Differences between Employment Background Checks and Employment Reference Checks

Organizations frequently use the phrase "background check" to signify "reference check," and likewise. A crucial difference must be understood here that while both a background check and a reference check are frequently utilized throughout the recruitment process, they are quite distinct and give fairly different degrees of verification. Both seek to learn about an applicant's background, with a background check serving purely as a data verification procedure and a reference check serving as a more adaptable and thorough recruiting tool.

What is the purpose of a background check?

A background check is a simple procedure that allows a person or organization to confirm a person's identification, official records, and educational or employment histories.

What are the criteria used in background checks?

Background checks examine an individual’s past criminal convictions, qualifications, job history, and other actions that have been documented. Background checks can include and are therefore not constrained to:

• verification of employment
• background checks for criminals
• Checks on everyone's background
• Background checks by the Office of the Inspector General
• background checks through online verification
• Background checks on a global scale
• Checking the credit history
• Background checks on individuals 

The sort of background checks that should be performed is determined by compliance laws and your corporation's rules. Consider the fact that whilst the results of a background check are restricted to the sort of check you perform; the charges might rise as you run or involve more checks.

How to Conduct a Background Investigation

Whenever a company wants to perform a brief background check on a new employee, they follow these simple procedures.

• Gather information using internet databases and public documents.
• Conduct a social media check on the person you're considering hiring.
• Engage with the services offered by a background check organization such as Complygate.

The supplier's database determines the reliability of the background check data. If an offence was performed anywhere outside the state or nation, the background investigation report might not always reflect it. If someone was dismissed for inappropriate behaviour but no one reported it to the authorities, the incident will never appear on a background check.

It may be required to run a background check in certain circumstances. The standard background check, on the other hand, will not provide you with all the frameworks for making accurate recruiting selections.

Why a Background Check Isn't Enough

Background checks are useful for obtaining basic information like prior convictions and job verification. However, to make the greatest recruits, most hiring managers want additional information, which is where background checks fall short.  

Overall, a great number of new employees underperform after 18 months due to a lack of desire and/or an unwillingness to be trained. Basic background checks might not reveal these characteristics or inclinations. There is other various information on applicants that you would not be able to discover through a background check.

Background checks will not reveal the following information:

• What were the job duties and descriptions for each candidate in their previous job?
• The job performance of a candidate.
• The degree of loyalty and motivation a candidate has shown in the past.
• The work ethic of a candidate
• How well does the candidate communicate to his or her co-workers, bosses, and direct reporting seniors as poor communication could lead to a communication gap?
• How well-informed an applicant is on issues relevant to the job.
• How likely is the candidate willing to be a part of your company's culture?
• The degree to which a candidate is willing to be mentored or criticised.
• If the candidate is worth trusting

How to Run a Reference Check

Some companies still manually call each reference, which is an old, outdated, and expensive method for checking references.

Complygate’s digital reference verification technology saves both money and time by automating the procedure. This information is compiled into easy-to-understand reports that include information such as the likelihood of rehire and evaluations for a candidate's best and weakest job-related characteristics.

This information gives you a clear picture of a possible candidate's background and fit.

When is it necessary to verify a reference?

Reference checks should be a part of any modern recruitment strategy. One of the major techniques utilized by hiring managers and recruiters is when and how to perform a reference check in the hiring process. The reference check is usually done as an optional extra during the recruiting process. This is an ineffective strategy, particularly considering the current spike in the demand for talents.

Reference checks ought not to be put away for the end like a basic “red flag” identification, but they should be carried out promptly following the first or second round of face-to-face interviews. Before spending more time interviewing workers, it is important to understand their real performance and personality. Performing a reference check upfront reveals if they are a good "match" or might be able to change your candidate rankings, highlighting a certain talent or characteristic based on input from peers and past managers.

Reference Check vs. Background Check

A distinctive summary of the difference between a background check and a reference check is that a background check is used to search up a candidate's criminal, commercial, and financial history whereas a reference check, on the other hand, aims to identify the ideal employee match and safeguard your organization from a poor performer or terrible hiring.