Background Checks for Hiring: Complete Guide to Screening Candidates

Last Modified

Sep 9, 2025

SHARE THIS ARTICLE

URL copied to clipboard!

TL;DR

Background checks confirm that the information a candidate has presented in their application lines up with their history.
There are several types of employment background checks, shaped by the category and depth of information employers need to know.
Compliance is an integral part of any background checking. Federal laws such as the FCRA and EEOC set the baseline, with additional state, local, and international rules determining how employers conduct checks.
Traditional background checks have been slow and labor-intensive, often taking days or weeks before a hiring decision can move forward.
Automated background checks deliver results faster, improving the experience for both hiring teams and candidates.

Every new hire is an invitation into an organization’s inner circle. So, it pays to know more about who that person is, especially if they’ll be in a customer-facing role or have access to confidential company information.

In one recent case, a North Korean hacker used a stolen identity made up of AI-generated photos and fabricated credentials to secure a remote IT job. While rare, it’s a reminder that accurate verification protects against these types of hiring mistakes.

Background checking helps employers confirm who they’re bringing on board and whether that person is genuinely equipped for the role.

What Are Background Checks in the Hiring Process?

A background check is the process of confirming that a candidate is who they say they are, and that their experience, qualifications, and history match what’s presented during hiring.

Depending on the role, the check can involve anything from verifying past jobs and education to reviewing professional licenses or criminal records. A hospital hiring a nurse, for example, might confirm licensing and run multiple registry checks, while a logistics company could focus on driving history and safety violations.

Far from being a check-box exercise, background checks are non-negotiable in strictly regulated industries. In other cases, they’re part of a broader risk-management strategy, helping to protect workplace safety and avoid the impact of hiring mistakes.

Types of Employment Background Checks

There’s no universal background check. Instead, employers access different types of checks, depending on the category and depth of information they’re looking for. Below are some of the most common types used in hiring today.

Criminal Background Checks

A review of local, state, and federal records can reveal a candidate’s past convictions, which could be a dealbreaker for some roles. For example, a financial services firm may need to know about fraud-related offenses, while a retail employer might look for theft-related convictions.

Employment Verification

Previous employers can be a reliable source of information when confirming a candidate’s work history. These checks verify job titles, dates of employment, and in some cases, their responsibilities or reasons for leaving. Any inconsistencies could be grounds for further discussion.

Education Verification

Employers can confirm diplomas, degrees, and other academic credentials directly with the issuing institution. This step is critical in regulated industries or positions where expertise is tied to formal education.

Professional License and Certification Checks

Similarly, hiring teams also verify that licenses or certifications are both authentic and current. In regulated fields, this process reveals any disciplinary actions on their record or restrictions linked to the credential. For example, if a lawyer’s license is revoked, practicing law is out of the question.

Reference Checks

Previous managers, colleagues, or clients can each provide valuable insights into a candidate’s skills and work ethic. Expect these checks to be positive on the whole, as the candidate will usually nominate their references.

Credit History Checks

For roles involving any type of financial responsibilities, employers may review a candidate’s credit report to better understand their financial situation. As this is a fairly invasive check, employers must demonstrate a clear business need and obtain candidate consent beforehand.

Driving Record Checks

Employers should check a candidate’s motor vehicle record for any driving-related roles. This check looks closely at license status, traffic violations, or any type of accident history that could affect the candidate’s ability to perform the job safely.

Identity Verification

With the rise of AI scams and corporate catfishing, employers can safeguard against impersonation by comparing a candidate’s personal information with official records, like government-issued IDs, driver’s licenses, or Social Security data.

International Background Checks

When a candidate has lived, studied, or worked abroad, background checks extend to those countries. Depending on each region’s privacy laws, an international check may include steps like verifying education, employment, or criminal records.

Key Background Check Compliance Considerations

Strict rules influence the data that employers can collect about their candidates during the hiring process. These compliance laws and regulations vary depending on location, industry, and even the specific role being filled.

Compliance considerations during background checks

Federal Laws in the US

Two federal laws set the framework for background check practices in the U.S.

Fair Credit Reporting Act (FCRA): This law governs the use of consumer reports, including most third-party background checks. It requires written consent from the candidate before a check is initiated, along with specific disclosures. If a hiring decision might be negatively impacted by the findings, employers must follow “pre-adverse action” and “adverse action” notification steps.

Equal Employment Opportunity Commission (EEOC) Guidance: The EEOC enforces federal anti-discrimination laws in hiring. Its guidance advises employers to evaluate background check results in the context of the role, avoiding blanket exclusions that could disproportionately impact protected groups.

State and Local Regulations

State and city laws often add extra layers to the federal requirements.

Ban the box laws: These regulations delay when an employer can ask about criminal history, usually until after an interview or conditional job offer. The rules and timing differ across jurisdictions.

State-specific privacy laws: Certain states have additional rules on how employers collect, store, and share personal data from background checks. The California Consumer Privacy Act (CCPA), for example, gives candidates expanded rights to access and control their personal information.

Industry-specific requirements: Some state agencies require additional checks for positions in sensitive fields such as healthcare, finance, and education. These can include fingerprinting, registry searches, or more frequent re-screening.

International Data Privacy and Screening Laws

In global hiring, each country enforces its own rules around data protection and employment screening.

General Data Protection Regulation (GDPR): Applicable in the European Union, the GDPR requires a lawful basis for collecting personal information, explicit candidate consent, and adherence to strict rules around data minimization and security.

Other regional regulations: Examples include Canada’s Personal Information Protection and Electronic Documents Act (PIPEDA), which governs how private-sector organizations collect and use personal data, and Australia’s Privacy Act, which outlines consent and data handling rules for background screening.

The Benefits of Automated Background Checks

Background checks have traditionally been a manual process. But thanks to automation, modern hiring teams can now meld background checking with their digital workflows, producing the following benefits.

Faster Time to Hire

Manual background check services often take several days or weeks to complete before employers can progress promising candidates through their hiring funnel. For example, one Washington State department reported 12 calendar days as the overall average turnaround time, and six days for fingerprint screening.

Automated checking slashes this time, making sure top-caliber candidates aren’t lost to the competition.

Consistent, Accurate Results

Manual checks vary in quality depending on who’s doing the work and how records are searched. In contrast, automated reference checking follows the same process every time, pulling from verified sources and reducing the chance of missed information. The result is a reliable, repeatable standard for every hire.

Built-In Compliance Safeguards

Automated recruiting systems follow the right steps every time, from capturing consent to storing records securely. When background checks run within the hiring platform, compliance tracking stays in the same place as the rest of the process. As there’s no need to copy data from one tool to the next, expect time savings and fewer data entry errors.

Streamlined Candidate Experience

A fluid, frictionless hiring process moves candidates quickly through the process without juggling any extra logins or third-party portals. Applicants have everything they need to apply for a job in a single, central workflow, creating a stronger impression of the employer brand as a result of their positive candidate experience.

How VidCruiter Delivers Automated, Compliant Background Checks

Background checks should be baked into hiring workflows, not bolted onto them. And that’s exactly what you get with VidCruiter’s background checking solution, which is powered by Certn, a global leader in delivering fast and secure checks.

Building this technology directly into the VidCruiter platform means hiring teams can run background checks without leaving the workflow they already use for video interviewing, skills testing, and offers.

VidCruiter’s background checking feature promises:

One seamless experience: Launch and review checks inside VidCruiter alongside other hiring tasks.
Built-in compliance: Consent flows, audit trails, and secure data handling all align with regional laws.
Fast turnaround times: Certn hits lightning-fast delivery turnaround times without sacrificing accuracy.

When screening is built into the same system that manages the rest of hiring, it works in sync with every other step. The result is a more efficient, reliable process that gives you an edge in securing top candidates.

Frequently Asked Questions

What sort of things show up in a background check?

The information that shows up in a background check depends on the level and type of screening you’ve ordered. Common examples include criminal records, employment history, education credentials, professional licenses, and driving records. Some checks may also verify identity or credit history if the role requires it. Employers choose the scope based on the position, industry regulations, and organizational policy.

What background check do most employers use?

Most employers use a combination of criminal background checks and employment verification. Criminal checks identify past convictions relevant to the role, while employment verification confirms work history. Depending on the position, education verification or reference checks may also be included to ensure the candidate meets skill and integrity requirements.

What is the most thorough background check?

The most extensive checks are often required for high-security or government positions and may include a full security clearance investigation. These can cover criminal, financial, and personal history, interviews with acquaintances, and verification of international records. The process is designed to assess trustworthiness and even potential security risks in sensitive roles.

How do you conduct background checks?

Employers should start by defining what information they need to verify for the role. With candidate consent, a screening provider gathers records from trusted sources such as courts, schools, licensing bodies, and former employers. From here, hiring teams can review the results and decide if they impact the hiring decision. With VidCruiter, all of this happens within our recruitment software.