Ultimate Guide to Employee Background Check in Nigeria

As the business landscape in Nigeria becomes increasingly competitive, companies are placing more emphasis on the importance of employee background checks.

Beyond a good resume, employers now seek to understand an applicant’s criminal record, credit rating, and police report, amongst other things, to ensure they are suitable candidates. 

The consequences of hiring the wrong candidates can be severe, causing reputational damage, costly litigation battles and jeopardising long-term success. 

In this guide, we will explore ways employers can conduct background checks, the importance of employee background checks, and uncover some common misconceptions about employee verification. 

What is an employee background check?

As the saying goes, “a company is only as good as its employees.” When a new employee is hired, your company invests in human capital. However, this investment also has inherent risks, so due diligence should be exercised in hiring. One of the most crucial steps in this process is conducting an employee background check.

An employee background check is a comprehensive examination of a job candidate’s history, including their education, employment history, criminal record, credit history, and other relevant information. This process verifies a candidate’s credentials and helps identify potential risks or red flags that may jeopardise your employees’ and customers’ safety and security.

Conducting an employee background check is not only a best practice but also a legal obligation in some industries. Failure to do so can result in significant financial, legal, and reputational consequences for your company.

When it comes to background checks, choosing a reputable screening company is imperative. An experienced and trustworthy company will ensure the process is fair, unbiased, and adheres to all legal requirements. By outsourcing this process, you can be confident that your company is making informed hiring decisions while mitigating potential risks.

Recommended reading: What Are Pre-employment Background Checks and Why Are They Important?

What can an employee’s background check reveal?

Every time a new employee is hired, your company makes an investment in human capital. The success of this investment hinges on finding the right person for the job.  Employee background checks can reveal the following information about a potential hire:

• Criminal history: A criminal background check can reveal any criminal records of the candidate, including past convictions, pending cases, and arrests. This can help employers ensure that they are not putting their business, clients, or other employees at risk by hiring someone with a criminal history.
• Employment history: A background check can provide employers with information about the candidate’s previous employment, including job titles, dates of employment, and reasons for leaving previous jobs. This can help employers verify the accuracy of the candidate’s resume and assess their work experience and suitability for the position.
• Education and credentials: A background check can confirm the education and credentials claimed by the candidate. This can help employers ensure that the candidate has the necessary qualifications to perform the job they are applying for.
• Credit history: Depending on the position, an employer may also want to check a candidate’s credit history. This can reveal any outstanding debts, bankruptcies, or other financial issues that might be relevant to the position.
• Driving records: For jobs that require driving or operating machinery, background checks can reveal the candidate’s driving records, including any traffic violations, accidents, or suspensions. This can help employers ensure the candidate is a safe driver with a valid driver’s license.
• Social media presence: Some employers may review a candidate’s social media profile as part of a background check. This will provide insight into the candidate’s personality, behaviour, and potential cultural fit with the company.

Other background checks employers may conduct include:

• Professional licenses and certifications
• Previous employer verification
• NYSC certificate verification
• Address verification
• Know Your Customer (KYC)

Recommended reading: How MacTay Verification Services Is Helping Businesses Stay Secure

Common background check misconceptions

Despite the importance of conducting background checks, there are many misconceptions about this process. Here are some of the most common misconceptions:

#1. Background checks are invasive

Many people think that background checks involve invasive or personal questions. However, in most cases, background checks only collect information relevant to the job or position being applied for.

#2. Background checks are expensive and time-consuming

While background checks require an investment of time and resources, they are often less costly and time-consuming than the consequences of hiring the wrong candidate. Many background check providers offer affordable and efficient services that can be customised to fit the employer’s needs.

#3. Background checks are only necessary for high-level positions

While background checks are especially important for positions of trust, such as those in healthcare, education, or finance, they are also valuable for entry-level positions. This is because even entry-level employees can have access to sensitive information, financial data, or company resources.

#4. Background checks are discriminatory

Some people worry that background checks may be used to discriminate against certain groups of people, such as those with criminal records or poor credit. However, when conducted properly, background checks are used to verify qualifications and protect against potential risks, not to discriminate.

#5. Background checks are unnecessary for small businesses

Small businesses may believe that they don’t need to conduct background checks because they know their employees personally. However, background checks are a valuable tool for all businesses, regardless of size, as they help to protect against potential risks and liabilities.

#6. Employers can’t conduct background checks without the candidate’s consent

In most cases, employers are required to obtain the candidate’s consent before conducting a background check. However, this is a straightforward process that can be included in the job application and hiring process.

#7. All background checks are the same

Background checks can vary widely in scope and depth, depending on the employer’s needs and the nature of the job. It is important for employers to partner with a reputable background check provider that can customise the background check to fit their needs.

Related reading: Occupational Fraud: Checklist For Employee Background Checks

How to conduct an employee background check

Conducting a proper employee background check is a critical step in the hiring process to ensure that the candidate is qualified, trustworthy, and a good fit for the organisation. Here are the steps to follow when conducting an employee background check:

#1. Create a background checks policy

Establishing a policy helps ensure that the organisation conducts background checks consistently and according to applicable laws and regulations. The policy should specify the types of background checks the organisation will conduct and the process for obtaining consent from candidates.

#2. Choose a reputable background check provider

Selecting a reliable and accredited provider with a good reputation for conducting thorough and accurate background checks is critical. The background check provider should have access to relevant databases and information sources and be able to provide comprehensive reports.

#3. Determine the scope of the background check

Employers should identify areas that background checks will cover, such as criminal history, employment verification, education verification, credit history, and reference checks. The scope of the background check may vary depending on the nature of the job, the level of risk involved, and the organisation’s policies and procedures.

#4. Obtain the candidate’s consent

Before conducting a background check, employers should obtain written consent from the candidate. They should explain the scope and purpose of the background check and provide information on how the results will be used. It is important to note that consent should be obtained in compliance with applicable laws and regulations.

#5. Conduct the background check

After obtaining consent, the employer should provide the necessary information to the background check provider to conduct the check. The provider will gather information from various sources, such as public records, credit bureaus, and previous employers. The provider will then provide a report that details the findings of the background check.

#6. Review the results

 Once the background check is complete, the employer should review the results carefully. They should consider any red flags or concerns that may have been raised by the check. For instance, if the candidate has a criminal history relevant to the job, the employer should evaluate whether the candidate’s past conduct is a risk to the organisation and its employees.

#7. Use the results ethically

Finally, employers should use the background check results fairly and ethically. They should only use the information obtained to make informed hiring decisions and not discriminate against candidates based on their backgrounds. If the employer decides not to hire a candidate based on the results of a background check, they should inform the candidate of the reason for their decision.

Create a safer and more productive workplace

 As Nigeria’s leading background check and verification service provider, we offer accurate and reliable pre-employment and post-employment verification services. Our services build trust, ensure the right hire, and help create a safer work environment. 

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