How to Run a Background Check: A Step-By-Step Guide for Small Business

When you're running a small business, you want to make sure your new hire candidates are trustworthy and reliable. Learning how to run a background check on someone for employment is one of the best ways to safeguard your business. 

Background checks allow you to verify a candidate's work history, criminal record, and other critical details. This can mean the difference when it comes to hiring the right person —and protecting your team and business.

Background checks can uncover information that may not appear on a resume, like criminal records, to give you peace of mind. But understanding the process—and making sure you stay compliant with laws around background checks— is crucial for small business owners who want to make informed decisions.

In this article, we’ll walk you through the steps of how to run a background check, including how to run a criminal background check, the associated costs, and the legal guidelines that govern the process. Follow these tips to stay informed on how to protect your business and hire the best talent there is.

What is a background check?

A background check is a process that verifies a candidate’s identity, employment history, criminal record, and other relevant personal information. It can be a critical step in the hiring process and helps employers hire trustworthy individuals who won’t pose risks to the business or its employees.

Background checks can all kinds of information, such as criminal offenses, credit history, and past employment verification. For workplace purposes, the background check process typically involves looking into a candidate’s work history, criminal record, educational background, and, in some cases, driving records. Employers may choose to run more specialized checks, such as criminal background checks or financial background checks, depending on the role’s requirements.

Overall, a background check helps businesses make more informed decisions and can prevent future liabilities related to negligent hiring.

How long does it take to run a background check?

The length of time it takes to run a background check varies depending on the type of check and the provider used. Typically, a background check for employment takes between 1 to 5 business days to complete.

This timeline can vary based on the depth of the search, such as if you’re checking for criminal records, employment verification, or educational credentials, which can take longer. Factors that may affect the timeline include how quickly the necessary databases can be accessed, if manual searches are required, and whether you're working with third-party verification services.

Criminal background checks typically take even longer—especially if you're checking records across multiple states or jurisdictions. Plan carefully when conducting a background check to avoid delaying your hiring process.

How much does it cost to run a background check?

The cost of running a background check varies depending on the scope of the search and the service provider. Basic background checks that cover employment history or identity verification can cost anywhere between $20 to $50. However, more comprehensive checks that include criminal background checks and multi-state searches may cost upwards of $100. 

Employers should consider their specific needs when deciding on the level of detail they require from a background check. Using a third-party service can cost more, but it can also simplify the process and ensure accuracy. While it may be tempting to opt for a lower-cost or DIY option, choosing the option that provides the most accurate and up-to-date information can avoid any legal or compliance issues. 

Remember—investing in a thorough background check can save businesses from potential risks and reap long-term benefits.

What is the best background check for employers?

The best background check for employers typically depends on the nature of the position and the level of scrutiny its duties require. For most employers, a comprehensive background check for employment includes criminal history, employment verification, education verification, and a review of credit history for roles involving financial responsibilities.

Employers should also consider running specialized checks based on the role. For example, criminal background checks are vital for positions that involve working with vulnerable populations or handling sensitive information. Meanwhile, a work history background check ensures that candidates have the necessary experience. 

Consider working with a reliable background check service provider that offers multi-level searches. The best providers (like Homebase) offer customizable packages so you can tailor the search to your business’s specific needs.

Background check for employment: 10 checks employers should run

When hiring new employees, running the right types of background checks is essential to ensure the candidate is the right fit and doesn’t pose risks to your business. Here are the most important types of background checks employers should consider running.

1. Criminal background check

A criminal background check is one of the most common checks for employers to run, as it helps uncover any criminal history that could disqualify a candidate from the role. This check covers offenses such as felonies, misdemeanors, and any history of violent or financial crimes.

 If you're wondering how to run a criminal background check, try accessing public records or using a third-party provider to ensure comprehensive coverage.

2. Work history background check

A work history background check verifies the employment details provided by the candidate, including the companies they worked for, their job titles, and their tenure in each position. This type of check ensures the candidate has the relevant experience for the role and helps confirm that their resume is accurate.

3. Education background check

An education background check confirms a candidate’s academic qualifications. Employers may check high school diplomas, college degrees, and certifications, particularly for roles where specific educational credentials are required. This check helps ensure the candidate has the necessary knowledge for the position.

4. Credit check

A credit check is typically used for positions that involve handling finances or sensitive data. It helps employers assess a candidate’s financial responsibility and can reveal any issues with debt or bankruptcy. Credit checks are often necessary for accounting, financial, or managerial roles.

5. Reference check

A reference check involves contacting former supervisors or colleagues to confirm a candidate's performance, work ethic, and qualifications. While reference checks rely on subjective feedback, they provide valuable insights into how a candidate may perform in the role.

6. Drug testing

Some industries, such as healthcare or transportation, require drug testing to ensure employees are not under the influence of illegal substances. Drug testing can be conducted before hiring and periodically during employment, depending on the role and the company’s policies.

7. Driving record check

A driving record check is crucial for positions that involve operating vehicles. Employers can review a candidate’s driving history, including any traffic violations, DUIs, or accidents. This check helps ensure that the employee is a responsible and safe driver.

8. Social media check

A social media check reviews a candidate’s online presence, including their activity on platforms like LinkedIn, Twitter, and Facebook. While not as formal as other checks, this can help employers identify any potential red flags, such as unprofessional behavior or offensive content.

9. Sex offender registry check

A sex offender registry check allows employers to ensure that a candidate has not been convicted of any sex-related offenses. This type of check is often required for positions that involve working with vulnerable populations, such as children or the elderly.

10. International background check

For candidates who have worked or lived abroad, an international background check can be necessary. This type of check ensures that the candidate’s criminal, employment, and educational records from other countries are reviewed, giving employers a full picture of their background.

No matter which checks you’re running for the protection of your business, be sure to choose the checks that are most relevant to the role and industry.

How to do a background check in 8 steps

If you’ve looked over the options and decided to run the background check yourself, you’re taking an important step toward protecting your business!Here are  eight steps toward running a background check for employees:

1. Get consent from the candidate.

Before you begin, it's crucial to obtain written consent from the candidate. Under laws like the Fair Credit Reporting Act (FCRA), you must inform the candidate that a background check will be conducted and get their approval. This ensures transparency and protects your business from legal issues.

Be clear about the types of checks you’ll be conducting, whether it’s a criminal background check or a work history background check. Remember, candidates have rights, and proper consent is key to staying compliant.

2. Choose the type of background check needed.

Decide which type of background check is necessary for the role. A role involving financial responsibilities may require a credit check, while jobs requiring driving will need a driving record check. Determine if you need to conduct criminal background checks, verify work history, or review educational credentials.

In other words, tailor the checks you run to the role you’re hiring for. Most background checks for employment won’t include all 10 of the different types we listed above. Being smart about what checks are really required for the position can save you time and money.

3. Gather essential candidate information.

Collect accurate details from your candidate, including full name, Social Security number, date of birth, and any previous addresses. You’ll need this information to complete most background checks, especially for verifying employment history and criminal records.

Having accurate and complete information helps ensure that the results you receive are correct and pertain to the right individual.

4. Choose a reliable background check service.

Select a background check service that meets your needs. You can conduct some checks manually, but using a service like Homebase is a more reliable option. Homebase offers an easy-to-use background check process, covering everything from criminal background checks to work history verification.

Homebase can even integrate background checks into your hiring process, automating parts of the procedure and ensuring you stay compliant with regulations. Plus, Homebase simplifies the process of running a background check for employment, providing small businesses with a streamlined experience.

5. Run the background check.

Once you’ve chosen a service and gathered the necessary information, you can run the background check. Input the candidate’s details into the system and request the specific checks you need, whether it’s a criminal background check, a work history background check, or both.

Running the background check may take anywhere from a few hours to a few weeks, depending on the depth and scope of the check.

6. Review the results.

Once the background check is complete, review the results carefully. Look at the criminal background checks, employment verification, and any other findings. Consider how these results align with your business’s hiring standards and whether there are any red flags.

Make sure to evaluate any discrepancies, such as mismatched employment dates or gaps in education, before making a final decision.

7. Make an informed hiring decision.

Use the results of the background check, combined with the candidate’s interview performance, to make an informed hiring decision. Remember, a background check for employees is just one part of the hiring process, and it should complement other aspects like skills, experience, and culture fit.

If the background check reveals any concerns, decide whether those issues are deal-breakers or if they can be addressed during onboarding.

8. Notify the candidate.

If you decide not to hire someone based on their background check, it is required by law to provide them with an adverse action notice. This document explains that their background check results influenced your decision and gives them the opportunity to correct any inaccuracies.

Being transparent and following proper procedures will help you avoid potential legal issues and maintain a fair hiring process.

By following these steps, you can confidently run background checks to ensure that your new hires are trustworthy and qualified to join your team. Using a reliable service like Homebase simplifies the process and ensures compliance with legal requirements.

Master background checks for your business with Homebase.

Running a background check is vital to ensuring your small business hires reliable and trustworthy employees. In this guide, we covered the essential steps of how to run a background check, from obtaining consent and choosing the right type of check to reviewing the results and making informed decisions. 

Whether you’re checking for criminal history, verifying employment, or assessing financial responsibility, background checks can protect your business and create a safer work environment. Using a reliable service like Homebase makes the process smoother and more compliant with regulations. 

Background checks are about more than just preventing fraud—they help build trust and ensure that your team is made up of the right people. By integrating background checks into your hiring process, you can rest easy knowing you’re safeguarding your business, making more confident hiring decisions, and hiring the best talent for the job.