A staffing agency acts as an intermediary, connecting job candidates with companies needing to fill temporary, contract, or permanent positions. Agencies are responsible for sourcing, vetting, and presenting qualified individuals to their clients. Vetting routinely includes conducting background checks, which is standard in modern hiring. Staffing agencies serve as a primary filter, ensuring candidates meet foundational levels of trustworthiness, compliance, and qualification for placement. This screening is a core component of the service they provide to employers.
Why Staffing Agencies Screen Candidates
The primary motivation for staffing agencies to screen candidates is risk mitigation for themselves and their clients. Placing an unvetted worker exposes both the agency and the client company to potential legal liability, especially in cases of negligent hiring. Background checks protect the agency’s professional reputation and maintain client trust. Screening demonstrates due diligence, helping to avoid issues such as workplace theft, violence, or fraud. The vetting process also ensures the candidate’s claims of experience and qualifications are accurate, which impacts placement quality.
Standard Types of Background Checks
Staffing agencies tailor screening packages to the specific job requirements and the client’s industry. Several checks are consistently utilized to establish a candidate’s suitability, verifying provided information and uncovering potential issues. The required depth of the review is determined by the sensitivity of the role. Positions in finance, healthcare, or security often demand a more stringent examination.
Criminal History Searches
Criminal history checks are a foundational element of nearly all staffing agency background screens. Searches typically cover national databases, state repositories, and county-level court records to identify felony or misdemeanor convictions. The scope often extends to the candidate’s residence history to ensure all relevant jurisdictions are reviewed. The resulting information is evaluated for relevance to the job duties and the client’s safety requirements.
Employment and Education Verification
Verifying a candidate’s professional and academic history confirms the veracity of the resume and application materials. Staffing agencies contact former employers to verify job titles, employment dates, and sometimes reasons for departure. They also reach out to educational institutions to confirm degrees, certifications, and attendance dates. This verification is important because many applicants include misrepresentations on their documents.
Drug Testing
Drug testing is frequently incorporated into screening, especially for roles involving operating heavy machinery, driving company vehicles, or working in safety-sensitive environments. The agency coordinates with testing facilities to conduct pre-employment screenings, often using urine, hair, or saliva analysis. This requirement is typically mandated by the client company or necessary to meet specific industry regulations.
Professional Licensing and Certification
For professions requiring specific credentials, such as nursing, accounting, or specialized trade work, the agency verifies the status of licenses or certifications. This involves contacting issuing professional boards or regulatory bodies. They confirm the license is current, valid, and free of any disciplinary actions. Verification is necessary for highly regulated fields like healthcare staffing.
Credit Checks
Credit checks are highly regulated and not utilized for every position. These reports are requested only for candidates placed in roles with financial responsibilities, such as handling money or managing company accounts. Due to legal restrictions, the agency must have a clear business justification to run a credit check. They must also comply with specific disclosure and authorization requirements.
Candidate Rights and Legal Compliance
Staffing agencies must adhere to federal and state regulations, primarily the Fair Credit Reporting Act (FCRA), when conducting background checks. The FCRA mandates that candidates receive clear written disclosure that a check will be performed and must provide explicit written authorization. If the agency intends to deny placement based on the results, a formal “Adverse Action” process must be followed. The agency first provides a pre-adverse action notice, including a copy of the report and a summary of the candidate’s FCRA rights, allowing time to dispute any errors. If the denial is finalized, the agency must send a final adverse action letter detailing the decision.
The Division of Screening Responsibility Between Agency and Client
The screening process involves a triangular relationship between the candidate, the staffing agency, and the client company. The staffing agency performs the initial, standardized screen to ensure the candidate meets basic requirements for their general talent pool, which is part of the agency’s core service offering. The client company dictates the final scope of the background check, often requiring additional, intensive screenings before placement. The agency acts as the facilitator, ensuring client specifications are met, though the client often bears the cost of rigorous checks. Ultimately, the client company makes the final determination on placement based on the results.
Factors That Determine the Scope of the Background Check
The extent and depth of the background check are highly variable and not standardized across all placements. The industry is a major factor, as healthcare and financial services have more stringent regulatory requirements than general administrative roles. The level of the position also affects the scope; executive roles often require more extensive due diligence, including reference interviews and media searches. The duration and nature of the assignment also play a part, with long-term placements warranting a more comprehensive check than short-term assignments. Additionally, specific client insurance requirements often mandate certain checks, such as driving record checks for positions involving operating a vehicle.