When your favorite candidate walks out of the interview room, excitement fills the air. But before making any decisions, it’s essential to delve deeper into their background. Trusting your gut is great, but pairing it with a compliant online background check ensures you’re making an informed choice.
Resumes may paint a picture of perfection, but they can sometimes gloss over crucial details. It’s not uncommon for candidates to embellish their credentials, making thorough vetting a must. After all, the right hire can propel your company forward, while the wrong one can drain resources and morale.
For small business owners, investing wisely in both people and strategies is key. That’s where background checks like ShareAble® for Hires come in handy, offering insights into credit history and relevant criminal records.
With various screening options available, it’s essential to choose the one that aligns with your industry and organizational requirements. Stay tuned for a comprehensive guide on the benefits of employment screening and how to leverage background checks effectively.
Benefits of Background Checks
It’s no secret that hiring a new employee in the U.S. can be a costly affair, both in terms of finances and time. However, investing just $40 upfront for applicant screening could save your company from significant losses down the line.
Requiring job applicants to undergo online background checks offers several benefits for employers and hiring managers:
Informed Hiring Decision: With thorough information at your fingertips, you can confidently choose the right candidate for the job.
Workplace Risk Reduction: By delving into a candidate’s relevant criminal history, you can identify potential risks of workplace violence—a critical consideration given its prevalence as a leading cause of fatal occupational injuries in the U.S.
Verification of Candidate Claims: Background screening helps verify the authenticity of a candidate’s identity, certifications, education, and work experience.
Prevention of Negligent Hiring Claims: Negligent hiring claims can be costly and damaging to a company’s reputation. Screening candidates diligently helps mitigate the risk of such claims, especially in industries prone to litigation like utilities, delivery services, hospitality, healthcare, and real estate.
Remember, it’s essential to obtain the candidate’s express permission before conducting a background check to ensure compliance with the Fair Credit Reporting Act (FCRA). With ShareAble for Hires, candidates can provide instant permission, making the process seamless and compliant.
7 Types of Employment Background Checks
Here are seven types of employment background checks you can use to ensure the right fit for your business:
- Identity Verification
- Criminal Background Checks
- Credit Background Checks
- MVR Reports
- Professional License & Education Background Checks
- Fingerprint Background Checks
- E-Verify Background Checks
1. Identity Verification
Identity theft is a real concern. Employers must ensure candidates aren’t using stolen
identities. Identity verification checks confirm applicants’ identities.
ShareAble for Hires employs advanced record-matching logic, reducing false matches.
Checks verify:
- Name
- Address
- SSN
- Date of Birth
- SSN fraud reports
- SSN linked to deceased individuals
- Active duty alerts
2. Criminal Background Checks
Every employer should run a criminal background check, especially if the role involves handling sensitive information or working with vulnerable populations.
Conducting online checks helps mitigate risks associated with new hires. These checks cover county, state, and federal records, detailing arrests, convictions, court records, and more.
Note: Some states lack online records. Ensure compliance with federal regulations and consult legal counsel.
3. Credit Background Checks
Credit checks can help mitigate risks for candidates seeking financial or confidential roles. They reveal tax liens, debt issues, and financial irresponsibility.
Roles with security clearance or financial access often require credit checks. Employers may benefit from checking all employees to mitigate risks.
Credit reports provide details like:
- Past and current credit accounts
- Payment punctuality
- Debts in collections
- Bankruptcy records
- Collection accounts
- Recent job history (though not comprehensive)
Understanding a candidate’s financial background can help you hire a trustworthy employee for financial roles.
Financial responsibility reflects maturity and trustworthiness, crucial for any role. However, candidates should have a chance to explain negative reports.
4. MVR Reports
Employers who need employees to drive company vehicles or transport clients should run motor vehicle record (MVR) checks to ensure they hire safe drivers. This is especially crucial for those under the U.S. Department of Transportation’s regulations.
What does an MVR check reveal?
- Driving history
- License status and class
- Endorsements
- Past license statuses like suspensions or revocations
- Vehicular crimes
- Accident reports
- DUI convictions
- Traffic citations
- Unpaid summons and insurance lapses
OSHA reports that an average crash costs $16,500, but an on-the-job accident could lead to costs of $74,000 for the employer. If a fatality occurs, employers could face up to $500,000 in related expenses.
5. Professional License & Education Background Checks
Employers hiring for positions requiring specific education levels or licensure should conduct education and license checks on applicants. This applies to roles like plumbers, professors, barbers, and preschool teachers, where qualifications are essential.
Candidates may embellish their education or credentials, so verifying their claims is vital. This helps avoid hiring unqualified individuals, reducing the risk of legal issues.
Education verification involves confirming:
- Degrees
- Institutions attended
- Certifications
- Training received
However, it’s a slow process, taking weeks to complete, and must comply with laws like FERPA. Yet, it’s crucial for ensuring the right hire and protecting your company from potential liabilities.
6. Fingerprint Background Checks
The FBI collects and stores fingerprint data in the Integrated Automated Fingerprint Identification System, holding approximately 70 million criminal profiles.
Employers needing employees with security clearances or handling sensitive data often opt for fingerprint background checks. However, if time is tight, there’s a downside: it usually takes two to four weeks to receive results by mail.
Fingerprint background checks typically unveil details like arrest dates, charges, and case outcomes. They also provide basic personal information such as birth details, name, address, and employment history. Additionally, police reports tied to fingerprints may include accident records, insurance details, and statements.
7. E-Verify Background Checks
E-Verify is an electronic system that checks the data on an employee’s Form I-9, Employment Eligibility Verification, to confirm their authorization to work in the U.S.
If you’re using E-Verify, you’ll likely need to display the Notice of E-Verify Participation poster from the DHS and the Right to Work poster from the Department of Justice.
Here are the typical outcomes of an E-verify background check:
- Employment Authorized: This means the information aligns with DHS and/or SSA records, allowing the employee to work in the U.S.
- DHS or SSA Tentative Non-confirmation (TNC): This indicates a mismatch in the data. Employees can usually dispute this outcome. If unresolved, it may lead to termination, especially with a Final Non-confirmation result, suggesting unconfirmed work authorization.
Note: A TNC result doesn’t necessarily mean the employee isn’t authorized to work; it signals a discrepancy that requires resolution through contacting an SSA field office or DHS.
Screening Can Save You
U.S. employers know firsthand the costly repercussions of a bad hire. Before bringing on board a new team member, it’s wise to consider a background check to avoid potential pitfalls.
Regardless of your industry or business size, conducting a background check on new or prospective hires can help mitigate risks. ShareAble for Hires offers a user-friendly solution, delivering comprehensive insights in just minutes.
Powered by TransUnion, a reputable credit reporting agency, ShareAble for Hires provides details on
- Name, address, and Social Security number verification
- Comprehensive credit reports
- Criminal history, including sex offender registries and most wanted lists
- Identity verification
Unlike traditional background checks that can take days or weeks, ShareAble for Hires delivers results swiftly, enabling you to make informed hiring decisions promptly.
Gain deeper insights into your applicants at hires.shareable.com.