A background check examines a person’s history to gauge whether they’re a suitable candidate for a position. Their employment history is a significant part of this. However, it’s not simply about dates, positions, and responsibilities.
Hiring managers and employers are naturally keen to know why employees leave businesses, on what terms, and whether it was because of a dismissal.
Will a Background Check Reveal If a Candidate Was Fired?
A thorough background check can examine all manner of a person’s history, but it won’t necessarily show whether or not a person has been fired. It’s because a screening typically focuses on the nuts and bolts: job titles, employment dates, and professional references.
It’s often about proving accuracy and employment verification. Information about why a person left a previous employer will only be included if the candidate or their previous employer explicitly provides it.
However, there are exceptions. Past terminations might be flagged during the process for certain roles requiring more comprehensive checks or security clearances, such as financial services or government roles.
Asking Candidates for Information About Previous Employment
While background checks typically cannot reveal why a person left a position, there are alternative ways of finding this information. Simply asking a candidate is the easiest and probably the best. “Why did you leave your last position?” is a perfectly reasonable question to ask and allow the candidate to share.
However, asking doesn’t always mean getting an accurate response. A job dismissal isn’t exactly something a candidate wants a potential employer to know about, but reframing the question or coming at it from a different angle can paint a clearer picture.
Encouraging candidates to discuss their experiences openly and freely is vital, but it’s also not something you can expect immediately.
Can a Previous Employer Tell You if a Candidate Was Fired?
There are instances where a previous employer can disclose that an employee was dismissed, which leads us into the tangled and frequently complex web of company policy and U.S. state laws.
Many states limit the information an employer can give on a past employee, often simply basic information such as job titles, employment history, and whether the candidate is eligible for rehire.
Employers might share information about performance and dismissals if asked, but again, this is a murky minefield of an area. Many companies have a ‘neutral reference’ policy, which means they stick to the facts.
It’s because false or defamatory statements from former employers that affect future hiring possibilities come with sizable risks that many companies would prefer to steer clear of. If unsure what can be legally shared, check with the U.S. Department of Labor beforehand.
Do You Need Consent Before Contacting Previous Employers?
Part of the Fair Credit Reporting Act (FCRA) requires candidates to give their written consent before potential employers contact their past employers. Failure to consent may result in a job offer being withdrawn, but businesses should never start any part of the background screening process without explicit consent.
There may be instances where candidates ask that a specific employer from their past not be contacted. If this happens, have a clear and open discussion with them about why, and in most cases, they’ll be happy to explain the situation. Plenty of less-than-reputable employers are out there, and dismissal might not have entirely been down to the employee. A respectful and honest approach here is best.
Next Steps After Finding Out a Candidate Was Previously Fired
If you discover that a potential employee was fired, it can be easy to withdraw that job offer quickly, but it’s always important to assess the situation accurately and fairly.
Understand the Context
‘Fired’ may sound terrible, but context matters. Ask the candidate to explain the circumstances that lead to their dismissal. Was it due to downsizing, a specific mistake, or a mismatch in personalities and expectations? Did they feel that the dismissal was unfair and that they were never able to prove their truth worth? Understanding the context gives you a better foundation to move forward and make a clear choice.
Look for Growth and Accountability
What happened next? Growth and accountability are integral to becoming a better person; our past mistakes don’t have to define who we are today. Ask the candidate what they learned from their dismissal and how they have improved.
Do they feel it is still a problem if it is for a specific issue? A candidate with the guts to acknowledge past mistakes and accept responsibility can be a hugely valuable asset.
Evaluate the Role Fit
Just because they were fired from one role doesn’t necessarily mean they aren’t suitable for another. It might be a case of a person being promoted too quickly and unable to do the job. Consider this aspect carefully before making any firm decisions.
Balance with Other Factors
Weigh the candidate’s firing against their experience, skills, and references. A single setback doesn’t define a career, especially if they’ve shown a pattern of improvement. This is where a clear and honest discussion can be invaluable.
Final Thoughts
Choosing the right candidate is challenging, so background screenings have become critical. They provide crucial insight into a person’s background, allowing an employer to make a more educated decision. While standard screenings can cover a lot, including employment history, education, and criminal records, understanding terminations often involves asking candidates directly or contacting previous employers—with consent.
At ScoutLogic, we specialize in comprehensive background screening services tailored to your hiring needs. From employment verification to detailed background checks, we can uncover the information needed to provide a comprehensive picture of a candidate. When you have all that data – whether that includes past dismissals or not – it’s up to you to make an informed choice.
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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