A comprehensive background check is now a requirement for most job applications in the United States, but what exactly do these checks look for? The term ‘background check’ is a loose term for various possible checks that can be done, usually depending on the position.
We’re often asked whether background checks show employment history, so let’s dive in and take a look.
Does Employment History Show Up on a Background Check?
Employment history is often a critical part of background checks, but it doesn’t always happen automatically. When an employer chooses to conduct a background check, hopefully with a reputable screening company, they’ll usually be asked how in-depth they’d like to go. One option here is employment verification.
It essentially checks employment history but is sometimes reserved for high-level positions in certain industries, where past employment plays a major factor in your hiring.
However, it’s important to stress that this isn’t a standard background check that might simply cover criminal history. Employment verification is a step up, but companies should always make it perfectly clear to candidates what will be involved in their background check.
The process typically involves contacting past employers to confirm job titles, dates of employment, and possibly even reasons for leaving.
There’s no one-size-fits-all approach here because companies often have their own policies on how much information they’ll disclose during verification. Really, it’s simply about verifying that what is written on a resume matches reality.
What if an Applicant Forgets to List a Job on Their Resume?
Omissions on a resume are often caused by two factors: innocent mistakes and more calculated decisions. The important aspect to remember here is that candidates don’t need to list every single job they’ve had since the age of 16. Most employers are only interested in recent, relevant experience.
However, if a position is missed off a resume that does have a bearing on the current application process, this could raise some red flags. For example, If someone is applying for a job with a marketing company but fails to show that they worked for a major marketing company a few years ago, it will almost certainly set alarm bells ringing.
While the reason might be innocent enough, it won’t seem that way to the company they’re applying for.
Why Is Accurate Employment History So Important?
Getting employment history right isn’t just about matching up background check findings; here are a few other reasons why it’s vital to get it right.
Job Fit
Employers want to ensure they select the right person for their position. If someone’s applying for a senior-level position but their past jobs don’t reflect the level of responsibility they’ve claimed, it’s a problem. While it’s not impossible, it makes things significantly harder.
The average cost per hire in the United States is nearly $4,700 at the bottom end, so the risk of getting it wrong can be huge.
Organizational Culture
Increasingly, companies are looking for people who are a good fit. It’s not enough to have ten individual superstars; employers want a healthy, thriving, collaborative work culture and usually look for those who they feel will fit right in.
If someone’s resume shows a history of bouncing between companies with very different cultures, or if there’s an inconsistency between what they say and what their background check reveals, it might lead to further questions.
Integrity
Forget job fit and work culture—can a person be trusted? Employers want to know that a new employee is honest and has a strong base level of integrity. Unsurprisingly, falsifying job titles, dates, or achievements severely damages credibility, and it’s easy to see how job prospects evaporate once lies and manipulation arise.
Legal Requirements
Employment history isn’t just a matter of preference for positions in finance, healthcare, or education; it’s a legal requirement. In healthcare, for example, employers are required to check whether candidates have been excluded from the industry via OIG‘s exclusion authority.
Failure to do this can lead to large fines, so it’s in their best interest to be 100% sure a candidate is who they say they are and have the right employment background.
In general, conducting employment background checks isn’t just about gathering information—it’s about staying compliant with federal and state laws. The Fair Credit Reporting Act (FCRA) came into force in 1970 and has since set the standard for handling background checks.
Under the FCRA, employers must notify applicants that a background check will be conducted and obtain their written consent. Suppose something comes up during the background check that causes them to take negative or adverse action. In that case, they need to follow the adverse action process carefully or risk possible legal action.
It includes giving the applicant a copy of the report and informing them of their rights to dispute any inaccuracies.
Frequently Asked Questions
What Is Considered False Employment History?
Essentially, anything that can’t be proven 100% accurate could, in theory, be deemed falsifying. It can be done in numerous ways, including outright lying about a position or responsibilities or exaggerating and “stretching the truth.” Minor white lies that we sometimes fall into the habit of telling can easily come back to haunt us, so stick to the truth and go with reality.
Final Thoughts
While it’s not a given for all background checks, candidates should probably expect some degree of employment verification for mid to high-level positions or jobs within certain industries, such as finance, healthcare, and education. This allows employers to proceed with a process, knowing that the glittering resume in their hand really is as good as it looks.
Companies looking for the best possible employment verification should look no further than ScoutLogic. We provide comprehensive background checks that go as far and as deep as you need to feel confident and secure about hiring the perfect candidate. Don’t take the risk without conducting the right checks; you find the ideal employee, and we’ll dot the I’s and cross the T’s.
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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