This story is a guest contribution from UKG Screen by HireRight, which provides a comprehensive suite of over 250 global screening offerings to help organizations hire the right people for the right opportunities.
In today’s competitive job market, ensuring that your small or midsized business hires the right people is more crucial than ever. Employment background checks are a vital tool to help prevent the inadvertent hiring of unqualified individuals or those who may pose a risk to your organization. However, conducting background screening requires careful planning and consistency. Here are five essential steps to help you establish a successful background screening policy and process, as well as several challenges you may encounter.
1. Creating an employment background check policy
Consistency is key when it comes to employee and candidate screening. A well-defined policy ensures fairness and effectiveness. Start by outlining who to screen, when to screen, and how to interpret and handle the results. Clearly state the actions to be taken if a candidate is disqualified based on the screening results. Without a written policy, inconsistencies can arise, potentially violating equal employment laws. Tailor your policy to your company’s unique needs, considering the roles within your organization and the associated risks. Involve legal counsel to ensure compliance with local and national laws.
2. Deciding when and who to check and for what
Your policy should specify which roles require background checks and the types of screening services included. Will you check criminal histories, driving records, financial integrity, past employment, and educational backgrounds? Determine the relevance of each service to the role and the candidate’s ability to perform the job. Higher-level positions may require more comprehensive screenings, including personal interviews, media searches, and examinations of business affiliations. Clearly outline the screening requirements for different roles, especially those in high-risk departments like finance or compliance.
3. Complying with the law
Mitigating risk is a primary objective of employment background checks, but it’s essential to comply with all applicable laws and regulations. This can be challenging due to the variation in laws across different locations. Consulting with legal counsel is crucial to navigate the patchwork of regulations that may apply to your screening program. Ensure your background screening program adheres to all relevant laws to avoid creating new risks for your organization.
4. Informing and communicating with candidates
Creating an exceptional candidate experience is vital for attracting and retaining top talent. Inform candidates about the background screening process and provide comprehensive information to reduce anxiety. Transparency helps candidates feel treated fairly, which is important for making a positive first impression and alleviating concerns from those who may not get the job. Keeping candidates informed fosters cooperation and helps them understand the importance of the screening process in creating a safe and qualified workplace.
5. Accommodating cultural differences
Employment background check practices vary globally, and it’s important to consider cultural differences when expanding your screening program overseas. For example, in Japan, address checks may be omitted due to potential biases. Partner with a screening provider who can offer detailed, location-specific compliance information. This ensures your global screening program is suitable for candidates worldwide and adheres to local laws and cultural norms.
Anticipating Common Employment Background Check Challenges
By following the five steps above, your organization can establish a robust background screening policy and process that ensures fairness, compliance, and the hiring of qualified individuals. However, small and midsized businesses often face a unique set of challenges when it comes to implementing and managing background screening processes and policies. Here are a few key issues to be aware of as you create your background screening policy and process.
Cost and resources
One of the primary challenges is the cost associated with comprehensive background checks. Unlike larger corporations, small businesses typically operate with limited budgets and may find it difficult to allocate funds for thorough screening processes. Additionally, small businesses often lack dedicated human resources departments, meaning that the responsibility for conducting background checks may fall on already overburdened staff. This can lead to inconsistencies and potential oversights in the screening process.
Compliance and legal issues
Navigating the complex landscape of legal requirements for employment background checks can be daunting for small businesses. Different jurisdictions have varying laws regarding what information can be collected and how it should be used. Ensuring compliance with these regulations is crucial to avoid legal repercussions, but it can be challenging without specialized legal knowledge. Small businesses may struggle to stay updated on changes in legislation, increasing the risk of non-compliance.
Time constraints
Time is another significant factor. The process of conducting background checks can be time-consuming, especially if the business is handling it internally. For small businesses, where every employee’s contribution is critical, the time spent on background screening can detract from other essential business activities. This can lead to delays in hiring, which can be particularly detrimental in a competitive job market.
Data security and privacy
Ensuring the security and privacy of sensitive information gathered during background checks is a critical concern. Small businesses may not have the same level of cybersecurity infrastructure as larger companies, making them more vulnerable to data breaches. Protecting applicants’ personal information is not only a legal obligation but also essential for maintaining trust and reputation.
Balancing thoroughness with fairness
Finally, small businesses must balance the need for thorough employment background checks with the importance of fairness and avoiding discrimination. Overly stringent policies can inadvertently exclude qualified candidates, while lenient policies may fail to identify potential risks. Striking the right balance requires careful consideration and often, expert guidance, which can be another resource-intensive aspect for small businesses.
Finding a strategy for success
Addressing these challenges requires a strategic approach, often involving a combination of outsourcing, investing in training, and leveraging technology to streamline processes. By doing so, small and medium businesses can create effective and compliant background screening policies that support their growth and success. Remember, a well-planned screening program not only protects your organization but also enhances your reputation and the talent you hire.
Are you ready to take background screening to the next level? Visit UKG Screen by HireRight on the UKG Marketplace to learn more.
Note: Some of the content for this article was previously published in the global edition of HireRight's "Dummies Guide to Employment Background Screening."
