10 Types of Background Checks Employers Should Conduct

As businesses adopt new hiring practices, the importance of comprehensive background checks becomes clear.

If you are an employer, you want to ensure potential hires are qualified. You need them to be trustworthy and capable to maintain a secure and efficient workplace.

In this article, we will explain the 10 most common types of background checks employers should perform. Knowing what each check involves can help you make better hiring decisions and build a reliable team.

What is a Background Check?

A background check examines an individual’s history to confirm their identity and if they meet certain criteria.  It’s an important step in various processes, such as hiring new employees, renting properties, or even volunteering.

Background checks help employers, landlords, and other organizations make decisions based on accurate and verified information. It raises your guard against potential hiring problems to reduce risks and protect the reputation of your business.

Why Should Employers Screen Prospective Employees?

Employers need pre-employment background checks to screen prospective employees. Who wouldn’t want to know which individuals are trustworthy, qualified, and a good fit for their team?

Background checks provide exact information about a job candidate’s past, including employment history, arrest records, and credit history.

All of this information helps employers make better hiring decisions and avoid potential risks that could harm the workplace.

Protecting the Workplace

Conducting thorough background checks protects the workplace from people with a criminal history.

Criminal background checks reveal past offenses. They signal you about what could pose a threat to the safety and security of your company and employees. 

This makes hiring managers aware of the potential risks of hiring a candidate.

Check on Qualifications and Competency

Employment verification and education verification are key parts of the screening process. These checks confirm that the job candidate has the necessary qualifications and skills for the position.

You need to verify past employment and credentials to filter out your candidates. This leaves you with prospective employees who are competent of performing job duties.

Financial Responsibility and Stability

Credit background checks and credit checks are a must for positions involving financial responsibilities. These checks provide insight into a candidate’s financial history.

It includes their credit report and any poor credit history. Understanding a person’s credit history helps employers assess their financial responsibility.

It will also predict any potential risks when handling company finances.

10 Common Types of Background Checks For Employers

1. Education Verification

Find out if a candidate fabricated their educational background.

Education verification is an important step in the pre-employment background check process. It lets you confirm the authenticity of a candidate’s educational credentials.

You can contact educational institutions directly to address this. You can also use verification services or review transcripts and certificates provided by the candidate. 

The result of the verification process will decide if you have to rescind the job offer to a candidate.

It also gives you an idea of the candidates possess the necessary qualifications for the job. 

You can stop fraud and maintain a qualified workforce for your business. Save your business on potential future costs and get yourself a reliable hire.

2. Criminal Records Check

Criminal records checks uncover any criminal history a candidate may have. This type of background check includes local, state, and federal records. It reveals arrests, convictions, warrants, or any previous criminal record.

A criminal history check also makes your workplace a secure work environment. You should conduct this if you want to give your hiring team a better grasp of the candidate. 

The more you know about a candidate, the easier it is to determine if they are fit for the team. Do this for positions that involve working with vulnerable populations, handling sensitive information, or managing financial transactions. 

Employers often access national criminal databases and county records to conduct a thorough criminal history check.

Remember to be careful when doing a comprehensive criminal background check. It involves going through sensitive personal information.

Always ask for consent before digging through a candidate’s criminal record or any type of background check for that matter. 

You also have to avoid discrimination and uphold fair practices. This means following guidelines from legal frameworks.

3. Employment Background Checks

Employee background checks verify a candidate’s work history. Conduct background checks on employment to confirm previous employment dates.

Find out the authenticity of previous job titles and responsibilities. What were their reasons for leaving?

You can check this by contacting previous employers or reviewing employment records. Finding inconsistencies in a candidate’s work history through an employment background check can prevent a bad hire.

Confirming the accuracy of a candidate’s employment history also reveals their work ethic and performance. Employment verification can back up candidates’ claims of experience.

This will help you assess who is more suitable to do the duties needed for the job.

4. Credit Background Check

Credit checks are used for positions that involve financial responsibilities. These checks reveal a candidate’s credit history through a credit report.

Keep a close eye on candidates with a poor credit history. A credit check can let you know early on of potential issues. 

This can range from job stability to financial management. It forms an initial idea of how they might handle your money in the business.

Credit checks cover everything from debts and payment history to credit scores. You should use this to predict potential risk for positions handling money.

A credit check also helps you avoid hiring individuals with financial difficulties that might affect your business. 

However, you must obtain written consent from the candidate before conducting a credit background check.

5. Identity Verification

Identity verification confirms that the candidate is who they claim to be.

Doing this background check involves verifying government-issued IDs. It could also involve their Social Security numbers and other personal information.

Hiring managers often use a social security number trace to verify a candidate’s information. You want the personal information to be confirmed and as accurate as possible.

This will help you prevent identity theft and fraud. Failure to identify false identification documents can cause potential legal issues for your business.

6. License Verification

License verification is for positions that require specific professional licenses, such as doctors, lawyers, and engineers.

It confirms that the candidate holds a valid and current license. Are they qualified to perform the duties required for their roles? You can verify these licenses by contacting the issuing authority.

Compliance with legal and professional standards verifies the candidate’s qualifications and competency. This also helps you protect the company from legal and financial risks.

7. Social Media Background Checks

A candidate’s online presence can be reviewed through social media background checks on platforms like Facebook, Twitter, and LinkedIn.

This can dig into the candidate’s personality. How do they behave professionally? Is the job candidate’s character suitable for the role? 

Social media screening answers this by taking a look at how the candidate behaves online.

It usually looks for inappropriate content or signs of risky behavior. It also considers their professional achievements and endorsements. However, approach this type of screening with caution.

You must respect a candidate’s privacy and avoid discrimination based on protected characteristics on their social media accounts. It should only serve as a complement to better grasp the candidate’s suitability.

8. Drug Screening

Drug screening tests candidates for illegal drug use. You should do this for positions that involve safety-sensitive tasks. 

Roles that heavily require this screening usually include operating machinery, handling toxic materials, or keeping public safety.

This test should be mandatory for you to keep your company drug-free. It also reduces the risk of employees causing accidents and injuries to anyone on the team.

Drug testing also lets you confirm that candidates would not impair their job performance.

9. Reference Checks

Reference checks are a question on work ethic and character. It will gather firsthand accounts of a candidate’s past performance and work habits.

Make sure that a candidate provides you with these references to verify their qualifications.

Now, there are questions you should ask during this background check. First, ask about the candidate’s responsibilities. 

How was their performance at their previous job? Would their previous performance call for a rehire eligibility?

You have to confirm the candidate’s qualifications and experience. This will help you avoid hiring individuals with poor work histories.

10. Driving Record Check

Driving record checks are important if your business involves roles like delivery drivers or commercial vehicle operators. Information revealed in the background checks includes traffic violations, accidents, and license status.

Driving record checks if the candidate is a safe and responsible driver. This reduces the risk of accidents and liability for your business.

You can check candidates’ motor vehicle records to confirm their driving history. Use this to regularly assess their suitability for roles that involve driving.

Legal Considerations Employers Should Know Before Doing Background Checks

Employers must follow various laws and regulations to ensure fairness and compliance when conducting background checks. Two key legal frameworks should always be followed.

These regulations are designed to protect both the job applicant’s rights and the hiring process’s integrity.

Fair Credit Reporting Act (FCRA)

The FCRA is a federal law regulating consumer information collection and use. This includes our conduct of background checks.

Under the FCRA, employers must obtain written consent from the candidate before conducting a background check and clearly and obviously disclose to the candidate that a background check will be performed.

The candidate has the right to know if you choose not to employ them after a background check result. This means providing them with the same report, which summarizes their rights based on the FCRA.

It lets candidates be aware of and address any potential issues in their background check report.

Equal Employment Opportunity Commission (EEOC) Guidelines

The EEOC enforces federal laws that make it illegal to discriminate against a job applicant or employee. When conducting background checks, employers must be fair in the process for all individuals. 

It is important to apply the same standards to everyone, regardless of their background. Employers must also be prepared to show that any exclusion based on a background check is job-related and consistent with business necessity.

These guidelines help maintain a fair and unbiased hiring process.

Other Legal Considerations

In addition to the FCRA and EEOC guidelines, employers must also be aware of local laws that may impose additional requirements on background checks. 

Some states have specific regulations regarding the use of criminal history in hiring decisions.

Employers must stay informed about these laws to avoid legal issues. Using a reliable screening service can help meet all legal requirements. It keeps the conduct of the background screening process fair and lawful.

Best Practices For Conducting A Background Check

When conducting background checks, it is important for employers to keep a strict screening process. 

Follow these practices to help you make better hiring decisions. It will also help you build a trustworthy workforce.

Choose a Reliable Background Screening Service

Selecting a reputable background screening service is important for obtaining accurate and comprehensive information. Look for services that comply with the Fair Credit Reporting Act and other relevant regulations.

Reliable services provide clear and easy-to-read reports and have positive customer reviews.

A good background check service helps employers verify the qualifications and backgrounds of job candidates with accuracy and completeness.

Get the Necessary Information from the Candidate

It is a must to collect all required details from the job candidate. Start with a written consent to perform the background check. 

Make sure the candidate is aware of the background screening process and their rights under the FCRA.

Provide transparency and obtain the proper authorization to maintain trust and legal compliance. This means explaining the types of background checks you will be conducting.

Review and Interpret Background Check Results

Once the background check is complete, carefully review and interpret the results. Look for any red flags. Are there inconsistencies in employment history or issues found in credit background checks?

Consider the context of any negative findings and how they relate to the job requirements. This thorough review helps make informed hiring decisions and makes the background screening process fair and effective.

Verify With Stellar Background Checks

At Stellar Background Checks, we know how important it is to hire reliable employees. 

Our thorough screening services, including criminal background checks, employment and education verification, and drug testing, help employers like you make smart choices.

Ready to improve your hiring process? Feel confident with our detailed background screening. Contact us or book a demo to see how Stellar Background Checks can support your hiring strategy.

FAQs About Types of Background Checks

What are the types of background checks that should always be performed?

Employment verification, criminal records check, and education verification are the three types of background checks that should always be performed. 

Employment verification confirms a candidate’s work history, including job titles and dates of employment.

Criminal records checks reveal any criminal history for the safety and security of the workplace. Education verification confirms that the candidate has the educational credentials for roles requiring specific qualifications.

What typically shows up on a background check?

A background check typically reveals employment history, criminal records, educational qualifications, and credit history. Employment history shows past job titles, employers, and dates of employment.

Criminal records detail any arrests, convictions, and legal issues. Educational qualifications confirm degrees and certifications earned. Credit history includes debts, payment records, and credit scores, which are important for positions involving financial responsibilities.

How long do background checks take?

Background checks usually take one to five business days. It depends on the type of check and the information being verified. Employment background checks and education verification might take a few days if previous employers and schools respond promptly.

What can delay a background check?

Several factors can delay a background check. Incomplete or inaccurate information from the candidate can cause delays, as missing details need to be clarified.

Delays in response from previous employers or educational institutions can also slow down the process. These verifications depend on the speed at which third parties provide the required information.

Additionally, a high volume of requests at the background check service can extend processing times, especially if multiple candidates are being screened simultaneously.