CUSTOMER RESOURCES

The Candidate's Experience with a Background Check and Hiring

When applying for a job, what will a candidate experience? From the background check and beyond, we review the process from start to finish.

woman with computer and phone applying for job

Many employers may view the hiring process simply as a tool or a pipeline to bring talent into their business. Attract applications, vet candidates, make selections, hire them and slot them into an existing team. However, it is vital not to take a one-sided view of the process—hiring is about more than attracting assets to support a company's functioning. It is also about achieving buy-in from applicants throughout the process. It is essential to focus on the candidate experience, from how you background check them to how you run interviews.

A good candidate experience can create a motivated team member eager to demonstrate that you made the right call. An unpleasant experience can mean offers left on the table and an inability to attract or retain talent. For a small business, the quality of the workforce and its importance are amplified. Every person counts.

That doesn't mean the way forward isn't immediately apparent. Instead, we need to take a step back and evaluate the entire process. What is an applicant's journey? As we answer that question, compare your own processes and imagine what a job-seeker experiences with your employment process. Think about reshaping your process to empower and excite those who will be the best fit on your teams.

What Creates a Positive Candidate Experience?

Before we break down each stage of the candidate experience in recruitment and hiring processes, what should every SMB strive to achieve? You can take action at each stage, but there is also a holistic approach to consider. The following are key factors and feelings that should be present throughout the entire process, not only at any one stage.

Developing a better hiring process and a work environment based on your brand and its values should involve the following core components.

  • Demonstrate interest and engagement with every applicant. Foster a warm, inviting atmosphere founded on your values and centered on your mission. Remember that applicants evaluate you just like you assess them.

  • Personalize experiences wherever possible. Don't be a faceless business with opaque processes disconnected from human experiences. Applicants don't want to be just another number. SMBs have unique opportunities to build teams by fostering a personal connection.

  • Reduce friction from as many places in the process as possible. Don't make completing applications complicated, frustrating, or annoying. Test the systems yourself and imagine a job-seeker in your position.

  • Be communicative. The more engaged you are in exploring a candidate's employment history, the more they feel seen. That can make a difference to successful job offer levels in competitive industries and roles. Don't cease communications and disappear.

  • Be transparent. From pay scales to the types of background checks you use, help applicants establish clear expectations.

  • Be prompt. Job-seekers don't want their time wasted any more than you do. Communicate clearly about timelines around their pre-employment background check.

  • Be kind when you decline. When disqualifying an applicant due to a background check result, satisfy your legal obligations. Let applicants know when you've decided not to proceed with the process.

Let's investigate how Human Resources or a hiring manager can apply these principles across the process to create a better candidate experience.

The Job Applicant's Journey, Step by Step

Individuals seeking jobs will have a range of experiences throughout the hiring and onboarding process. Many people submit multiple applications to different businesses simultaneously, and some may even continue applying to other jobs throughout the process. Differentiating your business fosters a great candidate experience, which can make an impact further along in the process.

Not every job offer you extend guarantees acceptance. Crafting an improved experience can help you stand out from the competition. For SMBs, that's one key to developing a team that can call attention to your brand. It all starts with the job posting.

Discovering and Recognizing Job Opportunities

A well-crafted job listing and an informative, well-made business website help job seekers notice SMBs in crowded job markets. Researching your business and breaking down the details of your job posts are among the first things a candidate experiences. Avoid dryly written listings that only offer bare facts and no sense of your brand, its voice, or your mission. Tell a story with your postings. Make it a story the suitable applicants will want to involve themselves with.

Job-seekers will often research your business more directly. Tailor your web presence with this in mind, at least in part. Be engaged and visible on social media to promote your business's best aspects. Spotlight any charitable efforts or community engagement programs you organize. When possible, feature stories or testimonials from current or past employees.

When qualified applicants feel optimistic about your business because of their experience during the research stage, they're more likely to move to the next step. Don't expect the right individuals to appear; make an effort to invite their interest.

Completing and Submitting Initial Applications

There's no shortage of stories online from job seekers who have truly appalling experiences with the application process. From TikTok to Reddit and across social media, tales of woe abound – clunky software, systems that demand repeatedly inputting the same resume data, and personality tests that waste hours of time. A lousy application experience is a fast track to souring applicants about your company and its capacity to be a good employer.

Reduce the number of steps to complete an application for your job. Follow modern best practices rather than discredited selection methods. Use applications that users can complete on their chosen platform, including mobile devices. Be clear about expectations and empower individuals to complete applications with ease.

A smooth application process creates a positive impression. The experience at this stage can set the tone for the remainder of your interactions. Better back-end solutions, such as applicant tracking systems, help you stay on top of the process to create improved experiences.

Waiting for Evaluation and Initial Candidate Selection

How your business works once it receives applications is vital. For an applicant, this is one of the least transparent parts of the process. It often requires waiting and hoping for communication from the business. Of course, you must review application data, examine resumes, and ultimately select the individuals you'd like to interview. Selecting the most promising individuals is important—but you shouldn't keep applicants in the dark. Likewise, you shouldn't keep them waiting a long time, either.

A better experience involves immediate personalized communication upon receipt of the application. This communication can establish expectations and elaborate on when applicants can expect more information. If you decide not to select a candidate for an interview, kindly let them know. Continue using personalization in communications with those moving on to the next stage.

Connecting With the Business: Interviews and More

Job interviews still have a valuable place in the application process. They are an employer's chance to ask specific questions and gauge someone's suitability with the organization. Likewise, applicants often see the interview as their chance to judge the company. A frustrating candidate experience with the interview process can leave them disinclined to accept a job offer.

There are many things businesses can do to improve outcomes in this area without sacrificing valuable information. Some of those actions include:

  • Employ skills tests or practical assessments as interview components. Tailor any practical assessments you use so they are not labor or time-intensive.

  • Give applicants a chance to prove themselves or demonstrate their passion. When asking questions, avoid cliches, such as " What is your biggest weakness?” Engage applicants in conversation about real on-the-job challenges and assess how they might respond to a hurdle.

  • Invite the applicant to learn more about the business, such as providing a tour through the building or conversing with an existing employee. Provide more information about your culture. Create a sense of the environment the individual will experience working in the business.

  • Communicate promptly before and after the interview. Offer flexible options, such as remote video interviews.

Just as the candidates do, put your best foot forward during the interview process and make the experience positive. Now, you'll need to decide who moves forward. Politely and personally notify those you won't move forward and conclude the process.

The Background Check Process

For many employers, the background check process begins after the job interview cycle identifies the most qualified and well-suited individuals. Beware of any ban the box or Fair Chance laws in your state or local area. These rules may demand that you postpone background checks until making a conditional job offer. Understand any other regulatory requirements, such as when the law requires you to check an applicant's driving record for DOT-regulated jobs.

Under the Fair Credit Reporting Act, you must obey several directives when conducting background checks. First and foremost is obtaining an applicant's informed consent. You must provide a standalone disclosure of your intent to use background checks for employment. This disclosure informs applicants about the process. A statement of their rights under the FCRA is also key. After providing such documents, you can get an applicant's signed consent to the check—you can't proceed without it.

Even for applicants with clean records, going through different background checks often proves nerve-wracking—especially since it means more waiting on answers. You can help calm nervous candidates by providing clarity and insight into the process. Offer clear timelines related to your consideration process. Obtain and evaluate detailed reports as quickly as possible. Keep individuals informed about the status of your evaluation from stage to stage.

Receiving and Considering the Job Offer

Now comes the time to make the job offer. If you decide not to offer someone a position (or to rescind an offer) because of a background check result, you have compliance matters to consider. Disqualifying candidates because of information in their report falls into the category of adverse actions.

The FCRA mandates that you send a pre-adverse action letter detailing your intent. You must give the candidate time to respond and dispute your findings. Be patient and understanding if a dispute does arise. Otherwise, you may send a final adverse action notice and conclude the process. Consider wishing candidates well in your final communications.

Now comes the time to celebrate with those you've chosen to hire. When you craft offers, be competitive. Build benefits packages that can make a real difference for employees. Focus on tangible things like health insurance and better wages rather than in-office creature comforts. SMBs can define themselves differently from the competition by building offers that clarify that the company cares about looking after its employees.

Be sure to draw attention to all your unique value propositions for employees. Such UVPs could be remote or hybrid work opportunities that help reduce commuting. A variable schedule that's flexible for parents or young professionals is often an attractive feature.

Be as excited to bring a new worker on board as the individuals will be about receiving excellent job offers. Spotlight that joining the team is an exciting opportunity. When a job candidate accepts, you have one last duty in the hiring process: creating a seamless onboarding process that affirms the experience you've crafted from the start.

Engaging With Onboarding

Make onboarding simple, from completing I-9 forms to undergoing orientation and learning about company policies. Use the onboarding process to educate newcomers about all the opportunities they can access in the business. If you run any internal training programs or career development opportunities, highlight them. Make their accessibility a selling point. Showcase examples of internal promotions and how other employees in your SMB have moved up over time.

If you've done everything right, this process will result in a talented and motivated new employee ready to contribute to everyone's success. Considering the applicant's journey, the importance of the candidate's experience is self-evident.

The Impact of Background Check Processes on Candidate Experiences

Let's take a step back to zero on one particular aspect of the process described above: the screening stage.

This moment is critical for employers, especially in ban the box jurisdictions. A criminal background check may reveal disappointing and potentially disqualifying information. Reference or verification checks might showcase problems you didn't anticipate during the interview. You may change your mind based on these check results.

All this takes place while applicants wait nervously to hear back from you. Many companies don't provide any transparency or insight into this process. Leaving applicants in the dark is an upsetting experience. Beginning from a place of openness is critical. So, too, is working around the risks you face.

FCRA non-compliance is the biggest of those risks. Remember, you must obtain informed consent from applicants. That requires particular paperwork with meticulously defined language. Including disclosures with the wrong paperwork has been the root cause of lost lawsuits for many businesses. You must review your obligations carefully to create a good experience for individuals submitting to background screening.

Provide applicants with a general time frame for when they can expect a background check result. Some online websites and other utilities let users see the status of the process. Displaying the various stages, from “submitted” to “report obtained” and “evaluating,” can help applicants understand how much longer they need to wait. When you decide, move on to the following steps: communicating an offer or sending a pre-adverse action notice.

Build Better Experiences and Hire the Right People Today

It's easy for employers to get tunnel vision when dealing with the hiring process. When you refocus your efforts beyond your own needs to create a positive candidate experience, everyone benefits. You can attract more talented job applicants and onboard individuals excited and motivated to work for you. Doing so requires effort, though, especially in areas such as applications, interviews, and background checks.

Reduce friction as much as possible in the recruitment process. Prioritize positive interactions and fast turnaround times on questions or concerns. Develop a candidate experience with the background check that doesn't induce anxiety but provides transparency. Adopt best practices for screening compliance so you can focus on better experiences without concerns about violating the FCRA. Take stock of the experience you provide and explore how you can streamline key parts of your process with backgroundchecks.com today.

Additional Resources


Pizza Chain and Major Bank Sued in Class Actions for Technical FCRA Violations

 

Plaintiff's law firms are suing large employers for technical violations of the disclosure requirements of the FCRA. At the beginning of the summer, we noted a class action where a plaintiff class asserted that the inclusion of the FCRA disclosure in the job application entitled the class to statutory damages of $670,000 to $6,700,000. Shortly after that, we noted a case where a company had settled a claim that the FCRA disclosure was invalid because it was not separate for $1,200,000.

We now see that a plaintiff's firm has filed class action cases against a major pizza chain and a major bank. In the pizza chain case, the plaintiff alleges that the disclosure is invalid because the disclosure form included a release of liability. In the bank case, the plaintiff alleges that the bank included its FCRA disclosure in a document covering all of the terms and conditions of employment and which contained a release of liability, instead of having the disclosure in a separate document, as the FCRA requires.This type of claim appears to be the plaintiffs firms' favorite type of claim right now, because it is simple to prove and opens up the possibility of statutory damages ($100 to $1,000 per defective disclosure), uncapped punitive damages, and attorney's fees.

 

Plaintiff need not proof that defendant is a CRA under the FCRA to survive a motion to dismiss

Robins v. Spokeo, Inc., 2011 U.S. Dist. LEXIS 54102 (C.D. Cal. May 11, 2011) Facts: On January 27, 2011 , the Court dismissed Plaintiff's Complaint for lack of standing and gave Plaintiff twenty days to amend to meet the standing requirements. On February 16, 2011 , Plaintiff filed an amended complaint and alleged that Defendant operated its website, Spokeo.com, in violation of the FCRA. Specifically, Plaintiff claimed that reports generated by Defendant contained inaccurate consumer information that was marketed to entities performing background checks. As a result of Defendant's FCRA violations, Plaintiff alleged that Defendant caused him actual and/or imminent harm by creating, displaying, and marketing inaccurate consumer reporting information about Plaintiff. In response to Plaintiff’s amended complaint, Defendant brought a second Motion to Dismiss pursuant to Fed. R. Civ. P. 12(b)(1) and (12(b)(6) arguing that it could not be sued for FCRA violations because it was not a consumer reporting agency (“ CRA ”). Defendant’s Motion to Dismiss was denied. · Subject Matter Jurisdiction. Defendant argued that the Court did not have subject matter jurisdiction to consider Plaintiff's claims. The Court disagreed. A plaintiff has Article III standing to sue where the plaintiff alleges facts showing that (1) it has suffered an injury in fact; (2) the injury is fairly traceable to the challenged action of the defendant; and (3) it is likely that the injury would be redressed by a favorable decision. In light of Plaintiff's amended complaint, the Court found that Plaintiff alleged sufficient facts to confer Article III standing. Specifically, Plaintiff alleged that Defendant marketed inaccurate consumer reporting information about Plaintiff in violation of the FCRA, which was likely to be redressed by a favorable decision from this Court. Thus, Plaintiff established the requisite standing to sue and the Court had subject matter jurisdiction over Plaintiff's claims. · Motion to Dismiss . Alternatively, Defendant moved to dismiss Plaintiff's amended complaint pursuant to Fed. R. Civ. P. 12(b)(6) for failure to state a claim, asserting, among other things, that Defendant was not a CRA under the FCRA. · Consumer Reporting Agency. Defendant contended that it was not a CRA as defined by 15 U.S.C. § 1681a(f) because it did not regularly engage in providing consumer credit information for the purpose of furnishing consumer reports. Conversely, Plaintiff alleged that Defendant fell within the scope of FCRA because Defendant collected and created consumer information consisting of consumers’ economic wealth and creditworthiness for the purpose of furnishing it to paid subscribers who regularly provide monetary fees in exchange for Defendants s reports. The Court denied Defendant’s Motion to Dismiss Plaintiff’s FCRA claims holding that Plaintiff’s complaint needed only to contain sufficient factual matters that, if accepted as true, would state a claim to relief that was plausible on its face. Plaintiff did not need to prove that Defendant was in fact a CRA at the initial dismissal phase of the litigation. Thus, Plaintiff’s allegations that Defendant regularly accepted money in exchange for reports that contained data and evaluations regarding consumers’ economic wealth and creditworthiness were sufficient to support a plausible inference that Defendant’s conduct fell within the scope of the FCRA. About Strasburger & Price Attorneys from Strasburger & Price, LLP involved in FCRA litigation have been monitoring and analyzing the legislative and caselaw developments related to this area of the law. This group of lawyers will continue to follow these developments throughout the coming months to help you understand how it impacts your business as well as to help you make the necessary decisions to succeed under this ever changing area of credit reporting and employment screening/criminal and credit background check compliance. Click here to find out about our authors.

Federal Trade Commission Issues New Guidance on the Fair Credit Reporting Act

 

In 1990, the FTC issued a commentary on the FCRA (published as an appendix to 16 CFR part 600). Between 1997 and 2001, it issued informal opinion letters in response to selected questions that it received. Changes to the FCRA, primarily in 1996 and 2003, rendered much of the prior commentary obsolete. The new guidance reflects the FTC’s most up-to-date guidance.

Additionally, the FTC has formally withdrawn its prior commentary. In a press release, the FTC notes that the reason for this is that the recent financial reform legislation transferred the FTC’s authority to issue this kind of guidance to the newly created Consumer Financial Protection Bureau.

The FTC says that the new guidance mostly codifies its prior positions, but that it modifies some of its prior interpretations. Therefore,.

Please see below for links to the documents referenced in this update:

For more information on this update may affect your program and how backgroundchecks.com can help, please contact client services.

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