In the information age in which we live, background checks are not necessarily difficult to perform. Basically, an employer needs to understand the Fair Credit Report Act laws as well as laws pertaining to individual states. With these laws in mind, the employer can determine what type of information is actually needed, considering each position within their company and the details of the job function.
Some positions may require cash or sensitive information handling and would therefore need a thorough criminal background check. Other positions may not be as sensitive in nature but require a high degree of education or experience in the field. Educational background checks and work related references are often very important in this type of pre-employment screening.
Some employers require a credit report in their pre-employment screening tools. This subject is widely debated and is often considered an invasion of privacy. Many prospective employees ask employers, "I will not be handling cash transactions or dealing with personal information, why do you need my credit report?" Most employers who request this information are not necessarily trying to be intrusive into the candidate's life; they simply believe that a credit report is a good indicator of character. Some employers insist that a poor credit score, which indicates failure to pay bills on time, means that the individual does not have a high level of responsibility. Others claim that a poor credit score indicates poor job performance and could possibly turn into retention issues. Credit reports also list employment history and places the person has lived. Employers often use this as a pre-screening tool to verify that application information is true and accurate.
Another type of pre-employment background check included in the "investigative consumer report" is character referencing. This method usually involves the personal interviewing of friends, family, neighbors or associates and is an approved method of screening under the Fair Credit Reporting Act (FCRA). This type of investigation does, however, require a separate consent form required under the FCRA. It gives the employer a general idea about the candidate's character and personal moral values.
It is imperative that employers provide notice to the applicant prior to conducting the pre-screening background check. As mandated by federal law, specifically the Fair Credit Reporting Act. Employers need to ensure that they are following the guidelines set forth by the Act. Having the proper consent forms and understanding what information can and cannot be used in the hiring process is just as important as gaining the information itself.
