How To Read A Background Check Report - A Guide For Employers

Understanding how to read a background check report is crucial for employers seeking to make informed hiring decisions. In this guide, we’ll discuss the essential elements of a background check report, decode red flags, explain the adjudication process, and discuss best practices for interpreting the screening report. 

What Does a Background Check Look Like?

A pre-employment background check is a physical or digital document containing general and specific information about the applicant. The general information enclosed includes the candidate's government name, address, social security number, and date of birth. As these details serve as the foundation for cross-referencing other information, many employers choose to conduct a separate identity verification, particularly if they are hiring globally.

The specific components can vary depending on your requirements as the employer, the nature of the job, the specific role, and, of course, the type of background check conducted or requested.  Below are some of the details you’ll receive in a background check report including the significant findings to note:

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Criminal Background Check

If you conduct a criminal history check, expect to find details about the candidate's criminal history, including arrests, convictions, and any pending charges. 

Look for convictions relevant to the job and consider the recency of offences. Multiple or severe criminal infractions may raise concerns about the candidate's suitability for certain roles. 

Credit Report

Including a credit report in your screening reveals an individual's financial history, including credit accounts, outstanding debts, and payment history. These details reflect on the candidate’s financial responsibility, which comes particularly important for roles that involve handling finances or sensitive information.

Red flags in credit reports may include bankruptcies, significant debts, or a history of late payments. 

Employment History

The section for employment history outlines the candidate's work experiences, including past positions, responsibilities, and reasons for leaving. Through this you can verify the consistency of information provided on the resume and assess any gaps or discrepancies.

Inconsistencies in employment history, unexplained gaps, or frequent job changes may be red flags. Evaluate the candidate's career progression and stability.

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Education Verification

Education verification confirms the candidate's academic credentials, such as degrees obtained, dates of enrolment and graduation, and recognitions. 

Confirm the authenticity of academic credentials. Red flags may include discrepancies in the reported degree or the absence of a degree from the claimed institution.

If you include other types of background checks, you need to look for details that may point to the possibility of future problems. For social media checks, inappropriate or offensive content, discriminatory language, or unprofessional behaviour that could reflect poorly on the candidate's suitability for the job should be looked into closely. To verify education and employment information, you may also want to conduct reference checks. 

Note that knowing these red flags is not enough. How to read a background check report requires a strong adjudication process. 

How To Read a Background Check: The Adjudication Process

Adjudication in pre-employment background screening refers to the process of evaluating the information gathered during the background check against the hiring criteria set by the company. This process helps employers make informed decisions about a candidate's suitability for a particular job. 

For example, if a criminal background check reveals a minor offence that is unrelated to the responsibilities of the job, the adjudication process may determine that it does not significantly impact the candidate's fitness for the position. On the other hand, a more serious offence or a recent conviction directly related to the job requirements may lead to adverse action. 

Similarly, if the hiring policy indicates that a candidate who has a debt of more than 15% their annual salary cannot be hired, then the adjudication process may result in adverse action even though the candidate in question is highly experienced. 

Ultimately, adjudication ensures a fair and thorough analysis of the background check results, allowing employers to make informed decisions that align with the requirements of the position and applicable laws.

To learn more about adjudication, head over to The Employer's Guide To Background Check Adjudication. 

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Best Practices in Reading Background Check Reports - Tips for Employers

How to read a background check report requires a meticulous examination of various components. The following best practices help employers ensure that they can make strong hiring decisions. 

Establish your hiring criteria

To help in your adjudication process, make sure that you have detailed hiring criteria for each role. This way, you can remain objective and easily weigh the results of the background screening against the hiring criteria and company policies. 

Ensure compliance with the law

Familiarise yourself with relevant employment laws and regulations to ensure that your background check process remains compliant. Consult your legal team about laws against discrimination, data privacy, and criminal history verification (ie. ban the box)

Communicate with the candidates

From start to finish, ensure transparent communication. Don’t forget to get the candidate’s written consent to conduct background checks. If red flags are identified, communicate with the candidate to allow them an opportunity to provide context or clarification.

A Note on Adverse Action Notice

Depending on where you operate your business, you may be legally required to take an Adverse Action Notice should you deny employment based on the information on the background check. These steps typically include providing a pre-adverse action notice that includes a copy of the consumer report, a summary of the applicant's rights under the law, and an opportunity for the candidate to dispute or correct any inaccuracies. 

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Partner with experts

Easily reading a background check report and streamlining the adjudication process can be accomplished if you partner with an expert background screening platform, such as Veremark. This is because they have the capacity to conduct multiple checks comprehensively and deliver reports that are easy-to-read. 

Veremark Makes Reading a Background Check Report Easy

With Veremark, you only need to provide candidate details, order the checks you need, and customise your requirements. We’ll then conduct the checks based on your instructions and deliver an easy-to-understand report in a shareable format. Our system is also automated and seamlessly integrates into your current workflow. This means you can combine necessary information to easily proceed with your adjudication process.

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