Maximizing Hiring: The Role of Background Checks and Reference Checks

Background checks and reference checks are significant steps in the hiring process that can provide valuable insights into a candidate’s past work experience and more. These checks can help ensure you make an informed decision and reduce potential hiring risks.

In this article, we will delve into why helpful background checks and reference checks are helpful while also exploring their significance, benefits, and best practices.

Why are Background Checks Important?

Background checks provide hiring managers and HR with valuable insights through a comprehensive review of an applicant’s personal, educational, and professional history. These checks also help verify the accuracy of the information on a candidate’s resume and other material they may have provided. They also assist in identifying any red flags that might affect a candidate’s suitability for a role.

Here is what you can typically expect to get out of a background check:

1. Criminal History. Criminal background checks allow employers to assess the risk of hiring people with a history of illegal activities.
2. Employment Verification. Employment verification provides insight into an applicant’s employment history, validating the accuracy of their resume. This type of verification may also offer insight into an applicant’s consistency and reliability.
3. Education Verification. Education verification allows employers to see if candidates possess the credentials they claim to have.
4. Credit History Check. Positions involving financial transactions or handling sensitive data may require a credit history check to evaluate an applicant’s financial responsibility.

The type of background check and data gathered will vary depending on the organization and the type of position. The information gained from these checks is vital to hiring decisions to avoid risks or hiring the wrong person for the job.

Why are Reference Checks Important? 

Reference checks involve contacting an applicant’s previous employers, colleagues, managers, and other professional contacts to gather information about the type of employee the candidate will be.

Reference checks are essential to hiring managers and HR professionals because they provide information about an applicant’s work history, reliability, and character beyond what is gathered on a resume or in an interview. These checks help ensure the candidate will be a good fit for the role and within the organization.

Here are a few things you can expect to get out of a thorough reference check:

1. Verification of Skills and Experience. Contacting references will allow hiring managers to confirm the skills and experience an applicant claims to have, providing greater insight into the candidate’s abilities.
2. Cultural fit assessment.  Speaking with previous employers and colleagues allows hiring managers to assess how well an applicant would fit in with the organization’s culture. These insights are essential because new employees must be able to integrate seamlessly with the existing team and work environment.
3. Performance Evaluation. Speaking with an applicant’s references will also illuminate a candidate’s past performance. These conversations will provide hiring managers with insights into the applicant’s strengths and accomplishments as well as areas where they have room for growth.

Reference checks are vital for gathering information about an employee’s character because you get to hear an honest account from people they’ve worked with in the past. These checks provide more personal insight than can be gathered from background checks alone.

How Do Hiring Managers Conduct Background and Reference Checks? 

Conducting a background or reference check can take different forms depending on the needs of an organization. However, there are a few best practices to remember regardless of the type of information you are trying to gather or the specific checks you choose to make.

Here are a few steps and things to keep in mind as you perform background and reference checks for potential candidates to ensure legal compliance and a smooth process:

1. Obtain the candidate’s consent. This step is required by law before initiating any background or reference checks. The candidate must give written consent to comply with legal requirements and protect their privacy.
2. Ensure consistency and fairness in your checks. It is important to apply the same criteria and procedures for all applicants to avoid discrimination and ensure equity.
3. Conduct thorough research. Make sure that the third-party service you use for background screening services or reference checks is reputable and has a history of providing others with reliable and accurate information.
4. Respect confidentiality. As you conduct reference checks, make sure you take steps to respect the confidentiality and privacy of both the applicant and their references. Focus on only obtaining information that is absolutely necessary for professional considerations.
5. Document and analyze your findings. Be sure to keep thorough records of the background and reference checks you conduct. Take steps to analyze the information gathered alongside other hiring criteria in order to make well-informed decisions.

Using these best practices will help ensure you follow legal requirements and avoid discrimination claims. They will also make it easier for you to come to a decision about which applicants will be the best fit for your open positions.

Background and reference checks are vital to an organization because they provide deeper insights into candidates and minimize risks associated with hiring decisions. These checks also ensure the company creates a safe work environment while protecting its reputation. Applicant tracking and recruitment software are effective tools you might consider adding to your HR toolkit to ensure a streamlined process while minimizing compliance concerns.

Simplify the Hiring Process with Proliant’s Applicant Tracking and Recruitment Solution

Proliant’s applicant tracking and recruitment solution (ATS) allows employers to reduce the hiring time and create a workforce of top talent. Our one-click background check feature streamlines the background check process and compiles the data into a format that is easy for analysis when making hiring decisions. This is only one of many features available within our ATS to provide a streamlined hiring process from the moment you put up your job posting to the point of making a hiring decision.

If you’d like to learn about our applicant tracking system, contact one of our experts for a demonstration.