The purpose of personal background checks is to get a feel for the candidates character. Personal and professional references are a good starting point, but experts from the studies caution employers on using this method alone. Prospective employees are obviously would give referrals to people who they trust will provide a good character reference for them. These references are not necessarily fabricating information about the applicant simply may not know pertinent information about him or her.
Another method employers use to obtain a credit report on prospective employees. While privacy advocates argue the necessity in reviewing credit reports, many employers find them to be full of important information. An employer can determine what types of credit accounts the applicant has open and their history of paying bills on time. For some employers, it is a good indicator of how responsibility for an employee, he or she will be. Employers can also draw a correlation between credit history, job performance and employee retention. Although these conclusions are fiercely debated, according to the Fair Credit Reporting Act, employers have the right to examine a large proportion of a person's credit history as a pre-employment tool.
Credit reports also contain relevant jobs and address information. Some employers and private investigation firms use credit reports as a means of cross-referencing information on employment application. Although credit reports contain much needed personal information, if used along with other personal background check methods in order to get a well rounded background of the candidates character and ability to perform job duties.
This type of consumer report also contains information that may be valuable, although legally questionable, to the employer. Age and marital status are data that are often reported. Employers should already be familiar with the privacy and equal opportunity legislation and be careful not to discriminate on the basis of these facts. Performance of personal background checks is to ensure security in the company and violating federal laws are excluded.
Identity theft, criminal prosecutions, outstanding debt and bankruptcies are all examples of information that can be acquired through a personal background check. As an employer it is your responsibility to only gather what information you need; information gathered should be directly related to safety and quality of the company and more specifically the job done. For example, a company the need to hire a receptionist, it may not be necessary to know whether he or she has filed bankruptcy recently. Other than using it as a tool to judge character, some information gathered through personal background checks may not be appropriate for the position.
If an employer should require a more extensive background check, things like who you have dated, use of alcohol or drugs or personal lifestyle may also be obtained. Normally when a company examines a person's background, they may interview neighbors, friends, associated, former co workers and others to get a picture of the person as a whole. Some information may be of interest to the employer, and some may be irrelevant. It is important when hiring an investigator, to let them know specific information you seek.
When investigating a prospective employees background, it is very important to be honest about your intentions. Federal law requires employers to provide separate consent forms for each type of survey to be conducted, and it is also good business practice to be forthcoming about these issues. Background checks of employees can save companies money by avoiding potential litigation, theft, and costly employee retention. It is usually best to outsource work to a private company if the information is very detailed. For some employers, searching at the local or state level is much more cost efficient and can produce the results they need without outsourcing.
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