mean different things to different employers. For some, it means a criminal background check. For others, it means finding out information about an applicant's work history. And for too many employers, it means a bothersome process they would rather not deal with. Whatever you think of background checks, one thing in today's work environment is certain: your business should be conducting them.
Why conduct background checks? Because problem employees and employment situations usually can be traced back to bad hiring decisions. Everyone has employed, at one time or another, an employee who looked great on paper and who performed well in the interview, but turned out to be a problem. A background check could uncover attendance issues, behavioral problems or work performance that doesn't deliver what the candidate's training and education promised on paper. Even more important, with negligent hiring lawsuits on the rise, a background check is preventive medicine that could protect employers from liability.
There are two main avenues for conducting a background check: you can do it yourself or hire an outside vendor. Each method has its pros and cons.
Conducting Background Checks In-House Don't be intimidated. You don't need a dedicated department to conduct background checks. Instead, it can be as simple as picking up the phone. Contacting former employers, educational institutions and references can give you a lot of information.
Another excellent source of information is the Internet. People, especially those fresh out of high school or college, sometimes forget that what they post on the Internet can be accessed by more than just their close friends or family. "Googling" an applicant can turn up sometimes unexpected information. Checking on popular websites such as MySpace and Facebook can also give you relevant information an applicant might not disclose on an application or in an interview.
Some court records are searchable by the general public as well. Employers also can get access to databases that contain criminal records, driving records and other types of information. Generally, these databases have a "per use" charge or annual fee. It's a good idea to do some checking into the database, or use a free trial period, to ensure that it provides the comprehensive information you want before you sign up for a subscription.
The benefits to doing a background check in-house include potentially saving money, avoiding the requirements of the Fair Credit Reporting Act and getting the information firsthand. On the downside, conducting your own background checks can take time-often a precious commodity in a small company. Also, databases rarely are a one-stop shop. Instead, you might have to subscribe to several to find all of the information you need.
Using a Third-Party Vendor There are a host of companies that conduct background checks for employers. You can obtain reports ranging from the simple to the complex, depending on how much you are willing to pay. Using a third party can save your company time and can lead to more comprehensive information, as these companies know where to find the information you are interested in obtaining. Cost, of course, can be a downside. Also, if you are going to use a third-party vendor, your company must comply with the requirements of the Fair Credit Reporting Act, which include obtaining authorization from the applicant and specific notice requirements.
Information a Background Check Provides A background check can provide much information. No one blanket formula is right for every company. Instead, consider what type of information is truly relevant to the positions for which you are hiring. Some types of background checks include the following:
Work History—Many people think that there is no benefit to contacting former employers, because all they will confirm is basic facts such as dates of employment. Although this is often the case, you can ask if the employer will provide additional information, such as the last position held (maybe the applicant has embellished his or her title, adding managerial responsibilities that didn't exist) and whether the applicant is eligible for rehire.
Education—This is the category most likely to be lied about on an application. Applicants trust that employers won't call their high schools or undergraduate institutions to confirm that they did, in fact, graduate or that they have the degree they have represented. You might find yourself spending time and money providing basic training you assumed the applicant already had. References—Personal, professional or both. It's true that no one is going to put down someone who will give a bad reference, but you can still learn information about the applicant that you might not learn during an interview. And sometimes applicants don't know their references as well as they think. Criminal Background—Missouri state law prohibits discrimination against applicants and employees on the basis of criminal background. However, it is lawful for an employer to refuse to hire an applicant if the crime is reasonably related to the position sought. For example, an employer filling a position where the employee would have access to money could disqualify an applicant who has been convicted of theft. Driving Record—This information can be especially relevant if you are hiring for a position where the employee will have access to company vehicles. While there are other types of information available through background checks, these are some of the basic categories to get you started. Although background checks might be an expenditure of time-and sometimes money-remember that they can save you time, money and potential liability down the road if you can weed out problems before you hire.
Kimberly Seten is an attorney with the law firm of Constangy, Brooks & Smith, LLC, representing management, exclusively, in labor and employment law. She specializes in helping employers deal with problems before they arise through policy development and training. You can reach her at (816) 329-5904 or
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