What do background checks actually show?

Imagine welcoming an individual into your team and then later discovering a history that raises eyebrows: unverified credentials, a criminal record, or poor credit. Mis-hires like this have many unwanted consequences – from harming team trust to tarnishing your company’s reputation. In a worst-case scenario, you may end up hiring someone who exposes you to legal risk or may end up harming your business’s finances.

Background checks can help you avoid this. They help reveal information about a candidate before you hire them for an open role at your company. 

But what do background checks show? And how can you use them effectively? We explain everything you need to know in the guide below.

What shows up on a background check?

Background checks can include some or all of the following.

1. Identity verification information

As part of identity verification, an applicant’s full name, aliases, contact information, age, and date of birth are confirmed – often by using public records. This ensures that the person you're considering is who they claim to be. 

In the United States, identity verification can confirm whether an applicant’s Social Security number is valid. You can also verify that a Social Security number isn’t being used as part of another identity. This is important to avoid legal problems.

2. Credit history or credit scores

Background check providers can obtain information from ​​credit reporting agencies about an individual’s past and current financial situation. Credit histories typically include previous bankruptcies, credit inquiries, outstanding debts, payment histories, assets, and liens. 

Credit history and credit scores show how well applicants handle monetary commitments and highlight any red flags that could suggest challenges with integrity.

3. Criminal records

Any relevant information relating to a candidate's legal past can appear in a background check. This can include any history of arrests, charges, civil court records, acquittals, and weapons permits. 

A criminal record check can be based on court records or state and national criminal databases. It can reveal any information about a person’s past and any current criminal proceedings they’re part of.

Always check local laws before running a criminal background check. Some states have been working to pass “ban-the-box” laws requiring employers to make a conditional job offer before running a criminal background check.

4. Driving records

Especially pertinent for roles involving the transportation of passengers, driving records are part of most background checks. These records offer insights into a candidate's behavior on the road, including any past traffic violations and crashes. They can also confirm whether a person’s driver’s license is valid.

You may also be able to verify whether an applicant is the legal owner of their vehicle and find out about any crash or salvage records, which can be relevant if you’re hiring someone who’ll be using their own transportation on the job.

5. Education history

This part of a background check confirms a candidate's academic qualifications. It includes when and where they went to school and the degrees and professional licenses they earned. Checking an individual’s education history can also reveal any disciplinary measures they faced as a student.

6. Work experience 

Background checks can also verify an individual’s past job titles, places of employment, employment durations, and even compensation.

Reasons to conduct background checks

There are many advantages to running background checks, no matter what position you’re hiring for.

1. Minimize turnover and save money

Conducting background checks reduces the risk of hiring someone unsuitable. This saves you the time and money you’d spend dismissing the unfit employee and hiring someone to replace them. As a result, you reduce the turnover rate at your organization.

2. Protect and boost your company's reputation

Background checks ensure the individuals you hire can uphold your company's ethics, preventing incidents that could damage your reputation.

In fact, you send a strong message about your organization’s integrity when you decide to be selective about who you hire. Background checks show you’re thoughtful in seeking only high-quality candidates, helping improve your company’s image.

3. Reduce legal risks and enhance safety

Background checks minimize the chances of unknowingly hiring candidates with a history that might lead to legal complications. Conducting checks can help show you’ve done your due diligence and vetted candidates thoroughly.

Likewise, running background checks reveals information about candidates’ behavioral patterns. This insight helps you avoid hiring someone with a criminal or violent past who could harm your team and create an unsafe work environment.

Background checks for different roles

What you’ll need to verify in background checks varies based on the role you’re hiring for. Let’s explore a few examples below.

1. High-responsibility roles

When hiring individuals in high-responsibility roles – such as those who make decisions involving children or vulnerable people – you’ll want to verify their identity and professional credentials. You should also conduct in-depth criminal background checks.

Additionally, invest in a background check that examines driving records, work history, social media presence, and finances. Doing so means you can hire someone without any red flags.

2. Financial roles

When you hire financial professionals, such as accountants or finance managers, background checks that pull up credit scores and credit history can offer insights into financial responsibility and money management.

Your background check should also confirm that your financial candidate has no previous convictions for fraud or financial crimes. Plus, confirming their education credentials verifies that they have the certifications and academic experience needed to comply with the law.

3. Customer-facing positions

Employees representing your company in sales, customer support, and other customer-facing roles need impeccable interpersonal skills. Beyond traditional background checks, consider looking at social media profiles to ensure candidates would ‌reflect positively on your company image.

4. Technical jobs

For developers, coders, engineers, and other tech professionals, check technical competence by thoroughly assessing candidates' education, certifications, and work history. Peer recommendations and skill tests can further validate their abilities.

5. Management

Managers and supervisors have a great deal of responsibility in an organization. Therefore, they require a thorough background check that verifies their work experience and criminal history.

Criminal checks ensure anyone with significant responsibility has integrity, while a work history review can verify that they have experience leading teams, making high-level business decisions, and more.

6. Remote positions

In a digital era, creating fake identities online is easy. So, confirming candidates’ identities is crucial when hiring for remote roles. 

Use a background check that verifies an individual’s name, aliases, Social Security number, address, and other identifying information. You may also want to verify education credentials and check candidates’ social media profiles to further confirm they are who they claim to be.

7. Entry-level roles

Basic background checks are essential for internships and entry-level positions at your company to get an accurate picture of the person you’re hiring. Typically, these will focus on verifying an individual’s identity, education, and job experience.

How to use background checks

Here’s what you need to know to get started with background checks.

1. Ensure compliance

Employers in many countries have a right to check applicants’ backgrounds. However, it’s essential to ensure you understand the local laws governing the information you can gather.

For example, background checks are considered “consumer reports” under the federal Fair Credit Reporting Act (FCRA) in the United States. This law stipulates that employers must notify the applicant in writing that a background check will be conducted and obtain written permission from the candidate.

Consider consulting with an employment attorney to ensure background checks – and all parts of your hiring process – comply with relevant laws. Seeking legal guidance can also reduce your risk of being accused of discriminatory hiring practices.

Additionally, background checks involve personal information, and protecting this information is vital to avoid legal issues. For example, you may want to limit who can view background check results. Also, you might establish a process to delete candidate details once you make a hiring decision.

2. Create a written policy

Develop a written policy that outlines the appropriate background checks to conduct for each applicant. It might be that all individuals undergo the same background check or that you conduct basic identity and experience checks for entry-level candidates and more in-depth checks for senior positions. 

Your policy should include details about how background information can be used in the hiring process, such as who has access to results and what information is given priority in hiring decisions.

Creating this policy can reduce bias during recruitment and help protect you from accusations of unfair hiring practices. 

3. Work with a reputable provider

You can review public records and profiles yourself. However, employment background check providers have the resources to deliver timely, detailed reports that comply with relevant laws. They can access large information databases and have the research skills to dig deep. 

Look for a provider with experience working with companies in your state and industry. Ask about turnaround times, pricing, and security measures to find a quick, safe, affordable service.

You may also want to find a provider that’s part of the Professional Background Screening Association (PBSA). PBSA membership means the provider has agreed to adhere to quality and ethical standards.

4. Verify information

Background checks aren’t always 100% accurate, partly because public records can include errors. Identity theft can also mean an applicant’s credit score is low, for example, or someone else has used their Social Security number.

Before you dismiss a potential candidate because of a red flag, the FCRA may require you to submit a pre-adverse action notice to the applicant to give the individual a chance to correct any inaccurate information. 

You can also use other pre-employment screening methods to get a more accurate picture of an individual.

Additional forms of pre-employment screening

Background checks can tell you a lot about an applicant’s past. But they’re even more potent when complemented with the following pre-employment screening solutions.

1. Pre-employment testing

Pre-employment testing enables you to measure an applicant’s skills and traits objectively. These assessments offer a fuller picture of your candidates, prevent bias during hiring, and help you avoid relying on screening resumes that may have inaccurate information.

With pre-employment assessments, you can measure the following:

• Role-specific skills, like skills in coding, affiliate marketing, SEO copywriting, data analysis, retail sales, and more.

• Cognitive abilities, such as numerical reasoning, problem-solving, and reading comprehension skills.

• Personality traits, including agreeableness, extroversion, leadership traits, and more.

• Culture add – meaning how well a candidate aligns with your company values and desired behaviors.

• Situational judgment, which assesses how an applicant might react in different circumstances.

TestGorilla has a library of over 300 scientifically validated tests – each developed by subject matter experts – so you can evaluate candidates easily and accurately. 

Our platform lets you combine up to five tests to measure various traits and abilities in a single assessment. You can even add custom questions. 

Once candidates complete an assessment, full results reports show you detailed information about each individual’s strengths, areas for improvement, and more.

Combining pre-employment assessments with background checks gives you the best of both worlds. Background checks can tell you what has happened in an applicant’s past, and pre-employment testing measures an individual’s skills, values, and personality.

2. References

References can offer a treasure trove of insights, enabling you to assess a candidate's performance, work ethic, and interpersonal skills from those who've worked closely with them.

Contact references for more information about each applicant’s work approach and past professional successes. Remember that candidates will likely ask friends for references, so you might not always get unbiased information. 

For more information, check out our guide on how to conduct reference checks.

3. Phone interviews

Phone interviews can help you evaluate how well applicants can answer spur-of-the-moment questions. However, this type of interview can fall short in assessing crucial non-verbal cues, body language, and cultural fit.

Conducting in-person or video interviews can offer a more comprehensive look at candidates’ communication skills and demeanor.

One-way video interviews are an excellent option to consider. In this type of interview, you ask applicants to record and send video replies to your questions. You can then review the videos at your convenience.

4. Social media reviews

Candidates' social media profiles can show how they represent themselves in public forums. You might be able to verify whether a worker aligns with your company values and get a sneak peek at their communication styles.

However, don’t base decisions solely on this information, as social media might not accurately reflect a person’s professional persona.

Improve your hiring with background checks and pre-employment tests from TestGorilla

Background checks can help you unearth information about candidates’ financial history, driving records, criminal background, academic and professional experience, and more. This data can help you assess candidates objectively and comprehensively, preventing mis-hires.

These checks are one part of the recruitment process, and we recommend pairing them with pre-employment testing for a more well-rounded look at your candidates. TestGorilla offers an easy, effective way to conduct pre-employment assessments, with a library of 300+ tests that assess various skills, aptitudes, and behavioral traits.

Get started with TestGorilla today by taking a product tour and signing up for a free account.