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

Applicants do not tell everything, and some lie on their resumes. Studies have shown that a high percentage of job applications contain falsified information. 

According to a 2014 CareerBuilder survey of 2,000 hiring managers, more than half (58%) found falsified information in the resumes they reviewed. Similarly, one-third (33%) of recruiters found false information about academic qualifications. 

In the same way, a 2012 study conducted by Accu-screen, ADP, and the Society of Human Resource Management (SHRM) found that 70% of students surveyed said they would lie on their resumes to get a job. 

This behaviour poses a risk to employers because it leads to a lack of trust and potential legal liability. Aside from that, the costs associated with negligent hiring can be quite high for employers who fall victim to it. 

In this article, you will learn more about pre-employment background checks, what to look for, and the importance of conducting background investigations. 

What are pre-employment background checks? 

Know before you hire

Pre-employment background checks are a way for employers to assess the suitability of potential employees. They provide an objective overview of a person’s past, which helps prevent hiring individuals who may have had legally or morally questionable past actions. 

For candidates applying for jobs in sensitive industries like law enforcement, healthcare, financial services, and childcare, employers must ensure that applicants are forthcoming about previous run-ins with the law. 

Although there is no single way to conduct background checks, the Nigerian Data Protection Regulation, 2019 (NDPR), issued by the National Information Technology Development Agency (NITDA), contains guidelines for professional background checks and verification service providers to adhere to. 

These guidelines protect individuals’ rights and prohibit certain practices that could be deemed overly invasive or unreliable. 

What is covered in a pre-employment background check? 

Our background checks and verification services cover a wide range of business verification needs

Pre-employment background checks are divided into two categories: simple and comprehensive. Simple background checks usually verify employment history, academic records and contact information.  

More comprehensive background checks delve deep into a candidate’s personal life, including credit history, social media or online footprint and criminal records. 

In most cases, a pre-employment background check will cover the following areas: 

• Identity verification — Confirm the applicant has provided an accurate name and verifiable means of identification (NIN, BVN etc.) or has a legal right to work in the country. 
• Criminal record check — Learn if an applicant has been convicted of any crimes or felonies, has an outstanding warrant or is on a government watch list. 
• Previous employment verification — Review the candidate’s work history with specific dates, employers, and titles to verify that information is accurate. 
• Academic qualification verification — Verify that the degree listed on a resume has been earned by reviewing academic records from schools attended and transcripts if needed. 
• Address verification — Verify that the address provided by an applicant is authentic and valid and that it reflects the current physical location of their residence instead of an old address in another state or country. 
• Credit-worthiness checks — Confirm that there are no outstanding debts owed by the applicant to banks, credit card companies, loan providers, 
• Motor vehicle records — Review any traffic violations or accidents involving the applicant’s driving record if you are hiring for a role that requires driving skills. 

Other pre-employment background checks employers can conduct include: 

• KYC (Know Your Customers) 
• Guarantor Verification  
• Professional/Personal Reference Verification  
• Professional Qualification Verification  
• WAEC/O-Level Verification  
• NYSC Certificate Verification 

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

Why are pre-employment background checks important? 

Avoid litigation and workplace fraud

Employers are increasingly aware of the importance of pre-employment background checks. Over 94% of employers conduct some type of background check before hiring new employees, with 73% of employers having a documented screening policy. 

As the saying goes, “you can not judge a book by its cover.” And with hiring new employees, you can not just take their word that they are trustworthy and deserving of trust. It is essential to verify their identity and determine if they have any criminal records or other issues that could affect your company’s productivity or reputation. 

Here are 4 reasons pre-employment background screening is necessary: 

#1. Keep your workplace safe 

The Professional Background Screening Association (PBSA) 2020 survey found that 83% of companies conduct background screening to protect employees and customers. 

When you hire a new employee, you want to be sure they can do their job well. 

A pre-employment background check can help protect your business by allowing you to check for criminal convictions or other negative information about an applicant’s past. 

#2. Improve the quality of new hires 

In the same survey, 51% of respondents said that conducting background checks and verifications helps improve the quality of new hires by ensuring that all applicants meet the necessary requirements. 

This way, you can ensure that you minimise future problems with your employees and avoid costly mistakes in the future. 

#3. Perform character checks 

Besides verifying an applicant’s qualifications, background screening helps employers verify their character by checking their past work history and references. 

Character checks ensure organisations maintain an excellent reputation within their community and industry. 

#4. Reduce your company’s liability

Pre-employment background checks help reduce your company’s liability by ensuring employees do not bring issues from their past into the office or workplace. This can include criminal records or other serious issues such as addictions that could affect productivity and performance in the future. 

Pre-employment background checks — A Worthwhile Investment 

MacTay Verification Services provides employers with bespoke screening services

Finding the right talent for the job is an enormous investment for any company. Yet, most companies do not take the time to conduct background checks before hiring new employees. If an employee does not prove their worth, it can be very disruptive to the person and the company itself. 

Background checks conducted by an independent third party can determine an applicant’s skills, experience, education, and criminal history — all within a short turnaround time. 

The results can accurately assess the applicant’s suitability for the job, saving time and potential reputational damage. 

Want to learn more about MacTay’s pre-employment background checks and verification services? Contact our team today, call: +2349139385550.