Construction Hiring: Should You Do a Background Check for Every Employee?

Hiring the right tradesperson is crucial for the success and safety of any construction business. The wrong hire can have significant consequences, including costly mistakes, damage to your reputation, and even legal troubles.

Background checks play a vital role in mitigating these risks. By thoroughly vetting potential hires, you can ensure that they are truly qualified and trustworthy.

The Need for Thorough Screening

A staggering third of adults admit to embellishing their resumes. This alarming statistic highlights the importance of careful screening. Hiring someone who misrepresents their qualifications can have serious repercussions, especially in the construction industry where precision and safety are paramount.

Furthermore, criminal background checks are essential. In the construction hiring process, employees often work in close proximity to valuable equipment and sensitive project sites. Ensuring that hires have a clean criminal record or proof of rehabilitation is crucial to maintaining a safe and secure work environment.

With 96% of U.S. employers already conducting these checks, it's clear that background checks are a standard practice in today's hiring landscape.

Say goodbye to wasting time on bad candidates. Our vetting process ensures only qualified candidates make it to your desk. Schedule a 15-minute call today

Understanding Resume Embellishment

In the construction industry, where specific skills and certifications are essential, hiring someone based on false information can have severe consequences. A single error can result in project delays, increased costs, and dangerous working conditions.

To mitigate the risk of resume embellishment, employers can filter for resume fraud by:

Conducting thorough reference checks, verifying the candidate's employment history and qualifications with previous employers.
Using skills assessments and practical tests during the hiring process to ensure that candidates possess the necessary competencies.

Effective construction hiring involves more than reviewing resumes—it means verifying skills and ensuring honesty from the start.

Why Criminal Background Checks Are Crucial

Criminal background checks help protect your business from potential liabilities. For instance, hiring someone with a history of theft or fraud can pose a significant financial risk to your business. Employees with violent criminal histories could pose a safety risk to other staff members and clients.

Criminal background checks can enhance your company's reputation and build trust with clients. However, it's important to conduct an individualized assessment when reviewing a candidate's criminal history. Employers should consider factors such as the nature of the offense, how much time has passed, and its relevance to the job. Blanket policies that disqualify candidates based solely on criminal records can violate Equal Employment Opportunity Commission (EEOC) guidelines.

Criminal background checks are a critical component of the construction hiring process, especially in the trades industry.

Criminal background checks are a critical component of the hiring process, especially in the trades industry. In the construction sector, employees often work in close proximity to valuable equipment and sensitive project sites.

The Cost of a Bad Hire

Data reveals that 41% of employers estimate the cost of a bad hire to be over $25,000, while 24% estimate it to be over $50,000.

The staggering costs come from various factors, including lost productivity, increased training expenses, and potential legal fees. While background checks represent a direct cost for construction businesses, this investment is crucial to mitigate the substantial financial risks associated with hiring the wrong individual.

Best Practices for Conducting Background Checks

Conducting thorough background checks requires a systematic approach:

Define the Scope: Determine the specific types of background checks needed for each role (i.e:, criminal history, employment verification, and education).
Obtain Consent:Obtain written consent from the candidate before initiating any background check. In many states, background checks should only be conducted after a conditional job offer has been made to the candidate to comply with 'Ban the Box' laws.
Use Reputable Services: Partner with reputable background check providers.
Verify Information: Cross-check background check information with the candidate's resume and references.
Review Results: Carefully review the results and consider any red flags in the context of the role's requirements.
Make Informed Decisions: Use the background check results to make informed hiring decisions.

When done right, background checks enhance the quality of construction hiring by reducing costly mistakes and improving team safety.

Legal Considerations for Conducting Background Checks

In the United States, background checks are subject to several federal and state laws.

The Fair Credit Reporting Act (FCRA) is a key federal law that governs background checks. It requires employers to:

Obtain written consent from the candidate before conducting any background check.
Provide clear and conspicuous disclosure to the candidate that a background check will be conducted for employment purposes.
If the background check results in an adverse action (e.g., not hiring the candidate), the employer must provide the candidate with a "pre-adverse action disclosure;" a copy of the background check report; and an opportunity to review the report and dispute any inaccuracies before a final decision is made.

It's also crucial to consider the Equal Employment Opportunity Commission (EEOC) guidelines, which caution against policies that disproportionately exclude certain racial groups without a legitimate business reason.

Additionally, many states have their own laws that may impose further restrictions on background checks, such as:

Certain states, such as California, New York, and Texas, have a 7-year lookback limit, meaning employers cannot consider criminal records older than seven years. Other states restrict the types of criminal history that can be considered, such as arrests that did not lead to a conviction. Employers should review their state-specific laws to ensure full compliance.

Complying with these legal requirements is essential to protect the rights of candidates and shield your business from potential legal challenges.

Secure the right talent, from apprentices to project managers, for any construction role. Schedule a 15-minute call today!

Key Takeaways on Background Checks:

Avoid costly mistakes and ensure a safe and reliable workforce by performing a background check on all employees.
Risks of Wrong Hires include costly mistakes, reputational damage, and legal issues.
Key Benefits include mitigating resume fraud, protecting the business from liabilities, ensuring employee and client safety, and enhancing company reputation and client trust.
The Cost of a Bad Hire include lost productivity, increased training, legal fees, and project delays.
Best Practices for Conducting Background Checks include using a reputable background check provider, obtaining candidate consent, verifying information with resumes and references, carefully reviewing the results, and making an informed hiring decision.
Legal Considerations include compliance with the Fair Credit Reporting Act (FCRA)., state-specific regulations and EEOC guidelines, and protecting candidate rights and maintaining legal compliance.