The Value of Background Checks for HR Management (2024)

Effective human resources (HR) management begins with refined recruiting and hiring processes. Background checks and other pre-employment screening practices are essential components, as they help HR professionals make sure they find the right individual for the job.

Coursework in Fitchburg State University’s online Master of Business Administration (MBA) in HR Management examines current recruitment practices, like background checks. This degree program also explores legal issues and general studies essential for HR management.

What Are Background Checks Used For in HR?

HR departments conduct background checks to verify information about a job applicant’s history, credentials and experience. HireRight reports that HR background checks commonly include identity verification, job history, criminal history, motor vehicle records, educational attainment, certifications and licenses.

Much of this information is used to fact-check a job applicant’s resume. This review helps HR professionals ensure a job candidate has the skills, certifications and licenses needed for the job.

HR also uses this information to avoid legal liabilities like negligent hiring. The Balance Careers explains this using the example of employing a delivery driver with a DUI conviction. Hiring someone with a DUI on their record is not illegal, but a company could be liable if that driver hits another car because they were under the influence while driving.

What Other Types of Pre-Employment Screenings Do HR Departments Use?

According to the job website Indeed, HR professionals may use several pre-employment assessments to evaluate a job candidate’s skills and attributes. These can include tests that measure:

  • Personality
  • Skills
  • Aptitudes
  • Job knowledge
  • Emotional intelligence

HR will also check references provided by job candidates and may contact previous employers. Additionally, reviewing a candidate’s social media may be part of the screening process.

These practices can help HR with job placement, performance assessment and predicting if a candidate will align with the company’s culture. This process can also help HR select training to get a new hire up to speed.

How Are Pre-Employment Screening Practices Conducted?

Background checks and other screening processes can be time intensive. Verification of an applicant’s education, credentials and employment history can involve months of phone calls, information requests and in-person proceedings. HR departments may conduct these activities in-house or outsource them to companies providing background check services.

However, modern technologies have helped reshape these screening practices. Platforms like Indeed and LinkedIn help companies and job seekers streamline the application process, matching resumes to jobs and talent searches. Also, advanced AI-driven background check software and services vastly speed up verification processes. AI chatbots can conduct initial screening interviews.

Such technologies can perform many mundane administrative tasks that once filled HR personnel’s working hours. These tools allow hiring professionals to focus on the human side, like delving into an applicant’s personality traits, interpersonal skills and motivations.

These humanistic aspects of the hiring process give HR insight into performance potential and, importantly, culture fit. More than ever, companies focus on fostering corporate cultures that drive teamwork, cohesion, collaboration and innovation. Thus, HR technology integration’s most significant benefit may be helping HR concentrate on human factors, improving company culture outcomes substantially.

The Legal Side of Hiring

Through all processes, HR departments must protect the privacy of applicant data and information. HR professionals must ensure background checks and other screening processes comply with employment, labor, non-discrimination and privacy law. This step includes getting full consent from applicants for all background checks and other screening processes. The information gained must also be used lawfully and appropriately, as set forth by regulatory guidelines.

Violating related laws can result in myriad legal liabilities. It can also cause long-term damage to a company’s reputation. When used correctly, though, HR technologies can automate processes that ensure compliance. Plus, these services offer applicant data privacy protection beyond what many HR and IT departments can manage.

Still, final responsibility for compliance comes down to HR management, as does applying background checks to successful hiring. Through the advanced study of these practices, HR professionals can learn how to incorporate background checks effectively, efficiently and lawfully.

Learn more about Fitchburg State University’s online MBA in Human Resources Management program.

The Value of Background Checks for HR Management (2024)

FAQs

The Value of Background Checks for HR Management? ›

Yes, background checks matter for the company. They play an essential role in the process of hiring new employees by assessing applicants to determine whether or not they conform to the organization's norms, principles, and expectations.

Why are background checks important for employment? ›

A background check can verify someone's work history, experience, and education; uncover resume lies or omissions; and reveal a criminal history. Conducting employment background checks helps you make smarter hiring decisions, but it's important your background check process is consistent, legal, and fair.

What is the role of HR in background screening? ›

When HR managers run background checks, they're searching for reasons to disqualify an applicant for a job to protect the interests of their employer. Before running the background checks, they must obtain applicant consent with the understanding that the information may be used against them.

What percentage of HR managers report checking applicants background? ›

A survey by SHRM found that 92 percent of surveyed employers conduct employment background screening.

Can HR tell your manager about a background check? ›

Can HR Share My Background Check? Before beginning an HR background check process, make sure you understand the candidate's privacy rights so that you stay in compliance with FCRA law. Background checks may be shared and discussed, but only with authorized parties, like the hiring manager.

How important are background checks to the selection of high quality employees? ›

By verifying past records, employers can avoid hiring individuals with a history of violence or other risky behaviors. Protecting Company Reputation: Employees are ambassadors of a company's brand. Hiring individuals with problematic histories can potentially harm a company's reputation and customer trust.

What matters most in a background check? ›

Criminal Backgrounds

The biggest red flag in a background check is a criminal history. Background checks show different types of offenses depending on the type of check. They may involve national, federal, state, or county databases.

What kind of background do you need to work in HR? ›

The Best Degrees for a Career in HR

People within the HR field typically have an undergraduate degree in business, management, or even social sciences. But the options for advancing your career with a post-graduate degree are much more diverse.

Does HR handle checks? ›

Human resources is an employee-facing role, so it makes sense for them to take care of all things employee relations. Finance, however, handles the cash flow, so it makes sense for them to dole out the checks.

What is HR's role in the staffing process? ›

In simplest terms, the HR (Human Resources) department is a group who is responsible for managing the employee life cycle (i.e., recruiting, hiring, onboarding, training, and firing employees) and administering employee benefits.

What level background check do most employers use? ›

The most popular form of background check is Level 3 background check. Criminal records, schooling, past employment, and reference checks are all part of this process. If desired, pre-employment drug test results can be included in Level 3 background check reports.

Does HR or hiring manager review a background check? ›

A designated HR representative will review all results. The HR representative will notify the hiring manager regarding the results of the check.

How far do most employer background checks go? ›

In most cases, the lookback period for criminal background checks is seven to ten years. These checks can turn up publicly available arrest records, court records and criminal records for felony arrests and convictions as well as pending cases.

Will HR contact me after background check? ›

Once the company receives your completed background check, it will take a few days for the hiring manager to review it. If you've passed the employment background check, you'll likely receive an email with the job offer! Give the employer ample time to perform the background check and then follow up with them.

Can HR contact my previous employer? ›

Many employers will contact your most recent 1-2 past jobs. Some may only check your current or previous employer. Jobs from earlier in your career are less likely to be contacted unless particularly relevant. Leadership roles, noticeable gaps in employment, and jobs you held longest often warrant a reference check.

What is HR allowed to ask from previous employers? ›

Besides asking if the former employee is eligible for re-hire, employers may ask additional questions, such as “What were the circ*mstances surrounding his termination?” They may also ask “Is she/he under a non-compete contract or are they free to come to work for us because we're in the same industry?” This ...

Why are background checks important to information security? ›

Employee background checks are the first step in: Protecting your business brand, image, and reputation. Providing a safe and secure environment for staff, customers, and clients. Mitigating potential threats, risks, and liabilities.

Why do people fail background checks for employment? ›

There are many reasons why a candidate may “fail” a background check, from criminal history to discrepancies in employment or education history, or an unsafe driving record or failed drug test.

What background check do most employers use? ›

Criminal record searches are the most common type of background check, but there are many to choose from. Failing to conduct background checks could result in damage to your company brand.

What is an important reason to perform a background check on Quizlet? ›

What is an important reasons to perform a background check? To prevent lawsuits or accusations over negligent hiring.

Top Articles
Latest Posts
Article information

Author: Golda Nolan II

Last Updated:

Views: 5907

Rating: 4.8 / 5 (78 voted)

Reviews: 93% of readers found this page helpful

Author information

Name: Golda Nolan II

Birthday: 1998-05-14

Address: Suite 369 9754 Roberts Pines, West Benitaburgh, NM 69180-7958

Phone: +522993866487

Job: Sales Executive

Hobby: Worldbuilding, Shopping, Quilting, Cooking, Homebrewing, Leather crafting, Pet

Introduction: My name is Golda Nolan II, I am a thoughtful, clever, cute, jolly, brave, powerful, splendid person who loves writing and wants to share my knowledge and understanding with you.