Background investigation is the process in which an individual’s or organizations criminal, business or monetary status is assessed and compiled. The constitution of the United States understand stipulates the need for background checks under the Fair Credit Reporting Act. In most cases background checks are essential components of the recruitment process.
The background check can either be conducted by government agency or some private companies at a fee. Background checks are conducted to lower the probability of hiring people who can pose a threat to the organization. The employers can use the background checks to verify the information that is given to them by the employers.
There are some job categories including those on interaction with vulnerable people, driving or carrying a weapon whose candidates must go through a background check before being employed as stipulated both in the federal and state laws. When the employee is expected to occupy an executive or senior managerial position in the company then it becomes essential to conduct a background check on them. When making considerations on whether to give a loan to a client financial institutions can also conduct a background check.
Hiring new people in the company can is very expensive to the employers and may at other times expose the business to some level of risk. Background checks may pose some additional cost in the short-term but be very rewarding in the long-term. People who have a history of honesty are likely to continue being honest even after they have been recruited.
The two main types of background checks that can be used by employers include that of government agency and the commercial background test. Federal Bureau of Investigation (FBI) checks investigate data that is tied to fingerprint records and gathered by the law enforcement agencies of the State or Federal. Commercial vendor check gathers data from the individual and then analyzes it against the state and federal police or court.
FBI checks have the advantage of eliminating instances of false positives and false negatives. However, the FBI checks can also be lengthy for people with criminal record and may give information about non-serious charges.
With background checks conducted by private entities, the applicant is not required to be fingerprinted. The reports given by commercial vendors are also faster compared to those of the FBI. The shortcoming of the background checks by private entities is that it can result in false results.
Besides, the accuracy of the information will often depend on the vendor that the company has hired and yet there are many to select from. Given the advantages and disadvantages of commercial and government background investigations the employer can read more now before contracting the agency that is most suitable for them.