Equipping Your Hiring Managers to Use Background Check Best Practices

Selecting people to work in your business is a considerable responsibility. Since employees may stay in your employ for years, the right team can make all the difference for small and medium-sized companies. To assemble that team, more than one person in the business might have the power to make hiring decisions. Part of that hiring process involves screening and vetting applicants. Are your hiring managers equipped with a thorough understanding of background check best practices?

There are layers to this process, from gathering consent and maintaining compliance to interpreting results. Managers who are not well-versed in today’s best practices could make decisions that negatively impact the business. Identify those with this level of responsibility and create strategies to train and educate them on the best practices for obtaining and evaluating background checks. Consider how such a process should work.

Who Are the Hiring Managers in Your Business?

A hiring manager may not always have a dedicated role in a Small to Medium Business (SMB). It is often in the job description of another role, and hiring managers aren’t always HR team members, either. Generally, HR works with hiring managers to ensure compliance and assist with onboarding.

In most cases, the hiring managers within a business are core team leaders. Some may even be heads of departments. For SMBs, those whose teams have open roles often lead the way in hiring. After all, these managers have the best sense of the skills and qualifications an applicant should have.

Due to this arrangement, multiple people in a business may be authorized to make hiring decisions. Others may be empowered to provide recommendations to those with the final say. In these scenarios, several people may be able to order and review background screening reports. It is vital to take steps to ensure they understand the best practices surrounding vetting.

Why Are Best Practices So Important?

Before delving into the practices, take a moment to explore why better policy-making and thorough training matter so much. There could be consequences for failing to uphold high standards or to follow the legal prescripts. When you rely on today’s best practices, you can do the following:

• Minimize the risk of making a bad hire. Unfortunate hiring decisions often lead to high turnover increasing hiring costs and impacting productivity. Proper screening contributes to enhanced confidence in employment decisions.
• Avoid engaging in discriminatory behavior and avoid potentially costly lawsuits. Fair hiring practices are critical, especially regarding how you use background checks.
• Remain compliant with federal and local laws surrounding hiring practices and background checks. Avoid expensive fines, potential media scrutiny within the community, and the risk of lawsuits.
• Recognize second-chance opportunities. Innovative screening practices don’t rule out everyone with a criminal record. Instead, reasonable procedures help managers evaluate candidates thoroughly.
• Identify the most suitable candidates. With some pre-employment background check approaches, you can verify resume information and develop confidence in candidates.

So, what are the most essential aspects for hiring managers to know?

Begin From a Solid Legal Foundation

Background checks are regulated consumer reports. Federal law often governs their use for employment purposes. Additionally, states, counties, and even individual cities may further restrict how you can order and use background checks. Every hiring manager must have a clear understanding of these legal obligations. Failing to follow the law can invite punitive fines or lawsuits that cost the business tens of thousands of dollars.

Educate hiring managers on the Fair Credit Reporting Act and its primary provisions. These include obtaining consent and providing a written disclosure to applicants. Managers may not order background checks without the permission of the subject. You must also follow adverse action guidelines very closely.

Research local laws in your area. Managers may need to abide by ban the box rules prohibiting criminal history questions on a job application. Fair chance laws may also be in effect. You may not be able to order a background check until the manager offers a conditional job offer. Review these regulations closely.

The Equal Employment Opportunity Commission (EEOC) also issues extensive guidelines on hiring, such as using background checks or a credit report. The EEOC’s goal is to prevent discrimination in the workplace. Managers should familiarize themselves with these guidelines.

For example, the EEOC recommends individually assessing applicants and their criminal records. They also suggest analyzing specific factors, such as relevance to the job and time since the conviction. Managers should understand these factors and how to apply them.

Train Managers on Obtaining Background Reports

Obtaining background checks for employment can be simple, but don’t forget that it’s regulated. Hiring managers shouldn’t have to seek different services and assemble background checks from several sources. You increase the risk of noncompliance by doing so. Instead, the aim is to provide managers with a unified platform for ordering and reviewing background checks.

Enlist a trustworthy reporting agency that can offer the expansive variety of checks you need. Detailed resources are also a high priority. The right partner can also assist you in meeting your FCRA obligations, as we do at backgroundchecks.com during the ordering process. Credential your managers to use these services on demand.

Train managers to understand that a thorough background check includes criminal information but doesn’t hinge solely on that data. Discuss the different types of background checks. Work history and education verification, drug testing, and reference checking may all be a part of your vetting process. Consider creating standard screening packages for specific job roles within the business so managers can consistently review the same types of information.

Interpreting the Results of Reports

Emphasize the importance of fairness and consistency in evaluating background check reports. Some red flags are apparent and problematic: lying about attending college or failing a drug test are clear barriers to employment. What should be a disqualifier may vary from business to business—or even by job role. With such unique circumstances, you should train managers to conduct background checks using individualized assessments.

Some companies create a hiring matrix to compare candidate results with a hypothetical ideal. Others use them to generate applicant scores. In other cases, managers may take a ‘gut feel’ approach to identifying red flags. Always place these warning signs into a greater context. Remember the EEOC factors of time and relevance. In doing so, managers can create a fairer hiring environment.

Sometimes, a red flag is too much to overcome. A past conviction for a violent assault, for example, may make you deem someone too risky to hire. Someone with a history of monetary issues and committing fraud is likely not the right fit for a financial role. In these cases, managers must understand the adverse action guidelines as set out in the FCRA. Applicants must have a chance to dispute their report. After such an opportunity passes, you can end the process for that individual.

Huddle With Your Hiring Managers on Best Practices Today

In SMBs, the importance of every hiring decision is amplified. With smaller teams often comes greater responsibility and a more significant organizational impact. Empowering your hiring managers to make prudent choices is essential. As they select applicants to become job candidates, ensure your managers fully understand the screening process. Achieving full legal compliance while identifying the most suitable candidates starts with astute policy.

Review and understand all the facts surrounding background check best practices. Bring hiring managers together for periodic training to keep selection practices consistent, reliable, and thorough. Visit our Resource Center for more in-depth information on all aspects of the process, from relevant laws to data privacy and beyond.