Background check adjudication is a vital hiring process that evaluates a candidate’s background information against established company policies. It ensures hiring decisions are consistent, fair, and compliant with relevant laws.
Adjudication helps streamline the hiring process by standardizing how background check results are reviewed and assessed. It enhances efficiency and reduces the risk of legal challenges. This guide will explore what adjudication entails, its importance, and best practices for implementing effective adjudication processes within your organization.
What Does Adjudication Mean on a Background Check?
Adjudication in the context of background checks refers to evaluating the results of a background check against an organization’s established employment screening policies. The primary goal of adjudication is to determine whether a job candidate meets the company’s employment criteria based on their background check results.
During adjudication, an organization reviews the findings of a background check—such as criminal records, credit history, or employment verification—against the specific criteria outlined in its hiring policies. This process helps filter out candidates who do not meet the required standards or may have disqualifying issues.
For example, suppose a company’s policy disqualifies candidates with recent convictions for certain offenses. In that case, adjudication will involve assessing a candidate’s criminal record to determine if they fall within these disqualifying parameters. A candidate’s background check reveals a conviction deemed relevant and disqualifying according to the company’s policy.
Why Do Employers Need a Background Check Adjudication Process?
Efficiency
A background check adjudication process significantly enhances the efficiency of the hiring process. By establishing a standardized approach for reviewing and assessing background check results, adjudication helps simplify decision-making.
This approach means hiring managers can quickly determine which candidates meet the company’s hiring criteria and which do not, reducing the time spent on manual evaluations. It can be crucial for large organizations that deal with a high volume of applicants.
Compliance
Compliance with various legal and regulatory requirements is critical to implementing a background check adjudication process. Different industries have specific regulations regarding background checks.
For instance, certain criminal convictions may disqualify candidates from employment in the healthcare and childcare sectors due to the nature of their roles. Adjudication helps companies align their hiring practices with these regulatory standards by providing a structured way to evaluate background check results.
Fairness
Fairness is a critical component of a background check adjudication process. By applying consistent criteria to all candidates, adjudication ensures hiring decisions are based on objective and relevant factors rather than personal biases.
This consistency helps to level the playing field for all applicants, promoting equal opportunity and preventing discrimination. The process supports adherence to anti-discrimination laws, such as the Equal Employment Opportunity Commission (EEOC)guidelines, which mandate that employment decisions be based on job-related factors, not protected characteristics.
Consistency Across Locations
For companies operating in multiple states or regions, background check adjudication provides a consistent approach to evaluating candidates despite varying local laws. Different jurisdictions have different regulations regarding what can be reported in background checks and how certain offenses should be considered.
A standardized adjudication process ensures that all candidates are assessed according to the same criteria, regardless of location.
Types of Adjudication Processes for Background Checks
Manual Adjudication
Manual adjudication is a traditional method in which HR professionals or hiring managers personally evaluate background check results. It involves a hands-on process where individuals manually review the data collected from background checks and compare it against the company’s established hiring criteria.
In manual adjudication, the process typically begins with collecting background check reports from various sources, such as criminal records, credit histories, and employment verification. HR professionals then thoroughly assess each report, using tools like spreadsheets or screening matrices to track and categorize findings. For instance, if a candidate’s background check reveals a criminal conviction, HR must determine if this conviction is relevant to the job role and aligns with the company’s policy.
This method allows for a nuanced review of each candidate’s background, giving HR professionals the flexibility to consider context and additional information that automated systems may not capture. For example, a manual review might consider the time elapsed since an offense, the candidate’s rehabilitation efforts, or the specific relevance of the offense to the job in question.
However, manual adjudication comes with several challenges. The process can be extremely time-consuming, especially for large organizations with many applications. Each background check requires individual attention, which can delay the hiring process and increase the administrative burden on HR staff.
Moreover, manual adjudication is prone to human error and inconsistency. Variations in how different HR personnel interpret and apply the hiring criteria can lead to uneven decisions and potential compliance issues.
Automated Adjudication
Automated adjudication represents a modern approach to background check evaluation, utilizing advanced technology and software solutions to streamline the process. This method integrates background screening systems with computerized tools designed to process and evaluate background check data according to predefined criteria and rules.
Automated adjudication begins with configuring the screening system to align with the company’s hiring policies and legal requirements. Organizations can set up customizable filters and rules within the system, automatically assessing each candidate’s background check results against these criteria.
For instance, if the company’s policy specifies that candidates with certain types of criminal convictions should be disqualified, the automated system will flag these candidates and exclude them from further consideration.
One of the key benefits of automated adjudication is its efficiency. The technology can rapidly process large volumes of data, significantly reducing the time required to review background checks compared to manual methods. Automated systems can handle tasks such as sorting, filtering, and categorizing background check results quickly and accurately, leading to a faster hiring process and decision-making.
Additionally, automated adjudication enhances consistency and objectivity in the evaluation process. By applying the same set of criteria uniformly across all candidates, computerized systems reduce the likelihood of errors and bias that can occur in manual reviews. Such consistency helps ensure that hiring decisions are based solely on predefined policies and legal requirements rather than individual interpretations or biases.
3 Best Practices for Creating Adjudication Guidelines
Develop Clear and Specific Policies
The first best practice for creating practical adjudication guidelines is to develop clear and specific policies for evaluating background check results. It involves defining what offenses or findings disqualify each position within the organization. Policies should outline the criteria for categorizing background check results into categories such as “pass,” “pending,” or “adverse action required.”
For instance, if a company hires for a finance position, the policy might specify that candidates with certain financial crimes or a high debt-to-income ratio are automatically disqualified. By clearly defining these criteria, employers can ensure that the adjudication process is transparent and consistently applied. These definitions reduce the risk of arbitrary or biased decisions and help maintain fairness in the hiring process.
Align Guidelines with Legal Requirements
Adjudication guidelines must be aligned with federal, state, and local laws to ensure compliance and avoid legal pitfalls. It’s crucial to understand and incorporate regulations such as the Fair Credit Reporting Act (FCRA), which governs the use of background check information, and various “ban-the-box” laws that restrict inquiries about criminal history during the early hiring stages.
In addition to federal regulations, employers should be aware of specific state and local laws that might affect background checks. For example, some jurisdictions may have unique rules about how long ago an offense can be considered or what types of offenses are relevant for different job roles.
By aligning adjudication guidelines with these legal requirements, employers can protect themselves from potential lawsuits and ensure that their hiring practices are legally sound.
Ensure Consistency Across All Applicants
To avoid discrimination and ensure fairness, it’s essential to apply adjudication guidelines consistently to all applicants for a given role. All candidates should be evaluated using the same criteria and procedures, regardless of their background or personal characteristics.
Consistency helps prevent biases from affecting hiring decisions and ensures that every candidate is judged based on the same standards. For example, if the policy states that any felony conviction within the past five years is disqualifying, this rule should be applied uniformly to all candidates for the same position.
Consistency promotes fairness, supports compliance with Equal Employment Opportunity (EEO) guidelines, and helps mitigate the risk of discrimination claims.
Frequently Asked Questions
What Does Adjudication Mean in the Hiring Process?
In hiring, adjudication refers to evaluating a candidate’s background check results against company policies. It helps determine whether specific findings, such as criminal offenses or financial issues, disqualify a candidate from being hired, ensuring decisions are fair, consistent, and compliant with company standards.
Final Thoughts
In summary, background check adjudication is a crucial step in the hiring process, helping employers efficiently and fairly assess candidates based on their background check results.
ScoutLogic offers comprehensive background screening services for businesses seeking to enhance their background check processes and comply with industry regulations.
David Garcia, co-founder and CEO of Scout Logic, is an industry leader in the bulk background check world. With his strategic acumen and expertise in the HR sphere, specifically in hiring, recruiting, legal compliance, background checks, and resume screening, he’s an invaluable asset and consultant.
David's counsel extends across the boards of ScoutLogic, YipitData, and Supplier.io, drawing from his impactful stints on the boards of Infutor and Avetta. With an extensive 25-year journey, he champions unparalleled B2B commercial leadership within data & analytics, significantly shaping the HR landscape.
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