What is a Pre-Employment Background Check and How Does It Impact Hiring Decisions?
Hiring the right talent goes beyond thinking that a candidate might display the right skills, experience, and cultural fit. You need to confirm that they are who they say they are, which is where a pre-employment background check comes in. It enables you to hire the right candidate while at the same time protecting your company from potential issues.
A recent study by ResumeLabs, in fact, revealed that 36% of job seekers openly admit to lying on their resumes. That number rose to 56% when asked if they’d stretch the truth to appear more qualified. That’s a high number of applicants, and according to the report, the lying rate increased in cover letters and during interviews.
We get it; applying for a job can be arduous, so job seekers do what they can to give themselves the best chance to succeed. However, you must also protect your company’s interests, and a pre-employment background check is your defense against future problems.
Keep reading to learn more about this critical tool in the hiring process.
What Is a Pre-Employment Background Check?
A pre-employment background check, also known as a pre-employment screening, is a tool used by employers to verify a candidate’s information and background. It is typically conducted after a conditional job offer has been extended to a candidate, often during the open enrollment period for new hire onboarding and benefits enrollment.
You can learn a lot about a potential hire from their resume and during the interview. However, a professional background check will tell you what you already know and the things an applicant might knowingly or unknowingly omit. You know, the details that can give you the utmost confidence in your final decision.
Most Common Pre-Employment Background Checks
There are several types of background checks employers can perform before offering a candidate employment. The type of check will depend on the role they’re hiring for and the company policy.
The following are the most popular background checks employers conduct.
Education Verification
An education verification check confirms that an applicant’s academic history listed in their resume is valid. It is a normal feature of a standard background check to ensure that a candidate has the necessary credentials for the job.
For example, if an applicant lists that they have a license to practice medicine, an employer can verify this information with the appropriate licensing boards.
Employee Verification
An employee verification confirms whether or not an applicant was indeed previously employed at the company specified in their job application or resume. This is a less intensive process compared to education verification. A simple call to the previous employer will suffice.
An employer may also conduct reference checks with previous managers. This is an informal way to verify employment; however, it can also be used to verify any experience or skills stated on a candidate’s resume.
For instance, if a candidate claims that they know how to use online phone systems to make calls and manage appointments on their resume, an employer can verify this with their previous supervisor.
Criminal Background Check
This is perhaps what many people think about when they hear the expression “background checks”. A criminal background check involves screening public records to see if a candidate has a criminal record. It usually includes arrests, court orders, any record of incarcerations, felony, and misdemeanor convictions.
Keep in mind that the length of time you can go back during a criminal background check will depend on your location. A criminal background check in New York, for instance, has only a seven-year look-back period.
Ensure you understand the regulations of the area you are in before conducting this check. You can also hire a third-party background verification supplier to help you with this check. Besides providing 30 Workflow Management Software To Work Faster In 2024, these services can help your company develop screening solutions that enable you to meet industry, state, and federal regulatory requirements.
For HR service delivery automation, Mitratech also offers TAP, an enterprise no-code workflow solution.
Motor Vehicle Record (MVR) Check
The MVR check is usually requested by potential employers who want to hire someone who will operate a moving vehicle. It is a record of a candidate’s past driving history and might be one part of the entire background check.
An MVR record includes relevant driving information, such as an individual’s date of birth and driver’s license number. It also includes any motor vehicle events the candidate has had, such as traffic citations, license suspensions, DUI convictions, and accident reports.
Credit Check
Most employers don’t usually need to know a candidate’s financial history before employing them. However, if the role involves managing money, such as financial manager, accountant, or personal finance advisor, the employer might want to conduct a credit check. It helps employers understand the candidate’s reliability and decision-making skills with money.
Note that a pre-employment credit check will never include the applicant’s credit score. This is private information meant for the candidate alone and should never be used for consideration of employment.
Social Media Check
Employers don’t usually perform social media background checks, but these have become popular in the last few years. It is, however, unsurprising, as we now live in a digitized world.
Companies want to know that the people who work for them don’t have social media histories that could hurt their reputation. This sentiment is shared by 71% of hiring decision-makers who agree that social media is effective for screening applicants.
To conduct a social media check, employers do an unofficial search for the candidate on popular social media platforms to discover any red flags in their online presence.
Drug Screening
A pre-employment drug screening is used to detect if a potential hire uses illicit substances or abuses prescription medication. These drug tests typically screen for the use of illegal drugs like methamphetamines (meth, crank, ecstasy), cocaine (coke), opiates (heroin, codeine), and THC (cannabinoids, marijuana).
However, in recent years, drug testing in the workplace has become complicated due to the legalization of marijuana in some states and privacy laws surrounding HIPAA. So, if you plan to set up a pre-employment drug screening, implement a consistent policy to eliminate any possibility of bias.
Why Is a Pre-Employment Background Check Important for Hiring Decisions?
Your hiring decisions can define your organization’s short and long-term future. If you make the right calls, you will ensure employee engagement and overall productivity of your workforce.
However, poor hiring decisions result in the complete opposite.
A thorough background check leads you toward more positive hiring outcomes in the following ways.
It Mitigates Risks
Running background checks on potential hires is an effective risk management approach. It helps avoid issues that can set back your company, such as legal and compliance concerns, employee misconduct, or damaged reputation.
For example, if you are looking to fill a role that demands reliability and stability, a pre-employment background check can help you choose the right candidate.
It can help track attendance issues or excessive job-hopping patterns to weed out less suitable applicants. This increases your chances of hiring someone reliable and avoiding potential issues down the line.
It Ensures Cultural Fit
The right candidate must share the values you uphold as a company; otherwise, it won’t work. Regardless of an applicant’s talent, if their values don’t align with the company’s, they will create problems that affect the team’s cohesion. Background checks tell you whether or not a person has the right attitude to be a member of your team.
It Prevents Costly Mistakes and High Turnover Rates
According to SHRM, the company’s attrition costs can be as high as 50 to 60%, with overall costs ranging anywhere from 90 to 200%. That means if an employee makes $50,000 yearly, it costs an average of $75,000 to $120,000 just to replace them.
That’s bad for the organization’s finances and reputation. High employee turnover points to a leadership problem.
However, you can avoid this issue with a pre-employment screening. A thorough check gives you a full picture of a prospective hire’s background, including their employment history, educational credentials, and criminal record. In fact, some employers request specific psychological testing to be done before employment.
It Protects Brand Integrity
Hiring a candidate with a questionable track record can hurt a company’s reputation. For example, an individual with a controversial social media presence can alter the public perspective of a business.
That’s why background checks today usually involve searching a potential employee’s social media history to understand their online behavior.
Candidates with poor social media conduct are usually considered risky hires, as their actions could impact the brand’s image and relationship with customers and partners.
Wrapping Up
Pre-employment background checks reveal information that hiring managers would otherwise not know about candidates. This information not only allows them to make an informed decision about a candidate but also protects the company against potential risks.
There are several types of pre-employment screening employers should conduct, as we have seen in this article. Additionally, employers should also familiarize themselves with the legal ramifications surrounding these checks to avoid any future legal issues.
Make Smarter Hiring Decisions with Mitratech
Building a successful team starts with hiring the right people. Pre-employment background checks are a powerful tool to mitigate risks, ensure cultural fit, and protect your brand. But navigating the complexities of background checks can be time-consuming and challenging.
That’s where Mitratech’s background screening solution comes in. We offer a comprehensive suite of background check solutions designed to streamline your hiring process and give you peace of mind. Our user-friendly platform allows you to customize background checks to fit your specific needs, and our team of experts is here to guide you every step of the way.
Here’s what we can do for you:
- Fast and Accurate Results: Get comprehensive background checks back quickly, so you can make hiring decisions with confidence.
- Customizable Solutions: Choose the checks you need, from criminal history to social media screening.
- FCRA Compliance: Ensure your background checks are compliant with all federal regulations.
- Dedicated Support: Our team of experts is available to answer your questions and help you understand your results.
Don’t settle for anything less than the best. Request a demo today and experience the difference a streamlined and compliant background check process can make!
