Introduction
Background and reference checks serve as part of the employee screening process and are equally important. However, the two are very different and provide different levels of verification.
It is important to understand the difference between a background check and a reference check as both help to present a complete picture of the candidate and should be used appropriately when recruiting a potential employee.
Let's look at the differences between the two, as well as how and when you can run them.
Background Check
Background Check
A background check is an in-depth analysis of past records and conduct. It is used by employers to find out more about the candidates so that they can fit into their workplace culture. The type of background check conducted depends on the industry and company.
How to Run a Background Check?
How to Run a Background Check?
1. Develop a Policy for Employment Background Checks:
It is important to outline the details of your background check policy. These details include: what kinds of background checks will be performed for different job positions and at what stage of the hiring process will it be conducted.
Having a suitable policy in place will make conducting background checks easier and fair.
2. Complying with Laws and Regulations:
Background Checks are governed by federal, state and local rules and regulations. It is the responsibility of the employer to comply with the laws and failing to do so can result in hefty penalties, settlements and lawsuits.
3. Multiple Types of Background Checks:
It is beneficial to be knowledgeable with all of the different kinds of background checks and what is included in each one of them so that you can select the right kind of check based on the industry and different job positions.
4. Select a Background Check Company:
Selecting a background check company that meets the needs and requirements of a company is vital. A background check company can be chosen based on hiring volume, company size, the number of locations, size of the HR team and budget.
When should a Background Check be conducted?
When should a Background Check be conducted?
The optimal time to do a background check during the hiring process is after the candidate has received a job offer and before their employment is finalized.
Multiple background checks are also performed if the position being offered requires access to sensitive data. Some background checks are also carried out on an annual or monthly basis.
What is a Reference Check?
What is a Reference Check?
A reference check is when a potential employer contacts people who can verify the candidate's skills, experience, education and employment history. Employers utilize this method to determine whether the candidate possesses the abilities listed on the resume and whether they are a good fit for the position.
How to Run a Reference Check?
How to Run a Reference Check?
1. Prepare Ahead of Time:
It is best to be prepared before doing a reference check. After the interview, search for areas where you need more information about the candidate or their skills.
The goal of a reference check must also be determined. Is your goal to verify the candidate's skills or to see if they're a good fit for the job and company? Having an objective in mind will answer all of your questions.
2. Ask Open-Ended Questions:
Open-ended questions are great for reference checking since they allow the reference to respond effectively and provide additional information about the candidate in depth.
3. Notify Applicants:
Inform the candidate that you will be performing a reference check. Additionally, ensure that you understand what candidate information you can and cannot collect, as well as how you can manage this data later.
4. Be Patient with the Process:
If you're doing the reference check on the phone, make sure you give enough time to answer all the questions. You don't want to speed through the reference checking process.
If, on the contrary, you're sending a form to references by email, make sure to give them several days to complete it and send a pleasant reminder.
When should a Reference Check be conducted?
When should a Reference Check be conducted?
Reference checks should be performed early in the hiring process, rather than later, as it’ll be a waste of time and resources if it is discovered that the candidate is not a suitable fit for the job.
But, references should only be requested after an employment offer has been made, as obtaining them before an interview may result in an unfair evaluation.
A background check gives employers an in-depth analysis of the candidate by carrying out various types of checks. On the other hand, checking references gives employers the opportunity to verify a candidate's qualifications and employment history.
Reference checks and background checks are both a part of an extensive screening process that helps make better hiring decisions.
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