Hiring the right person goes beyond finding a good resume match. Ensuring that a candidate’s qualifications, experience, and background are legitimate is essential for building a trustworthy and safe workplace. In fact, according to a report from PBSA that surveyed 1,528 human resources professionals, nearly all employers conduct background checks as part of their hiring process. However, while these checks are meant to protect companies and employees, they come with challenges that can be difficult to deal with.
So, why do these challenges occur, and what can we do about them? This blog reveals the biggest challenges with background checks and offers smart solutions to ensure the process works better for everyone involved.
The Hidden Challenges of Background Checks
While background checks seem like simple processes, they can become complicated. Understanding these challenges is the first step to overcoming them. Let’s break down employers’ major problems when conducting background checks and explore how to solve them effectively.
1. Inaccurate or Outdated Information
Background checks sometimes produce reports that contain inaccurate or outdated information. It is the employer’s duty to check whether the information is accurate and updated.
These inaccuracies can happen for various reasons: mismatched data between individuals with similar names, records that have not been updated to reflect changes or errors during data entry. For instance, a record might show a past conviction that was later expunged but still appears due to a lag in updates.
Consequences for Employers and Candidates
The impact of these inaccuracies is significant. For employers, hiring decisions based on incorrect information can lead to unjust rejections and missed opportunities to bring in talented employees. Additionally, there is a risk of legal action if candidates can prove that a hiring decision was made based on faulty data.
For candidates, an inaccurate background report can result in losing a job offer or having their professional reputation unfairly damaged, leading to frustration and mistrust in the hiring process.
Possible Solutions
Employers should partner with reputable background screening providers like Verification Screening Solutions, which has strong quality control measures.
Employers can also adopt a process that allows candidates to review and dispute their background check results. By allowing candidates to identify and correct mistakes, employers can ensure that their hiring decisions are fair and based on accurate information.
2. Discrimination and Bias
Discrimination and bias are serious concerns in the background check process. While background checks are intended to objectively assess a candidate, they can sometimes introduce unintentional bias.
For example, certain criminal record databases might disproportionately represent specific demographics, leading to unfair treatment of candidates based on race, ethnicity, or socioeconomic status. How background check results are interpreted can also reflect unconscious biases, influencing hiring decisions in a way that disadvantages certain groups.
Consequences for Employers and Candidates
The presence of bias in background checks can have far-reaching consequences. For candidates, it can mean being unfairly screened out of a hiring process due to factors beyond their control. This can perpetuate systemic inequalities and deny opportunities to capable individuals.
For employers, using biased background checks undermines the goal of creating a diverse and inclusive workplace and poses legal risks. Employers could face discrimination lawsuits or damage to their reputation if they are found to be using biased screening practices that violate anti-discrimination laws.
Possible Solutions
One efficient measure is to work with background screening companies that adhere to fair reporting practices and regularly audit their processes for potential bias. Additionally, training HR teams to recognize and mitigate unconscious biases when interpreting background check results is crucial.
Implementing a consistent, standardized process for evaluating candidates can also help reduce subjective decision-making that could lead to discrimination.
Lastly, ensuring compliance with Equal Employment Opportunity (EEO) guidelines and related anti-discrimination laws can help employers maintain fair and inclusive hiring practices.
3. Privacy Concerns
Background checks require collecting sensitive personal information, such as criminal records, financial history, and social media activity. While this data is necessary for making informed hiring decisions, it can lead to significant privacy issues if handled improperly. Candidates may feel their personal boundaries are being crossed or worry that their information could be misused.
Consequences for Employers and Candidates
Privacy concerns can lead to mistrust toward potential employers, creating a barrier in the hiring process. When individuals feel their personal data isn’t secure or is unnecessarily scrutinized, it can impact their willingness to engage with a company.
When companies fail to handle personal data with care, it can result in breaches of trust, decreased candidate interest, and even legal repercussions. Suppose sensitive information is improperly stored or disclosed. In that case, companies may face penalties under data protection regulations like the CCPA (California Consumer Privacy Act), General Data Protection Regulation (GDPR), or similar laws in the region.
Possible Solutions
Employers should prioritize transparency and data protection to address privacy concerns. This means communicating to candidates what information will be collected, why it’s necessary, and how it will be used. Effective data protection measures, such as encryption and secure storage systems, can also prevent unauthorized access or data breaches.
4. High Costs and Resource-Intensiveness
Conducting comprehensive background checks can be expensive and time-consuming. The process involves gathering detailed information from multiple sources, including criminal records, employment history, credit reports, and educational verification. Depending on the depth of the check, these reports can range from a few dollars to several hundred, especially if international or specialized checks are required.
In addition to direct costs, the time spent reviewing and verifying background information can delay the hiring process, further stretching an employer’s resources.
Impact on Small Businesses
These costs may be manageable for large corporations, but the financial and time burdens can significantly challenge smaller businesses. The need for thorough checks often competes with other pressing operational costs, like salaries, technology investments, and marketing.
The high costs can lead small employers to cut corners by opting for cheaper, less thorough checks or skipping them altogether. This increases the risk of hiring individuals with records that could harm the business.
Additionally, the time-intensive nature of background checks can stretch thin resources, delaying the hiring process and potentially causing small businesses to lose top candidates to faster-moving competitors.
Tips for Cost Management
While the costs of background checks cannot be avoided entirely, there are ways to make the process more budget-friendly without compromising quality. Here are a few tips:
- Choose Tiered Background Checks: Many background screening companies offer tiered pricing, where employers can select different levels of checks based on the job role. For instance, entry-level positions may only require basic criminal background checks, while higher-level roles could need more detailed reports.
- Automate Where Possible: Using automated background check platforms can reduce the amount of manual work needed, speeding up the process and lowering costs. Some platforms allow employers to run checks quickly and efficiently, reducing the time spent on each candidate.
- Use Pre-Employment Screening Packages: Many services offer pre-packaged background checks that bundle essential checks at a lower cost than running individual reports. This can help small businesses balance thoroughness with budget constraints.
- Negotiate Bulk Discounts: If hiring is frequent, employers may be able to negotiate bulk pricing with background screening companies, reducing the per-check cost.
- Use State or Local Resources: In some cases, employers can use government or state-run databases for free or cheaply. This can help reduce expenses, particularly for criminal background checks.
5. Turnaround Time and Delays
The time required to complete background checks can be a significant challenge for employers. While some basic checks can be processed within 24 to 48 hours, more comprehensive checks, especially those involving multiple records or deeper investigations, can take up to several weeks.
This delay can slow down the hiring process and potentially result in the loss of candidates who may choose to accept offers from competitors with faster timelines.
Challenges with Global Checks
When hiring internationally, turnaround times can become even more unpredictable. International background checks often involve coordinating with foreign governments or agencies with slower response rates, different privacy regulations, or less efficient record-keeping systems. This can add weeks to the timeline, creating bottlenecks in hiring, particularly for positions that need to be filled urgently.
Additionally, language barriers and different time zones can further complicate the process, making it difficult for employers to promptly get the information they need.
Best Practices
Employers can adopt several strategies to reduce the delays associated with background checks:
- Use Automated Systems: Automated background check platforms can speed up data collection and processing, reducing the overall turnaround time. These systems often streamline tasks that would otherwise be performed manually.
- Partner with Efficient Services: Working with background screening providers known for quick turnaround times can make a significant difference. Some services prioritize updates and communication to minimize delays.
- Pre-Screening Measures: Implementing initial self-disclosure forms or preliminary checks on candidates can help identify potential red flags early, allowing employers to address them before the comprehensive check is complete.
- Global Vendor Networks: When dealing with international hires, choosing background check providers with an established global network can reduce the complications associated with working across borders.
6. Misinterpretation of Results
Even when background checks produce accurate information, how those results are interpreted can lead to problems. Misinterpretation occurs when hiring managers or employers fail to properly contextualize the data provided in a report.
For instance, an outdated misdemeanor on a candidate’s record may not accurately reflect their current character or suitability for a job. Additionally, employment gaps due to personal reasons like caregiving or health issues can sometimes be seen as red flags, even when they don’t impact a candidate’s job qualifications.
Consequences for Employers and Candidates
When results are misinterpreted, candidates may face unfair disqualification from the hiring process. This can particularly impact individuals with common but misunderstood issues, such as minor criminal records or employment gaps.
For employers, the consequences include missing out on qualified talent and facing potential legal challenges related to discriminatory practices. Additionally, a reputation for unfair hiring practices can hurt a company’s ability to attract future applicants.
Possible Solutions
To avoid misinterpretation, employers should:
- Train Hiring Managers: Providing training on how to read and evaluate background check reports helps ensure that the information is interpreted fairly and correctly.
- Consult Context: Employers should consider the context of background check findings. Understanding the nature and timing of a criminal offense or employment gap can prevent automatic disqualifications.
- Involve HR Experts: Having HR professionals or third-party experts review the background checks before making final hiring decisions can reduce subjective interpretations.
- Create Clear Policies: Establishing standardized policies that outline what types of findings are relevant to hiring decisions can ensure consistency and fairness.
7. Limited Coverage of Background Checks
Background Checks may not cover critical aspects of a candidate’s profile, such as social media behavior or certain types of employment history. This limited scope can lead to hiring decisions based on incomplete or one-dimensional data.
For example, traditional background checks often focus on criminal records, education verification, and employment history from formal channels but miss out on freelance work or international employment.
Specific industries may require more in-depth screenings, including credit history, driving records, or professional certifications, which may not be included in basic checks. Additionally, with the prevalence of social media, failing to incorporate an assessment of a candidate’s online presence could mean overlooking behaviors or attitudes that may impact workplace culture.
Potential Gaps
- Social Media History: Many background checks do not include a review of a candidate’s public online behavior, which can provide insights into communication style, professionalism, and potential red flags like discriminatory remarks.
- Freelance and Informal Work: Checks might skip over freelance positions, contract work, or unregistered employment, which could be crucial for evaluating a candidate’s skills and experience, especially in tech and creative industries.
- Global Employment Records: When hiring internationally, gaps in background checks may appear due to inconsistent record-keeping practices across countries, leading to potential blind spots in a candidate’s history.
These gaps can impact an employer’s ability to evaluate a candidate fully, increasing the risk of making uninformed hiring decisions.
Solutions for Comprehensive Checks
To address these limitations, employers can take the following measures:
- Expand Background Checks: Use services that offer comprehensive background checks, including credit history, driving records, and global employment verification. Ensure that the chosen provider can adapt to industry-specific needs.
- Integrate Social Media Screening: Incorporate social media analysis as part of the pre-employment screening process to get a fuller picture of a candidate’s public behavior. These tools can flag potentially problematic posts about discrimination, violence, or unprofessional conduct.
- Use Multiple Data Sources: For thorough verification, rely on a blend of automated tools and manual checks. Platforms aggregating data from various sources, including international databases, can reduce information gaps.
- Verify Informal Experience: Contact references from freelance work or other non-traditional employment experiences to confirm a candidate’s skills and character.
Also Read: What Shows Up In a Background Check and What Causes Potential Red Flags?
8. Regulatory Compliance Challenges
Background checks are subject to a complex web of local, state, and federal regulations, making compliance a significant challenge for employers. These regulations often dictate how background checks can be conducted, what information can be considered, and how data must be handled and stored.
For example, the Fair Credit Reporting Act (FCRA) sets strict guidelines on how background checks should be managed in the U.S. At the same time, individual states may have additional laws that impose further restrictions or requirements. This creates a multi-layered compliance landscape that employers must navigate carefully to avoid missteps.
Employers hiring across different jurisdictions or internationally face even greater complexity. Global hiring introduces varied legal standards that can change significantly from one country to another, making it difficult to maintain a uniform hiring process that adheres to all regulations.
Failure to stay compliant with these laws can result in serious consequences. Non-compliance can lead to fines, legal action, and damage to a company’s reputation.
Tips for Staying Up-to-Date
To maintain compliance, employers should consider the following strategies:
- Consult Legal Experts: Work with legal professionals specializing in employment law to ensure that background checks are conducted within the bounds of all applicable regulations. This is particularly important for companies that operate across different states or countries.
- Utilize Compliance Tools: Invest in software tools that help manage regulatory compliance by updating employers on changes in relevant laws and providing step-by-step guidance for adhering to them.
- Employee Training: Educate HR teams and hiring managers on the current laws and best practices for background checks. Regular training sessions can help inform the team about new regulations or significant changes.
- Review and Update Policies: Regularly audit internal policies and processes to ensure they align with current laws. This can include reviewing consent forms, data storage practices, and handling sensitive information.
Employers who take proactive steps to stay informed and compliant can minimize the risk of legal issues and foster trust with candidates by demonstrating a commitment to fair and lawful hiring practices.
Hire Confidently with Expert Screening Support from Verification Screening Solutions!
Handling the challenges of background checks can feel overwhelming. However, these hurdles don’t have to hold your hiring process back. Partnering with a reliable screening service can make all the difference.
Verification Screening Solutions is committed to providing comprehensive and compliant background check solutions tailored to your needs. Here’s how we can support your hiring process:
- County Level Criminal Search
- Statewide Criminal Search
- Federal Criminal Search
- Multi-State Criminal Search
- Motor Vehicle Report (MVR)
- Sex Offender Search
- Federal Civil Search
- County Level Civil Search
- SSN Trace
- Employment Verification
- Education Verification
- Fingerprinting
Are you ready to improve your screening process and make better hiring decisions? Learn more and take the first step toward stress-free, efficient background checks.
Contact us today!
