Your company has found a candidate, and you want to present an offer letter! Hooray!!! While this is a hopeful and exciting moment in the hiring journey, there are a few critical compliance steps that should happen before the confetti falls.
References Still Matter
In today’s hiring environment, reference checks are sometimes skipped due to time constraints. Unfortunately, we still see this happen far too often. In an ideal world, reference checks would be completed before extending an offer. However, we understand that timing, scheduling challenges, and business needs do not always make that practical. We also hear employers say that references provide little value because candidates are only going to list individuals who will speak positively about them. In reality, that is not always the case.
A well-conducted reference check can provide valuable insight into a candidate’s work style, strengths, areas for development, reliability, and overall fit for the role. It can also help identify potential concerns before employment begins.
Whether conducted before an offer is extended or as a condition of employment contingent upon successful reference checks, this step remains an important part of a comprehensive hiring process and can help employers make more informed hiring decisions.
Verify Employment History
Employment verification remains one of the most important components of the screening process.
Businesses should consider contacting previous employers to verify information provided by the candidate, including:
- Dates of employment
- Position held
- Eligibility for rehire (when available)
- General employment status
Occasionally, discrepancies arise between a resume and an employer’s records. While some differences may be simple mistakes, others may warrant additional discussion before moving forward in the hiring process.
The goal is not to disqualify candidates unnecessarily. Rather, it is to ensure accuracy and transparency throughout the hiring process.
Background Check
Conducting background checks when appropriate and legally permissible as part of an offer (…upon successful completion of a background check, Motor Vehicle Report, and/or FCRA – credit check, etc.) should be a part of the hiring process.
Please note: States can have different requirements around background checks so be sure to know what can and can’t be asked/done at this stage as well as when the check can occur
Obtain Candidate Authorization
Before conducting background checks, reference checks, or employment verifications, employers should obtain appropriate authorization from the candidate.
A well-designed employment application should clearly include language that allows the employer to:
- Verify employment history
- Contact references
- Conduct background screenings when applicable
- Confirm educational credentials
- Obtain other legally permissible employment-related information
Clear candidate consent protects both the employer and the applicant while ensuring compliance with applicable laws and regulations.
Thoroughness Reduces Hiring Risk
Hiring decisions often involve significant investments of time and resources. Recruiting, onboarding, training, and developing employees all require considerable effort. When an employee leaves quickly or proves to be a poor fit, those investments can be lost.
A thorough screening process helps reduce risk by:
- Identifying inconsistencies early
- Confirming qualifications
- Improving hiring accuracy
- Supporting better cultural fit assessments
- Reducing turnover
- Protecting company resources
Simply put, the cost of performing due diligence is typically far less than the cost of making a bad hire.
Make Screening Part of Your Hiring Culture
Candidate screening should not be viewed as a lack of trust. Instead, it should be considered a professional business practice that benefits both employers and employees.
Strong candidates generally welcome the opportunity to verify their qualifications and demonstrate the depth of their experience. Employers who follow consistent screening procedures are often better positioned to make confident hiring decisions and build stronger teams.
JB Consulting Systems Can Help!
We have the expertise and resources to help you through this and can get you set up with the proper plan and forms so your business can be successful all the way to the finish line.
The best hiring decisions are made when employers balance instinct with verification. Interviews, resumes, and first impressions are important, but they should be supported by a thorough screening process.
A little extra diligence can save significant time, money, and frustration down the road.