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8 myths about background checks

Background checks are an important tool for employers to ensure that the right person is in the right place when recruiting. Despite this, there are many misconceptions about what background checks are and how they work. In this article, we will dispel eight common myths about background checks. Read on and see if you recognise any of the myths.

Preventing risks with a background check on employees' social media and online behaviour

Myth 1: “All background checks are illegal”

A common myth is that background checks are illegal. In fact, background checks are legal when they are conducted in accordance with the applicable rules and laws. It is of the utmost importance to follow all current guidelines to ensure that the process is fair and transparent. For example, under the GDPR and other data protection laws, employers must inform candidates what data will be collected and how it will be used. It is therefore important to choose an organisation that follows these guidelines for background checks.

More on background checks and the GDPR

Myth 2: “Background checks are only for big companies”

It is a misconception that only large companies can use background checks. Both small and large companies can and should use background checks. Using background checks minimises the risks of hiring the wrong people. This can help reduce the risk of fraud, financial crimes and other problems that can arise from hiring the wrong people. Small businesses often have limited resources and can therefore be particularly vulnerable to the negative consequences of wrongful hiring. Large companies, on the other hand, may be more exposed to external threats and become targets for criminals.

Learn more about background checks by downloading this white paper on background checks for multinational companies.

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Myth 3: “Background checks are expensive and time-consuming”

Many people believe that background checks are both expensive and time-consuming, especially if you do them yourself. There are cost-effective, safe and compliant ways to conduct background checks. However, employers who are going to outsource screening services should avoid rogue background screening companies. By conducting thorough market research on laws and regulations and finding reliable background check companies, you can compare companies to see which ones fit your organisation’s needs. As an example, if you are hiring staff from abroad, it may be beneficial for the background check company in question to perform international checks or offer flexible checks for different roles in your organisation.

With Validata, you can easily make use of our online platform Valluga. There, you as an employer can submit your request for the background check you wish to perform and receive a finalised result within a few days. For each completed interim report, you can see the result right away.

It is also important to remember that a wrong recruitment can lead to significant costs for the company. According to a US study by CareerBuilder, it can cost a company an average of $15 000, equivalent to 160 000 Swedish kronor. In addition to the time and resources spent on recruitment, training and potential termination costs, inappropriate recruitment can lead to reduced productivity and affect morale and the overall work environment, according to the study.

Is your organisation ready to conduct background checks? Don’t hesitate to contact us or book a demo directly with our account manager, who will be happy to help you tailor checks to your needs.

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Myth 4: “Background checks only check criminal background”

Another common myth is that background checks only focus on criminal backgrounds. In reality, background checks can include a variety of factors such as work experience, educational background and criminal records. In some cases, depending on the role, credit and identity checks are also carried out. If you are hiring a citizen of a non-EU country, you are also required to check work permits. Validata offers different types of background checks, such as identity checks and checks on education and diplomas, giving you a complete picture of the candidate’s background.

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Background checks violate privacy

Myth 5: “Background checks violate privacy”

There is a concern that background checks violate candidates’ privacy. However, when background checks are conducted correctly, they respect candidates’ privacy. It is important to comply with the GDPR when conducting a background check, as the check involves requesting and verifying personal data. Background checks are only allowed to be carried out if there is a legal basis, which there is in recruitment. A background check carried out in connection with new employment or as part of recruitment is therefore permitted under the GDPR.

There are rules and guidelines that must be followed during the process. For example, the employer must inform the candidate that a background check is being carried out, and the personal data collected must be protected against loss and unauthorised processing.

How it works

 

Myth 6: “No need for a background check – a criminal record is enough”

Simply requesting a criminal record from the police does not provide a complete picture of a candidate. The criminal record is limited to only those crimes for which a person has been convicted. This means that any suspicions of crime or other problematic behavior will not be apparent.

Professional background check companies offer a more comprehensive and detailed assessment, which includes several aspects of the candidate’s background. At Validata, we have years of experience and offer a legal background check. This means that information about crimes and convictions is retrieved directly from Sweden’s courts instead of from the Police’s criminal record. You as an employer will then receive a response within a few days.

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Myth 7: “I hire internationally. It’s not possible to do a background check”

It is perfectly possible to carry out international background checks. With reputable background check companies, you can easily perform international checks. Before choosing a background check company, you should make sure that the company offers checks globally. Today, there is an established network of providers that obtain databases globally. This allows you to verify foreign education, previous employment, credit outside of Sweden, and even criminal background and criminal records in other countries. Having a global workforce means that companies need to be aware of and comply with different countries’ data protection and privacy laws and regulations (GDPR).

Need help navigating complex legal landscapes and ensuring that all checks are carried out in accordance with local laws and regulations? We have solutions for those hiring internationally.

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Myth 8: “You need to have the candidate’s consent when doing background checks”

No, you don’t actually need the candidate’s consent to conduct background checks. As an employer, you are allowed to carry out background checks as part of the recruitment process. However, you must comply with the General Data Protection Regulation (GDPR) and the Swedish Discrimination Act. You also have an obligation to inform the applicant about the background check, but do not need to obtain the applicant’s consent, according to the GDPR. This is to ensure that the process is transparent and that candidates are aware of what is being checked. It is important to inform candidates about what data will be collected, how it will be used, and what rights they have to challenge incorrect information.

Background checks and GDPR

Let Validata help you with background checks

Validata offers services to manage background checks in a professional and efficient way. Through our software Valluga, you can easily run multiple checks simultaneously and start hiring faster. With Validata, you can rest assured that you will get reliable and comprehensive results that will help you make quick and informed hiring decisions. Our services are designed to be cost-effective and time-saving, enabling businesses of all sizes to benefit from our solutions.

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Do you have questions about background checks or want to know more about how Validata can help you? Contact us today for more information!

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