An applicant receives an offer for a senior finance position based on how impressive the resume and interview performance were. However, after a few months, discrepancies in the accounts were reported, which in turn led to an investigation.  

It turns out, with great shock, that the credentials were forged, and that the employee was previously dismissed from another organization for alleged financial misconduct. Surely, proper background checking would have made that mess avoidable. 

So, it cannot be stressed enough that proper due diligence during hiring is vital for a reliable workforce.  

Still, many companies make critical mistakes in the screening processes, which results in the occurrence of costly mistakes.  

Following are the 10 most common pre-employment background check mistakes that need to be avoided at all costs to protect your organization.  

1. Not Conducting a Full Background Check

One of the common errors made by companies is to merely verify limited information about the candidate. Many organizations verify only employment references or do a basic criminal record check, missing out on crucial details such as educational background verification, credit history (when applicable), and civil litigation records. 

For instance, a company hired a high-ranking executive without checking the validity of that person’s educational qualification, only to find out later that the degree was fictitious. This raised questions about the company’s integrity and caused financial damage in litigation. 

How to Avoid It

• Use multi-component checks involving an applicant’s work history, education, credit reports, and social media. 
• Implement a premier background-checking solution to enhance efficiency. 

2. Relying on Incomplete or Outdated Information

Employers conduct background checks on potentially outdated or incomplete databases that can lead to errors or the failure to record important information.

An example of this is that a business had hired an employee whose criminal record clearance had been in the books for two years. However, the individual was convicted six months earlier of fraud. 

How to Avoid It 

• Screening providers are recommended to be reputable and offer real-time verification of data. 
• Background check policies need to be updated continuously to comply with current industry standards. 

3. Ignoring Industry-Specific Compliance Laws

Every industry has its own set of requirements for conducting background checks. Ignoring such regulations might have avalanche effects with respect to legal issues and compliance risks. 

For example, a healthcare provider hired a nurse without conducting proper criminal record checks. Such a breach of industry compliance laws resulted in significant fines.  

How to Avoid It 

Have a good grip on industry-specific compliance rules like Financial Conduct Authority (FCA) compliance to be followed in financial services and the Care Quality Commission (CQC) in healthcare, etc.

4. Not Getting Proper Candidate Consent

Not securing consent in writing before conducting pre employment background checks could lead to litigation. 

A firm was sued for carrying out a background check without properly informing the candidate. Thus, breaching data protection laws.  

How to Avoid It 

• Always obtain clear written consent from candidates before proceeding with any background checks. 
• Ensure that your processes comply with any relevant data privacy regulations, including the GDPR within the UK. 

5. Overlooking Social Media Screening

Social media can reveal insights into a candidate’s professional and personal behavior, yet many employers overlook this step. 

A company discovered after hiring that their new employee made disparaging online remarks, which later attracted bad publicity.  

How to Avoid It

• Design a policy on social media screening that is objective and professional and respects individuals’ rights to privacy. 
• Use an advanced tool for ethical social media screening. 

6. Not checking References Rigorously

Relying on generic references provided by candidates without verifying them properly can be a mistake. For example, a company recruited an employee with fantastic references only to find out that the references were false references or those from one-sided sources. 

How to Avoid It 

• Contact the references and ask them pointed questions regarding the candidate’s role and responsibilities, as well as performance. 
• Cross-check the references with the work history presented by the candidate. 

7. Considering Only Permanent Employees

Most organizations seem to have effective background checks for their permanent employees but not so with their temporary or contract staff, who may also have access to sensitive company information. 

Temporary staff in a certain IT company gained access to the data of clients and used it illegitimately, to the embarrassing point of causing damage to the organization.  

How to Avoid It 

• Apply stringent background-checking procedures to all employees without favoring any. 
• Make checks faster and possible for each staff type using comprehensive software such as Smart Workforce.

8. Misinterpreting Background Check Results

Counted results from a flagged background check must not be automatically disqualified. Many employers misinterpret minor violations and leave out several possibly terrific applicants.

For example, a company rejected the services of a candidate because of a misdemeanour not related to the present job role but which has happened over a decade ago.

How to Avoid It 

• Evaluate the relevance of all flagged results with respect to the job role.
• Establish a structured adjudication process to evaluate discrepancies fairly.

9. Hastened Background Check Process

Hiring managers are always under pressure from the business to complete filling urgently required positions, making them miss out or rush background checks, exposing them to the hired wrong person.

For instance, a certain retail store did not do any background checks because it had urgent hiring needs but later found that the employee had a history of theft.

How to Avoid It

• Thorough background screening should be prioritized even when hiring deadlines are extremely tight. 
• Use Smart Workforce to increase throughput in screening while ensuring full accuracy.

10. Failing to Conduct Ongoing Background Checks

Some firms will often do a check at the hiring moment and ignore the other continuous monitoring of such employees. Employees’ situations can change over time, and continuous screening happens to help mitigate the risks that come up.

For example, a company’s financial services did not rescreen its employees after five years, only to later discover that one of its employees had committed financial fraud in a previous assignment.

How to Avoid It 

• Often schedule re-screenings, especially for sensitive data and financial roles.
• Use automated continuous employee vetting using modern solutions.

Final Thoughts

Relieving these background check blunders can save an organization from legal problems, reputation damage, and operational risks. An organization that comprehensively and compliantly undertakes vetting is assured that only the most competent and trustworthy individuals will be hired.

Smart Workforce is the answer for seamless automated background checking. The system guarantees checks that avoid misleading but are accurate, legally compliant, and efficient. Thus, reducing the risk of hiring errors. 

So, take charge of your hiring today. Sign up for your free demo with Smart Workforce and keep your business in the best talent!