With the job market more competitive than ever, many candidates stretch the truth on their resumes in order to better compete. In fact, Steven D. Levitt, co-author of the book Freakonomics, cites research suggesting that over 50% of job candidates lie on their resumes. That’s a startling statistic. As a result, more and more companies are conducting pre-employment background checks in order to gain added peace of mind about the type of person they are hiring.

So what kind of information can you garner from a pre-employment background check?

You can verify employment history, educational background, and salary information. You can also uncover information about drug and alcohol abuse and criminal activity, such as theft or violent behavior.

While all of this information is invaluable when it comes to hiring, as one of Sacramento’s leading staffing firms, we also know that background checks can put you at risk if not performed properly. Here are some tips to follow to help you avoid those risks and make smart hiring decisions:

Conduct the same background checks for each job category.

Develop a policy that requires you to run the same checks for everyone in a particular job category. Otherwise, you could make your company vulnerable to discrimination charges. So, for instance, you may simply want to verify employment history for all non-managerial clerical positions, but conduct a more thorough check when hiring IT managers because they will have access to confidential data.

Get permission from candidates to conduct checks.

Under the Fair Credit Reporting Act (FCRA), you must let candidates know ahead of time if you are conducting either a credit check, a criminal background check, or a check that will include information garnered from any consumer reporting agency. You must also obtain a signed waiver from them giving you permission to do so. In addition, you must provide a summary of their rights under FCRA.

Understand the limitations of background checks.

When you conduct a background check, you might come across less-than-appealing details about a candidate, some of which you cannot take into consideration when making a hiring decision. For instance, under federal bankruptcy law, bankruptcy is not a valid reason to deny employment, and you can’t discriminate against a job candidate because of it.

Outsource background checks.

If you fail to conduct a check on candidates for certain kinds of positions, you could make your company vulnerable to a negligent hiring lawsuit if that worker hurts another employee or a customer. However, conducting background checks can also put you at risk if not properly conducted, as stated above.

So if you want to take advantage of background checks, while avoiding the legal pitfalls, consider outsourcing checks to a reputable vendor. They can garner the facts you need to make a good hiring decision, while also ensuring that background checks comply with the law.

If you need help performing background checks, or with any other part of the hiring process, let us know. At Pacific Staffing, we’re experts in Sacramento’s staffing services industry. For more than 25 years, we have taken a slightly different approach to staffing. We listen. We know the right questions to ask and pay attention to the little details that make the difference.

If you’re ready to take advantage of our staffing industry expertise, please contact us today.