Complete Guide to Staffing Agency Background Checks

Trust between an employer and a candidate is paramount, which is why most employers run background checks before confirming a new hire. This is especially true for staffing agencies, which specialize in short-term or project-based placements for their clients. 

And while staffing agencies make money by placing top-tier talent in their candidates’ open roles, but they’ll hurt their reputation if they hire unqualified workers.

That’s where staffing agency background checks come into play. These screenings ensure that candidates are properly vetted, reducing risk for employers and improving placement quality. From verifying employment history to running a criminal background check, these checks are a core part of how agencies deliver value to their clients.

Both agency workers and candidates interested in placements should understand how the background check recruitment process works. In this guide, you’ll learn how staffing agency background checks work, why they matter, and the limitations of relying too heavily on them.

What Are Staffing Agency Background Checks?

Staffing agencies conduct background checks to verify candidates’ job histories, criminal backgrounds, and personal information. The goal of a staffing agency background check is to confirm that a candidate is a good fit for its clients’ open jobs.

However, there’s a range of options for background checks. Some are simple criminal background checks, while others do more in-depth drug screenings and credit checks. It all comes down to the client’s industry requirements and role. It’s not unusual for background checks to look into:

• Criminal history
• Employment history verification
• Education verification
• Identity verification
• References
• Drug testing
• Credit checks
• Licensing or certification verification

While not every position may require a deep dive, roles that involve sensitive information, finances, or vulnerable populations typically require a more thorough staffing agency criminal background check.

For example, jobs in construction or childcare require stricter background checks than you would need to fill an administrative assistant role.

Why Are Background Checks for Staffing Companies So Important?

Most reputable staffing firms do background checks on every candidate. After all, staffing agencies make their living by guaranteeing good matches to their clients, so they need to verify a candidate’s information before sending them to work at the client’s location. These checks are a must-have for guaranteeing workplace safety, providing companies with workers they can rely on from day one.

Background checks are an additional step, but they’re crucial to:

• Minimize liability: Some sectors, like healthcare or finance, require strict background screening. A poor hiring decision can lead to compliance issues or costly lawsuits.
• Protect client trust: Businesses rely on agencies to deliver thoroughly vetted, qualified candidates. A bad hire can reflect poorly on both the staffing agency and its client, so performing detailed background checks helps uphold your brand’s integrity.
• Improve placement quality: A candidate who passes a thorough staffing agency criminal background check is more likely to be a safe, long-term fit.

Ultimately, background checks are good for both staffing agencies and their clients. Staffing agency background checks are an incredibly common practice that ensures safety and transparency.

How a Typical Staffing Agency Background Check Works

The steps involved in a staffing agency background check will differ depending on the role and the client’s industry. The process generally follows five steps.

1. Candidate Screening

Staffing agencies spend a lot of time on candidate sourcing, but that’s just one part of the process. After sourcing candidates, agencies have to screen everyone to see if they fit their clients’ needs. Think of this as the first filter in the background check recruitment process. Before any formal recruiter background check begins, recruiters conduct a basic screening, which includes reviewing the candidate’s resume, work history, and initial interview responses. In some cases, staffing agencies might require candidate skill assessments.

2. Candidate Authorizes the Full Background Check

After the initial screening, staffing agencies will ask the candidate for written consent to a background check. Agencies can’t conduct a background check without authorization because the process can reveal sensitive personal information. This step is crucial for all background checks, especially when conducting a criminal background check or requesting credit reports.

3. Employment and Education Verification

After the candidate grants permission, the staffing agency background check looks at their employment and education history. This step verifies the candidate’s previous job titles, dates of employment, and education credentials.

Agency employees may also verify that a candidate’s licenses and certifications are still in good standing, which often requires contacting professional bodies or regulatory agencies. That’s why staffing agency background checks can take longer for regulated professions like nursing.

4. Criminal Background Check

Next is the staffing agency criminal background check. This is one of the most important parts of the background check process because most organizations want workers with a clean or minimal record. Criminal checks are especially important for roles that work with sensitive information or vulnerable populations.

If a candidate provided references, the agency may check those references after checking the candidate’s education, employment, and criminal background.

5. Final Review

Once all checks are complete, recruiters conduct a final review before presenting the candidate to the client, which ensures the background checks are completed properly and professionally. If the agency finds any issues or concerns during the check, they will usually contact the candidate for more information.

Most staffing agencies keep background checks in strict confidence, but some authorizations allow them to share their findings with the client. Privacy laws vary, but responsible firms should handle this data with care.

What Are the Most Popular Background Check Companies?

Background checks are necessary for successful candidate placements, but promptly conducting these checks is one of the most common challenges in the staffing industry. Recruiters can’t afford to skip over background checks, but manual effort can increase costs and slow placement timelines.

It’s no wonder why staffing agencies rely on third-party background check companies to do the heavy lifting. Choosing the right partner is key when it comes to background checks for staffing companies. Here are some of the most trusted background check companies that help streamline the process:

• Checkr: Checkr is a tech-forward platform widely used across the staffing industry. Known for speed and automation, Checkr supports scalable staffing agency background check solutions, including criminal background checks and employment verification.
• Sterling: Sterling offers deep expertise in recruitment background check processes, especially for high-volume hiring. Its customizable packages are ideal for agencies that need flexibility.
• First Advantage: A favorite among enterprise-level staffing agencies, First Advantage is known for its global reach and comprehensive reports. Whether you’re verifying education, criminal history, or identity, this solution helps recruiters maintain high standards.
• HireRight: HireRight delivers background screening services tailored to the needs of staffing agencies specifically. Its user-friendly dashboards and integrations with applicant tracking systems make it a go-to for many staffers.
• GoodHire: GoodHire is a popular option for small to mid-sized firms looking for a balance of affordability and compliance. It supports a wide range of background checks for staffing, including drug testing and credit checks.

Most staffing agency background check companies offer the same core services, but their interfaces, add-ons, and specializations make some platforms better than others. Ultimately, agencies should choose the best platform for their budget, industry, and placement volumes to stay compliant and offer the best client experience.

Limitations of a Staffing Agency Background Check

While performing a background check is essential, the process doesn’t come without potential hiccups. Understanding these gaps helps manage expectations for both clients and candidates:

Inaccessible Records

Not all records are publicly available or easy to find. Some states limit what information can appear in a staffing agency criminal background check, especially for non-convictions or older offenses. So, even though background checks for staffing companies are thorough, they’re not always exhaustive.

Poor Timing

It takes time for criminal records and job changes to appear. Staffers sometimes have to rely on additional screening methods to account for recent changes, but they still might miss very recent changes in someone’s background.

Human Error

Background check software can remedy much of it, but human error is still an issue. Typos, outdated records, or incorrectly spelled names can lead to inaccurate results.

While background checks aren’t infallible, they’re still a must-have tool for ensuring quality matches between employers and candidates. Agencies must do their best to account for these limitations by balancing data with personal interviews, references, and instinct to make the best placements. By combining high-quality tools from trusted background check companies with a thoughtful hiring strategy, staffing professionals can navigate the complexities of the background check process and build lasting client trust.