The candidate may have submitted an impressive resume, aced the skills test, and dazzled interviewers, but there is usually another important step in the process before a company extends a job offer—the background check. Businesses conduct pre-employment background checks before making a final hiring decision to verify the accuracy of the information that a candidate has presented and discover other information that might influence a hiring decision. Background check software streamlines this process by automating aspects of the process and enabling companies to manage checks for multiple candidates from a single system.
Background check platforms are typically not standalone systems. These platforms are often developed by background check companies, which are known in the industry as credit reporting agencies (CRAs). These accredited companies use the technology to manage the process as they provide businesses with employment screening services. Depending on the provider, screenings might entail a search of public records that is automated, or conducted by humans, or a mix of both. In this way, use of the software typically must operate along with the background check services provided by a company.
What Types of Background Check Software Exist?
Background checking software products exist as standalone solutions as well as modules that are part of a larger human capital management (HCM) platform.
Standalone solutions
These products are specifically devoted to managing pre-employment background checks. They often integrate with other HR software, including applicant tracking systems and core HR software.
HCM platform
Some HCM platforms come with an integrated background check module, which can streamline the sharing of candidate data for companies that already use that HCM.
What types of background screening products are available?
There are many kinds of checks that employers can request using background check software, but common ones include criminal records checks, motor vehicle reports, employment verification, credit checks, and drug tests.
Criminal background check
Criminal records checks are a common screening service provided during the employment process. These searches involve reviewing federal, state, and local records for a candidate’s past criminal convictions, both felonies, and misdemeanors, as well as active criminal cases that the candidate is named in. Some providers include global criminal record searches as part of their services.
Driving records check or motor vehicle report (MVR)
Reviews of a person’s driving record, sometimes known as motor vehicle record (MVR) screenings, locate information about a person’s driving history. This includes the status and class of their driver’s license and any past violations, going back a certain number of years. These checks are common for roles in which someone operates a vehicle as part of their job responsibilities.
Employment verification
Employment verification involves confirming a candidate’s employment history, including past places of employment, the dates they were employed, and their job responsibilities. Verifying these credentials helps companies ensure that they are hiring someone with the necessary experience for the role. Many providers also offer reference checking.
Education verification
Employers typically want to confirm that a candidate has the required education, qualifications, and training to succeed in the role. Background check solutions often include an option to verify a candidate’s education credentials, such as college degrees, certificates, licenses, or other specialized training.
Credit checks
Checking a candidate’s credit history can help companies assess the integrity and financial responsibility of candidates, especially for candidates who may be dealing with a company’s finances as part of their job roles. Hiring managers should be aware that some states have laws restricting the use of credit checks in employment.
Drug screening
Background check companies that provide drug testing in the United States are certified third-party administrators (TPA) of the Substance Abuse Program Administrators Association (SAPAA). SAPAA’s national standards are recognized as the seal of excellence for the substance abuse testing and program management industry. Some industries require drug testing for all applicants to reduce the risk of accidents.
Industry-specific checks
Some background check companies might specialize in certain industries, while others provide general screening reports for a variety of industries and positions. Industries that might have specialized screening needs include construction, commercial and tribal gaming, education, finance, government, health care, hospitality, manufacturing, staffing, and transportation.