Do Temporary Service Employment Agencies Perform Background Checks?

Michelle Wilson - November 29, 2021

A temporary employment agency acts as the middle man between potential candidates and employers wanting to fill vacant job positions. As a potential candidate, it’s essential to confirm an agency’s application process or employee screening. With a little due diligence, you’ll ensure that any temp worker coming into your establishment has the right skills for the job and a clean criminal record to minimize liability.

Some Agencies Do Background Checks

Several employment agencies automatically run a background check for any worker in their system. This process is only complete when the individual is otherwise approved to mitigate costs. The thoroughness of a background check may vary significantly, depending on the agency. Some agencies may only check applicants’ criminal records, while others may include comprehensive reviews – criminal records, sex offenders, employment history, and other critical components. Always confirm with the agency on the duration of the background check as well. Some agencies may check the last seven years of records, while others include a lifetime screening.

Some Agencies Don’t Run Background Checks

Some temp agencies don’t subject applicants to background checks for employment as a cost-cutting initiative. If you’re looking to fill a position, you’ll want to find an agency willing to offer the work after proper outside checks are complete. Always advise the agency of your screening needs at the time of contact, so they’re aware of external conditions to employment. The agency may require your company to pay for the screening fees or pass the expenses on to the temp worker. Discuss any screenings completed by the agency before signing a contract. If a background check is mandatory for your position, ask the recruiter for their external process to have this complete.

Alternatives to Background Checks

Consider using a third-party service if you need to run a background check on an employee before starting a position, and the agency can’t fill your request. The majority of these companies charge a flat-rate fee for an individual check, making it a cost-effective hiring method. Always look for a company that offers incredible customer service, including up-to-date and accessible reports.

Things to Consider with a Background Check

Try to find a comprehensive report when hiring a third party, including critical areas of liability for your company. Pay attention to any considerable gaps in employment, particularly if they don’t match the resume offered. For example, every employee within your company (whether a permanent or temporary hire) should pass criminal background checks if they’re working with the general public. Likewise, a background check should always include employment verification to confirm credentials and history with other companies.

If your company handles financial accounts or sensitive details, you’ll want to ensure any temp workers have experience in the field without a criminal history. Take a close look at the candidate’s financial credit history. Red flags might include maxed-out credit cards, delinquent accounts, past-due payments, evictions, or low credit scores. You want someone responsible for financial accounts, which reflects through their daily financial statements.

Additional Risk Factors to Consider

Finally, if the temp worker is going to be driving any motor vehicles, always ensure they pass a driver’s history. Look for any ongoing issues with their driving record, including speeding tickets, accidents, or driving under the influence charges. Having a driver on the payroll with extensive driving infractions is a liability to your company. Remember, should an employee (whether full-time, part-time, seasonal, or temporary) is going to fall under your company’s insurance. Unless you have a private contract specifying differently, an accident will be a company issue.

Anyone working with young children or vulnerable populations should also pass a sex offender registry check. Many employers require this screening process to minimize the liability of the company.

Temporary Staff Agency Screening Process

A temp agency might use different screening methods to secure a candidate, including a comprehensive interview process, complete with a personality assessment and skills analysis. Initially, all candidates are considered for your company’s position. Recruiters will screen all resumes for keywords and prior positions that closely match the skillsets you’ve specified. From there, the applications are narrowed to include any relevant experience on the job. This includes verifying all details to confirm all relevant parties are truthful and accurate. The resume screening might include calling previous employers to verify past employment or speaking with references before continuing the application.

Qualified candidates are invited to interview for your position, which can verify skills further, including potential personality traits needed for the job (for example, an outgoing personality for a sales position). The interview may highlight strengths and weaknesses too.

Whether personality testing, computer skills, or hands-on technical components, every agency differs from the application process. Once the interview is complete, many agencies require testing of all candidates. This testing ensures all skills listed on the resume are complete and accurate before starting the position.

Finally, most temp agencies offer client feedback of any potential candidate for their position. This feedback might include expected work ethic, attitude, and potential abilities on the job. The recruiter can offer unbiased opinions of the qualifications noted, documenting the entire evaluation process. This feedback is critical in determining whether a potential candidate is viable for the current position, future positions, or whether he’s not an ideal match for your company overall.

Client feedback is essential for weeding out talent that doesn’t match your company’s goals or objectives. It also helps evaluate viability within the position, based on their direct observations. When in doubt, ask your recruiter any questions about the candidate after the testing process.

Things to Consider Before Running a Check

It’s important to remember that any employment background check requires written consent from the candidate. Make sure you include the name, address, and reason for running the background check. Have the document ready and available, as it’s required by law. As many candidates may have disqualifying details on the background report, it may be wise to ask the potential candidate to pay for the check as a contingency for employment. When the check comes back clean, you can offer reimbursement (if desired).

Any background checks that come back with questionable or disqualifying details must be given to candidates with the denial. Make sure you include a copy of the report along with the reporting agency used. Should a candidate have an explanation for the results, encourage the individual to dispute it accordingly. As an employer, you do not have to hold a position for a candidate that didn’t pass the background check but disputes the results.

Conclusion

Having a qualified candidate is only one component of hiring a new temp worker. If your company requires a background check, make sure you discuss this with the agency at the time of registration. Try to be specific about your needs, skills, qualifications, and prior experience. Should the agency not offer in-house background checks, talk to them about outsourcing the screening process to a third-party company. To avoid excessive expenses screening candidates, have potential employees pay for the background check as a contingency for employment. Once the report is successfully returned, your company can choose to reimburse the temp worker (if desired) and draft an offer letter with your temp worker.