Ask the Experts: Employers Use Background Checking Databases

Question:

I have been out of work for two years. I have been actively looking for a job in my field (product engineer in the semiconductor industry) and have been getting phone and face-to-face interviews. The people that I interviewed with told me that I did well, but I am not getting any offers. I’m beginning to wonder if employers are deciding not to hire me as a result of something they’re finding when they check my background. Is there a database that companies access when they do background checks and, if so, might that database include incorrect information about me?

First Answer:

Whew – lots to cover here. Candidates need to understand how employment processes work so they can become better consumers…

Background checks of certain information cannot be conducted without the written consent of the candidate (e.g., driving, felony, credit). Many companies check to see if you possess a criminal record or have incurred driving offenses. If they also conduct a credit check – which many companies will do when you are in line for an accounting or finance related position, the company is required by the Fair Credit Reporting Act (FCRA) to comply with sections 604, 606, and 615 which reflect a company’s responsibility when using consumer reports for hiring new employees or evaluating current employees for promotion, reassignment, and retention. In a nutshell, you must be told if information in your file has been used against you in an employment decision. By law, anyone who uses information from a CRA (consumer reporting agency) to take action against you – such as denying employment, must tell you so, and give you the name, address, and phone number of the CRA that provided the consumer report. By the way, the FCRA also requires your written consent to companies prior to conducting a credit check – a CRA may not give out information about you to your employer, or prospective employer, without your written consent.

By the way, everyone should ask for copies of background reports conducted by companies – and keep it in a safe place at home whether hired or otherwise.

Herein lies a basic issue with background and reference checks. While professional reference checks do not require written consent of a candidate, reference checks have become less useful as the level of litigiousness increases. Huh? If someone gives you a bad reference and it cannot be backed up with facts, someone may be, among other things, liable for libel. Most savvy companies now only verify dates of employment and job titles in lieu of references (who wants to be sued?). In many cases, a company providing this information will only interface through Human Resources. Top recruiters will find some way, however, to talk with former bosses, peers, or subordinates.

When I conduct reference checks I ask questions based upon what was written on the resume or said during the interview. For instance, if you wrote as an accomplishment as a Product Engineer that you “Led specification team tasked with new xDSL/Processor application development which included competitive benchmarking and custom engineering design. Reduced time-to-market for new wireless products by 27%”, I’ll ask your boss, “John said that he…” and I’ll read the accomplishment above followed by “Does this accurately describe John’s role and results?” Yes, I will drill down for facts; sadly, many recruiters who conduct reference checks don’t go the extra mile. The result is either someone isn’t hired who perhaps should be hired or someone is hired who shouldn’t be hired.

Here are some ideas you and others may want to consider implementing in your job search:

1. Never lie on your resume. Ask yourself what would happen if it was discovered that you were, in fact, not forthcoming with critical information like responsibilities, accomplishments, education, etc.
2. ALWAYS have a pow-wow with your references before you interview. Have them read your resume. Let them know why you’re looking for a new position.
3. If you’re vying for a position that may require a company to conduct a credit check, go the extra mile and obtain copies of your credit reports and check the veracity of the information.

Remember – your past will always follow you. The good, the bad, and the ugly.

— Steve Levy, Principal of outside-the-box Consulting

Second Answer:

I don’t know of any “database” that is all inclusive. Are they a actually telling you that they will be doing a reference check
or background check? When they do background checks
they usually use companies that specialize in checking.
How are your references? Do you have any “skeletons”
in your closet? Are you a “perfect” match for what they
are seeking? There are so many factors to consider.

The past two years have been very tough years in employment – the worst in 30 years. The semiconductor industry has been
hit especially hard.

What have you been doing since you have been out of work for the past two years? Keeping abreast to changes
in technology?

You could always ask for feedback – you may or may not get it, but can’t hurt to ask.

Check out this article on asking for feedback http://interview.monster.com/articles/feedback/.

— Carole Martin, The Interview Coach

Third Answer:

I’ve talked about reference checks and the importance of doing background checks on executive-level candidates. Not doing so can result in nightmare results.

But just as in Karem Abdul Jabaar’s case, there are several people in the world with the same name. Background checks will give you the results for them and for those who may have stolen your identity. When you’ve applied for an opportunity, you have a right to request a copy of the background check the company does. If you find any discrepancies, you can contact the proper agency to work out the corrections. Please also see my earlier response to another question about background information.

In regard to a central repository for background information, according to a representative of CISOnline.com, a background screening service, there are three credit reporting bureaus. But after the credit report is exhausted, there is no single source of information. It’s all a matter of research.

The research can include a criminal background check, a social security account tracer (consisting of name and address check), court records, and other criteria based on the client’s needs. When I asked if health records or history is included in the standard background check, the representative not only said that health records disclosure is prohibited by HIPAA (Health Information Privacy Act) but is definitely discouraged because of the sensitive nature of the information and it’s lack of relevance to employment verification. On this subject, the representative recommended reading a copy of the Fair Credit Reporting Act so that one may understand what is allowed to be searched and disclosed.

If you want to go through the expense of conducting your own credit and background search of yourself, you can check what’s available among my Resources and in my Recruiter Tools.

— Yvonne LaRose, career and professional development coach, Career and Executive Recruiting Advice

Originally posted by alwin