A reference check is NOT a background check. However, it is often part of a comprehensive background screening process. The difference between a background check and a reference check is highlighted in the information they collect above. In short, a background check is used to search for a candidate's criminal, business, and financial history. On the other hand, a reference check seeks to find the perfect employee and protect your company from poor performance or poor hiring.
Both reference checks and background checks are part of an extensive selection process that helps make better hiring decisions. First, it's important to understand some background and best practices in relation to the reference verification process. It's important to understand the difference between a background check and a reference check, as both help present a complete picture of the candidate and should be used appropriately when hiring a potential employee. Both seek to discover historical information about a candidate, with background checking being only a fact-checking process, and reference checking, a more versatile and comprehensive tool for hiring. It is useful to know all the different types of background checks and what is included in each of them to be able to select the appropriate type of verification depending on the sector and the different jobs.
A background check not only helps protect the company, its employees and customers, but it also ensures that the prospective employee is who she says she is. If someone is fired for inappropriate behavior, but they don't report it to the authorities, that won't show up on a background check either. This means that the employer must obtain written permission from the employment applicant before conducting a background check. A background check company can be chosen based on the volume of recruitment, the size of the company, the number of locations, the size of the human resources team, and the budget. While some companies provide candidates with the opportunity to address issues that may arise during a credit background check, 13 percent of employers don't allow job candidates to explain their credit or background reports at any time, according to the SHRM survey on credit background checks.
Background checks are a simple process that an individual or company uses to verify an individual's identity, legal background, and educational or employment history. Employers that use a third party for background checks on an employment applicant are covered by the Fair Credit Reporting Act. Like reference checking, background checks play an important role in the hiring process, particularly in certain jobs, such as those involving managing money or working with children, rather than others. Not only can you perform your own background check, paying a small fee, but you can also learn about several steps to improve your background check.
However, most hiring managers require more information to make the best hires, and this is where background checks aren't enough...
