Pre-Employment Checks: An HR Guide

In the modern corporate landscape, where competition is fierce and company success depends on assembling the right team, the role of human resources (HR) and HR software has become a strategic cornerstone. One of the most important compliance responsibilities of hiring managers is to conduct thorough pre-employment screenings - this is not only critical for complying with laws, but also for building a capable and reliable workforce.

These screenings go beyond simply checking basic qualifications. They are an important part of risk management as they ensure that new employees align with company values, have the required skills and have a clean background. In this comprehensive guide, we'll dive into the intricacies of pre-employment screenings and offer hiring managers valuable insight and practical tips to make this important process effective.

What are pre-employment screenings?

Pre-employment screenings, often referred to as background checks or pre-screening, are a set of procedures that employers perform to check the suitability of potential applicants before making a final hiring decision. They are designed to verify the accuracy of information provided by applicants, assess their qualifications, and identify any potential anomalies that could impact their performance, behavior, or suitability for a particular job. While pre-employment screenings vary in scope and intensity depending on the type of job and industry, they typically include elements such as:

• Right to work verification
• Criminal history verification
• Educational history verification
• Employment history verification
• Credit history (if relevant)
• Professional licenses or certifications

Pre-employment screenings serve the interests of both employers and job seekers and are primarily designed to ensure the integrity and reliability of new employees. For employers, these screenings mitigate the risks associated with negligent hiring, help maintain a safe work environment, protect company assets, and improve the overall quality of the workforce. Applicants benefit, too, as pre-employment screenings promote transparency and contribute to a fair assessment process. Ultimately, these checks help employers build a workforce that is professional, trustworthy and competent.

Pre-employment checks are typically built into the recruitment process at some point, usually after the initial review of CVs and applications - but sometimes after an offer has been made. When (and which) pre-employment checks should be carried out depends on whether your business is bound by any legal requirements it must comply with, and typically the type of role and the seniority of the candidate.

Why should your business conduct pre-employment checks?

Conducting pre-employment checks offers a number of compelling benefits for your business and for overall operational excellence. Firstly, pre-employment checks play a critical role in ensuring that candidates are suitable for the role they are applying for - for example, work eligibility checks ensure that they are legally entitled to work in the UK. These screenings help protect your company from potential legal consequences resulting from hiring unsuitable candidates, thereby promoting compliance with employment laws and the integrity of your workforce.

Legal considerations aside, pre-employment checks are an important mechanism for verifying the accuracy of information provided by candidates during the application process. Verifying personal and professional details such as educational credentials, employment history and certifications mitigates the risk of misrepresentation and guarantees that you select people who have the skills and experience required to excel in their roles. This vetting process ensures that only the most qualified and credible candidates progress through the selection process and are hired.

Research by the CIPD has found that each new hire costs your company between £8,000 and £12,000 (including internal recruitment time, advertising costs and agency or recruitment consultant fees). Add to that the cost of potential reputational damage and potential financial fraud or fines. All of these risks can be mitigated with pre-employment checks, which can cost as little as a few hundred pounds per person.

Data protection considerations for your business

The Data Protection Act 2018 (DPA) and the General Data Protection Regulation (GDPR) affect how your organization can collect, store and use data. Your HR activities are also affected by these laws, including the collection and storage of recruitment data, employee records and references.

Your business must be able to demonstrate that employees have been informed of the use of their personal data and that they have been given a clear explanation of how this data will be handled. Your employees should voluntarily consent to the processing and storage of their data. Recording employee and candidate data - including the results of pre-employment screenings - in GDPR-compliant HR software will help you protect this personal information.

How long do pre-employment screenings take?

The length of pre-employment checks can vary greatly and depends on factors such as the complexity of the checks, the efficiency of third-party screening services and the specific needs of the employer. On average, pre-employment checks take between a few days and several weeks. Basic checks, such as criminal background checks or reference checks, can be completed within a few days, but for more extensive checks that include a review of education, employment history and additional credentials, the time frame can extend to a few weeks. It is important for employers to find a balance between conducting thorough checks and avoiding unnecessary prolongation of the recruitment process to ensure a timely and efficient recruitment process.

Five pre-employment checks your company should conduct

Here are five common checks companies conduct when hiring candidates.

1.Right to work check

All employers are required by law to check whether a candidate is allowed to work in the UK before offering them a job. Make sure you know what checks you need to carry out to confirm someone has the right to work in the UK or you could be subject to a civil penalty. At the time of writing, this penalty was £15,000 for a first offence and £20,000 per offence for repeat offenders. These fines will rise to £45,000 for a first offence and £60,000 per offence for repeat offenders in early 2024.

Employers who want to implement the digital right to work and verify the right to work digitally and remotely on holders of a valid UK or Irish passport will need to engage an accredited identity service provider (IDSP). The IDSP must meet Good Practice Guide 45 (GPG 45) Medium Level of Confidence (MLoC). Employers can no longer check work entitlement documents remotely via video call and must either opt for digital checks for eligible applicants or check the documents in person. Digital identity checks require the employer to confirm the applicant's identity either via video call or in person after the check is complete and before employment begins.

2.Criminal record checks

Criminal record checks in the UK are carried out by the Disclosure and Barring Service (DBS) and involve a query of the Police National Computer (PNC). Depending on the scope of the check, some or all of an individual's convictions will be listed on the certificate. All checks expire once they are issued as they are only accurate at that point in time, so they should be updated regularly - many employers carry out a new check every one to two years.

Basic DBS Check

A basic DBS check only checks non-final convictions. These checks can be requested by an employer or an individual. Processing takes around 48 hours and the certificate takes around two weeks to be issued.

Standard DBS Checks

A standard DBS check is required for certain jobs (such as financial services). It will look at a person's criminal record in more detail and, depending on the job, may show cautions or offences that are considered spent in other circumstances. The DBS will decide what to record on the certificate on a case-by-case basis, taking into account the offence, the period in which it was committed and the job requirements.

Enhanced DBS Checks

An enhanced DBS check is the highest level of checking a person's criminal background and, in addition to a standard check, will include any details held in the PNC that may be relevant to the job. It will typically take up to eight weeks for the certificate to come back. Sectors/jobs that require enhanced screening include:

• Education (e.g. teachers)
• Healthcare workers with direct, unsupervised contact with vulnerable people
• Childcare workers
• Social workers

3.Employee health checks

There are only two cases where you can ask a successful candidate to undergo a pre-employment health check, which you should highlight in the offer letter to your new employee:

• If it is required by law (e.g. an eye test for professional drivers)
• If it is required as part of the job (e.g. if your insurers require a health check on your bike couriers)

The Equality Act 2010 highlights in section 60(1) that employers must not ask a candidate any questions about their health before making a job offer - whether in person, via a form or through a third party (e.g. a previous employer). This is to prevent businesses making decisions based on a person's physical or mental health or any disability they may have.

Section 60(6) of the same Act states that you can ask health or medical questions at this stage to:

• Determine whether a candidate requires reasonable adjustments during the assessment to remove any disadvantage
• Find out whether a function essential to the role can be performed
• Monitor candidate diversity
• Take positive action for people with a disability
• Assess whether a person meets a job requirement relating to a particular disability (for example, if a blind charity wants a project to be led by a person with a visual impairment)

4.Checking qualifications and references

If you are filling a position that requires specialized skills, such as that of a doctor or engineer, checking the applicant's qualifications is a must. In some cases, this is done to comply with legal requirements. In other cases, it is simply to be sure that your applicant has the necessary education to successfully complete the position.

If you have doubts that an applicant's qualifications are not legitimate, don't worry. You can ask the applicant to provide proof of the degrees and certificates mentioned in their resume. If this is not possible, you should reconsider hiring them.

You should also check references. This will give you a deeper insight into the applicant's personality and the way they work with you, and it will allow you to verify the accuracy of the information about their work history.

5.Review social media and online presence

Depending on the role your candidate is asked to perform, you should review their online and social media presence. For example, if the role requires the use of personal accounts to distribute company content, a social media review can help ensure that the online presence reflects your company's values. However, we recommend using caution when making final hiring decisions based solely on online content. It could be from a long time ago, be unrelated, or misrepresent the candidate. Ideally, you should confirm suitability through social media reviews. And if you find anything unsavory or confusing, give candidates the opportunity to explain their posts.

Common Challenges of Conducting Pre-Employment Screening

Conducting pre-employment screening is an indispensable part of the hiring process, but it can come with some challenges and difficulties, such as:

• Meet deadlines while maintaining thoroughness - this is particularly challenging in industries such as retail or hospitality, where high turnover rates can strain resources and impact business operations due to the volume of checks required
• Effective data storage and management - companies face the difficult task of securely storing sensitive applicant data while tracking multiple checks
• Keep on top of and comply with evolving legislation - employment laws and data protection regulations can change quickly and impact the permissible scope and methodology of pre-employment checks.

Fortunately, an HR software like IceHrm can mitigate these challenges.

Thorough pre-employment screenings are vital for compliance and building a trustworthy workforce. IceHrm simplifies and streamlines this process, ensuring your hiring practices are effective and legally sound.