The first step in building an organization is hiring a team. When companies hire, they ensure to check the background of potential candidates to avoid negligent hiring. However, even after paying attention to minute details, some candidates' backgrounds may raise concerns, signalling what is known as a “red flag.”

A 'red flag' is a warning sign that makes an employer reconsider hiring a candidate. Spotting these red flags is important because it helps companies avoid employing someone who might not be a good fit or could cause problems in the workplace.

Understanding these red flags can help recruiters streamline the hiring procedure and make informed hiring decisions. 

Index Break down the most common red flags employers identify during background checks Criminal history Employment gaps Falsified Credentials Implications of the above red flags F.A.Qs

Break down the most common red flags employers identify during background checks 

According to the National Association of Professional Background Screeners (NAPBS), nearly all HR professionals, about 96%, incorporate background checks in their hiring process. This practice has become almost universal, indicating its critical role in the hiring landscape. 

But why do companies conduct background checks? It's all about making sure the workplace is safe and that trustworthy people are hired. Background checks can reveal if someone has a history that might make them less suitable for a job, like a criminal record or lying about their past jobs or education. It's a way for companies to protect themselves and their employees by making decisions based on real data and findings, instead of the candidate’s persona.

To ensure a healthy working environment, employers need to ensure quality hiring and avoid candidates with the red flag. However, not all red flags are the same. Some might be small and not that serious, depending on the job. For example, a minor traffic ticket might not matter for an office job. But other red flags, like a history of theft, could be a big deal, especially for jobs dealing with money. It's all about figuring out which red flags are deal-breakers and which ones aren't as serious.

Here are some common red flags to keep an eye out for in the background check process:

Criminal history 

Employers often run checks on a candidate’s criminal history to uncover any past legal charges or convictions. When considering an applicant’s criminal history, employers must assess which past offences are non-negotiable for the role being filled. For instance, a violent felony conviction could disqualify someone from a caregiver position or any role where the safety of others is paramount. 

Employers may find that some cities or states restrict when they can conduct criminal background checks. They may also run into regulations about how they may use the information. Regardless of these regulations, employers should conduct thorough background checks on all candidates. Knowing whether the candidate’s criminal history is relevant to the position may prove critical, safeguarding the company and its staff from any red flags. 

                               Employment gaps

According to the statistics provided, more than 42%, misrepresented their reasons for leaving previous positions. Many asserted they left voluntarily when they were terminated. Therefore, verifying a potential hire’s employment gaps is significant as it may signal a red flag. Moreover, while verifying employment history, recruiters need to ensure it through an FCRA-compliant background check service like Check Xperts which covers employment verification.

Although, it is good to note gaps in a candidate’s employment history, such detail does not always indicate a red flag. For example, such intervals could indicate difficulties obtaining or keeping a job, but it could also happen because they took time to care for children or a sick loved one. In some cases, they might have attended school or obtained job training.   

Recruiters should inquire about such gaps and explain the importance of honesty.

Falsified Credentials 

The top reason for background checks is to ensure the hiring of candidates who are honest, credible, and eligible for the respected position. But what if a candidate has lied on their resume, or substituted their association with any other reputed university? According to a recent survey conducted, around 40% of participants admitted they would willingly tamper with their education credentials to secure a better job position. Employers want to hire people who are honest and trustworthy, so this kind of dishonesty is a big concern. 

Ultimately, it falls on the employer to determine if an ethical lapse, like misrepresenting educational credentials, should impact the candidate’s job offer.

Implications of the above red flags

Identifying red flags can lead employers to reject or reconsider candidates, influencing hiring decisions. This helps in making more informed and cautious hiring choices. However, there is a risk that red flags might lead to bias or discrimination if not evaluated fairly and contextually. It’s crucial to ensure that red flags are assessed in light of the role and the candidate’s overall profile. 

To ensure a better understanding of red flags, employers should consider partnering with background check companies that design tailored solutions based on their specific needs. These companies can work closely with employers to identify potential red flags that align with the organization’s requirements and hiring standards, providing more accurate and relevant insights during the hiring process.

Check Xperts in Pakistan provides tailored solutions for the specific company’s needs by partnering with leading credit bureaus, criminal databases, and educational institutes, for up-to-date information. 

F.A.Qs 

1. How can I prepare for a background check? 
   To prepare for a background check, you need to align your credentials, including your employment history, and education. Make sure that the information on your resume is accurate and consistent. 
   
   
2. Can I dispute information found in a background check?  
   Yes, you can. You can ask for a copy of your background check report from the employer or the screening company, identify the inaccuracies, and provide evidence to correct or clarify the information. The screening company is required to investigate and resolve disputes under the Fair Credit Reporting Act (FCRA). 
   
   
3. Can a single red flag disqualify a candidate?  
   It depends on the severity of the red flag and the position of concern. A major criminal offence cannot be overlooked, however, a minor discrepancy in the employment gap can be overlooked. In the end, the ball rests in the hands of your employer.