Whether it's your first hire or your thousandth, employers should have very clear and thorough knowledge of background checks. Pre-employment background checks are highly recommended to reduce turnover, minimize risk of negligent hiring and legal costs. At a minimum, employers should be verifying previous employment, education, criminal records, and credentials. 

The Equal Employment Opportunity Commission (EEOC) has recommendations for screening candidates that employers must also follow so they won't be responsible for punitive damages if the candidate decides to file a claim. Employers should also know what screens to ask for, how to get a faster turnaround and at a fair cost.

When hiring a new employee, it may be tempting to run every background check available. This is a bad idea for two reasons - (1) running unneeded background checks will take longer and (2) they'll cost more too.

Instead of checking the box on every background check, consider certain background checks may only be needed for certain types of jobs. Understanding the types of background checks, and what information they reveal, can also be helpful to determine which background checks best fit the situation.

How to select a background check package for new hires

Creating a background check policy allows your human resources department to be consistent during the hiring, promotion and terminations processes. Employers must be mindful of applicant rights when applying a background check policy and any local, state or federal employment laws applicable in your area.  Attempting to remember screening procedures as well as compliance rules can be challenging, especially if hiring is done sporadically or not as often. A screening policy is a dependable, company-wide policy that helps to create a positive experience for hiring managers and employees.

Here are the most important steps to creating an HR policy for criminal background checks.

Most people lie on their resume. The typical resume untruths are embellishments or exaggerations so the candidate sounds more impressive or more experienced than they are. Earlier this year, CareerBuilder reported that 45% of hiring managers can't find qualified talent so fluffing up credentials is happening more than ever. These resume white lies may not necessarily reveal a bad hire if the candidate is bright, hardworking and willing to learn. Some applicants, however, may be hiding who they really are and it's up to the discerning hiring manager to uncover the scary truth underneath .

Here's what you may find behind the masks some applicants wear.

Nearly three quarters of employers run background screens on employment applicants. While it is assumed that employers are looking for criminal records, a Reddit thread about background checks uncovered plenty of other valuable and available information to determine if the applicant is a good fit. Those who fit well, perform better and stick around longer, reducing turnover costs and the risk of low morale.

Employers may be closely reviewing background check information to help improve or maintain a positive workplace culture.

More companies are choosing to screen their employees, both prior to hire and after they are employed. With the “Me Too” movement and the most recent accusations against Judge Kavanaugh, rolling background checks are now considered a good idea for employers wishing to make their workplace safe from sexual harassment.

If your company or HR department has considered rolling background checks, here are some best practices for updating your employment policies to include it.

Decision matrices are used by executives for all manner of business decisions that include many variables and multiple choices. When consistency is required and emotion must be removed, such as with hiring, a decision matrix can be a valuable tool. Federal legislation also recommends consistency and objectivity. The EEOC and other anti-discrimination laws rely on employers to reduce bias so that all applicants get a fair chance. 

A decision making matrix during the hiring process can be the perfect tool for leaders. Here are a few examples.

To remain FCRA compliant, consider the following timing for sending adverse action notices.

Unfortunately, both small-to-medium and enterprise businesses are prone to fraud and the 2018 Global Study on Occupational Fraud and Abuse dives deeper into the reasons why. The study looked at over 2,000 cases of occupational fraud reported over the previous two years, in 125 countries and in 23 industries. The most common fraud scheme was corruption among the executives and employees within an organization. Surprisingly, a few simple practices could minimize the risk of fraudulent activities.

Here are best practices for businesses of all sizes to reduce occupational fraud.

Employers run background checks on employees to keep both their business and their customers' interest safe. A basic background check is used to verify a potential employee's identity and determine if there was any past criminal activity. Credit checks aren't necessarily included in a basic screening but would be used if the job description requires it and could affect employment chances. Federal law prohibits employment discrimination based on gender, race, and religion, however as of this writing, only 11 states have limits against discrimination based on credit.

Can an employer look at an applicant's credit report? The answer is, "It depends."