Background Checks:
Definition, Comparison & Uses

A background check for a job is the process of using third parties (usually professional background screening providers) to verify a candidate's personal records, employment history, criminal history, and other relevant information before making a hiring decision. Sources include public records, law enforcement databases, credit bureaus, and previous employers. An estimated 95% of U.S. businesses run background checks before making hiring decisions.

Background screenings allow employers to get a more complete picture of a candidate beyond the information supplied on a job application or resume. These checks help verify that applicants are who they say they are, confirm their qualifications, and assess whether they pose any risk to the organization.

Related terms: pre-employment screening, employment verification, FCRA compliance, adverse action

Pre-employment background checks are important because without them, employers have only the information supplied by the applicant to form the basis of their hiring decision. Such details may not be accurate or complete. It's not uncommon for applicants to misrepresent themselves in an interview or falsify a resume.

Background screenings help employers hire the most qualified people and improve productivity, prevent instances of theft and other criminal behavior, avoid workplace harassment and safety issues, and preserve company reputation and brand image. They also help organizations verify candidate qualifications, ensure workplace safety, manage risk, build trust, and maintain compliance with industry regulations.

The importance of screening services cannot be understated in industries or roles involving children, vulnerable populations, or access to sensitive data. For example, hiring the wrong person in the medical field can be a matter of life and death, and employing trustworthy, quality educators is one of the most important responsibilities of a school administrator.

A typical employment background check consists of 6 main components:

• Employment history: Verification of length of previous employment, titles held, job responsibilities, and reasons for leaving positions
• Education history: Confirmation of educational achievements, degrees earned, attendance dates, and academic transcripts
• Criminal history: Records of felony and misdemeanor convictions, pending charges, and sex offender registry status
• Credit reports: Financial behavior, creditors, available credit, payment history, and account statuses (only for roles involving money handling)
• Driving records: License status, class and validity, driving violations, accidents, and driving-related arrests and convictions
• Identity verification: Confirmation that the candidate is who they say they are, including SSN trace and address history

Not all of this information may be permissible or even necessary for every role. For instance, driving records are typically not requested unless the employee will be operating a vehicle as part of their job. There are also various federal and state regulations that govern when an individual's criminal history and credit report may be accessed.

Background checks follow a specific legal process to ensure compliance with federal regulations. Here's how smart employers typically vet potential new hires through 5 key steps:

1. Make an offer: It's generally best practice to not run a background check until after a candidate is offered conditional employment
2. Obtain consent: The federal Fair Credit Reporting Act (FCRA) and similar state laws require employers to provide written notification to and obtain authorization from any individual subject to background checks performed by third parties
3. Disclose the screening process: Employers must notify the applicant or employee that they might use information from a background check to make employment-related decisions. This notice has to be in writing and in a stand-alone format
4. Apply screening policies consistently: Running background checks on certain groups of people and not others may be considered discriminatory and illegal
5. Follow adverse action procedures: The FCRA requires employers to follow certain steps when taking adverse action against an individual (failing to hire) based on the results of a background check, including sending pre-adverse and final adverse action notices

Background screenings pose compliance risks if not done correctly. Employers can choose to conduct searches on their own or partner with a consumer reporting agency (CRA) that specializes in background screening services to help save time and money and reduce the chance of error.

Background screening can provide employers with 8 categories of verified information about job candidates:

• Identity verification: Biometric verification using physical traits such as facial features to confirm identity, plus SSN trace and address history
• Criminal records: Felony and misdemeanor convictions, pending charges, and searches across county, state, and federal jurisdictions
• Sex offender registry records: Both the registration date and current status from state registries
• Employment verification: Employment dates, job titles, type of employment (full-time or part-time), and reasons for leaving
• Education verification: Degrees, diplomas, certificates, and graduation or attendance dates confirmed through the National Student Clearinghouse or directly with educational institutions
• License verification: Confirmation that a candidate holds a valid, active professional license for specialized roles
• Motor vehicle records (MVR): License class and status, issuance and expiration dates, driving violations, accidents, outstanding fines, and driving-related criminal convictions
• Credit reports: Financial behavior including creditors, available credit, payment history, and present account statuses for jobs involving handling money

The information in a background check report can vary depending on the employer's policies, their business or industry, and state or local regulations. Some screenings also include civil court records, reference checks, and drug testing results.

Background checks do verify job titles as part of employment verification. Employment verification typically checks the work history a candidate has provided, including employment dates, job titles, and type of employment such as full-time or part-time.

According to a recent Resume Builder survey, 43% of applicants have lied about how long they worked in a former position. Employment verification can help reveal serious red flags like a fabricated job title or significantly altered work experience. This screening helps employers feel confident about who they're hiring and their actual experience level.

Employers determine their own policies for whether or not an applicant meets their hiring standards. Typical items of concern that may return on a background check include criminal convictions, failed drug tests, traffic violations, poor credit scores, and inconsistencies in employment history.

Any employment decision taken as a result of these concerns must be job-related and based on business necessity. Employers should consult with EEOC guidance on using criminal history information in making hiring decisions to help ensure they do not disproportionately screen out protected individuals. Social media posts about previous employment can also expose application inaccuracies and serve as red flags during the screening process.

Under FCRA rules, non-conviction civil actions, tax liens, and credit history may appear on a pre-employment screening for 7 years. Criminal convictions may be available indefinitely. Some states have shorter or longer lookback periods for certain records.

Background checks look for different results and cover different lengths of time depending on the type of screening and applicable state laws. The exact lookback period will depend on the jurisdiction and the type of information being searched.

The length of time for a background check typically ranges from as little as 2 days to as much as a week or longer. Court and agency backlogs, holidays, and information requested from outside the United States may extend this timeline.

It does not take long for a third-party screening firm to generate applicant background knowledge. Steps such as identity verification take as little as 90 seconds. Educational and employment verifications take a bit longer, but typically no more than a few days. The biggest delays arise when criminal background checks or military inquiries are ordered.

HR teams can sometimes help speed the process by collecting all necessary candidate data up front and automating adverse action workflows. Most screening firms conclude their searches within a week, though more extensive searches may take longer.

Standard background checks will not show military records, expunged convictions or minor infractions, sealed records, or juvenile records. Military records must be specifically requested and are not part of a standard background check inquiry.

Most employers should not consider certain criminal records when making hiring decisions. However, an employer can consider if the conduct makes the individual unfit to hold a certain position. The background check report will not provide substantive medical information unless it is relevant to a particular job, and specific written consent for the release of this private information is required.

When evaluating potential background screening partners, employers tend to look for 8 key qualities:

• Support with federal, state and local regulatory compliance: Including FCRA and EEOC guidelines to mitigate risk of unfair hiring practices and penalties
• Integrations with top applicant tracking and recruitment management systems: Reduce manual workflows with seamless integration to your ATS or HRIS platforms
• Strict data privacy and security procedures: Ensure candidate information is protected throughout the screening process
• Customizations that help companies meet unique industry requirements: Flexible packages to avoid over-screening candidates and reduce processing times
• All-inclusive pricing with no hidden fees: Transparent cost structure that fits your budget and hiring volume
• Industry expertise: Familiarity with your industry, particularly in heavily regulated fields like healthcare or transportation
• Reasonable turnaround time: Balance between speed and accuracy in delivering thorough, accurate reports
• Quick, responsive customer service: Access to support when you have questions about background check reports

The best background check service for your company will depend on your hiring volume, business size, number of locations, size of your HR team, budget, background screening policy, and in-house legal counsel. Reputable third-party providers that specialize in background screening services can help businesses save time and money and reduce the chance of error.

A background check for a job is often compared to 3 related verification processes:

Background Check vs. Security Clearance

A background check for employment verifies a candidate's qualifications, criminal history, and general suitability for a role in the private or public sector. A security clearance is a specific type of government authorization that determines whether an individual may access classified information based on national security concerns. Security clearances require completing the Standard Form 86 (SF86) and providing at least 10 years of personal information. The security clearance level depends on the type of access to classified information and secure facilities needed to perform the job, with levels including confidential, secret, and top secret.

Background Check vs. Public Trust Determination

A standard employment background check verifies information for any type of job across industries. A Public Trust determination is a specific type of background investigation used for federal government positions that don't require security clearances but do require trustworthiness verification. Public Trust investigations require candidates to complete either the Standard Form 85 (SF85) or 85P (SF85P) questionnaire. This process determines if a candidate has the required level of character and conduct necessary to work for the Federal Government, but does not grant access to classified information.

Background Check vs. Credentialing

An employment background check verifies a candidate's history and qualifications for hiring decisions. Credentialing is a process that determines if the Federal Government may issue an identity card that allows access to federal facilities and information systems. While a background check informs whether someone should be hired, credentialing determines what level of physical or digital access they receive after employment. Credentialing often follows a background check and involves additional security protocols specific to government facilities.