Q: What are my legal reasons for conducting one?

Employers are increasingly being held liable for the actions of their employees under the expanding legal doctrines of negligent hiring and negligent retention. These doctrines impose liability upon an employer who fails to reasonably inquire into the background of a prospective or existing employee. For more information on the legal issues involved with employee background investigations, click here.

Beyond the legalities, there are many practical reasons to perform a background check. A thorough background check will reveal red flags or other issues which could indicate whether or not a candidate will fit within your organization. Companies spend considerable amounts on employee training and development that are wasted when an employee doesn’t work out. Also, problem employees utilize considerable corporate resources. The best companies use background checks to make informed hiring decisions so as to avoid these problems.

Q: What precautions must I take to ensure they are performed correctly?

The best precaution is to hire a professional investigative firm. There are many companies who claim to have the expertise, but quality and accuracy are not always their primary concern. Seek out references and request "test" cases before choosing a vendor. If one company is more expensive than another, it is probably because they provide more comprehensive reporting. Cheap database companies may offer quick and inexpensive results but their data may be outdated. Other companies are mere record retrievers who are not trained to spot red flags in an application or resume. Remember the maxim, “you get what you pay for.”

Q: Will the employee know?

If an outside company is engaged, each applicant must sign a release before that inquiry can be started. This is in accordance with the Fair Credit Reporting Act. However, this release should protect you if the applicant later disputes the investigation or claims you have invaded their privacy. For more information on the Fair Credit Reporting Act and privacy laws, click here.

Q: Is it insulting to ask a highly qualified person to agree to a background check?

No, it should not be. This is exactly the type of person who should be required to undergo a background check. The individual will probably fill a position of high risk - that is, one with access to critical corporate records and data. The individual will also be an important representative of the company. Failing to conduct an inquiry in these cases would be remiss, if not negligent.

Q: How long does it take to conduct an investigation and what is the cost?

A background check normally takes 3 to 5 days to complete and can range from $50 to several hundred dollars, depending on the scope of the investigation.

Q: Can these investigations be conducted on a national level?

Yes. That is another reason to use a national investigative firm. RAI has affiliates providing seamless coverage in North America and in every major location throughout the world. This level of coverage is an absolute necessity in today’s highly mobile society. Also, technological advances have made it easier and inexpensive to conduct inquiries almost anywhere in the world.