5 Things You Must Know About Employee Background Verification

Shefali Vasave | February 17, 2022 | 474 views

The Importance of Background Checks and Building a Secure Team

Background checks are not just a way to ensure that the person is who they say they are, but also a way to ensure that the company is protected from liability.

According to Checkster, a background checking company, over 78% of job seekers lie on their resume. In addition, 60% lie about their expertise in skills like excel or fluency in a foreign language. The survey collected responses from over 400 job applicants. According to the study, people lie about their education, work experience, and even awards and achievements.

“By understanding the strengths of the employees through the business, we can create an environment of opportunity for people to create careers for themselves that are led by their passion rather than a job title, creating jobs of enjoyment.”

- Kayleeann Maritz, Chief Marketing Officer at Momenta Group Global

Falling short on essential skills required to do a job is just one facet of misrepresentation. This not only keeps organizations from hiring honest and well-matched candidates, but they also lose out on the skills they are really looking for. Background checks, reference checks, and even skills tests help employers filter out dishonest candidates.

When Should You Conduct Employment Background Investigations?

Employment background investigations can be an important part of the hiring process. Before hiring someone, it is important to do a background check. This can give you an idea of their professionalism and work ethic.

A 2018 study sponsored by the National Association of Background Screeners (NABS) reported that while 60% of employers conduct an employment verification background check during the hiring process, others conduct it throughout the employee lifecycle. 14% of employers screen an employee’s background for legal compliance, and 10% do it on the grounds of a cause.

For example, in 2019, an NBC news investigation reported that Mina Chang, the deputy assistant secretary of the State Department’s Bureau of Conflict and Stability Operations, misrepresented her experience and achievements, including a fake Time magazine cover that had a face on it. A week later, she had to resign.

How to Run a Background Screening?

An employment verification background check can be done on new hires, current employees, and even third-party contractors. It provides an opportunity for employers to find out about their criminal records and other information that may make an employee unsuitable for a job. Background checks also help employers find out if someone has been fired from their previous organization and for what reason.

While candidates are looking for the right job, a background check benefits employers by helping them search for the right candidate. A background screening checklist will ensure you are not missing anything in your background verification process. Here are some things to consider when running a background check:

  • What kind of information do you need?
  • How much does it cost?
  • What is the turnaround time?
  • What kinds of reports can you get from the company?
  • Are there any discounts for employers or employees?


How Employers Should Approach Criminal History Checks

Organizations want to hire the best-matched candidate with the right skillsets and personality traits that will be beneficial to their company. But what about criminal records? Should it be a factor to consider in hiring decisions?

In the United States, 95 million people have a criminal record. This rate of recidivism is alarming and is problematic for employers who want to hire qualified candidates. The dilemma is that employers need to protect themselves and their customers from potentially dangerous situations, but they also need to be mindful of the risks that come with exclusion.

A criminal history check is a way of screening an applicant's past criminal record. It is often done as part of a background check process by employers before they decide whether to hire someone. When it comes to employing someone with a criminal history, there are many considerations that employers must weigh. One of the most significant considerations is the seriousness of the crime committed and what position they have applied for. You should find out the type of crime they have committed and how long ago, the severity of their crime, and if they've been convicted.

For example, some crimes, such as drug possession, can't prevent you from obtaining employment. As they say, there are two sides to a coin, and a conviction isn’t necessarily a demonstration of a person’s inability to live and work competently.


Background Verification and Data Privacy

Although background check benefits are several, collecting sensitive data has its own limitations. Data privacy is a huge concern for employers because background verification collects sensitive data about applicants, which needs to be stored securely and not shared with anyone else without their consent. Some of the laws that employers need to comply with include:

  • Fair Credit Reporting Act (FCRA): Under this law, employers who conduct job performance and employment background investigations through third party companies need to disclose the verification and notify the candidate about the inquiry before requesting a report.
  • Fair and Accurate Credit Transactions Act (FACT Act, or FACTA): This law mandates the secure disposal of all information collected in the investigation report.
  • Equal employment opportunity (EEO) laws: Employers must ensure compliance with this law to avoid discrimination or legal action based on the same.
  • Immigration Reform and Control Act of 1986 (IRCA): This law prohibits any discrimination based on nationality or citizenship for employers that have four or more employees. Undocumented immigrants are not covered under this law.


Background Verification-How Much is Too Much Information?

The importance of background checks cannot be understated. In a competitive job market, many candidates resort to lying on their resumes. An insight into an employee’s background ensures that employers can secure their organization, their workforce, and their customers. One of the latest ways to conduct background verification is through social media. There have been instances where employees have been fired because of the views they expressed on their personal social media profiles. But, what about employment background verification?

Employers can use social media as a tool to search for information about an applicant's personal views. In addition, a platform like LinkedIn can be used to see whether the candidates’ peers or senior managers have endorsed them for the skills they have mentioned. However, employers must exercise caution when using social media as a way to check a candidate’s background because it may not provide a complete or fair picture of their past.

As remote work becomes mainstream, it becomes even more important to ensure that potential employees are who they say they are and have the skills they claim to have.


Frequently Asked Questions


What is the most common way to find out if someone has a criminal record?

The most common way is by searching for them on an online criminal record database.

Do background checks always come back with a clear and definitive answer?

Background checks typically come back with a clear and definitive answer. But there are some cases where it's not straightforward. For example, if an applicant has a criminal history but it was expunged, then the background check may not show up.


How does one use a background check company?

A background check company usually provides information about an individual's criminal record, credit history, and any other public records. Background check companies can be used by employers to verify the credentials of potential employees, landlords to verify the credentials of potential tenants, or anyone else who wants to know more about another person.

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Our more than 3,500 employees serve over 30,000 customers around the world, including a quarter of the Fortune 100. We like to think of our clients as close partners, which shows with our world class client retention rate that is unrivaled in the industry. It's because the SterlingBackcheck team believes strongly in providing the most comprehensive, cutting-edge services possible backed up by a commitment to excellence.

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Article | August 2, 2022

The current economic climate and ongoing labor challenges have created a tough environment for employers of all sizes. In order to weather the storm, many employers are looking for ways to reduce their expenses and save money. However, in their efforts to do so, many organizations make the mistake of cutting costs without a clear plan, which can result in lost productivity, reduced morale, unhealthy company culture, and negative long-term effects on the company’s growth and people. Successful organizations, on the other hand, take a more strategic approach to contain costs. They understand that simply slashing expenses, or their workforce can be counterproductive in the long run. Instead, they focus on optimizing their resources by identifying areas where they can reduce expenses without compromising productivity or future growth. Ultimately, the key to successfully managing your costs is to strike a balance between reducing expenses and maintaining productivity and growth. 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Strengthening workplace efficiency can also reduce employee frustration and improve overall satisfaction. Bolster workplace culture through public recognition and reward programs: Improve retention by creating a positive workplace culture that recognizes and rewards employee contributions. This can include public recognition programs, such as employee of the month awards, as well as reward programs that incentivize high performance. Be transparent when communicating with employees to help them understand important decisions and establish opportunities for two-way feedback. Invest in New Technology Adopting new technology is becoming increasingly important to stay competitive and thrive in today’s digital age. Technology can help save time and money by streamlining operations and allowing your business to operate more efficiently. 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Human resources management systems: HR management systems can help to automate and streamline HR processes, reducing the time and cost associated with manual data entry and paper-based processes. Low-code solutions: Low-code solutions can help to create custom software applications and workflows with minimal coding expertise, reducing the cost and time associated with software development. Artificial intelligence: Artificial intelligence can help to automate and optimize repetitive or complex tasks, such as data analysis, customer service, and supply chain management, reducing the time and cost associated with manual processes. Additionally, many businesses are turning to open-source software alternatives as a cost-effective alternative to brand- name software applications. By adopting new technology, you can gain a competitive edge, save time and money, and improve customer satisfaction, ultimately leading to increased growth and success for your business. 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Outsourcing these kinds of tasks can enable your employees to focus on their core responsibilities that have a greater and more direct impact on the business. Here are some reasons why outsourcing can be highly beneficial and cost-effective: Cost savings: Outsourcing can help save on costs, especially for tasks that are nonessential or not core to the business. For instance, outsourcing payroll, HR, compliance and benefits administration can be more cost-effective than hiring an in-house staff to perform these tasks. Time savings: Outsourcing time-consuming tasks can free up employees to focus on their core responsibilities that have a greater impact on the overall growth and revenue. This can help increase productivity and efficiency within the organization. Access to expertise: Outsourcing provides access to a team of experts who have specialized skills and experience in a particular area. 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Proliant and Schoox Partner to Enhance the Employee Experience

PRweb | March 21, 2023

Learning management and talent development software provider Schoox has formed a new partnership with Proliant, a leader in HR and payroll solutions used by more 5,000 companies nationwide. This collaboration empowers customers to pair Proliant’s solutions to simplify their payroll and HR processes with Schoox to deliver onboarding, development, and compliance training. Together these leading solution providers deliver all the critical people tools organizations need to succeed. “Schoox has an excellent reputation and very high customer satisfaction ratings,” said Ken Clayton, Chief Revenue Officer, Proliant. “We are excited to welcome them to our network of partners.” “Proliant offers one of the best on-demand pay solutions in the industry," said Lefteris Ntouanoglou, founder and CEO of Schoox. “We’re thrilled to partner with them and provide our customers with the ability to streamline their employees’ experience.” About Proliant At Proliant, our mission is to ensure our clients have the tools and excellent service they need to continue growing. We do this by providing industry-leading human capital and payroll solutions that streamline processes, improve accuracy, and ensure compliance. We've tailored our service model for maximum client satisfaction with high-touch, single-point-of-contact service that sets us apart from our competition. Learn more at https://www.proliant.com/. About Schoox Schoox is workplace learning software with a people-first twist. People aren’t cogs, and Schoox was designed for how humans actually learn. We keep learners curious by letting you deliver more kinds of content wherever they are, from the front line to the corporate office. And by making learning easy, accessible, rewarding, and fun, we help you get everyone more excited about their career development. Learners can “up” their skills, grow on the job, and get more done—and you can measure the impact of their awesome accomplishments. Schoox powers people-focused learning experiences organizations around the world, including Subway, Celebrity Cruises, Phillips 66, and Sonesta Hotels. Learn more at schoox.com.

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EMPLOYEE BENEFITS, PAYROLL

PrimePay Unveils New Payroll-Connected On-Demand Pay

PRnewswire | March 24, 2023

PrimePay, LLC., a national human capital management (HCM) technology leader, today announced the launch of its Payroll-Connected On-Demand Pay in partnership with Clair, an embedded financial wellness solution that helps employees cover expenses in the moment. Clair is connected to PrimePay's payroll and HR technology, streamlining earned wage advance loans without disrupting working capital or payroll administration. According to SCORE, a Small Business Administration resource partner, employment challenges have overtaken financing and acquiring customers as the number one challenge keeping business owners up at night. In a recent study by Ernst & Young*, nearly 60% of employees would view a prospective employer more favorably if on-demand pay was part of a new job offer. Flexible on-demand pay is a fast-growing job perk that employers can offer prospective and current employees at no cost. "Whether it's medical bills, car repairs, or an extra credit card payment, our employees now have access to their money when they need it, if they need it," said Chief Performance Officer Patrick O'Hara at EverView, a PrimePay client. In the first 45 days of EverView's usage of the offering, the adoption rate exceeded 10%. Key Features Include: Payroll-Connected - Fully Integrated On-Demand Pay No disruption to payroll administration No cost to employers No cost or service fees to employees Easy-to-use employee self-service mobile app "The worker shortage has hit small businesses hard, forcing employers to find new ways to attract and retain talent," said Scott Johnson, Chief Executive Officer of PrimePay. "Our new On-Demand Pay offering, powered by Clair and originated by Pathward, N.A., streamlines earned wage access for employers and gives workers the flexibility of accessing a portion of their earned wages to cover costs before payday." About PrimePay PrimePay®, founded in 1986, is a payroll service and human capital management (HCM) provider, offering solutions that empower businesses to focus on what matters most. We deliver highly configurable HR and payroll solutions designed to create efficiencies and to maximize compliance for our clients across our nationwide presence. To learn more, visit primepay.com. PrimePay is backed by Aquiline Capital Partners, a private investment firm based in New York and London with $8.7 billion in assets under management that invests in businesses globally across financial services and technology. About Clair Clair is a New York-based mission-driven financial technology company that is breaking the paycheck-to-paycheck cycle by offering free On-Demand Pay to America's workforce. Clair embeds seamlessly into human capital management and workforce management platforms and enhances the overall employee experience. For more information, visit getclair.com. About Pathward®: Pathward®, N.A., a national bank, is a subsidiary of Pathward Financial, Inc. (Nasdaq: CASH). Pathward is a U.S.-based financial empowerment company driven by its purpose to power financial inclusion. Pathward strives to increase financial availability, choice and opportunity across our Banking as a Service and Commercial Finance business lines. The strategic business lines provide end-to-end support to individuals and businesses. Learn more at Pathward.com.

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