Did you know that 73% of U.S. companies conduct background checks on all job candidates, not just those applying for upper management positions?
Besides HR departments reviewing job candidates, there are many reasons to run a background check on an individual. In the following infographic from North American Investigations, learn more about the typical process of a background check.
The Secret World OF BACKGROUND CHECKS
WHAT IS A BACKGROUND CHECK?
A background check is an investigation that compiles information on an individual, company, or organization. This information can include but is not limited to:
- Criminal Records
- Commercial Records
- Financial Records
- Personal Records
Background checks search the vast array of databases and tools, both public and private. When a background search is done correctly, it pulls information from a multitude of sources.
Contrary to popular belief, 73% of all U.S. companies perform background checks on all candidates, not just those applying for upper management positions.
WHY RUN A BACKGROUND CHECK?
Background checks are conducted for a variety of reasons, including:
- Personal
- Employment / Corporate
- Dating / Pre-marital
- Nanny / Babysitting
- Tenant investigations
WHAT DO BACKGROUND CHECKS ACCOMPLISH?
- Establish Credentials
- Confirm Resume Information
- Assess Character and Suitability
- Security Clearance
- Protect Vulnerable People
- Professional License Verification
- Education Verification
- Sex Offender Information
- Social Media Checks / Deep Web Searches
- Credit Checks
- Driving Records
- Criminal History Search
- Drug & Health Screening
- Industry Specific Searches
- Identity Authentication
- Previous Employment Verification
- Bankruptcies
- Marital Status
- Work History
- Public Records Searches
- Liens & Judgments
- Employment Information
- Legal Working Status
- Previous Tenant History
- Name & Social Security Number Verification
If a check for a criminal report was not performed, a company may be sued for negligent hiring if that employee commits a criminal act.
- Employers lose nearly 80% of negligent hiring cases.
- An average negligent hiring settlement is around $1 million; however, they can cost employers as much as $40 million.
- A study found 33% of employees admit to stealing from their workplace within the past 3 years.
- It is estimated that 75% of employees steal at least once throughout their career.
- 5% of workplaces in the U.S. have experienced at least one episode of workplace violence per year.
- Replacing a bad hire costs $15,000 on average.
Background checks allow employers to:
- Create a safer workplace
- Identify trustworthy & reliable candidates
- Avoid negligent hiring lawsuits
- Protect current employees and the image of the company
THE PROCESS OF A BACKGROUND CHECK
- Find a trustworthy company – not an online database
- Collect preliminary information on the individual
- Order services and run the background check
- Receive results
- Make decision
THE DARK SIDE OF BACKGROUND CHECKS
Background checks may be used for:
- Illegal Discrimination
- Identity Theft
- Privacy Violation
People with minor or irrelevant criminal convictions may be unfairly disadvantaged.
Minorities are overrepresented in this group and may suffer additional discrimination.
The U.S. Equal Employment Opportunity Commission requires employers to take into account:
- The seriousness of the offence
- The amount of time since the conviction
- Relevance to the job being sought
By using an online database instead of a licensed private investigator, errors often occur.
- Common Names
- Old and Outdated Information
- No Verification if the Information is for the Right Individual
- Incorrect information found
MOST COMMON INFRACTIONS
- 46% of checks found a discrepancy in resume or application information.
- 34% of application forms contain deliberate untruths.
- Over 30% of driving record checks found one or more violations.
- 6% of checks reveal a criminal record.
CHOOSING A RELIABLE PROVIDER
- Avoid cheap Internet databases that use free/dated information you can find online for free.
- Understand privacy rights and laws.
- Find a private investigator who specializes in background investigations.
- Complies with state and federal laws, including the Fair Credit Reporting Act.
- Request comprehensive coverage.
- Handles sensitive data securely.
- Familiar with needs of your industry and what you are looking to obtain.
- Will not offshore identifying information of share my information.