What Is a Third-Party Background Check?

Conducting thorough background checks is crucial to any organization’s hiring process. With increasing safety, security, and compliance concerns, many businesses turn to third-party providers to ensure they make informed decisions.

These external agencies bring expertise and accuracy that internal checks might not allow, offering a comprehensive view of a candidate’s history. This article delves into the specifics of third-party background checks, exploring their importance, various types, and the advantages they offer to employers.

What Are Third-Party Background Checks?

Third-party background checks involve investigating an individual’s records, including criminal history, employment verification, education, and other relevant information, through a trusted external agency. Unlike self-conducted background checks, third-party checks offer transparency, accuracy, and professional expertise.

The primary goal of third-party background checks is to ensure the suitability and trustworthiness of individuals before they’re hired or engaged in other professional relationships. The process helps organizations mitigate potential risks, safeguard their reputation, and maintain a secure and reliable environment. 

By outsourcing background checks to specialized providers, companies benefit from thorough and efficient screenings, allowing them to focus on their core operations and confidently make informed decisions. Moreover, third-party providers stay updated with evolving regulations, ensuring compliance with federal, state, and industry-specific laws, which reduces the hiring organization’s legal liabilities.

What You Can Expect From a Third-Party Background Check?

When you commission a third-party background check, you can anticipate a comprehensive and professional examination of various aspects of a candidate’s background. Here are the key types:

• Criminal background checks are crucial in the search for any criminal records associated with the candidate. This step is vital for ensuring workplace safety by identifying individuals with a history of criminal activities. 
• Employment verification is another critical component. This process confirms the candidate’s previous job titles, roles, responsibilities, and dates of employment, ensuring the accuracy of the work history presented on their resume or during interviews.
• Education verification checks validate the candidate’s educational qualifications, including degrees, diplomas, certifications, and academic achievements. This verification helps employers confirm that the candidate possesses the necessary skills and knowledge for the job. 
• Credit checks are also conducted to assess the candidate’s credit history. These checks provide insights into their financial responsibility, debt levels, and payment patterns, which are particularly relevant for positions involving financial responsibilities.
• Drug screening is another popular aspect of third-party background checks. Drug tests detect the presence of illegal substances or prescription medications in a candidate’s system, making them crucial for safety-sensitive roles and workplaces with strict drug policies. 
• Reference checks involve contacting professional references provided by the candidate, who offer insights into the candidate’s work ethic, performance, and suitability for the position.
• Identity verification confirms that the candidate is who they claim to be. This process often involves checking government-issued identification and social security numbers. 
• Professional licensing verification is essential for positions requiring specific licenses or certifications. This step ensures that the candidate holds the necessary credentials and is in good standing with the relevant licensing boards.

What Are the Advantages of Using a Third-Party Background Check Provider?

Expertise and Accuracy

Utilizing a third-party background check provider ensures high expertise and accuracy in the screening process. These providers specialize exclusively in background checks and possess the knowledge and skills to navigate various checks’ complexities. 

They have access to extensive databases and advanced tools, enabling them to conduct thorough and precise investigations. Their comprehensive understanding of legal requirements and industry standards ensures that the background checks comply with relevant regulations, reducing the risk of legal issues for the hiring organization.

Moreover, third-party providers’ expertise helps identify discrepancies and potential risks that in-house checks might miss. They’re trained to recognize red flags, such as employment history inconsistencies, educational qualifications discrepancies, or hidden criminal records. 

This meticulous attention to detail ensures that the information gathered is accurate and reliable, providing employers with a clear and comprehensive understanding of a candidate’s background. By leveraging the specialized skills of third-party providers, organizations can make more informed hiring decisions, thereby enhancing the overall quality and reliability of their workforce.

Time and Resource Efficiency

Outsourcing background checks to a specialized provider saves time and resources for the organization. Comprehensive background checks can be time-consuming and divert valuable resources from core business activities. Third-party providers handle the entire process efficiently, allowing the organization to focus on its primary operations.

Compliance with Legal Regulations

Third-party background check providers ensure compliance with relevant legal regulations and industry standards. They are well-versed in the complexities of background check laws, such as the Fair Credit Reporting Act (FCRA), and ensure that the screening process adheres to these legal requirements. It reduces the risk of legal issues and potential lawsuits for the organization.

Consistency and Standardization

Using a third-party provider promotes consistency and standardization in the background check process. These providers follow established protocols and methodologies, ensuring all candidates are screened uniformly. This consistency helps make fair and unbiased hiring decisions, reducing the risk of discriminatory practices.

Enhanced Confidentiality and Security

Third-party background check providers offer enhanced confidentiality and security for sensitive candidate information. They have robust data protection measures to safeguard personal and confidential information from unauthorized access or breaches. This precaution ensures that candidate data is handled securely and responsibly, maintaining trust and integrity in hiring.

Final Thoughts

We’ve explored various background checks, such as criminal searches, employment history verification, education verification, credit checks, drug testing, and social media screening. We also discussed the critical role of accuracy, efficiency, legal compliance, consistency, and security third-party providers offer in the background check process.

Partnering with a reputable provider is essential for organizations looking to streamline their hiring process and ensure thorough and reliable background checks. ScoutLogic offers a wide range of background screening services tailored to meet businesses’ specific needs.

David Garcia

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.