Your Comprehensive Guide To Employee Background Checks

Employee Background Checks

An employee background check is an important aspect during the hiring process because it allows the employer to know that the applicant has the right education and the experience required for the job.

By doing a thorough employee background check and current address verification, the employer can be assured that the candidate is suitable for the role and will perform the job well. If the candidate has lied about their experience or educational background, the employer can decide to forget their candidacy. 

In this blog, we explore more about the process of employee background checks, including its importance, benefits, types and more.

What Is An Employee Background Check?

An employee background check refers to the process of reviewing a job applicant’s background, including personal, criminal, social, financial, and employment records. Most organisations use third-party recruiters for hiring candidates. 

Validating personal details, degrees and skills before hiring anyone is the key to solving a range of problems in the long run.

The Importance of Employee Background Checks

Conducting thorough employment background checks is an essential tool for businesses. These background checks help employees in selecting the best possible candidates for their organisation.

Among the key reasons why you need to conduct employee background checks include – 

  • Ensure Hiring Of Qualified Candidates

A thorough employment verification process can help you assess the potential candidate’s existing skills, experience, knowledge, personality, and work ethics. Knowing all this critical information and ensures that you make the right choice when hiring someone.

  • Saves Time and Energy

While the importance of the employment verification process at the time of hiring is immense, it is also a tedious and cumbersome process. It requires a great deal of administrative work and a lot of precious time.

By choosing a third-party administer/screening company to manage the end-to-end employee verification process, you can ensure to save a lot of time and energy.

  • Safeguard Company Assets

A thorough pre-employment background check is a great way to ensure the safety of the company’s reputation. Without attempting a comprehensive check on the financial and criminal records of the employee, it would be difficult for the company to know about their past. The pre-screening test can help in such cases. 

Hiring employees with a bad reputation can affect a company’s reputation and reliability and negatively impact its bottom line. 

  • Helps Keep Your Workplace Safe

The importance of keeping your employees, customers, and organisation safe at all is immense. Employee verification and checks help you keep your workplace safe and save you from hiring any unsavoury candidates.

  • Avoid Bad Hires 

Hiring the wrong candidate can prove very costly and frustrating for the organisation. Partnering with a qualified third-party service provider to conduct a thorough background check before hiring someone can ensure that you only hire the right candidate.

What Aspects Does an Employee Background Check Cover? 

Among the various aspects that an employee background check covers are –

  • Employment History

A candidate’s employment history is checked to verify the accuracy of the details they’ve provided. The verifier checks the type and nature of companies the applicant was employed with and for how long, along with any disciplinary issues associated with them. 

  • Identity Verification

This check is done to confirm whether the applicant has provided accurate identity details or has legal rights to work in the country. Further, it also includes current address verification to check if the residential address provided by the applicant for any communication is correct.

  • Educational Background

Similar to employment history, an educational background check verifies the accuracy of the degrees and universities on the candidate’s resume.

  • Criminal History

The candidate’s criminal history is verified to check if they have been convicted of a crime, have any outstanding warrants, or are on a government watchlist.

  • Credit Check

Credit checks are done to verify if the applicant is financially responsible. This is especially critical if they will have access to company finances.

3 Common Background Verification Misconceptions

An increasing number of employers and employees have several misconceptions about background checks, resulting in a hiring or application error. Some of these common misconceptions are discussed below.

  • Only Large Organisations Can Afford Background Checks

The fact, on the contrary, is whether you are a big corporation, a medium-size business, or a small one, an employee background check is very important. Small and medium-sized companies, in particular, cannot afford to hire the wrong candidates as it can cost them much more than hiring a background verification service.

  • All Background Checks Are Similar

The fact, however, is that no two background checks are the same. All applicants aren’t required to clear every type of background check before a company hires them. Each position has its specific requirements. 

  • Background Check of Candidates Is a Time-Consuming Process

The time taken for a background check depends on multiple factors such as the length/ location of records, the extensiveness of the search, and the local laws. A professional employee background verification company like AuthBridge, on average, take 30-40% less time than the competition.


HR professionals typically conduct employment background checks. However, when hiring for a senior position or at a big organisation, this responsibility is outsourced to a professional background verification service. 

Since employee background checks are a crucial part of the overall hiring process, organisations need to get all the details right. As a result, hiring a professional background service provider such as AuthBridge can be instrumental in ensuring a smooth and safe recruitment process.