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What Does Eligible Mean on a Background Check?

Background checks are investigations of potential hires. These investigations can be time-consuming and expensive for the hiring company.

Posted by: David Garcia

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What does eligible mean on a background check?

When a background check confirms that a candidate is “Eligible,” it means that they meet the employer’s criteria and can continue participating in the hiring process.

The process of conducting a background check can vary depending on the company or organization that has requested the check. However, most checks will involve a questionnaire filled out by the individual in question.

Background screening reports will indicate their findings using several status codes. The codes denote eligibility or show how the verification process is progressing.

Two of the most common codes are R1 and R2, which appear when the screening has revealed a mark on a person’s background check. Other codes, such as “decisional,” help hiring managers track the background check progress.

Background checks protect the public and the company by ensuring an individual is qualified. However, background checks often require a lot of time and effort. 

Factors that determine eligibility on a background check

Many factors determine background check eligibility, varying between organizations and individual job requirements.

The most common factors include an applicant’s criminal, financial, and employment history. Verifications for education, professional certifications, or licensing are also common. 

Criminal history

Criminal history is crucial because it can indicate if the person is a potential danger to the public and the company. It will also show if the applicant is subject to certain restrictions due to criminal activity, such as being barred from working in the financial sector or being unable to work around children. 

In some industries or positions, background checks may impact a person’s eligibility. For example, any position in education may involve more rigorous background screening requirements for high-risk offenders. These safeguards are in place for positions that involve working around minors, the elderly, or vulnerable populations.

Financial history

A financial history screening that covers the credit report allows employers to see if a candidate can pay their bills and maintain a healthy financial status.

Financial history is most common for applicants interested in high-level jobs where a poor financial status may make the candidate more vulnerable to bribery, fraud, theft, or other risks. It’s also a requirement for all jobs in the financial sector. In these cases, a personal history of bankruptcy can be a disqualifying factor.

Employment history

Employment is also vital because it can indicate if the person is a good fit. It should show the applicant’s experience and job performance and may suggest their retention potential.

For example, an individual’s employment history showing a short-term serial pattern may be less likely to stay with the new company long term. The hiring company could decide that the risk does not outweigh the expense of continuing the background check and hiring.

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David Garcia

Co-founder and CEO of ScoutLogic

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.