What many job seekers don’t realize is that there is no law requiring an employer to conduct reference and background checks. The reason they do it is to find out what type of person they might be hiring.
That being said, potential new employers will push as hard as they can to obtain information from previous coworkers and supervisors in order to gather pertinent information about a job applicant’s work history and performance, all in an effort to make a good hire.
The Federal Fair Credit Reporting Act
Most experts in the field of background checking will likely advise employers regarding an employee’s rights and an employer’s obligations under the federal Fair Credit Reporting Act (FCRA). Yes, it does seem a little odd that FCRA is what largely regulates employee background checks and references; however, it came from a need to promote accuracy and ensure privacy of the information used in consumer reports.
The FCRA protects consumers (who are very frequently job applicants) from invasion of privacy by forbidding companies from conducting a background check without a job seeker’s written approval to do so. In addition, candidates for employment have a right to see any background report that is issued by the FCRA, to ensure its accuracy and to request a reinvestigation where there is a dispute.
Job seekers should keep in mind, however, that this relates only to a credit check. It does not cover other job reference information available to the public such as criminal history and motor vehicle records.
Ensuring Quality References From Past Employers
One of the first things that most employers want to ensure, when they are conducting references on a potential new employee, is to get as much information as possible about applicants without invading their privacy. That means asking work-related questions only. However, that still leaves a lot of wiggle room when it comes to finding out about past work performance.
Naturally, the best thing for job seekers to do is to stay on good terms with past employers. That means performing well and providing two-week’s notice before terminating employment. As experts explain "the type and amount of information that an organization can gather on job candidates is going to vary depending on the firm hired to do the background check." It will also vary based on what type of information the employer chooses to check and if they opt to handle the check themselves. In fact, in a 2005 Employers' Practices in Background Screening Survey only 67 percent of employers used an outside service.
Job seekers can avoid embarrassment and the potential loss of a job offer by being honest with a potential employer when it comes to prior circumstances. They can also help themselves by following these three steps.
First, job seekers should stay in touch with those they include as job references to keep them up-to-date on their whereabouts. Next, they should advise anyone who they are listing as a reference every time a potential new employer may call. Finally, for any organization where there might be an issue – the job seeker was fired – after explaining the situation, be sure to provide a contact in the human resources department who can verify dates of employment and job title.
The whole reason employers conduct background checks is to ensure they are making a good hire. Job seekers can help themselves by making sure they prepare a proper list of job references.
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