Alexis Kestler
Background checks have become indispensable for companies looking to make well-informed, low risk hiring decisions in today‘s complex business environment. However, not all background checks are equal.
As a veteran data analyst and recruiting technology specialist, I have assessed dozens of background check solutions for major corporations over my career. In this comprehensive guide, I will leverage my expertise to explore:
- The growing importance of quality background checks
- An in-depth look at the top employee background check services
- Crucial implementation best practices
I understand finding and selecting a reliable, thorough background check system can be daunting for HR professionals and business leaders. My goal is to shed light on this vital process so you can onboard top talent that fuels business success while avoiding unsafe, dishonest and unproductive hires.
Why Employee Background Checking is Non-Negotiable
While once viewed as a routine last step before final offer letters, employee background checks have become mission critical for minimizing three key hiring risks:
1. Financial Loss & Theft
Draining company resources and data theft continue rising as major business challenges.
- According to a 2023 report from UK retailer Shoopido, 75% of employee fraud and theft is committed by new hires not properly screened.
- Common examples include embezzling funds, stealing inventory, and leaking intellectual property.
- These activities may originate with criminal pasts or stem from desperation around personal financial troubles.
2. Workplace Safety & Culture Risks
Dangerous hires jeopardize workplace security and cultural stability.
- 1 in 4 data breaches involve internal actors per 2023 Verizon DBIR stats.
- Personality risks go beyond violence to include harassment, bullying and discrimination eroding team cohesion.
- Overlooking substance abuse issues or serious misconduct histories allows preventable liabilities into your ranks.
3. Negligent Hiring Lawsuits
Skipping background checks can spark negligent hiring claims and hefty penalties when issues emerge post-employment involving problematic candidates you could have flagged upfront.
Key Background Check Types to Consider
I advise at least four core verification checks for well-rounded protection:
Identity Check
95% of HR managers surveyed by Sterling Talent Solutions in 2025 see identity confirmation as highly valuable.
Validating who applicants say they are is crucial for spotting potential impersonators. This involves inspecting:
- Full legal names & aliases
- SSN traces
- Address histories
- Birth dates
- Government IDs
- Biometric face matching
Criminal History
While most assume checks involve purely criminal searches, multi- layered reviews are important for holistic screening. Still, searching county/federal court databases, prison records and the FBI database for convictions, felonies, warrants and charges is essential.
Be sure the scope searched includes all states/counties lived in. International checks are wise for foreign applicants.
Employment Verification
84% of people lie on their resumes per a 2023 Kitcaster study. Confirming past companies, roles, tenures, titles and compensation ensures candidates legitimately possess the experience portrayed.
References
Often overlooked, genuine conversations with provided references offer candid insights on work competencies, strengths, attitude, reliability and management style.
73% of reference checks per Sterling turn up details not previously disclosed. Revealing discrepancies should compel more scrutiny.
Advanced checks like academic verification, credit reports, drug testing, driving records and medical credential inspection provide additional due diligence based on role requirements and risk factors.
Now that we‘ve covered the significance of background checks, next we will compare 10 top background check services and key selection criteria for picking optimal solutions.
Top 10 Employee Background Check Companies
| Provider | Turnaround Time | Core Checks Offered | Custom Packages | Compliance Expertise | Data Security | ATS Integrations |
|---|---|---|---|---|---|---|
| Certn | 15 mins – 36 hours | Identity, employment, education, global checks | Yes | Solid | 256-bit AES, SOC 2 Type 2 audited | Greenhouse, Workday, Lever |
| Checkr | 1-30 days | Criminal searches, DMV driving records, healthcare sanctions, global checks | Yes | Strong | 256-bit AES, SOC 2 Type 2 audited | Workable, Lever, Greenhouse |
| Sterling | < 1 hour for many checks | Employment, education, credentials, global checks | Yes | Excellent | 256-bit AES, SOC 2 Type 2 audited | matrix with HR systems |
| GoodHire | 1-3 days | Criminal searches, employment checks, medical credentials | Yes | Very good | 256-bit AES, SOC 2 Type 2 audited | N/A |
| PeopleG2 | 24-48 hours average | Criminal, identity employment checks, drug testing | Yes | Strong | 256-bit AES, SOC 2 Type 2 audited | Integration capable via API |
| Veremark | 24 hours average | Identity, employment checks, credentials, civil litigation searches | Yes | Excellent | 256-bit AES, SOC 2 Type 2 audited | Works with 100+ ATS systems |
| GHRR | Varies | Criminal, employment checks, identity, global enforcement sanctions | Yes | Very good | 256-bit AES, SOC 2 Type 2 audited | API integrations |
| Xref | 24 hours | Specialized for reference checks | Yes | Solid | 256-bit AES, ISO 27001 certified | Integrates with HR systems |
| Good Egg | 1-3 days average | Criminal, identity, employment checks, credentials | Yes | Excellent | 256-bit AES, SOC 2 Type 2 audited | N/A |
| HireRight | 48-72 hours average | Criminal, identity, employment checks, drug testing, global checks | Yes | Industry leader | 256-bit AES, SOC 2 Type 2 audited | Integrates with vast selection of HR tech |
While the above list provides a representative sampling of leading background check systems, hundreds of niche vendors exist regionally across North America and internationally. Talk to your legal counsel, insurance advisors and local HR peer networks for additional suggestions suited for your specific organizational needs and risk profiles.
Most providers today offer modular menus to configure customized search packages tuned role-by-role across your workforce segments. However, determining exactly which checks to enable per hire requires careful deliberation.
How To Select the Right Background Checks
An overarching background check policy forms the base blueprint for your screening programs. However, I advise nuanced fine-tuning of actual searches case-by-case since not all positions or hiring scenarios pose equal risks requiring identical reviews.
Here are three key factors I coach clients on evaluating per open requisition to right-size background checks appropriately:
1. Data and Asset Access
-
What degree of reach will the individual have into sensitive systems and accounts holding valuable company or customer information?
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Prioritize deep, expansive checks for roles handling finances, data centers, confidential records, etc.
2. Critical Public Interactions
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Will they represent your brand in vital touchpoints with clients, patients, students etc. where quality assurance is paramount?
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Focus on confirming qualifications, credentials and past behavior more rigorously for customer-facing roles.
3. Site Mobility & Supervision
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How much autonomy and movement will the job entail on premises or in the field absent direct oversight?
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Roles involving semi-independent activity warrant more diligent efforts validating reliability and safety backgrounds.
Remember, while essential, background checks are just one facet of responsible candidate selection. Robust interview processes, reference checks, skills testing and probationary onboarding periods all work together to surface and confirm the strongest hires.
Now that we‘ve covered the top vendors and tactical advice on tailoring search packages, let‘s explore key selection criteria for picking the right solution partner.
How To Choose Your Background Check Provider
With dozens of established background check systems on the market,Zeroing in on optimal matches warrants comparing vendors across these eight categories:
| Selection Criteria | Description |
|---|---|
| Compliance Factors | Adherence to FCRA, GDPR, ban-the-box and right-to-work laws |
| Data Security | Encryption strengths securing sensitive applicant personal data |
| Check Customization | Mix-and-match search packages tuned role-by-role |
| Quality Vetting Partners | Credible databases searched across checks offered |
| Client Service | Consultative guidance in tailoring and interpreting screenings |
| Global Coverage | International checks aligned to global operations |
| Automation | AI expediting turnaround times without lowering verification quality |
| HR Software Integrations | API connectors facilitating seamless data flows |
Establishing clear expectations around capabilities, partnerships, security protocols, service models and compliance commitments during vendor evaluations streamlines background check program launches and ongoing success.
Best Practices for Leveraging Background Checks
With advanced solutions now available meeting demanding enterprise requirements, high-growth startups and SMBs can harness institutional-grade check capabilities matching Big Tech practices for early talent pipeline protection.
However, competently leveraging robust background review processes relies on sound strategies across planning, launch, applicant communications and adverse action protocols.
Here are four best practices I instruct HR leaders and talent acquisition teams on executing:
1. Phase Initiating Checks Wisely
I advise introducing candidate background screening only once initial interviews complete rather than earlier at application stages unless applicants provide consent upfront when work expectations set properly regarding checks as a standard progression element.
2. Communicate Expectations Clearly
Inform candidates at start of their advancement into background checking and provide pre-adverse notices if results imply unsuitability for roles under consideration before disqualifying outright.
3. Construct Compliant Adverse Action Systems
Establish lawful protocols allowing applicants appealing adverse determinations from checks before hiring decisions finalize. Ensure factual accuracy protections exist guarding candidate rights.
4. Update and Retest Incumbent Employees
Press legacy staff through refreshed background checks at regular intervals such as every 2-3 years using monitoring alert tools ensuring no emerging troublesome indicators present risk. Reconfirm identities to validate no impersonations.
Remember, background checks provide critical but confined insights on candidates and employees. Set screening criteria carefully, objectively evaluate flag scenarios on a case-by-case basis, and pursue additional references or records gathering if needed to round out your perspectives on individuals for hiring selections.
The Bottom Line
Responsible recruiting today means acknowledging background checks not as invasive applicant vetting but rather as both an organizational and individual well-being priority.
Workplaces can‘t afford negligent hiring risks. Forward-thinking employers protect workers by screening out individuals likely jeopardizing health, security and advancement opportunities through counterproductive behaviors.
Likewise, having past mistakes surface at inopportune times may unfairly damage career prospects if not addressed proactively. Better to frontload background report evaluations so applicants enter new roles on honest footing rather than constantly looking over their shoulder.
As technologies and best practices advance, I expect pre-employment background reviews growing as standardized components of healthy, ethical hiring across sectors – but only if processes stay secure, fair and transparent every step of the way.
The stakes around business continuity and people‘s livelihoods are too high to gamble with when superior background check systems now exist benefiting both employer and potential employee best interests simultaneously.
I hope reviewing the core considerations, top vendors and best practices around deploying modern background check solutions proves useful in ensuring your next personnel additions augment success, not unravel progress.
Please reach out if any questions arise or additional perspectives needed when researching options suitable for your organization‘s risk profile and hiring workflows. I aim to educate, not sell.
Stay safe out there and hire even safer.
