why are background checks important?

As mentioned previously, background checks are commonly conducted near the end of the recruitment process. Chances are, the applicant has already moved through the interview process and completed any pre-employment testing. These checks are often done to ensure the integrity of the applicant before extending a job offer.

There are several reasons why a background check is important, such as:

verifying candidate’s credentials

According to a recent study, 85% of candidates lie on their resumes. While some of these lies may be more of an embellishment of their specific skill set than an out-and-out lie, other misinformation could be critical. For example, if the role requires a candidate with a bachelor’s degree in a specific field, and the candidate lies about their credentials, it could make the company liable for any mistakes the potential employee makes.

A background check can avoid these issues by making sure the information on the candidate’s resume and job description is accurate and up to date. A background check can verify everything from past employment to university qualifications to professional certifications and licences.

maintaining workplace safety

Hiring the wrong candidates can adversely affect workplace safety. First, applicants that lie about their skills and experience may not have received the right types of safety training and could pose a safety risk to themselves and others. Secondly, hiring a candidate with a history of violence or sexual harassment could make the company liable for any issues caused by this potential employee in the workplace.

For example, if your company hires an applicant with a long history of violence and abuse, and then he or she goes on to hurt a co-worker on the job, you could be guilty of negligent hiring. Additionally, you’re putting your workers at an increased risk. A complete criminal background check can alert you to candidates with any negative history.

protecting company reputation

A company’s reputation can be damaged due to the actions of one of its employees. While you can’t control every action of your employees, you can take steps to minimise any potential risk. Ensuring the candidate doesn’t have a history of violent behaviour or a habit of posting offensive comments online can prevent your company from having to handle damage control later.

maximising productivity

Some jobseekers list a variety of skills that they simply don’t have, or they embellish upon the skills that they do have to make them appear more capable than they are. Hiring candidates without the right skills can significantly increase the time to learn and impact productivity in the workplace. Conducting both background and reference checks can help you determine if the applicant actually has the skills listed on their resume.

what does a background check consist of?

There are numerous components of a background check, including:

criminal background check

A criminal background check is conducted when it is clear that the job being performed requires no criminal history. This could apply for example, in some government departments or when working with vulnerable people. A criminal history check provides information such as, the exact crime a person is convicted of, the dates of the conviction and what punishment (sentence) was ordered. Where one exists, an employer needs to determine whether or not the conviction is relevant to the job role and decide if and how to treat this information in their decision making process. It is important to note that Australia’s anti-discrimitation laws, prevent an employer from discriminating against an employee with a criminal conviction unless the absence of a conviction is an inherent requirement of the job for which they are applying.

All applicants should be told that their employment is dependent on an assessment of the results of their criminal record check. This should be stated clearly on the job application form and explained carefully in the interview.

Ideally, an employer should not make a final job offer before receiving the results of a police check if it is a role requirement.

drug testing

Some employers, especially those hiring workers that drive for the company or use any type of machinery, also require a pre-employment drug test. As the name suggests, this test is often done to ensure that there are no traces of any type of illegal drugs or alcohol in the applicant’s system. Most drug tests are conducted at local clinics and can provide results in just a few hours or days.

educational verification

There are a few ways to conduct an educational verification. First, you can simply call the university or college in question and ask them to confirm that the applicant is a graduate of the institution as well as what field they received a degree in. Many Universities in Australia also offer this as an online service. Secondly, you can request the applicant submit a full academic transcript. In these cases, the applicant would contact the university and have them submit a transcript directly to your company. Transcripts can show everything from grade point averages to a list of classes the applicant took.

credit check

Personal credit checks on applicants are usually reserved only for those roles that involve finances or handling money. According to a recent study, only 25% of all employers routinely conduct credit checks. Some industries, such as banks, however, conduct credit checks on nearly all employees. Credit checks detail any outstanding bills owed by the applicants as well as any long-term debts. It’s important to note that some regions of the world, such as several states in the United States, have made it illegal to conduct pre-employment credit checks for most positions.

motor vehicle licence check

If the position in question requires any type of driving for the company, for example Truck Drivers or field sales representatives, employers may do a motor vehicle licence check prior to employment. In this case, it would be important to make sure that the applicant doesn’t have a dangerous driving history that includes multiple traffic violations and accidents. Not only could an applicant’s poor driving record increase the cost of the company’s motor vehicle insurance, it is incumbent on the employer to ensure a safe working environment for their employees.

employment verification

One of the most common aspects of a background check is to verify past employment. This process is done by simply contacting all current and former employers on the candidate’s resume or job application and verifying that the applicant did work there, the date of employment and the position or positions held. Many employers today have a policy that discourages line managers from providing any additional information, but you can feel free to ask additional questions and see if they’ll answer them.

social media checks

Studies show that 70% of employers now conduct some type of social media check prior to hiring a candidate. In this day and age, where people are so connected on social media, this type of check makes sense. Barely a day goes by, when a company’s reputation isn’t in jeopardy due to comments made by one of their employees on social media. To protect your company, it’s recommended that to check candidates’ public social media profiles to ensure that there is nothing offensive or inappropriate posted online.

what does a background check show?

A comprehensive background check can reveal a lot about the candidate. For example, it can verify educational qualifications, ensure they have the proper licencing and meet the necessary requirements of the role. The exact information you can obtain from a background check, however, depends on the type of process you use. For instance, a criminal background check is not going to provide information about past employment. Whereas a simple drug test will not reveal any information about previous drug convictions.

It's important to determine exactly what type of information you want to verify or uncover about your candidates, so you know which types of background checks to request. For example, if the role doesn’t require the applicant to drive for the company, there would be no need to run a motor vehicle check.

Reference checking is another great tool for obtaining crucial information about your potential employee. The trick is to know which questions to ask. Download our guide today for a list of questions to ask during the reference checking process.

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