Onboarding new employees is never simple. And figuring out what type of employee background checks you need to run just makes everything more complicated.
Plus, regulated industries like finance, education and healthcare make it even more confusing.
If you’ve ever asked the question, “What on earth is a PEP?” or tried to figure out if your new starter needed an enhanced DBS check, this is the post for you.
Want to level up your background checking know-how? Check out our complete guide to UK background checks.
How do I decide what checks to run on new employees?
The checks you run on new employees are decided by two things: industry regulations and your company’s policies.
In regulated industries like financial services, education, and healthcare, you have to run certain checks for certain roles.
For example, if you’re hiring for certain finance roles you’ll need to run all the regular checks plus credit checks, directorship checks, and possibly even adverse media checks. (Wondering what all those are? Just keep reading.)
To make things more complicated, your company will likely have internal policies about the types of checks they run on new starters at different levels. If they don’t, well, hopefully the info below will help you write your own.
Types of employee background checks
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Employment verification checks
Employment reference checks verify your candidate’s employment history so you can hire with confidence. At Zinc, we integrate directly with HMRC to make sure that the information you’re getting is accurate, and so you can make confident decisions.
Why do employment verification checks?
Employment verification checks are another way to make sure candidates are who they say they are — and they’ve got the experience to back it up. It protects your company from risk and ensures everyone’s working to the highest standards.
How common is this check?
Employment verification is standard practice across all industries and roles.
Criminal record checks
Just like it says on the tin, criminal records checks search for criminal records or convictions and help identify candidates who may pose a risk to your organisation. The way criminal checks work varies globally, so the process can look different across candidates.
Why do criminal records checks?
Criminal records checks make sure your business is safe and protected from financial harm or a damaged reputation. Plus, it identifies any red flags and makes sure you’re building a safe environment for employees and clients.
How common is this check?
It’s likely to be used across all industries.
Education checks
Verifying educational credentials or professional certifications directly with institutions is the best way to make sure your candidate has the education they claim to have. If they need certifications to work in their roles, it’s even more important.
Why do education checks?
Whether you’re verifying one credential or multiple degrees, checking academic credentials ensures they’re aligned with the requirements of their roles. Certain industries also require accreditation, which you need to make sure is legit.
How common is this check?
It’s most likely to be used in industries like healthcare, engineering, certain financial roles, and education.
Right to work checks
Right to work checks confirm the candidate's right-to-work for any country globally.
Why do right to work checks?
RTW checks make sure you’re complying with immigration and employment laws and protects you from any legal liabilities.
How common is this check?
RTW checks are used across all industries.
Reference checks
Whether it’s providing a character reference or simply getting confirmation of work history, reference checks are a valuable insight into a candidate’s past experience and the best way to make sure the experience listed on their CV is accurate.
For more info about reference checks, read our referencing guide.
Why do reference checks?
Reference checks give you a sneak peek into a candidate’s past work performance and how they might fit in at your organisation. It’s also a way to catch any red flags that might’ve been missed during the interview process.
How common is this check?
Reference checks are used across all industries.
Address checks
Address verification is one of the first steps in the screening process, and confirms a candidate’s current address.
Why do address checks?
Address checks help confirm a candidate’s contact info and reduces the risk of hiring individuals with false identities or undisclosed information.
How common is this check?
Address checks are used across all industries.
UK credit checks
Credit checks run through the TransUnion Credit Bureau search the candidate's name and address for any CCJs (County Court Judgments), IVAs (Individual Voluntary Arrangements), or bankruptcies. Credit checks will also flag if they have any unpaid debt that requires them to be in court.
Why do UK credit checks?
A credit check indicates financial stability and can identify any potential risk for positions involving financial management or access to sensitive information. If your company is regulated by the FCA, a bad credit check might be a disqualifying factor.
How common is this check?
UK credit checks are most likely to be used in the finance sector.
Finance checks
If you’re hiring someone into a finance, banking, or compliance role, you obviously don’t want them to be on a finance watchlist. Financial watchlist database checks are essential for complying with regulations that aim to prevent money laundering, terrorist financing, and other financial crimes.
Why do finance checks?
Finance checks evaluate a candidate’s financial history globally, responsibility, and potential risks associated with roles involving financial management, access to company funds, or handling sensitive financial data. This process helps mitigate potential fraud, embezzlement, or conflicts of interest, ensuring financial security.
How common is this check?
It’s most likely to be used for roles in finance, banking, or compliance.
Identity checks
Identify checks use facial recognition that works off a submitted photo of an ID document and a selfie. The system verifies the document's authenticity and matches the selfie with the ID photo to confirm the user's identity.
Why do identity checks?
Identify checks ensuring a candidate is who they claim to be. This establishes a foundation of trust and transparency between the company and potential employees.
How common is this check?
Identity checks are used across all industries.
Directorship checks
Directorship checks offer peace of mind for legal compliance, risk mitigation, and conflict of interest identification. They help you meet regulatory requirements, check that the candidate isn’t a disqualified director in certain countries, and doesn’t have any conflicts of interest.
Why do directorship checks?
To assess whether the candidate holds any current or previous directorship positions, which could affect their ability to fulfil their new role effectively. This helps ensure transparency, avoid potential legal or ethical issues, and safeguard the company's reputation and business interests.
How common is this check?
Directorship checks are used across the financial industry to comply with legal requirements.
Sanctions and watchlist checks
If you’re hiring in the security industry, you need to be absolutely sure you can trust your candidate. A sanctions and watchlist check confirms that candidates aren’t on any international sanctions lists and makes sure you aren’t hiring candidates linked to illegal activities, which is always a business win.
Why do sanctions and watchlists checks?
Sanctions and watchlist checks help mitigate potential regulatory and security risks, ensuring the company doesn’t engage with individuals or entities that have previously been involved with illegal or prohibited activities.
How common is this check?
Sanctions and watchlist checks are typically used in the security industry.
Adverse media checks
Zinc’s adverse media checks look at real-time data, monitoring thousands of news sources, business and trade journals and local, regional and national newspapers. The result is categorised by risk type, including media relating to accusations, arrest, trial and exoneration.
Why do adverse media checks?
Adverse media checks ensure alignment between the company's values and the candidate. It helps you make informed decisions about the candidate's suitability for the role and their potential impact on the organisation.
How common is this check?
Adverse media checks are common for roles in the finance industry.
Social media checks
Scanning publicly available social media accounts is an unbiased way of making sure that a candidate aligns with your business and your organisation is protected.
Why do social media checks?
How many public figures and companies have been impacted by a rogue social media post missed in the screening process? That’s not a club you want to join. Social media checks are a way to curb risks from public social media profiles, and can protect your company from liability or a damaged reputation.
How common is this check?
Social media checks are used for roles across multiple industries, particularly in high-profile positions.
Politically exposed persons check
Like a sanctions check or a directorship check, a politically exposed persons (PEP) check identifies candidates who hold, or have previously held, positions of political significance that could increase their vulnerability to financial crime.
Why do PEP checks?
PEP checks identify candidates who might be vulnerable to influence and help you protect your company’s reputation. At Zinc, we use three categories to help you sort through risk: low, medium, and high risk.
How common is this check?
PEP checks are typically used in security and finance roles.
Last question: how long does it take background checks to come back?
Turnaround times vary a lot between providers — some take days, others weeks. Plus, turnaround times for certain checks are dependent on third parties that can have big backlogs (we’re looking at you, enhanced DBS).
At Zinc, we’re pretty proud of our turnaround times. So proud, in fact, that we publish our turnaround times for everyone to see.
If you’d like to know more about how using Zinc for your background checks can save you time and improve the candidate experience, we’d love to hear from you. Book a meeting with our team here.
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