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How to Run Background Checks at Staffing Agencies

Background checks are essential for staffing agencies to ensure that candidates and employees are qualified, reliable, and trustworthy. Here's how to run them.

The staffing industry is a mosaic of diverse clientele spanning sectors such as event catering, healthcare, and beyond.

Each client's unique specifications require a tailored approach to screening potential hires. This distinctiveness amplifies the importance of background checks for staffing agencies, ensuring that candidates align not only with industry standards but also with the specific requirements set forth by individual clients.

As we explore the specifics of the process, you'll learn why this verification step is not just a formality but is fundamental in establishing a secure and effective hiring framework.

Acknowledging that 33% of candidates lie about their qualifications, which could be a potentially significant dealbreaker with clients, it is imperative to understand the step-by-step procedure. Whether you manage the process yourself or use a third party, keeping things compliant with regulations is crucial for effective screening.

Key Takeaways

  • Background checks at staffing agencies may be mandated by clients, extending to even temporary workers without direct access to sensitive information. 
  • Diverse types of background checks, ranging from criminal evaluations to education verifications, offer a comprehensive approach. Stay abreast of legal requirements to thoroughly understand what aspects can be assessed during the screening process.
  • The decision to conduct background checks internally or outsource to specialized external firms hinges on your agency's specific needs, availability, and budget considerations. 

Why Are Background Checks Important for Staffing Agencies?

In industries like legal, finance, and healthcare, background checks are a standard requirement due to the sensitive nature of the work and the access to significant amounts of confidential information.

But why do temp staffing agencies operating in diverse fields also emphasize this practice?

Despite the temporary nature of their engagement, temporary employees may hold positions of trust or access specific company resources, potentially influencing business outcomes. Therefore, conducting background checks becomes imperative in uncovering any historical criminal incidents, verifying employment and educational credentials, and ensuring alignment with the role's requirements.

So, whether clients explicitly demand pre-employment background checks or delegate the decision to the staffing agency, the vetting of applicants plays a crucial role in selecting the most suitable candidates. In today’s blog, we’ll give you a step-by-step breakdown of how to run a background check on temporary staff.

What Are the Different Types of Background Checks?

Background checks aren't uniform; they come in different types, each designed to reveal distinct aspects of a candidate's history.

Let's explore the different types of background checks you might need to conduct before hiring. Speak with your clients to find out what needs to be done.

Criminal Background Checks

This scrutiny delves into a candidate's criminal history, shedding light on any previous convictions or legal entanglements. This process is particularly crucial for roles involving security responsibilities, providing a comprehensive assessment of candidates' suitability for such positions. With employee theft costing U.S. companies $50 billion annually, it’s no wonder more and more businesses are requesting criminal background checks.

Employment Verification

This process offers insight into a candidate's professional history, confirming the accuracy of the provided employment information. It ensures that the candidate possesses the experience they claim, crucial for positions requiring specific skill sets or management experience. Employment verification becomes essential when seeking candidates for skilled positions, where experience is a key determinant of success.

Education Verification

In a world where qualifications matter, education verification ensures that candidates indeed hold the degrees and certifications they claim. This process is particularly crucial for roles requiring specific educational backgrounds, such as nursing or other healthcare positions.

Reference Checks

Common in all industries, reference checks offer valuable insights into an individual's work ethic, teamwork, and overall suitability for the job. Speaking directly with those who have witnessed the candidate in action provides a thorough perspective on their professional capabilities.

Drug Screening

Especially relevant for safety-sensitive positions, drug screening ensures that candidates are fit for duty. This check is common in industries where impairment could pose a risk to colleagues or the public.

Should I Conduct a Background Check Myself or Hire a Professional Agency?

When considering whether to conduct a background check independently or enlist the services of a professional agency, several factors come into play before making a decision. While checking a candidate’s social media profiles and exploring public records on your own is possible, this approach often consumes significant time and money with no guarantee of substantial findings.

Working with a professional company specialized in background checks might be a more efficient and reliable choice — especially if you plan on improving your staff retention rate and onboarding them for numerous projects.

Steps on How to Run Background Checks at Staffing Agencies

If you've opted to conduct a pre-employment background check, the process becomes straightforward with a well-laid foundation. Here, we outline a few simple steps to implement a pre-employment background check to ensure you secure the right talent for your clients.

Get Familiar with Legal Requirements and Regulations

The first thing you need to do is get acquainted with your jurisdiction's legal landscape. Brush up on your local and national regulations that dictate the dos and don'ts of background checks. This means understanding the scope of information you can collect, how to handle the data, and, most importantly, respecting candidates' rights.

Obtain Candidate Consent

But, before diving into any investigative actions, getting written consent from your job candidates is crucial. Be transparent about the background check's purpose and scope, and ensure you have their written approval. Although this is a legal requirement, it demonstrates trust in the hiring process and sets the groundwork for a positive and respectful relationship with your potential future staff member.

Work With a Reputable Third-Party Provider

As mentioned earlier, working with a third-party provider might be a better option, depending on how deep you plan on digging into a candidate's history. Choosing the right partner can make or break your background check process.

When it comes to selecting a third-party background check provider, think of reputation, experience, and commitment to compliance. Take the time to vet potential providers thoroughly. Working with a trustworthy partner enhances the credibility of your background check process, minimizing the risk of incomplete or inaccurate information that could throw a wrench into your hiring decisions.

Conduct a Comprehensive Verification

Now, it’s time to verify your candidate's identity, employment history, education, and/or criminal record. Develop a consistent and thorough process for checking all these boxes. Whether it's validating official ID, contacting past employers and schools, or running criminal background checks, a thorough approach ensures a more accurate view of your candidate's background.

Establish a Standardized Process

Fairness is key in the background check game. Establish a standardized process that treats all candidates equally. Define your criteria, communicate it consistently, and apply the same standards across the board. Standardization not only ensures fairness but also positions your staffing agency as one that adheres to best practices, eliminating potential biases in your recruitment process and attracting top talent.

Use Information Responsibly

Once you've got the information, use it wisely. Stick to the intended purpose – making informed hiring decisions. Adhere to privacy laws and guidelines, and avoid any misuse or unauthorized sharing of the obtained information. Any mismanagement of information can not only become a legal matter between you and a candidate but can also harm your agency’s reputation if illegal practices were to be exposed.

Establish Confidentiality and Data Protection Measures

Keep in mind that when you’re conducting background checks, you’re also handling sensitive information. Put robust measures in place to keep that data confidential and comply with data protection laws. Prioritize responsible handling of sensitive information throughout the process. This not only protects a candidate's privacy but also ensures your agency stays on the right side of the law.

Uh-oh, Something Came Up in the Background Check. Now What?

Let's talk about tough conversations. If you uncover any red flags during the background check, it's necessary to communicate these findings professionally and respectfully with your candidate.

Don’t make assumptions or hasty decisions on the spot. Give them the chance to share their side of the story or dispute any inaccuracies. This open and honest communication not only upholds ethical standards but also ensures that applicants have a fair shot at addressing any concerns that may pop up during the background check.

However, if the adverse findings remain conclusive, be open and transparent with the candidate and explain the reasons why you’re refusing their candidacy. Always make sure that the process adheres to legal and ethical standards, and when possible, offer guidance on potential steps they can take to address the concerns in the future.

Closing Thoughts About Background Checks

Background checks are a vital tool for staffing agencies to ensure candidates are qualified, reliable, and trustworthy. These checks are necessary to protect clients, maintain agency reputations, and enhance workplace safety.

While legal, cost, and time factors come into play, staffing agencies can effectively balance these considerations with the right background check partner. By integrating background checks into their screening process as a standard practice, agencies contribute to both safety and the identification of top-notch candidates.

Staff Scheduling Software for Staffing Companies

Hiring companies engage staffing agencies for various reasons, such as securing qualified candidates and minimizing time and costs. With the introduction of advanced staffing agency software, companies can experience the perks of teaming up with highly organized agencies. This translates to improved efficiency and streamlined processes, offering superior candidate matching, enhanced communication, and real-time data analytics for making well-informed decisions.

Frequently Asked Questions

Why run a background check on temporary staff? 

Your clients might request you to do so before agreeing to hire a candidate. Also, some positions require workers to deal with confidential or security issues. 

When should background checks be conducted?

Background checks should be conducted before finalizing the job position. It is usually one of the last steps in the hiring process. 

Do I need to hire a third party to do a background check?

Depending on the tools, time, and budget available, you might offload this task to a reputable background check provider.

What if a red flag emerges?

Always speak with the candidate to hear their side. If you decide not to move ahead with their application, be honest in your response.

What is the law concerning conducting background checks?

Always check your local, state/provincial, and federal laws before conducting a background check. Be aware of what kind of information you can gather on candidates and how that information can be used.

Workstaff Team

Workstaff makes scheduling and planning on-demand personnel smooth and easy. With the companion mobile app and instant push notifications, your staff is continuously kept in the loop and informed.

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