Why is Pre-employment Background Check Important?

HR Tech Outlook | Monday, January 17, 2022

Pre-employment background checks can assist in validating the hiring decision while also keeping the business lucrative and productive.

FREMONT, CA: Every new hiring brings a new possibility for productivity, but it also brings with it a new business risk. Pre-employment background checks can assist in validating the hiring decision while also keeping the business lucrative and productive.

What does a background check mean for employment?

Because there are multiple types of records and data to pull from, what appears on a background check varies depending on which sort of search the order is. For example, a background check for employment may reveal information such as identification verification, employment verification, credit history, driver's history, criminal records, education verification, and more.

Employers collect a variety of data to assess a candidate's character and avoid making the incorrect hire.

What does a background check consist of?

Employers are usually interested in the top three searches, even though there are many other forms of background checks. The following are some of the most popular pre-employment searches:

Identity and Social Security Verification

A background check for employment can identify whether or not a Social Security number is authentic, who it belongs to, and if it's been helpful in the past by checking comprehensive databases such as the Department of Homeland Security and Social Security Administration records.

Identification verification can also be helpful to verify an address, which can get compared to information provided by a job candidate to spot inconsistencies.

Credit Report

Credit bureaus compile credit reports using information from a variety of sources. Credit card businesses and financial organizations, for example, provide data to credit bureaus, which keep consumer records.

Retailers, financial institutions, and other creditors have sought a consumer's credit report, and credit reports contain a list of past credit inquiries.

Credit reports can disclose many potential red flags in an applicant, especially if the new worker will manage money daily. For example, financial irresponsibility, indicated by high debt levels or excessive asset spending.

Criminal Records

Suppose an employer is aware of—or should have been aware of—an employee's relevant criminal history. In that case, they may hold liable for negligent hiring if they get accused of future crimes. Thus, what appears on a background check for employment could help protect business owners by identifying criminal conviction histories.

Employers may request additional information from candidates and ask for more information on their background check for employment, depending on the sort of job they are searching for. Options for further searches include motor vehicle and driving records, work history, education verification, reference checks, and drug testing.

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