Types of Background Checks: What Employers Should Know

Pre-employment background screening is all about getting the full picture of who you’re thinking about hiring. Companies use these checks to make sure candidates are being honest about their education, work experience, skills, and character, – while also figuring out if they’ll actually be a good fit for the job and your company culture. The real value comes from catching red flags early: fake credentials, criminal records, dishonest applicants, or anything else that could hurt your business down the road. When these types of pre-employment background checks are done right, background screening builds a trustworthy workforce, keeps your workplace safe and professional, and helps you avoid those expensive hiring mistakes that can cost you big time later.

What Is pre-employment screening?

Pre-employment screening (also called background checks, employment screening, or candidate verification) is the process of investigating and verifying information about job candidates before making a hiring decision. The goal is simple: make sure everything candidates tell you about their education, work history, credentials, character, and legal background is actually true.

Most background checks cover several key areas:

• Verifying education credentials and certifications
• Checking employment history at previous companies
• Confirming personal information and current address
• Running criminal background checks (when required)
• Contacting references to get feedback from former managers or colleagues
• Reviewing credit history and financial background (for certain positions)
• Conducting drug and alcohol testing (if needed)

By conducting thorough screenings, employers can make more informed decisions, leading to better hires and ultimately resulting in a stronger workforce.

8 types of pre-employment background checks

Depending on your industry and job requirements, companies use different combinations of background checks to ensure accurate hiring and minimize risk. Here are the 8 most common types of pre-employment background screening:

1. Criminal background checks

Criminal background checks are the most critical type of screening – they reveal whether candidates have any criminal history, convictions, or legal violations. This check is mandatory for many sensitive or senior positions, especially in finance, education, healthcare, and security.

In the US, criminal background checks typically include county, state, and federal searches to uncover different levels of criminal activity. Companies may also run sex offender registry checks for positions involving vulnerable populations.

Criminal screening helps companies maintain workforce integrity and comply with employment laws. It’s especially important for management positions, financial roles, or jobs involving children, elderly individuals, or other vulnerable groups.

2. Identity verification

Identity verification is a standard step in any hiring process. With identity fraud becoming more common, this check is more important than ever. The process involves authenticating government-issued documents like driver’s licenses, passports, or Social Security cards.

Employers cross-reference candidate information with official databases to catch any discrepancies or potential fraud. In remote work environments where face-to-face contact is limited, identity verification becomes especially critical for positions involving sensitive information, finances, or high security.

3. Education and credential verification

Education forms the foundation of a candidate’s professional qualifications, so verifying this information is essential – especially for positions requiring specific degrees or certifications. HR teams regularly check candidate credentials during hiring to ensure they meet professional requirements, prevent resume fraud, and protect company’s reputation.

Common verification methods include:

• Requesting original documents for direct comparison
• Contacting schools or issuing institutions to verify authenticity
• Using online databases managed by educational authorities
• Checking security features and comparing personal information on credentials

For international candidates, this process may include verifying foreign education credentials and their US equivalents. Keep in mind that some candidates may have name changes due to marriage or other personal reasons, and verification should account for these factors.

Companies often verify credentials during initial hiring but also periodically or when employees get promoted to important positions.

4. Employment history verification

Employment history verification confirms candidates’ job titles, employment dates, performance, and reasons for leaving previous companies. This screening helps employers:

• Verify previous job titles and responsibilities
• Confirm employment dates and identify unexplained gaps
• Assess past performance and achievements
• Understand the reasons for leaving previous positions
• Spot patterns of job-hopping or career progression issues

Employers can contact previous companies directly or check official records like tax documents. For senior or executive search & selection, the process may go deeper, including conversations with former supervisors or colleagues to evaluate leadership style and team collaboration skills.

5. Reference checks

Reference checks give you a more personal view of a candidate’s work ethic and character. This process involves calling or contacting former supervisors and colleagues directly to get honest feedback about the candidate’s integrity, professionalism, and actual performance.

Through these conversations, employers can learn about:

• The candidate’s strengths and areas for improvement
• Teamwork abilities and interpersonal skills
• Problem-solving skills and how they handle pressure
• Notable achievements or challenges they faced in previous roles

For leadership positions, reference checks are especially valuable for evaluating management style, stress tolerance, and strategic thinking abilities.

6. Credit and financial background checks

Credit checks are typically used for finance-related positions to help employers assess a candidate’s financial responsibility and identify potential risks like significant debt or bankruptcy. This screening is particularly important for detecting bad debt, poor credit history, and evaluating personal financial responsibility.

Positions that commonly require credit checks include financial management and accounting roles, bank employees and loan officers, executives with access to company finances, roles involving cash or valuable assets, and government jobs requiring security clearance.

Important considerations for credit checks:

• Get clear written consent from candidates
• Follow federal and state laws (like the Fair Credit Reporting Act)
• Use the information responsibly and only for job-related decisions

While poor credit history isn’t automatically disqualifying, it may lead to additional discussions or careful consideration for roles requiring high financial trust.

7. Address and residence history verification

Address verification confirms where candidates live and their residential history. This process verifies current and previous addresses, cross-references with public records, and checks how long they’ve lived at each location. It’s especially important for management, security, or sensitive positions.

The main benefits of verification include ensuring contact information is accurate, identifying any discrepancies in personal history, and assessing candidate stability and reliability through residential patterns.

In some special cases, this verification may extend to contacting neighbors or family members, typically for:

• High-security positions requiring clearance
• Roles working with vulnerable populations (children, elderly)
• Positions requiring frequent relocation or travel
• When there are unexplained gaps in residential history

8. Drug and alcohol testing

Drug and alcohol testing is mandatory for transportation jobs, equipment operators, aviation roles, and other safety-sensitive positions. This screening is especially critical in high-risk work environments where substance use could cause serious accidents or endanger multiple people.

These tests help ensure workplace safety, comply with federal safety regulations (like DOT requirements), and reduce the risk of accidents and incidents. Some industries like healthcare, education, or child-focused roles may also require testing to maintain safe and professional work environments.

Testing typically includes pre-employment screening and may continue with random testing, post-accident testing, or reasonable suspicion testing depending on the role and industry requirements.

Common background verification methods

To effectively conduct the 8 types of screening above, employers need to use appropriate and professional verification methods. Choosing the right candidate assessment solutions ensures accuracy, saves time, and keeps you compliant with legal requirements.

1. Document verification is the most basic method – checking government-issued IDs like driver’s licenses, passports, or Social Security cards. Cross-referencing personal information with official databases helps catch identity fraud or fake documents. Direct contact with organizations like former employers and schools remains one of the most effective ways to verify someone’s background.
2. Database searches through public records and professional HR platforms are becoming increasingly popular. Cross-checking information with government agencies helps verify document authenticity quickly and accurately. Credit and financial checks are also conducted through reputable credit bureaus when needed for specific roles.
3. Professional background screening services are becoming the go-to choice for many businesses. These specialized companies don’t just ensure objective and accurate processes – they also handle legal compliance, saving companies time and resources while reducing liability.
4. Social media screening is increasingly part of modern candidate verification. Employers review public content on platforms like Facebook, LinkedIn, and Instagram to assess cultural fit, identify potential risk behaviors, or verify information from resumes and interviews. However, this must be done carefully to avoid discrimination and privacy violations.

Combining multiple verification methods creates a complete picture of candidates, helping employers make informed decisions and minimize hiring risks. The key is choosing the right mix of methods based on your industry, position requirements, and legal obligations.

However, these extended checks should be done with caution and respect for privacy, and only when necessary for the role in question. Employers should always comply with relevant privacy laws and obtain proper consent before conducting such in-depth checks.

Implementing a robust pre-employment background check process is a valuable investment for any organization. 8 types of pre-employment background checks help minimize hiring risks, improve the quality of hires, and contributes to a safer work environment. Talentnet offers a comprehensive suite of global HR solutions designed to streamline the verification process. Our pre – employment check service services provide employers with the critical data they need while ensuring compliance with relevant laws and regulations. By leveraging our expertise, companies can expedite their hiring procedures and make well-informed decisions about potential candidates.

FAQ about pre-employment background screening

Do HR teams actually check college degrees, and how do they verify them?

Yes, HR departments at most companies regularly verify college degrees, especially for positions requiring specific qualifications or at larger corporations and government agencies. Common verification methods include requesting original documents for direct comparison, using online verification systems through institutions like the National Student Clearinghouse, contacting the degree-granting institution directly, and cross-referencing with public databases to catch fraudulent credentials.

What’s the difference between background checks and reference checks?

Background checks are comprehensive and cover multiple areas like education, criminal history, credit reports, and employment records to verify all candidate information and identify potential risks. Reference checks are more focused, concentrating on professional skills and character through feedback from former managers and colleagues. In other words, background checks provide “breadth” of information, while reference checks offer “depth” about actual work experience and performance.

How much do professional background screening services cost?

Background screening costs vary significantly depending on the scope of verification and complexity of requirements. Contact Talentnet for detailed pricing based on your specific business needs and volume requirements.

How long does it take to complete a candidate’s background check?

Background check completion typically takes 3-10 business days, depending on the level of detail and cooperation from various parties involved. Simple verifications like basic information checks can be completed in 1-2 days, while comprehensive screenings involving international references or foreign education verification may take several weeks. With Talentnet’s professional services, processing times are optimized to meet your fast-paced hiring needs.