Is your HR team still using employment background checks for low level workers? Some companies are starting to rethink the way they employ background checks that have a couple of big recruiting benefits.
In an effort to make it easier to apply, MOD Pizza, a quick-service restaurant chain with hundreds of U.S. locations recently made the decision to eliminate background checks for entry-level roles.
“We were spending thousands of dollars on background checks, and less than 0.04% had an impact rate coming back,” she told the crowd at the recent HR Retail conference. “We’re spending all this money, creating stress, not just for our team…but for those individuals applying. We want to make it as easy as possible to come and join us.”
Eliminating background checks for employment offers the company a change to save a bundle on their HR budget. I predict we will see more types of announcements from other retail and food service employers. It makes a lot of sense from a financial and candidate experience standpoint.
Background Checks for Employment can be beneficial to both employers and job seekers. These checks allow employers to verify the identity and qualifications of potential candidates, while also protecting workers from negligent hiring practices.
Background Check Drawbacks
There are however certain drawbacks associated with this process that must be taken into consideration.
On the plus side, these checks help ensure that a company is hiring reliable employees who can be trusted with confidential information and sensitive tasks. They also allow employers to identify any discrepancies between what a candidate claims on their resume or application and their actual background history.
For example, some applicants may not have disclosed criminal records or past employment gaps during the initial screening process; background checks can help surface such issues before making an offer of employment. Additionally, they may alert companies to any potential safety risks that a candidate may pose.
On the other hand, there are several drawbacks associated with background checks for employment. For one, they can be time-consuming and costly; employers must pay fees in order to conduct the necessary searches and wait for the results to come back before making a decision.
Additionally, they may not provide an accurate picture of an applicant’s character or abilities since they generally focus on past behaviors or experiences rather than current ones. Furthermore, some of the information contained in these reports is not always reliable; it can often contain inaccuracies or outdated data which could lead to unfair hiring decisions.
Finally, many states have passed laws restricting what employers can ask from applicants during the screening process in order to protect their privacy.
Overall, background checks for employment can be beneficial to both employers and candidates, but they should also be approached with caution. It is important to understand the potential risks as well as the benefits of conducting these checks in order to make an informed decision.
Choosing Your Background Check Provider
Here are 5 background check employment companies to consider in 2023, based on factors such as customer satisfaction, accuracy, and price:
- First Advantage
These companies offer a variety of background check services, including criminal history checks, employment verification, and education verification. They also offer a variety of pricing options to fit the needs of different businesses.
When choosing your background check company, consider the following factors:
- Customer satisfaction: Make sure to read reviews from other businesses that have used the company's services.
- Accuracy: The background check company should be able to provide accurate and up-to-date information.
- Price: The cost of the background check should be affordable for your business.
It is also important to make sure that the background check company is compliant with all applicable laws and regulations. We'll have to see if other companies like MOD start to lessen their use of checking on entry level candidates. But I'm willing to bet more employers will follow suit.