Background check

What is a background check?

A background check is a common, though not mandatory, step in the hiring process. It helps HR teams verify the information provided by a candidate on their résumé or during the interview. It also allows employers to assess a candidate’s credibility and suitability for the role.

A background check may include:

• verification of employment history;
• confirmation of education, certifications, and licenses;
• reference checks with previous supervisors;
• criminal record screening (when legally justified and permitted);
• a review of social media presence;
• in certain cases – credit history checks or screening against sanctions lists, especially in the financial or public sectors.

The primary goal of a background check is to minimize the risk of hiring someone who could pose financial, reputational, or legal risks to the organization.

Is conducting background checks legal?

The legality of background checks depends on local labor laws and data protection regulations. In most jurisdictions, employers are allowed to conduct background checks, but the scope and conditions are strictly regulated. Typically, employers can only process personal data that is necessary and relevant to the specific role. In many cases, they are also required to obtain the candidate’s explicit consent before collecting information from third-party sources.

Regardless of the country, the key principles that usually apply are lawfulness, necessity, transparency, and proportionality – meaning that any background screening must be appropriate to the position and limited to what is truly needed for the hiring decision.

What types of data can be checked during a background screening?

The specific information that can be verified during a background check depends primarily on the nature of the position and applicable legal regulations. While each hiring process may require a slightly different approach, there are common data points that are typically reviewed – as well as categories of information that employers are not permitted to check.

Information commonly allowed for verification

• Employment history – confirmation of previous roles, dates of employment, and reasons for leaving.
• Education and qualifications – validation of degrees, certifications, and licenses.
• Professional references – provided the candidate has given explicit consent.
• Criminal record – only when legally required for specific roles (e.g., working with children, security services, or financial institutions).
• Identity and legal right to work – in accordance with immigration and labor laws.

Information excluded from verification

• Political or religious beliefs, or sexual orientation – these are sensitive personal data, and processing them is typically prohibited.
• Health status – except in cases where medical exams are mandatory for the position.
• Family status or pregnancy – questions on these topics are generally not allowed.
• Credit history – cannot be used as a basis for hiring decisions unless specifically justified (e.g., in regulated professions).

Why is it worth conducting a background check?

Conducting a background check allows employers to:

• Verify the authenticity of information provided in the résumé and interview – including professional experience, education, and certifications. For example, confirming whether a candidate actually completed a listed degree and whether the institution is legitimate and properly accredited.
• Avoid hiring individuals who may pose a risk to the organization – due to concealed aspects of their past, lack of required licenses, or unethical behavior in previous roles. For instance, a candidate applying for a driving position may have had their license revoked following a DUI incident.
• Protect the company’s image and reputation – especially for roles that are public-facing or involve access to sensitive data. For example, hiring a candidate accused of financial misconduct as a CFO could undermine the trust of clients, investors, or business partners.
• Ensure compliance with industry regulations – in certain sectors, legal requirements mandate specific types of background checks, such as criminal record screenings in education or professional license verification in the financial industry.
• Improve hiring quality and reduce turnover – reviewing a candidate’s career history can reveal patterns such as frequent job changes, which may indicate challenges with adaptation or cultural fit. This helps HR teams better assess whether a candidate is likely to thrive in the given work environment.

When should you conduct a background check?

Background checks are most commonly conducted at the final stage of the recruitment process – after the initial candidate screening and before signing the employment contract. In some cases, they may also be included as a condition in the job offer (e.g., „employment contingent upon successful background verification”).

It’s worth considering a background check if:

• You’re hiring for positions that require a high level of trust – such as roles in finance, HR, IT, or those involving access to personal or confidential information.
• The role involves working with children, the elderly, or vulnerable individuals – where specific legal requirements around criminal records and qualifications may apply.
• The employee will represent the company externally – in relationships with clients, partners, or the media – and their behavior may impact the organization’s public image.
• Regulatory compliance is required – for example, in banking, physical security, aviation, education, or healthcare.
• You’re hiring someone from abroad or with professional experience gained in another country – and want to verify the authenticity of documents, qualifications, or employment history.
• The recruitment process involves a managerial or strategic position – where a hiring mistake could result in significant costs or risks to the organization.
• You notice discrepancies in the candidate’s documents or work history – and want to confirm the accuracy of the information before making a final hiring decision.

How long does a background check take?

The duration of a background check depends on several factors, including:

• The scope of the screening – for example, checking references from a former employer usually takes less time than verifying professional qualifications internationally.
• Availability of information sources – some data may be available immediately, while others require formal requests or third-party confirmations.
• The candidate’s cooperation – such as providing consent to contact previous employers or submitting additional documents.

The entire process can take anywhere from a few days – in the case of basic verification – to several weeks for more comprehensive checks. For regulated or international positions, the timeline may be even longer. That’s why it’s important to factor background screening into your recruitment timeline early on.

In such cases, working with specialized third-party providers can be a valuable support, as they offer professional and efficient background check services.

Challenges associated with the background check process

Implementing a background check process requires a thoughtful approach, clearly defined guidelines, and a solid understanding of applicable laws. This procedure presents a number of practical and ethical challenges.

Practical challenges

• Time-consuming process – verifying documents and employment history can take several weeks and may require additional formal steps, placing extra burden on recruiters and the HR team.
• Lack of standardization – legal differences between countries, limited access to international databases, and varying document formats can make it difficult to carry out consistent and reliable verifications.
• Risk of errors or outdated information – data obtained from external sources may be incomplete, outdated, or inaccurate, increasing the risk of poor hiring decisions.
• Costs – using professional verification services or accessing paid databases may incur additional expenses, which should be factored into the recruitment budget.

Ethical challenges

• Privacy boundaries – background checks involve processing personal data, so it’s essential to follow the principle of data minimization and avoid collecting information that is irrelevant to the role.
• Consent and transparency – candidates should be clearly informed about the scope and purpose of the background check. Their consent must be voluntary, informed, and properly documented.
• Risk of bias and discrimination – background check results may lead to unfair assessments, such as penalizing a candidate for a past criminal record unrelated to the role, or for gaps in employment due to caregiving, illness, or a career break.

How can an HR platform support the background check process?

An HR platform like PeopleForce helps streamline and organize background checks as part of the overall recruitment process. It enables you to:

• Seamlessly integrate background checks into your recruitment workflow – complete with reminders and email communication.
• Easily include GDPR consent requests in application forms.
• Automatically send reference requests to candidates and their referees.
• Manage all documents in one place and collect required signatures from candidates.
• Generate reports and archive documentation for compliance and audit purposes.
• Share relevant information with recruiters and hiring managers according to defined access levels.

By centralizing all collected data and documents, you eliminate communication gaps and ensure smooth coordination across your team.

Background check – key takeaways

A background check is a valuable tool for making responsible and informed hiring decisions. It helps verify critical information and reduces the risk of a poor job match. When conducted thoughtfully, in compliance with legal requirements, and in the right context, it becomes a pillar of trust and transparency – both within the recruitment team and in your relationships with candidates.