At the end of 2024, Harvard Business Review weighed in on why Employers of Record (EORs) are increasingly attractive for businesses that want to hire global remote talent. The gist: recruiting and managing global employees can be "nightmarishly complex."
But the dream of expanding your international business doesn't have to make you wake up in a cold sweat.
Every step of the process, including the background checks that ensure you know who you're bringing onto your team, can be efficiently and compliantly completed when you work with the right partner (like RemoFirst).
Key Takeaways:
- In-depth background checks help ensure you have a complete understanding of the international talent you're recruiting.
- Certain information, like private medical histories, may not be reviewed during a background screen.
- Laws for employee background checks vary from country to country, so it's essential to understand the regulations and applicable laws everywhere you want to employ global talent.
Why Do I Need an International Background Check?
Here's a startling statistic: according to a recent study, seven in 10 employees lie on their resumes. Wow.
True, some embellishments might be small. Maybe a candidate claims spreadsheet wizardry when they've barely used Excel. But other lies can quickly prove more consequential. Your financial team must actually have experience in finance, after all.
Recruiting teams at a distance can make it more challenging to discover these red flags. By completing a background check and screening candidates before hiring a new employee, you're more likely to find problems and prevent issues down the road.
What Type of Information Can a Background Check Provide?
An international background check can help employers verify that a candidate's qualifications, work history, and identity match the information provided during the hiring process.
Depending on the country and the type of screening being conducted, a background check may include:
- Employment history verification
- Education and credential verification
- Professional license verification
- Identity verification
- Criminal record checks (where legally permitted)
- Credit history checks (for certain roles and jurisdictions)
- Driving record checks (for positions that require driving)
Reviewing multiple sources helps employers build a more complete picture of a candidate's background. For example, employment verification can confirm previous roles and dates of employment, while education checks can validate degrees, certifications, and other credentials.
However, employers cannot access every type of personal information. Privacy and employment laws often restrict what can be collected, reviewed, or used during the hiring process.
In many countries, employers generally cannot access private medical records, protected personal information, or other data restricted by local privacy laws. Regulations such as the Health Insurance Portability and Accountability Act (HIPAA) in the United States and the General Data Protection Regulation (GDPR) in the European Union place strict limits on how personal information can be collected, processed, and stored.
Because background check requirements and restrictions vary by country, employers should ensure their screening process complies with local laws wherever they are hiring.
Different Countries, Different Background Check Laws
Tax regulations, employee entitlements, and visa terms vary from country to country. The same applies to the rules governing researching a new hire's background.
It can all seem like a lot of hoops to jump through. So, why not ask each prospective employee what you need to know, like whether they've been convicted of a crime?
Because asking certain questions is illegal.
This is where partnering with local experts can be a huge relief. They'll know, for example, when regulations like Ban the Box laws make it illegal for employers in specific locations to ask about criminal history on job applications.
Have a partner in the U.S.? They can help you navigate and comply with the Fair Credit Reporting Act (FCRA). This federal law regulates how consumer reporting agencies collect, use, and share credit reports performed during credit checks.
Other laws, from Australia's Privacy Act of 1988 to the GDPR, outline similar restrictions on what data can be collected and processed. Since these regulations govern how data is managed across borders, you must comply with them no matter where your company maintains a legal entity.
Best Practices for International Background Checks
Though it may be time-consuming, developing a background check policy as part of your hiring process that standardizes your screening process and how you evaluate the backgrounds of all potential employees helps avoid bias and potential lawsuits. In short, you want to offer everyone a level playing field.
One way to ensure neutrality is by asking job candidates to consent to a background check during the application process. And don't forget to be specific. Let employees know what you're reviewing, whether it's bankruptcy, criminal history, or anything else.
Hiring managers should exercise good judgment when evaluating candidate backgrounds to make informed hiring decisions. Obviously, you don't want to onboard someone with a fraud conviction on their record. However, traffic violations like speeding tickets may not be a deal breaker.
Want more context about what you've found during a background check? Depending on the situation, you can ask the candidate to respond to the information you've discovered. Then, weigh that conversation when deciding whether to extend an offer.
But keep in mind that certain regulations, like the Ban the Box laws mentioned above, may restrict what you can ask during the interview process.
One way to avoid the potential legal issues of performing an international background check is by partnering with an Employer of Record (EOR).
Employ International Talent with RemoFirst
As an EOR, RemoFirst helps companies hire workers, compliantly complete background checks, and manage talent in 185+ countries.
Our background checks review everything from criminal histories to academic achievements to financial reliability. So you can rest assured you know exactly who is joining your team.
Want to hire international contractors rather than expand your in-house team? We cover that, too, and can complete know-your-customer (KYC) checks to verify the identities of those you work with and limit your exposure to illegal activity.
Want to learn more about how RemoFirst can help you build your global team? Schedule a demo today.
FAQs
Can employers run background checks on international candidates?
Yes. Employers can conduct background checks on international candidates, but they must comply with local privacy, employment, and data protection laws in each country where the candidate resides.
Are international background checks different from domestic background checks?
Yes. International background checks often involve additional verification processes, different privacy regulations, and country-specific restrictions on what information employers can access.
Can employers check criminal records in every country?
No. Access to criminal record information varies significantly by jurisdiction. Some countries restrict employer access entirely, while others allow limited checks for specific positions.
Is candidate consent required for an international background check?
In many countries, yes. Employers are often required to obtain consent before collecting or reviewing personal information during a background screening process.
How long does an international background check take?
Timelines vary by country and the type of screening being performed. Some checks can be completed in a few days, while others may take several weeks if records must be verified across multiple jurisdictions.
