Hiring the right candidate can often feel like trying to solve a puzzle. Interviews only tell part of the story, and that’s where background checks come into play. They’re vital tools that help HR professionals and employers uncover a potential hire’s history to make informed decisions. But when you spot a red flag in a background check, what does it really mean? Should it disqualify them automatically, or is there more to the story?
This blog will explore common red flags in a background check and provide guidance on determining when these issues should be cause for concern and when they deserve a closer look.
Why Background Checks Are Essential
Before we jump into the red flags, it’s worth noting the critical role background checks play in hiring. They help you confirm critical details about a candidate’s qualifications, employment history, and character. Ultimately, a thorough background check minimizes risks like negligent hiring claims, workplace safety concerns, and potential reputational damage for your company.
That said, not every flagged issue is a deal breaker. What’s most important is how you interpret and act on the information.
Common Red Flags in a Background Check
1. Discrepancies in Employment History
If a background check reveals inconsistencies in a candidate’s employment dates, job titles, or responsibilities, it could be a sign that they’ve stretched the truth on their resume. However, minor mistakes might simply be clerical errors or honest misremembering.
When to Rethink the Hire:
- If the candidate significantly exaggerates their skills or experience.
- If they can’t provide a valid explanation for the discrepancies.
When Not To:
- If the discrepancy is small and unintentional, like a minor date mismatch.
- If they clarify the issue honestly upon inquiry.
2. Criminal History
A criminal record can be one of the most sensitive and complex red flags that appear during a background check. Depending on the charges, some offenses might impact the candidate’s ability to perform their role effectively, while others may not be relevant to the hiring decision.
When to Rethink the Hire:
- If the offense directly relates to the role (e.g., financial crimes for a finance job, or violent crimes for a customer-facing position).
- If the conviction is recent and shows a pattern of behavior.
When Not To:
- If the offense is minor, happened years ago, or if the candidate has clearly demonstrated rehabilitation.
- If the hiring decision would violate “Ban the Box” laws or Equal Employment Opportunity Commission (EEOC) guidelines.
3. Negative References
Bad references from previous employers or colleagues can raise questions about a candidate’s workplace behavior, skills, or overall fit for the team.
When to Rethink the Hire:
- If multiple references consistently point to issues like poor work ethic, unprofessional behavior, or inability to work with teams.
- If the behavior in question could negatively impact your company’s culture or values.
When Not To:
- If the negative feedback is isolated or seems biased (e.g., from a single, disgruntled supervisor).
- If the candidate has since grown professionally and provided other glowing references.
4. Credit Report Issues
Some organizations, particularly in the finance or banking sectors, check a candidate’s credit report to assess their financial responsibility. However, this kind of screening is not always relevant for every position.
When to Rethink the Hire:
- If the role involves managing large sums of money or financial-related decision-making, and the report indicates a history of irresponsibility.
When Not To:
- If the role does not involve financial oversight.
- If the financial issues were due to extraordinary circumstances (e.g., medical emergencies).
5. Educational Discrepancies
Claiming a degree that doesn’t exist or lying about certifications is a significant red flag. It calls into question the candidate’s honesty and trustworthiness.
When to Rethink the Hire:
- If the role requires a specific qualification or license, and the candidate lacks the necessary credentials.
- If the candidate cannot justify their misrepresentation.
When Not To:
- If the discrepancy pertains to unimportant details (e.g., a non-critical training course or a typo in education dates).
Best Practices for Evaluating Red Flags
When you encounter a red flag in a background check, it’s vital to handle it with fairness and consistency. Here are a few best practices for addressing issues effectively:
- Have a Conversation: Sometimes, background check data lacks context. Speaking directly with the candidate can help you understand their side of the story.
- Stay Objective: Avoid making assumptions. Focus on the red flag’s relevance to the job requirements and your company’s values.
- Be Consistent: Apply your assessment criteria uniformly to all candidates to avoid bias or discrimination.
- Consider Rehabilitation: When possible, look for evidence that the candidate has taken steps to improve since the issue occurred.
Building a Balanced Perspective
While red flags in a background check can be concerning, they don’t always tell the full story. By carefully reviewing the context behind any issues and allowing candidates the opportunity to explain, HR professionals and hiring managers can make balanced, informed decisions. Remember, the right candidate isn’t necessarily the one with a spotless background but the one with the skills, character, and potential to thrive in the role.
Plexus Global: Hire Safely With Knowledge
Plexus Global is a California-based background screening company serving organizations all over the U.S. and abroad.
Contact us today by telephone (844-516-1008), email (sales@plexusglobalinc.com), or through our social media accounts on Facebook, Twitter, and LinkedIn.
