When conducting a background check on an individual or organization some of the things that need to be assessed include their records on breaking the law, enterprises and finance after which a report is compiled for all areas. People in the United States who want to understand the law on background investigation can make reference to the Fair Credit Reporting Act. Many employers prefer conducting a background check on their employees before hiring them.
To have a background check during recruitment process the employer can contract a government agency or a specialized private company. The main purpose of background investigation is to reduce the chances of insider threat. Background investigation can also be a basis of confirming that the applicants of a job have given truthful information in their application.
The state laws as well as the federal laws requires mandatory background checks on some occupations especially those involving carrying of a weapon, interacting with vulnerable population or driving a vehicle. The other situation where background checks are obligatory is when hiring people of senior position in an organization. When making considerations on whether to give a loan to a client financial institutions can also conduct a background check.
Recruitment if new employees is a very costly process and can as well pose risk to the organization if not done correctly. Background checks may pose some additional cost in the short-term but be very rewarding in the long-term. People without any criminal record are likely not to engage in any form of crime even after they have been hired.
government agency tests and the commercial background investigations are the two main categories of test that can be requested by the employers. 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 background checks primarily rely on information of the individual and scrutinizes its validity by comparing it with the records by the police or court both at the state and federal level.
One of the advantage of FBI checks is that it cannot be falsified. The disadvantage of the FBI reports is that if a person has some criminal record it may take a long time to do a background check and also some of the criminal reports may not be serious.
With background checks conducted by private entities, the applicant is not required to be fingerprinted. Commercial vendor give their reports after a shorter time compared to the government agency. 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. It is important for the employers to wisely select the entity that will conduct background check on their job applicants.