Background Check Software

In theory, background checks should be the easiest part of the hiring workflow. If you're part of the 72 percent of companies that perform a background check on every new hire though, you know that this final hurdle to employment can still come with its fair share of headaches—even if the results come back clean.

Between maintaining mountains of paperwork for compliance purposes, keeping track of payments to background check providers and updating the status of candidates in your hiring pipeline, there are more than a few steps where errors can, and do, occur. Errors lead to delays, and delays mean potentially pushing back a new hire starting date. That's no good.

Which is why if you're looking to save time, ensure accuracy and reduce costly delays with employee background checks, you should consider background check software: systems designed to help HR personnel stay on top of this small but important process.

If you're new to background check software, this Buyer's Guide can help. Below, we'll go over everything you need to know to find the right system for your needs.

Here's what we'll cover:

What Is Background Check Software?
Common Background Check Software Functionality
Businesses That Benefit the Most From Background Check Software
Key Considerations When Evaluating Background Check Providers

What Is Background Check Software?

As the name implies, background check software helps companies digitize and automate processes pertaining to requesting, obtaining, paying for and tracking the status of employee background checks. More accurately, background check software is a combination of software and service—vendors either offer background check services themselves (rare) or partner with someone who does (more common).

Compared to disparate emails and paper files, background check software offers a more secure, centralized and streamlined solution that can save you time while ensuring nothing with regard to background checks falls through the cracks.

Background check software can be purchased either stand-alone (e.g., Intelifi's Emerge) or as an optional feature set integrated within a more comprehensive recruiting or onboarding software platform (e.g., Newton).

Common Background Check Software Functionality

When researching different background check software vendors, you should expect to find these features in a majority of systems:

Software functionality is just one half of the equation though. You should also learn which types of background check services a vendor or their partnered providers can offer. Here are some common options to ask about:

• Criminal history
• Drug screening
• Social security trace
• Employment verification
• Education verification

Depending on your company, there may also be more industry-specific background checks you should include on your must-have list. Fleet companies, for example, should ensure their vendor offers motor vehicle screenings, while those in finance may require credit checks.

Businesses That Benefit the Most from Background Check Software

If you only do background checks for a few select roles or don't do a ton of hiring outside of seasonal spikes, it's unlikely that you'll get enough value out of dedicated background check software to warrant the cost. On the other hand, if you're one of these types of businesses, background check software is more than a worthwhile investment:

• High-volume recruiters. Retailers, restaurants, hospitality businesses and other high-volume recruiters have to hire a lot of low or unskilled labor quickly. For this reason alone, background check software is a must to shorten time to hire.
  
• Multistate businesses. Laws differ from state to state regarding what you can and can't do with background checks. For example, in 12 states you can't go back more than seven years when looking for criminal convictions. Everywhere else, you can look at a candidate's entire history. With background check software, you can avoid compliance missteps.
  
• Finance, IT and health care. According to a CareerBuilder survey, these three industries are some of the worst when it comes to applicants lying on their resume. More thorough background checks facilitated through software can ensure you catch imposters before it's too late.

Key Considerations When Evaluating Background Check Providers

There isn't a ton of variance when it comes to the background check software itself. If it has the functionality you want, is intuitive to use and has great reviews from other users, you should be good to go.

The background check provider that will actually be performing the service requires more scrutiny. Here are some things to look out for when evaluating them:

• Are they FCRA-compliant and NAPBS-accredited? The Fair Credit Reporting Act (FCRA) regulates the information about a candidate you're entitled to learn and what you're allowed to do with it. There are a handful of enticing online tools out there for DIY background checks, but these services are rarely, if ever, FCRA-compliant. Instead, look for a provider who employs experts that will do the background checks for you, accredited by the National Association of Professional Background Screeners (NAPBS).
  
• Do their priorities mirror your own? If the candidate experience is of utmost importance to you, don't go with a provider who puts speed of service over courtesy. On the other hand, if you need to hire people quickly, don't invest in a provider with a terrible turnaround time. A background check provider is an extension of your employer brand, so make sure your values align.
  
• Do they partner with any applicant tracking systems (ATSs)? Whether you already have a system in place or are looking to invest in one soon, having a background check provider integrated with your ATS will just make your entire recruiting process and workflow that much more seamless.