Background checks are most commonly associated with criminal record checks; however, there is more to a thorough background check than just digging for past criminal activity. The less talked about background checks include employment and education verifications, credit checks, and reference checks. Each of these elements offers a different type of value to the overall screening process and is essential to conducting a detailed background check.

The Risk of Relying only on Criminal Records
Criminal record checks are extremely valuable to the hiring process and can help employers identify individuals who have previously engaged in illegal activity. But criminal history alone isn’t enough to determine whether an applicant will be a good fit for an organization, or if they’ve had troubling performance problems in the past.

Before writing off other types of background checks, employers should consider what they have at stake. The cost of a bad hire is seemingly endless, from reduced productivity to catastrophic damage to a company’s brand and reputation. There are a number of risks and one wrong decision in the hiring process can result in workplace violence, damage or loss of assets, deteriorating morale, or legal action.

It’s in the employer’s best interest to mitigate the risk of onboarding a bad hire, and one of the most useful methods is background screening. A thorough background check is an employer’s first line of defense. When conducted properly, a background check alerts employers to more than just a lengthy criminal history, but also flags any past performance issues, résumé falsifications, or financial recklessness.

Underrated Screening Options for Instant Improvement
Understanding the differences between the various screening options is the first step to improving and enhancing background checks. Not all types of background checks are relevant to all positions so knowing when and how they should be conducted is crucial.

• Verifications
  Trusting a résumé at face value is one of the biggest mistakes a hiring manager can make. According to the Society for Human Resource Management, over half of résumés contain falsifications. These falsifications could be anything from inaccurate employment dates to completely fabricated positions or bogus degrees. An unqualified workforce can result in negligent hiring claims, lawsuits, and severe reputational consequences. For example, a professional who lacks a specific designation could cause irreparable damage, such as an accountant, nurse, or doctor.

• Reference Checks
  While verifications confirm the accuracy of an applicant’s résumé claims, they cannot provide insight into the applicant’s performance on the job. Reference checks provide employers with an opportunity to learn more about the applicant’s work ethic, punctuality, and interpersonal skills — aspects that no other screening method offers. Reference checks aren’t as easy as picking up the phone and asking a standard template of questions. The individual conducting the reference check should know how to ask follow-up questions for further clarification or probe when they detect that the former supervisor might be holding back. Furthermore, the reference questions should reflect the nature of the position. For example, if a position requires the applicant to work under pressure, one of the questions might revolve around how the applicant handles high-stress situations.

• Credit Checks
  An employment credit check protects the financial assets belonging to a company and its clients. While a few missed credit card payments aren’t enough to warrant labeling an applicant as a likely thief, a long history of bad debt write-offs, collections, and bank fraud might be an indicator that the applicant would be better suited in a non-financial position. The important thing to remember with credit checks is that they should only be conducted when it is relevant to the position. A credit check isn’t a logical screening tool for an applicant who would have no cash-handling or financial responsibilities.

Third-party Providers and Their Role in the Screening Process
Conducting thorough background checks on prospective employees takes considerable time and diligence. It involves looking at all facets of the applicant’s work, education, criminal, and in some cases credit history. Third-party providers not only alleviate the cumbersome task of background screening, but they add value and objectivity to the entire process and deliver faster, more consistent, and cost effective results.

By using a third-party provider, employers remove the bias from the screening process. The final report is completely objective seeing as the screening provider has never met the applicant. Furthermore, the processes designed by reputable and experienced screening providers are compliant with privacy and human rights legislation. Lastly, by using one provider for all types of background checks including criminal record checks, credit checks, reference checks, and verifications, employers can benefit from the screening provider’s ability to cross-reference the information to identify any inconsistencies.

Derek Smith, Senior Vice President – Sales, SterlingBackcheck Canada, is responsible for managing SterlingBackcheck’s Canadian sales organization. He has 25 years of Corporate and HR experience including as Vice President & General Manager of Hewlett Packard’s Personal Systems Group and the Managing Director of Apple Canada. Derek is a graduate of Concordia University and is a member of several boards. For more information on background checks, contact SterlingBackcheck or visit sterlingbackcheck.ca.