I’m kicking off my Business 101 Series talking about background checks. I’ve been exposed to the industry since I was young, as my dad started his own background check company back in 1989. When I was in high school, I would “intern” at his office to help with admin work, but he always made it a point to share new things that happened with his business and in the industry. Over the years I’ve learned so much about this ever changing industry and I get a lot of questions about the different types and how to run a background check.
So I want start with sharing some basic information so that you guys understand what background checks are and the different types.
A typical background check is conducted for reasons such as:
- Verifying information on record
- Gathering information as needed
- Tracking information for a paper trail
The term background check is broad but can include the following:
- Employment screening
- Tenant screening
- Pre-employment check
- Due diligence (business investigation)
The scope of background checks is wide and comprehensive. Background checking is a process to gather information about a person or business for a specific purpose, whether it is business or personal. It is a procedure to verify any information provided by a person or business before arriving at a conclusive decision about that person or business.
In general, background checks can be viewed as a method of uncovering past and present information about a person or business for the sole purpose of the present matter, whether that matter is potential employment, an apartment rental application, a mortgage application, an adoption process or other situations.
Another name for background checks is background screening; the terms are used interchangeably. It is not uncommon for human resources departments to refer to background checks as employment screenings or pre-employment checks. An employer often checks the criminal history and employment information of the potential employee as part of the pre-employment check.
When a landlord or commercial property manager conducts screening on a potential tenant, the process is referred to as tenant screening and the reports are referred to as tenancy reports. Eviction and credit records are the common tenancy reports that landlords and property manager use to screen potential tenants.
As you can see, all background checks are not the same. However, every background check is regulated by federal laws, such as the Fair Credit Reporting Act (FCRA), and pertinent state laws. It’s also a good idea to seek a legal representative for advice concerning background checks. You should also review the FCRA rules and regulations (see them at www.ftc.gov/os/statutes/fcra.htm) and other governmental agencies that regulate consumer records as listed.
I believe that no matter how big or small your business is you should be doing the basic background check regardless, if you are hiring a full-time employee, a contractor, intern or even a volunteer. You don’t want to guess and be wrong.
Let me know if you guys have any questions
xo Yinka
