Recruitment 101: The Importance of Pre-Employment Background Checks

Introduction

When companies hire an employee, they want to ensure they bring in someone who will stick around for a long time and deliver outstanding work to help their businesses grow. However, it’s not always that things will work as expected. They could end up hiring someone who isn’t a good fit for the team, which can cause all sorts of problems, from lower organizational morale to higher turnover costs.

At Q2 HR Solutions, we always emphasize the significance of pre-employment background checks, as bad hires often result from unqualified applicants who sugarcoat their resumes. According to a 2020 research conducted by Checkster, a reference check firm, around 78% of job seekers either lied or considered misinterpreting themselves on their job applications and resumes. Of those surveyed, 45.7% said their level of dishonesty was moderate, and 3.3% admitted to extreme deceit. Only 16.1% of respondents were entirely truthful.

Furthermore, rushing to hire will only do more harm than good. While it’s ideal to fill vacant positions quickly to protect the current staff from overworking, a “quick fix” doesn’t always turn out successful. In fact, it can leave them in a worse place than they were before.

For this reason, companies should always take the time to perform thorough pre-employment testing on their applicants to reduce the risks of making a bad hire. This procedure will help uncover any information the candidate may have hidden or been dishonest about during the interview process. It ensures that employers invest in the right people to drive their organization toward success.

Keep reading as Q2 HR Solutions takes a deep dive into why pre-employment screening matters and what goes into the process.

The Importance of Pre-Employment Background Checks

Conducting background checks is a crucial step during the hiring process, as it allows you to verify the qualifications of your potential employee. It shows that the person you are considering for the job has the necessary skills and experience to perform the duties and responsibilities of the role. You can be confident that you are choosing the most qualified candidate for the position.

In addition, by investigating the potential hire’s background, you can gain insight into their values, ethics, and personal history. This can help you make a more informed decision about whether they are a good fit for your company’s culture.

But background checks aren’t just about qualifications and personalities. They also play a critical role in maintaining the safety of your workplace. Unfortunately, individuals out there might pose a threat to your employees or your company as a whole. Pre-employment testing can help pinpoint any red flags in a candidate’s history that might imply they could pose a safety risk.

Finally, background checks can help minimize your company’s liability. You can lower the risk of hiring individuals with a history of criminal offenses, workplace misconduct, or other behaviors that could lead to legal or financial consequences. Hiring an employee who later becomes a liability can cost your company a lot of money and hurt your reputation.

Pre-Employment Background Check Coverage

As much as possible, you want to ensure that the employees you bring on board will be valuable to your company. The good news is that Q2 HR Solutions can help you conduct a comprehensive pre-employment background check to make the right decision. We will gather important information about the candidates, which usually includes the following:

Identity Verification

It is essential to verify that the person you are hiring is who they say they are by checking their government-issued IDs, such as a passport or driver’s license. The information on their documents should match the details on their application form.

Educational Background

You should also confirm the educational background of your potential hires. This includes checking their degrees, diplomas, certificates, and other academic qualifications. You may also request their grade point average (GPA) and the honors they have earned if it is relevant to the position you are hiring for.

Employment History and Reference Checks

It is always a good idea to check the candidate’s employment history to assess their experience and skills. Getting in touch with their previous employers or references can help you gather details about their work ethic, strengths, and weaknesses.

Criminal History

Including criminal records in your pre-employment screening checklist is crucial for protecting your company. It flags the applicant’s past offenses that could compromise your business and pose a risk to your employees.

Medical Records


Your potential employee should be physically and mentally capable of performing the job they are applying for. That said, you should put their medical records on top of your list. Run a medical check that involves a physical examination and drug test.

Licenses Check

If the role requires a license, your potential hire should have the necessary government-issued credential. Otherwise, you might run into legal issues down the road. Check with the relevant regulatory body if their license is valid.

Credit Background

If the role involves handling company funds and assets, it pays to look into the candidate’s credit background. This will help you determine if they are financially responsible and unlikely to commit fraud or theft.

Outsource Pre-Employment Background Check Services

Partnering with reputable background check companies like Q2 HR Solutions for pre-employment checks is becoming increasingly popular among companies of all sizes and for a good reason. It ensures you’re onboarding the right people and avoiding costly mistakes down the road.

Here are several ways outsourcing this service to seasoned HR firms can benefit your organization:

Save Time and Money

Conducting background checks in-house can be time-consuming, mainly if you operate a large company. This is where HR firms can help, as they have the experience, technology, and resources to perform comprehensive background checks quickly and efficiently. Delegating this task to these firms allows you to focus on the core operations of your business, saving time and money.

Ensure Peace of Mind

Outsourcing pre-employment background checks can also provide your company with peace of mind. When HR firms conduct these checks, they use an exhaustive and detailed process to gather all the necessary information. You can rest assured that your potential hires have been thoroughly vetted and that any potential red flags have been identified.

Protect Your Company

HR firms are compliance and risk management experts and can help ensure your business complies with all relevant laws and regulations. Their pre-employment testing services help identify risk factors, like criminal history, that could harm your company or employees.

Fair and Equal Treatment

Sometimes, conducting pre-employment checks in-house can lead to biases or conflicts of interest. Meanwhile, background check companies follow a system that treats all candidates equally. They focus solely on the information, eliminating the possibility of discrimination and unfair treatment.

Frequently Asked Questions

While pre-employment background checks seem straightforward, many companies still need to figure out what they entail and what to expect. Q2 HR Solutions answers some of the FAQs about this crucial step of the hiring procedure.

How Long Do Pre-Employment Background Checks Take?

The time it takes to finish a pre-employment background check can vary depending on the candidate’s history and the depth of the investigation required. In most cases, it can take between two to five business days. However, delays may occur due to factors beyond the applicant’s control, such as the lack of a paper trail and name verification.

Is Background Check Mandatory in the Philippines?

The Philippine Labor Code has no regulations prohibiting companies from performing background checks on applicants. Pre-employment screening is legally allowed and can be a requirement of some employers before extending a job offer.

What Causes Failed Background Checks?

Every company and job is different, so the standards vary for background checks. What may be considered an absolute no for specific job roles may be permissible for others. Nonetheless, it’s essential to understand why a candidate may fail a background check so you can make the right hiring decision. The most common reasons include the following:

  • Educational discrepancies

  • False employment history

  • Poor credit history

  • Criminal history

  • Failed drug test

Conclusion

When filling job vacancies in your company, it is crucial to take the time to screen your applicants. However, it can be time-consuming, not to mention the complexities of the task.

With the help of seasoned background check companies, you can make this vital part of the hiring process a smooth-sailing experience. When you choose Hiring Basix by Q2 HR Solutions, you can access SHERLOCK, our proprietary background verification system that complies with strict data quality and integrity. Our services cover character reference checks, civil litigation, and employment and education verification, among others.

Look no further than Q2 HR Solutions for all your pre-employment screening needs. Contact us today to schedule an appointment.

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