What to Do if a Candidate "Fails” a Background Check
Few steps in the hiring process carry as much weight as the background check. Employers use timely background screenings to understand an individual’s work history and decide whether or not to move ahead with a candidate.
So, what happens when a background check returns information that may disqualify a candidate from advancing to the next step?
A so-called failed background check can be a delicate matter because companies need to handle their response tactfully, in compliance with applicable laws, while also allowing the candidate to dispute discrepancies.
It’s worth mentioning that no candidate ever truly “fails” a background screening since no grade is assigned to the information. Background screenings are simply data for companies to use in making hiring decisions.
Here are five best practices to follow if a candidate’s background report doesn’t match a company’s hiring standards.
1. Establish Fair and Transparent Policies
The first background screening best practice companies should establish is clear and transparent policies so that all candidates are treated fairly.
A transparent screening process is one in which candidates know the background information that will be evaluated, what information may disqualify their candidacy, and what the next steps might look like if their screening report disqualifies them.
“Companies should have clear policies in place that ensure candidates are treated fairly throughout the background screening process. This includes providing candidates with information about the screening process and their rights, as well as outlining the criteria for disqualification based on screening results,” Terry Shackelford, Vice President of Sales at Veriswift said.
2. Allow Candidates to Respond or Dispute Results
Candidates spend a lot of time and effort applying for jobs, and it can be frustrating for them to lose out on opportunities because of information in their background reports.
Sometimes, past information is incorrectly recorded, and a company may want to let the candidate clear up any discrepancies. In other instances, the report is accurate, but a company may wish to obtain additional information from the candidate before making a decision.
In both cases, allowing the candidate to respond is essential, Shackelford said.
“It’s important to give candidates the opportunity to respond to or dispute the findings of their background screening. This ensures that any inaccuracies or misunderstandings can be addressed, helping to prevent qualified candidates from being unfairly excluded from consideration.”
3. Adhere to Legal Requirements
Organizations have a responsibility not only to treat candidates fairly but also to adhere to compliance requirements and applicable laws.
Specifically, companies must follow the Fair Credit Reporting Act (FCRA) when they use a candidate’s credit report in the hiring process. Following the laws ensures companies are responsible and communicate to candidates that they follow strict screening policies.
“Companies must comply with relevant laws and regulations governing background screening, such as the Fair Credit Reporting Act in the United States. These regulations outline specific requirements for obtaining and using consumer reports for employment purposes, including providing candidates with certain rights and disclosures,” Shackelford noted.
4. Communicate with Candidates
It can be easy for companies to receive a candidate’s background screening information, evaluate it, and then move on to a different candidate. While efficient processes are good, companies should remember to communicate with candidates during this process.
“In the event that a candidate is disqualified based on background screening results, the company should promptly communicate this decision to the candidate,” Shackelford said.
“They should also provide specific information about which aspects of the background check led to the decision, as well as information on the candidate’s rights to review and potentially dispute the findings.”
5. Be Consistent and Maintain Confidentiality
One of the best ways to ensure fairness during a failed background check is to apply standards consistently to each candidate. This shows candidates that a company takes its hiring policies seriously and makes them feel that the hiring process is fair.
“Apply background screening criteria consistently across all candidates to avoid any appearance of bias or discrimination,” Shackelford said.
It’s also vital for companies to be confidential with background screening information. Not only does this help companies adhere to applicable laws, but it also shows candidates you respect their privacy and their personal data.
“Ensure that sensitive information obtained through background checks is handled with the utmost confidentiality and only shared with individuals involved in the hiring decision,” Shackelford noted.
Understanding these best practices and how to respond after a failed background check can help companies navigate a delicate situation while ensuring they move ahead with the right candidate.
Ready to take the next step in your hiring process? Contact us to find out how Veriswift can help you find the best candidates for your team.