How to Do a Background Check On An Employee

When you're searching for a new employee at your business, it is natural to want the best possible candidate with a stellar reputation to fill the job. Likewise, you also want someone with a decent credit history and references that check out to prove your chosen candidate is a smart, reliable choice. While many private companies offer employee background check services, it is possible for you to perform your own background checks. This may be impossible if you operate a larger company with a high volume of job applicants. However, you should know how to perform your own background checks while honoring your own as well as your candidates' legal rights.

Difficulty: Moderate

Instructions

1. Obtain consent from the candidate for employment to perform a background check. Usually, you may include an item on the application for employment that will enable the candidate to indicate whether or not she will allow you to perform the background check. In some professions such as working with children, the elderly or gaining access to highly classified or sensitive information, a refusal to submit to a background check can disqualify the candidate from consideration.

2. Access the National Crime Information Center, a service provided by the Federal Bureau of Investigation (FBI). This system enables you to screen a potential employee's criminal background to find out if the individual has been arrested, convicted of a crime, has served jail time, is subject to outstanding warrants, or is wanted anywhere in the country. Some employers, however, cannot access the system unless the employer regularly hires people who work with children, the elderly or with highly sensitive or classified information.

3. Inquire with the three major credit bureaus about obtaining credit histories of potential employees. The bureaus often provide background check services for this purpose. You could also hire a company that specializes in gathering this type of information.

4. Ask for and check the potential employee's references. Utilize the candidate's resume to check with past employers and verify their educational background.

5. Hire a private company to perform comprehensive background checks that include all the information listed above if you have a high volume of candidates or if you simply do not have the time to perform your own background checks. Investing in an outside company to do your background checks is a wise investment, especially if you supervise multiple employees.

Tips & Warnings

• Research different background check companies online by utilizing websites such as www.bestbackgroundchecks.com. Compare prices and diversity of services.
• Certain arrests, credit histories or convictions are typically erased from a consumer report after seven years. Be sure not to count such indiscretions against an otherwise capable and worthy employee.
• Because of the Fair Credit Reporting Act, you may be restricted in terms of the type of information you may gather about a potential employee. Some employers cannot even perform a background check on an employee unless the employer is part of an industry where certain parts of a person's past may affect their job or the safety of others. For example, people who work in education, health care or with the elderly would require background checks.

Resources

• National Crime Information Center
• www.bestbackgroundchecks.com

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