How to Create a Checklist for Reviewing Background Checks

When hiring for a new position, conducting background checks is a critical step to ensure that potential employees or contractors are trustworthy, reliable, and legally compliant. However, reviewing a background check isn't as simple as glancing over the results---there are specific details you need to consider to ensure that the information is accurate, relevant, and adheres to legal guidelines.

Creating a checklist for reviewing background checks helps you streamline the process, maintain consistency, and minimize the risk of overlooking essential details. This actionable guide will provide you with a comprehensive approach to reviewing background checks, offering in-depth insights and practical steps you can take to effectively evaluate the results.

Understand the Legal Requirements and Compliance Regulations

Before reviewing any background check, it's vital to understand the legal frameworks that govern the process. Different countries, states, and regions have specific laws regarding background checks, particularly concerning privacy, consent, and discrimination.

Key Legal Considerations:

• Fair Credit Reporting Act (FCRA): In the U.S., the FCRA sets guidelines for how background checks should be conducted, including obtaining consent from the candidate, how the information is reported, and how it can be used in the hiring decision.
• Equal Employment Opportunity (EEO) Laws: Ensure that the information is evaluated in a non-discriminatory manner. Employers cannot make decisions based on race, gender, age, religion, or disability.
• State-Specific Laws: Some states have additional requirements, such as "ban the box" laws, which prevent employers from asking about criminal history on initial job applications.
• International Considerations: If hiring in other countries, familiarize yourself with international regulations (e.g., GDPR in Europe) that govern how personal data is collected and used.

Actionable Steps:

• Get Written Consent: Always ensure that candidates provide explicit consent to conduct the background check.
• Be Aware of Legal Boundaries: Review your local and national laws regarding background checks to avoid making illegal hiring decisions.
• Ensure Non-Discriminatory Practices: Develop a policy that ensures you are not using background check results to unfairly discriminate against candidates.

Review Criminal Background Information

One of the most common elements of a background check is the criminal history report. This part of the background check often requires the most careful consideration to ensure that you are handling sensitive information responsibly.

Key Points to Evaluate:

• Conviction Records: Look for any felony or misdemeanor convictions. Evaluate the relevance of these convictions based on the type of job the candidate is applying for.
• Arrests vs. Convictions: Understand the distinction between an arrest record and a conviction. An arrest record does not imply guilt, whereas a conviction is a legal finding of guilt.
• Time Elapsed: Consider how much time has passed since the conviction or arrest. In some jurisdictions, older offenses may not be relevant to the hiring decision.
• Nature of the Crime: For some positions, certain criminal activities (e.g., fraud, violence, or substance abuse) may be more relevant than others, especially if the role involves high-level responsibility, security, or customer interaction.

Actionable Steps:

• Assess Relevance: Ask yourself whether the crime in question directly affects the candidate's ability to perform the job duties. For example, a DUI conviction might be more relevant for a driving position than for an office-based role.
• Check the Date: Ensure that the criminal record is recent enough to be relevant, as older records might not reflect the candidate's current behavior.
• Consider Mitigating Factors: Look at the circumstances surrounding the conviction, such as whether the candidate has shown evidence of rehabilitation or personal growth since the offense.

Verify Employment History

Employment history verification is an essential part of the background check, ensuring that candidates are accurately representing their work experience and qualifications. Falsifying job history or inflating job titles is common, and these discrepancies can indicate potential dishonesty.

Key Points to Evaluate:

• Job Titles and Dates of Employment: Cross-check the dates and positions listed by the candidate with the information provided by former employers.
• Gaps in Employment: Look for unexplained gaps in the employment history. Be sure to ask candidates to explain any gaps, and verify whether their explanation matches the background check results.
• Reason for Leaving: If possible, find out why the candidate left previous jobs. A high turnover rate could indicate issues with performance, conduct, or reliability.
• Skills and Achievements: Confirm that the skills and achievements claimed by the candidate align with their past job roles and responsibilities.

Actionable Steps:

• Contact References: Speak directly to previous employers to confirm the accuracy of the candidate's employment details, such as job responsibilities, reasons for leaving, and performance.
• Use Employment Verification Services: Consider using third-party verification services that specialize in confirming employment history, especially for high-level or specialized roles.
• Ask for Explanations: If you find discrepancies, always ask the candidate for clarification before making any decisions.

Check Educational Background

Ensuring that a candidate's educational qualifications are legitimate and match the information they have provided is an essential part of the background check process.

Key Points to Evaluate:

• Degree Verification: Confirm the degrees and certifications the candidate claims to have received. Look for the institution's name, the degree earned, and the dates of attendance.
• Accreditation: Verify that the educational institutions are properly accredited and recognized by relevant educational authorities.
• Degree Relevance: Assess whether the degree or certification is relevant to the job being applied for, and whether the candidate's educational background supports the role's responsibilities.

Actionable Steps:

• Direct Verification: Contact the educational institutions directly or use services that specialize in degree verification.
• Look for Fraudulent Claims: Be cautious of institutions that sound suspicious or have untraceable accreditation. Some candidates may provide fabricated credentials from diploma mills.
• Assess Degree Relevance: Evaluate how important the degree is to the role. For some positions, an educational background may be less important than work experience or practical skills.

Evaluate Credit Reports (If Applicable)

For some positions, especially those that involve financial responsibilities or access to sensitive financial data, reviewing a candidate's credit report is an essential part of the background check. This helps to assess the candidate's financial responsibility and integrity.

Key Points to Evaluate:

• Credit Score: Look at the candidate's credit score, but understand that a low score does not necessarily reflect poor character. Economic hardship or medical bills may influence a credit score.
• Bankruptcies: A recent bankruptcy may indicate financial instability, but it is not an automatic disqualifier. Investigate the circumstances behind the bankruptcy.
• Outstanding Debts: Be cautious of candidates with significant debt if the job involves managing finances or handling company funds.

Actionable Steps:

• Understand Relevance: Only use credit reports for roles where financial responsibility is a key part of the job.
• Consider Context: When evaluating negative credit information, take the context into account (e.g., medical emergencies, job loss).
• Get Written Consent: Always obtain the candidate's permission to review their credit report.

Check Driving Records (If Applicable)

For positions that require driving (e.g., delivery drivers, salespeople, truckers), checking the candidate's driving record is critical for ensuring they are legally allowed to drive and do so safely.

Key Points to Evaluate:

• Traffic Violations: Look for any major traffic violations (e.g., DUIs, reckless driving) that may disqualify the candidate from safely performing the job.
• License Status: Verify that the candidate has a valid and current driver's license.
• Insurance Requirements: Check if the candidate's driving history affects their ability to meet insurance requirements for driving-related roles.

Actionable Steps:

• Obtain Driving History: Use a service that can provide the candidate's driving record directly from the Department of Motor Vehicles (DMV) or equivalent authority.
• Review for Serious Offenses: Be particularly concerned with major offenses like DUIs, especially for positions requiring regular driving.

Ensure Consistency and Accuracy

One of the most critical parts of reviewing any background check is ensuring that all the information provided is consistent and accurate across different reports. A discrepancy or inaccuracy could indicate an attempt to hide or misrepresent something.

Actionable Steps:

• Cross-Check All Information: Compare the criminal record, employment history, educational background, credit report, and driving record to ensure they align.
• Look for Red Flags: Be on the lookout for significant discrepancies, such as false employment dates or conflicting criminal history reports.
• Document the Review Process: Keep detailed records of your review process to ensure transparency and accountability.

Conclusion

Creating a checklist for reviewing background checks is essential for ensuring that you make informed, fair, and legally compliant hiring decisions. By following a structured approach, you can evaluate candidates based on critical factors such as criminal history, employment history, educational background, creditworthiness, and driving records. This methodical approach minimizes the risks associated with negligent hiring and ensures that your organization is making sound decisions in its recruitment process.

View Product