Background Screening vs. Reference Checks: What’s the Difference?
When it comes to hiring new employees, employers typically conduct a variety of checks to ensure they are making the right decision. Two of the most common methods are background screening and reference checks. While both processes aim to gather information about a candidate’s qualifications, character, and potential fit within the company, they serve different purposes and focus on different aspects of a candidate’s history.
In this article, we’ll explore the key differences between background screening and reference checks, including what they entail, how they are used, and why both are important in the hiring process.
What Is Background Screening?
Background screening, also known as a background check, is a comprehensive process that involves verifying various aspects of a candidate’s background. This process often includes checks related to criminal history, employment history, educational background, credit history, and more. The goal of background screening is to provide a complete picture of a candidate’s past and assess any potential risks that may affect their suitability for the job.
Key Elements of Background Screening:
- Criminal History: Verifying whether the candidate has any criminal convictions or pending charges that could impact their ability to perform the job or compromise workplace safety.
- Employment History: Confirming previous job titles, employers, and the length of employment to ensure the candidate has the experience they claim.
- Educational Verification: Verifying degrees or certifications claimed by the candidate to ensure they have the qualifications they present.
- Credit Check: In some industries, especially those involving financial responsibilities, a credit check may be conducted to assess the candidate’s financial responsibility.
- Drug and Alcohol Testing: Certain industries, especially transportation or healthcare, may require drug testing as part of the screening process.
- Social Media Review: Some employers review a candidate’s social media profiles to gauge their behavior and professionalism.
Purpose of Background Screening:
The primary purpose of background Reliable background screening services is to verify facts, assess risk, and ensure safety. Employers use background checks to ensure that the candidate has the necessary qualifications, is honest about their history, and poses no risk to the organization. It helps in confirming the information provided by the candidate and uncovering any hidden risks, such as a criminal record or poor credit history, which could impact the company’s operations or reputation.
What Are Reference Checks?
Reference checks, on the other hand, are typically conducted by contacting individuals who have worked with the candidate in the past. These individuals—usually former employers, colleagues, or professional contacts—can provide insight into the candidate’s performance, behavior, and character. The reference check process involves direct communication with the people who know the candidate best and can speak to their abilities, work ethic, and suitability for the job.
Key Elements of Reference Checks:
- Job Performance: Inquiring about the candidate’s work habits, strengths, weaknesses, and overall performance in their previous role.
- Character Evaluation: Understanding the candidate’s interpersonal skills, attitude, and how they interact with colleagues, supervisors, and clients.
- Cultural Fit: Gaining insights into whether the candidate would fit well within the company’s culture and work environment.
- Reason for Leaving: Asking about the circumstances surrounding the candidate’s departure from the previous job (e.g., voluntary resignation, termination, or mutual agreement).
- Verification of Soft Skills: Getting feedback on qualities like communication, leadership, problem-solving, and teamwork.
Purpose of Reference Checks:
Reference checks are used to validate the candidate’s claims and provide insights into their work ethic and behavior. This process helps employers understand how the candidate performs in a professional setting and whether they are likely to succeed in the role. It can also reveal a candidate’s strengths and areas for improvement, helping employers make a more informed decision about their suitability for the job.
Key Differences Between Background Screening and Reference Checks
- Scope of Information:
- Background Screening: Provides a comprehensive view of a candidate’s history, including criminal records, employment verification, education, and other factual information. It focuses on verifying the facts provided by the candidate and assessing risk.
- Reference Checks: Focuses on the candidate’s behavior, performance, and interpersonal skills based on feedback from previous employers or colleagues. It provides subjective insights into the candidate’s character and suitability for the role.
- Source of Information:
- Background Screening: The information is gathered from official sources, such as government databases, previous employers, educational institutions, and credit agencies. It is factual and objective.
- Reference Checks: The information is gathered from personal contacts—typically people who have worked directly with the candidate in the past. It is subjective, based on personal experiences and opinions.
- Purpose:
- Background Screening: Primarily designed to verify factual information, assess risk, and ensure safety and compliance with legal requirements.
- Reference Checks: Aimed at understanding the candidate’s soft skills, work habits, and whether they will fit well into the team and company culture.
- Depth of Inquiry:
- Background Screening: Delves deeply into official records and databases to provide a detailed account of the candidate’s history. This can include criminal checks, credit reports, and employment records.
- Reference Checks: Involves conversations or questionnaires that may not provide as detailed a view of the candidate’s history but focus more on qualitative aspects of their professional relationships and capabilities.
- Timeframe:
- Background Screening: Can take a few days to a couple of weeks depending on the complexity and the type of checks being conducted.
- Reference Checks: Typically quicker, as they involve contacting individuals who are already familiar with the candidate. However, they may be delayed if references are difficult to reach.
Why Are Both Important?
While background screening and reference checks have different focuses, both are critical components of a thorough hiring process. They work in tandem to provide a well-rounded view of a candidate, helping employers make informed decisions.
- Background screening helps identify any hidden risks (such as a criminal record or discrepancies in education) that could negatively impact the company or its employees. It ensures the candidate has been truthful in their application and that their background aligns with the responsibilities of the role.
- Reference checks provide context to the candidate’s qualifications by offering insight into their personal and professional qualities. They help gauge whether the candidate is likely to thrive in the company’s culture and whether they possess the interpersonal skills necessary to succeed in the position.
Employers who conduct both background screenings and reference checks are more likely to hire candidates who not only meet the technical requirements of the role but also fit well within the company’s culture and contribute to its long-term success.
Conclusion
In summary, background screening and reference checks are both valuable tools in the hiring process, but they serve different purposes. Background screenings focus on verifying facts and identifying risks, while reference checks provide a more subjective look into a candidate’s work ethic, personality, and fit within the company. By using both methods, employers can make more informed decisions, reducing the risk of making a bad hire and ensuring they bring on board individuals who are well-suited to the role and the organization’s culture.