What do employers look for in a background check?

You’ve crafted a standout resume, tapped into your professional network, and delivered a winning interview. You might even already have an informal or conditional job offer. But in some cases, there’s one more step before an employer hires you: a background check.

Not every employer runs employee background checks, and most aren’t required to. Employers use them as a tool to verify your information — like education and past employment — and check your criminal record, employment history, and more.

It might sound intimidating, but these are a normal part of the hiring practice, and knowing what employers look for in a background check might ease your worries.

What’s an employee background check?

An employee background check is a formal process that verifies your personal and professional information. Employers — either through a third party or in-house — investigate your identity, work history, education, social media, criminal record, and any other relevant information.

This can happen at any time during the hiring process.

Employers are legally allowed to require background checks, though the Equal Employment Opportunity Commission sets restrictions and regulations.

Companies can’t conduct a check based on race, disability, or citizenship, and they have to give potential employees a formal notice stating they might use the background check information for a hiring decision.

They also need your written permission beforehand if they’re using a third party. If they’re conducting an in-house check, they don’t have to.

Depending on the type of background check and whether the company needs to check information from different states or countries, it could take a few days or weeks to complete.

If a company does a background check, are you hired?

Not necessarily. A potential employer can conduct a background check at any time, whether that’s when you submit your application or if you’re about to get an offer. But 87% of background checks happen at the pre-employment stage, so once you’re hired, your employer likely won’t check again.

Employers might also give you a conditional offer that depends on the result of your background check, meaning they want to double-check that your information is accurate before moving forward.

What happens if I deny a background check?

Although you don’t have to consent to a background check, an employer can reject your application if you say no.

How do companies do background checks?

Companies often conduct professional background checks with third-party organizations. Larger organizations might also conduct them internally. Here’s more about each method and how it works:

Third-party background checks

Third-party businesses like GoodHire, HireRight, and Universal Background Check help employers research potential employees. If an employer chooses this route, they’re legally required to notify you, in writing, so you can give written consent.

The notification should clearly outline what information they’re looking for and why.

In-house background checks

An employer might have designated staff in human resources (HR) to check your background, but this isn’t as common because it’s easier to outsource the task.

Employers might also conduct screenings, where they check your social media, education, and work history independently. This is different from a background check because it’s less formal and doesn’t include your criminal record.

A potential employer isn’t required to notify you prior to conducting a screening unless they use a third party.

What can employers see on a background check?

What’s included in a background check varies depending on both the organization and job’s roles and responsibilities. Additionally, individual states and jurisdictions may have their own rules that limit information access to protect your privacy.

Common background screenings include one or several of the following:

1. Identity verification

Employers can verify your name, any aliases, and address history to make sure you are who you claim to be. They can ask for your Social Security number (SSN), though you have the right not to give it to them.

Employers shouldn’t request it during the hiring process unless it’s absolutely necessary. Once hired, you need to provide your SSN for payroll and benefits. But before you sign your contract, it’s voluntary. 

2. Work history and employment verification 

A potential employer may inquire into your employment history by calling or emailing your professional references. They can reach out to the references from your job application or request additional contacts for previous employers to better understand your past performance and career path. 

This type of pre-employment screening checks whether you’ve given false information about past employment, like dates of employment, job titles, and experience. It's also an opportunity to ask questions about your character to confirm whether you fit the company culture.

3. Education verification

For professions that require licenses, certifications, or specialized degrees, a prospective employer might verify your education. They’ll reach out to your education provider to verify your enrollment and credentials and could ask you to send them official transcripts from your studies.

Some employers also use third parties like National Student Clearinghouse to verify your degree.

4. Criminal record

The Equal Employment Opportunity Commission (EEOC) prohibits employers from discriminating against you based on race or national origin. They also can’t discriminate against you simply for having a criminal record.

However, employers have the right not to hire you based on the severity of a past crime and the nature of the job you’re applying for. If you do have a record, you can provide proof that you’ve made efforts to change.

Organizations check criminal backgrounds for practical purposes. If the job you’re applying for requires access to sensitive material, employers want to know they can trust you with it.

5. Financial history 

For finance-related fields, an employer may check your credit history to measure your financial literacy and responsibility. A poor credit report may be a red flag for financial institutions, accounting firms, or other positions that require someone to handle or make important financial decisions.

Employers do need your written consent before conducting a credit check, and credit checks for employment decisions are restricted under some municipal and state laws. 

Financial history is nuanced, and it doesn’t always reflect your character or skills. Poor credit can indicate past financial decisions, medical bills, and student loans that have nothing to do with your ability to perform a job.

There are currently efforts being taken to ban employer credit checks based on financial and class discrimination.

6. Medical history

Medical records are confidential, and you’re generally protected from revealing your personal medical history, family medical history, or genetic information. Employers can only ask medical questions after giving you a conditional job offer.

And they can only ask medical questions if there’s objective evidence that you can’t do your job or that you create a safety risk because of a medical affliction.

7. Social media

Around 67% of employers use social media to research potential hires. They may scan your profiles for potential red flags, like lying about your qualifications, making discriminatory posts or comments, or sharing information about a past employer.

It’s generally recommended to clean up your social media or make your accounts private while searching for a job and try not to post anything you don’t want employers to see.

8. Driving records

Employers can contact the Department of Motor Vehicles (DMV) in your state to verify your driving record, but you need to sign a release form first.  This is most common for jobs that require you to drive or operate heavy machinery.

An employer will check your driver’s license and driving record to make sure you don’t have any driving-related charges. The DMV is state-regulated, so the types of reports available might vary, depending on where you live or work, so verify which report employers need before signing a release.

What are employers restricted from seeing on an employment background check?

The Fair Credit Reporting Act (FCRA) limits what consumer reporting agencies and credit bureaus can investigate in an employment background check. Individual states, municipalities, and jurisdictions have their own sets of rules and restrictions.

But the following information is federally protected under the FCRA, meaning an employer can’t use it during a background check:

• Bankruptcies that are older than 10 years

• Civil suits, judgments, and arrest records older than seven years or with an expired statute of limitations

• Paid tax liens that are older than seven years

• The name, address, and telephone number of any medical providers

5 tips to prepare for a background check

Background checks can feel stressful. While it’s okay to feel nervous about the process, there are a few ways to prepare yourself and keep the background check fair and accurate.

Here are five tips to prepare for pre-employment screenings:

• Inform yourself: A background check may provide potentially sensitive information, and it’s fair to ask a hiring manager what kind of background check they’re soliciting. 

• Check your credit report: A self-check will help double-check your credit information and offer some reassurance if your employer requests this information. If you suspect your credit check is inaccurate, contact the reporting company to remedy the report before potential employers inquire.

• Give your references a heads up: As a courtesy, always ask for consent before including someone as a reference on your resume. During the interviewing process, remind them they may get a phone call or email.

• Know your rights: If you receive a job rejection based on your background check, the FCRA requires the employer to give you a copy of the report and your rights so you can dispute any inaccuracies or provide context.

• Check your social media: Social media provides a public record that gives hiring managers important insights into your past employment or lifestyle. Represent yourself accurately and professionally, and if you’re unsure, make your social media accounts private.

How do you fail a background check?

Every organization has different standards for background checks. You might “pass” for one job and “fail” for another. The EEOC and local laws protect you from invasive or discriminatory background checks. However, if you do have a criminal record, employers have grounds not to hire you, within reason.

Here are a few results employers might not overlook:

• Severe felony convictions: A history of criminal convictions might be a liability or safety risk for an employer. Be proactive about an unflattering criminal background.

  Take the time to prepare a response and have references to support your ability to contribute value to a company. Prove that your convictions are part of your past and that they don’t limit your skills.

• Dishonesty: Misleading or lying about your qualifications, work history, or relationships to a reference will leave an employer doubting your integrity in the workplace. Honesty is always the best policy.

• Bad feedback: Negative reports from references could convince a hiring manager not to move forward. If you suspect a toxic manager or colleague will speak poorly of you, be prepared to add context about why you left the job.

When in doubt, prepare and be honest

An employment background check is a normal part of the screening process for many jobs. If you've gotten this far in the hiring process and have been honest with your potential employer, you likely don’t have to stress about what employers look for in a background check.

However, it's never a bad idea to be proactive and take steps to dispute inaccuracies or misunderstandings. Even if you don't anticipate any snags, knowing what to do will give you peace of mind while you await the results.