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Complete Guide of the Background Check

Written by : Ginni Agarwal | On :30-03-2020
Background Check

Table Of Contents 

  1. Introduction to Background Check 
  2. What Do You Mean by an Employee Background Check?
  3. Common Background Check Misconceptions 
  4. What are the Background Checks that Employers Do?
  5. Industry-Specific Employee Background Checks
  6. How to Cope if Something Negative Happens?
  7. Conclusion
  8. Frequently Asked Questions

Chapter 1. Introduction to Background Check 

You searched for a job, went through the interview process, and cleared it. Congratulations, that’s great news! However, before you can join the company, there is one more step that most candidates are unaware of: the background check. According to a recent survey conducted by Endrea, 98% of businesses perform background checks on candidates. This underscores the importance of background checks, which companies cannot afford to neglect.

Background checks are essential in hiring as they help employers make informed hiring decisions and mitigate risks. A thorough background check can reveal potential red flags or discrepancies in a candidate’s application or resume, potentially impacting their ability to perform the job or represent the company.

The #1 reason for conducting background checks is to avoid job fraud. 

Statistics for Background Check 

Here are some stats that prove why background checks are necessary for the organization. 

  • Just under 80% of all job applicants lie on their resumes.
  • 45% of applicants lie about their reasons for leaving their previous employment.
  • 53% of all job applications contain inaccurate details.

Chapter 2. What Do You Mean by an Employee Background Check?

Employers will conduct background checks independently, or they can hire companies to ensure you are a perfect candidate for them. Plus, the information provided by the candidate to the employer will also get verified. The employer will check certain areas like employment history, education details, criminal records, etc. 

But .. Why do Employers go for Background Checks?

Background Check Guide


Background checks are an essential part of the hiring process because they will let the employer know that the candidate has the required background education and experience if it’s required for the job. And by checking all this, the employer can be assured that the candidate can perform the job. But what happens if the candidate has lied about his experience or educational background? The employer can fire the employee, which can be done as the employee might have attested to the information he provided.

The background check is a common practice in which the employer has to ensure that the candidate has provided correct information and why not because they have done their research and have used their resources. 

Chapter 3. Common Background Check Misconceptions 

I will address six common background check misconceptions to help you realize the importance of working with a quality background check partner. So, here are some of them:

Myth 1. Employers won’t find out if I lie about job titles, salaries, or employment dates

Embellishing a resume is so common that many job seekers believe they must do it to compete in a crowded job market. This is a common misconception. Employment verification is part of your background check. Your prospective employer will contact the human resources department at your previous job to inquire about your job title, employment dates, and salary. Lying about any of these things is thus a sure way to get flagged as a liar.

Myth 2. There are plenty of employers out there who don’t run background checks

This statement may have been true 10 or 20 years ago but is now completely false. With the job market as competitive as it has ever been, and employers increasingly concerned about threats and lawsuits, you’d be hard-pressed to find an employer who doesn’t require a background check these days.

Myth 3. There’s no way to know what’s going to come up on your background check

Running a background check on yourself is one of the smartest things you can do to prepare for a job interview. As previously stated, not all background checks are the same, and there are no guarantees that the information revealed by your test check will be reflected in your employment screening. On the other hand, running a background check on yourself is a great way to find out if there is any inaccurate information on your record—before that inaccurate information costs you a job.

Myth 4. Employers use background screening as a reason not to hire you

Prospective employees frequently believe that background checks are used to eliminate them. In contrast, a background check is the final stage of the hiring process, when a potential employer has almost certainly made their choice and is awaiting a final check before making a hiring decision. It’s just a precaution before proceeding.

Myth 5. Background checks are only necessary for certain types of jobs

In reality, all employers can benefit from conducting background checks, regardless of the industry or position. Background checks can help identify potential risks and liabilities, such as criminal history or false credentials, and ensure a safer workplace.

Myth 6.  Background checks are only necessary for new hires

Background checks can also be valuable for current employees, especially in high-risk or sensitive positions. Ongoing background checks can help ensure continued compliance and identify new risks that may arise over time. The myth that background checks are only necessary for new hires is inaccurate. Conducting ongoing background checks for current employees can be essential to risk management and regulatory compliance and safeguard your organization’s reputation and success.

Overall, it’s essential to clearly understand background checks and their purpose in hiring. By dispelling common misconceptions, employers can make informed decisions and ensure a safer and more productive workplace.

Chapter 4. What are the Background Checks that Employers Do?

Verify the Education Details 

The background check companies check all your education details from where you graduated and verify your degree. The companies will require the date of your degrees to verify them and in a different case, if you have changed your name after graduation, you will have to provide them with your former name. This process is recommended for the higher positions in the company though it can be done for every candidate to be safe. 

Background Check of Employment History 

This background check includes the position, your performance during the job, your salary, longevity, etc. Reference checks can do these, the first can be a simple employment verification and a phone call to the HR of your previous company does this. The background check companies will ask if Mr X worked as a product manager from 2015-2018. And the HR will answer yes or no. Some employers can verify at this level and some might look deep into the details. The other way to verify your employment history is by looking at your tax records and this is easy as long as you are fine with all your taxes.

Contacting Your Personal and Professional References 

This background check will mean speaking with your former managers and also employees. Many people think that the candidate has to permit to contact their manager. This is not how it works. And many people also believe that your manager won’t be able to do anything than verify your employment. The employer might also ask about your job performance if the references are genuine.

Search About the Candidate on Social Media 


Background companies also perform a search of the candidate on social media platforms to ensure the details like awards, and claims about performance are true or not. This is carried out before the interview process. The hiring manager will search the candidate’s internet, but whether they can use the information they find online is somewhat debatable. 

Credit Checks are Required

This is apt for candidates who are into accounting profiles, and if the job involves handling money, then credit is required. The candidate must sign a document permitting them to check their credit. Nothing to worry about if you haven’t done any scams or your credit score is low because of non-paying your bills. 

Residential Background Check

The address you provide during the resume submission will be recorded. If you have one permanent address, the background check companies will do just one verification step. The address can be cross-checked with your family members and also with your neighbours. Now, if you stay in a different place than your permanent address, then there will be two verification processes which will happen at two places. 

Chapter 5. Industry-Specific Employee Background Checks

Healthcare Industry

In the healthcare industry, employee background checks are crucial to ensure the safety of patients. Employers typically conduct criminal background checks and employment and education verification. Healthcare employers may also screen for drug use, credit history, and professional license verification, depending on the role.

Financial Industry 

Due to the sensitive and confidential nature of the financial industry, employers conduct thorough background checks to ensure the trustworthiness of their employees. Financial employers typically screen for criminal history, credit history, employment history, and education verification. They may also screen for securities licenses and professional designations depending on the position.

Education Industry 

In the education industry, employee background checks are essential to ensure the safety of children and students. Employers typically screen for criminal history, employment verification, and education verification. They may also screen for drug use and professional license verification, depending on the position.

Transportation Industry

In the transportation industry, employee background checks are critical to ensure public safety. Employers typically conduct criminal background checks, as well as driving history checks. Depending on the position, they may also screen for drug use, employment, and education verification.

Chapter 6. How to Cope if Something Negative Happens?

If you are recruiting for a position and discover false credentials, show empathy and speak with the candidate. Understand why this has occurred and assist them in realising that it is not acceptable. However, it is correctable.

The chances of you finding someone faking credentials at the level of a brain surgeon are almost nil. However, people are faking it in other areas and at different levels.

Without a doubt, the first step should always be to double-check the facts. It is critical to determine whether your source of information about a candidate’s forged credentials is reliable.

You don’t want to start a conversation only to realise halfway through that you were incorrect about the situation. If you find yourself in this situation, being embarrassed will not suffice. Make certain!

To post every check, we encourage a conversation between the candidate and the employer. If the checks are clear, the conversation could lead to forming a professional relationship and team building.

If the checks raise red flags, the discussion becomes even more critical. The discussion should focus on how to right the wrong rather than why it occurred.

Attempt to comprehend why the candidate falsified the information and relate it to previous hiring conversations. This will assist you in gaining perspective and identifying the candidate’s strengths. It could be the candidate’s persuasiveness, diligence, or effort.

Consider how the same candidate might fit in with the team while keeping the offence in mind. Ensure you find a position you can offer, and then imagine if the candidate would fit in, with appropriate checks in place.

Chapter 7. Conclusion


A background check is conducted by the HR professionals but when the candidate is for a higher post then the company hires background check services. There should be a connection between the employer and the background check companies about the specific requirements of the background check.

Chapter 8. Frequently Asked Questions

  • Why should we partner with a background check service?

When you partner with a background check service, you entrust the fulfillment expertise to the provider. Collaborating with your provider in the hiring and recruitment process not only streamlines operations but also ensures peace of mind for both customers and candidates.

  • If there are no regulations in place, should we still screen our employees?

At UprightHC, we prioritize fostering a people-first culture centered on trust and safety. While there may not be universal industry standards for employee screening levels, it’s essential to acknowledge the potential risks of fraud or crime within your organization.

  • Can salary be verified in background check verification? 

Yes, salary verification is possible during background checks. This process typically entails obtaining the employee’s full and final statement or salary slip.


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