Common Background Screening Mistakes
The most common mistakes in the background screening process aren’t running the wrong criminal background checks or not drug testing. Common background check mistakes occur in the “small details” that lead to inaccuracies, compliance problems, and bad hires.
Not Following Background Screening Consent Rules
One of the most basic yet commonly missed mistakes is failing to properly obtain consent before conducting background checks.
The Fair Credit Reporting Act (FCRA) is the regulation that employers must adhere to, which requires them to properly inform candidates and get written consent before running a background check. Although it is a simple box to check, neglecting this step can lead to class action lawsuits, reputational damage, and fines.
Fix this by: Always obtaining written consent from candidates before conducting background checks and following the Federal Trade Commission (FTC) guidelines.
Not Tailoring Your Background Checks to the Role
A one-size-fits-all approach doesn’t always work when it comes to background screening. Some roles require further checks to be made, such as a motor vehicle record (MVR) check for drivers or a credit check for money handling and finance roles. By making your checks too broad across the board or by not doing a thorough enough check for specialized roles, you leave your organization vulnerable to safety and compliance risks.
For example, if you’re hiring for a VP of marketing role, it would make sense to do an employment verification. It might not make sense if you’re hiring for a cashier at your franchise. Similarly, a credit report would make sense for someone high-level at a bank, but it may not make sense in the background check process for a vet.
Fix this by: Taking a step back and determining what checks are actually necessary for each role. You can also work with a screening provider that makes it easier to customize your checks.
Not Being Proactive With Legal Changes
Legal requirements in areas like pay transparency, data protection, and background screening requirements change all the time. Waiting for regulations to take effect before you act can leave your business exposed to risk and create headaches. When you need to rush to update company policies and procedures, you’re prone to making even more mistakes.
Being proactive in implementing changes sooner, if possible, will keep you ahead of the curve and position your organization as a leader in risk management and transparency.
Fix this by: Monitoring regulatory updates regularly and making adjustments to your screening practices ahead of time.
Not Conducting Continuous Monitoring
Background checks shouldn’t be a one-and-done process. Employee’s roles, responsibilities, and behaviors can change over time, making ongoing monitoring a critical part of maintaining a safe and compliant workplace. This is especially important in high-turnover or high-risk industries like healthcare, transportation, and manufacturing. In these environments, continuous monitoring isn’t just a “nice to have”; it is essential for the health and safety of your employees and customers.
Of course, there are other areas where it might be worthwhile – like social media screening, driving history, drug testing, and more. Not only does it improve the safety of your employees, it can help with retention as well.
Fix this by: Implementing continuous monitoring to ensure you can maintain compliance and workplace safety.
Not Following the Adverse Action Rules
If you decide not to hire a candidate based on information from their background check, you must follow the proper adverse action steps. Adverse action requires employers to give candidates the opportunity to dispute the findings and provide evidence. It is very important to follow these steps closely to maintain compliance and avoid fines and lawsuits from individuals, the Consumer Financial Protection Bureau (CFPB), the Federal Trade Commission (FTC), and other regulatory bodies.
Fix this by: Carefully following the adverse action process, which includes notifying the candidate, giving them a chance to dispute the findings, and documenting all steps in case of legal claims.
Not Working With the Right Screening Partner
The right screening partner makes all the difference. Partnering with a provider who doesn’t understand your specific needs or lacks expertise in your industry can lead to missed red flags and costly mistakes. A provider who doesn’t have a strong history of compliance or the right tools to streamline the process could create more headaches than solutions.
The right background screening service can actually help address many of the most common employment screening mistakes.
Fix this by: Exploring your background screening options to find the right fit for you. You can also use our “10 Questions to Ask Background Check Vendors” guide to help you navigate the process.
Not Staying Up-to-Date with Changing Regulations
For companies that employ remote workers or operate across multiple states, staying informed about local and national regulatory changes is essential. Many states are regularly updating their laws, which could impact the way you conduct your background checks. Although this can be overwhelming, if you don’t have a plan to stay on top of these changes, that is when compliance mistakes can slip through the cracks.
Fix this by: Regularly reviewing local and state regulations to ensure your background screening processes are always up-to-date.
