If you’re an employer or HR professional, you know that background checks are essential to the hiring process. But how much do you know about background checks? While employers commonly use background checks to evaluate potential employees, businesses also use them for vendor contracts, security purposes, credit evaluations, tenant screenings, and more.

Knowing the different uses of a background check will help ensure that your business is better protected from potential risks. Here are seven facts about background checks that will help you understand their importance and allow you to use them more effectively in your hiring process.

1. There are three main types of background checks — criminal record searches, social security number verification, and employment verification — which can be used separately or as part of a comprehensive background check package. Each type has its benefits and limitations; choose the right type depending on your needs.

2. Different states have different laws regulating when employers can conduct a criminal record search or access other types of personal information during the hiring process. It’s essential to stay up-to-date on applicable state laws before conducting a background check to avoid legal issues.

3. Background checks may include drug tests or physical exams if required by state law or company policy. Some employers may require job applicants to take a drug test or physical exam as part of their pre-employment screening process if it is necessary for the position they are applying for or required by local law. Ensure you understand applicable laws before requiring applicants to take such tests so that you remain compliant with all regulations governing pre-employment screening processes in your area.

4. Background checks should be conducted throughout the employee lifecycle when appropriate. Employers should conduct thorough background checks when hiring new employees and monitor employees throughout their tenure at the organization by conducting periodic re-checks as needed in accordance with company policy and state law requirements. This helps ensure that employees maintain high levels of compliance with company policies and regulations while protecting employers and employees from potential liabilities or risks associated with negligent behavior.

5. The best way to conduct accurate background checks is through third-party vendors. Working with third-party vendors specializing in comprehensive background check services can help ensure accuracy while reducing time spent manually verifying information through various sources. An experienced vendor can provide accurate results quickly, saving your business money in the long run while keeping your data secure.

6. Background check results must be kept confidential at all times. All results obtained through a pre-employment screening process must be kept confidential at all times, even after an applicant is hired, due to privacy concerns outlined by federal and state laws.

7. Employers, upon request from prospective candidates, must provide copies of all associated documents related to their findings. This further emphasizes the need for accuracy when conducting such investigations.

Background checks are essential for protecting companies from potential risks associated with negligent behavior from employees or vendors alike, but there’s more than meets the eye when it comes to an understanding of what goes into a comprehensive investigation. Keeping these seven facts about background checks in mind will help ensure that your business is adequately protected against any potential liabilities while still being able to identify qualified candidates quickly and accurately during each step of the hiring process.