How Employers Should Handle Discrepancies Found During Background Checks

Identify and Assess the Discrepancy

The first step is to determine exactly what information does not match. Employers should compare the applicant’s declarations with the information obtained from authorized verification sources and identify whether the difference is minor, material, or potentially relevant to the position.

For example, a small difference in employment dates may reflect an incorrect recollection or an employer’s recordkeeping practices. However, a significant difference in claimed qualifications or professional credentials may require closer examination if the information is essential to the role.

Employers should document the specific discrepancy and avoid making conclusions before the facts have been reviewed.

Give the Applicant an Opportunity to Explain

Before making a hiring decision, employers should contact the applicant and explain the discrepancy in a professional, neutral manner. The goal is to understand the circumstances rather than immediately accuse the individual of providing false information.

Applicants should be given a reasonable opportunity to clarify the information and provide supporting documents when necessary. For example, an applicant may submit an employment certificate, corrected résumé, transcript of records, or an explanation of why the dates stated in the application differ from the former employer’s records.

Open communication can help resolve misunderstandings and prevent employers from making decisions based on incomplete or inaccurate information.

Verify the Information Through Reliable Sources

If the explanation does not fully resolve the discrepancy, employers may conduct additional verification using appropriate and reliable sources. This may involve contacting a previous employer, confirming educational credentials with the relevant institution, or requesting documents that substantiate the applicant’s claims.

Employers should ensure that further verification is relevant to the original screening purpose and conducted through lawful means. Information from informal sources or unverified online records should not automatically be treated as conclusive evidence.

When a third-party background screening provider is involved, employers should establish clear procedures for reviewing disputed findings and correcting inaccurate information. This helps ensure that hiring decisions are based on reliable evidence rather than assumptions.

Assess the Nature and Significance of the Finding

Not every discrepancy should result in the rejection of an applicant. Employers should evaluate the seriousness of the finding, whether it affects the applicant’s ability to perform the role, and whether the explanation is reasonable and supported by evidence.

Consider the following examples:

• Minor administrative errors: Small differences in employment dates, spelling, or job titles may be resolved through clarification or corrected documents.
• Incomplete or unavailable records: A former employer may no longer maintain certain records, or an educational institution may take time to respond. A lack of confirmation alone does not necessarily establish that the applicant provided false information.
• Material inconsistencies: Significant differences in employment history, responsibilities, or qualifications may require additional verification if they affect the candidate’s suitability.
• Potential misrepresentation: Evidence that an applicant knowingly provided false information about a required qualification or professional credential may justify further review and an appropriate hiring decision.

The key is to distinguish between an honest mistake, an unresolved information gap, and a substantiated concern about the accuracy of the applicant’s statements.

Follow Data Privacy Requirements

Background check findings often contain personal information, including employment records, educational credentials, and identity details. Employers in the Philippines must handle this information in accordance with the Data Privacy Act of 2012 (Republic Act No. 10173) and its implementing rules and regulations.

Under the Act’s general data privacy principles, personal information must be processed fairly and lawfully, for a specified and legitimate purpose, and in a manner that is proportionate to that purpose. Information should also be accurate and kept up to date where necessary.

To support responsible handling of discrepancies, employers should:

• Limit access to background check reports to authorized personnel.
• Collect and review only information relevant to the hiring decision.
• Keep findings and supporting documents secure.
• Allow inaccurate information to be clarified or corrected where appropriate.
• Retain personal information only for as long as necessary and consistent with applicable legal requirements and legitimate purposes.

Employers should also provide appropriate information about the screening process and establish a lawful basis for processing personal data. Consent may be relevant, but it should not automatically be treated as the only possible lawful basis in every situation.

Apply Consistent and Fair Hiring Standards

Employers should use consistent criteria when evaluating discrepancies across applicants. Similar findings should be assessed using the same standards, taking into account the requirements of the position and the circumstances of each case.

Decisions should be based on job-related information rather than personal assumptions, stereotypes, or irrelevant characteristics. For example, a discrepancy that has no meaningful bearing on a role should not automatically carry the same weight as a verified misrepresentation involving a mandatory professional qualification.

A documented and consistent review process can help reduce arbitrary decisions, support accountability, and strengthen the credibility of the recruitment process.

Document the Review and Final Decision

Maintaining a clear record of how discrepancies were handled helps employers explain and support their decisions if questions arise later. Documentation should be factual, concise, and limited to information necessary for the recruitment process.

Relevant records may include:

• The original discrepancy was identified during screening.
• The source of the information and the verification performed.
• The applicant’s explanation and supporting documents.
• Any additional checks conducted to clarify the finding.
• The assessment of how the discrepancy relates to the position.
• The final decision and the reasons supporting it.

Employers should avoid recording unverified allegations as established facts. Documentation must also be stored securely and retained in accordance with the organization’s data retention policies and applicable law.

Why Hiring a Professional Background Check Provider Is Important

Conducting background checks requires time, attention to detail, and access to appropriate verification channels. For organizations handling multiple applications or recruiting for sensitive positions, managing the process internally can place additional demands on HR teams and increase the risk of inconsistent screening practices.

Hiring a professional background check provider can help businesses strengthen their recruitment process in several ways.

1. Improve the Accuracy of Candidate Information

A professional provider can help verify employment history, educational credentials, identity details, and other job-relevant information through appropriate sources. This helps employers identify inconsistencies that may otherwise go unnoticed during routine document reviews.

Although no screening process can guarantee that every record will be available or every discrepancy will be resolved, systematic verification gives employers a stronger basis for evaluating candidate information.

2. Save Time and Reduce Administrative Work

Verifying applicant information can involve contacting previous employers, coordinating with educational institutions, following up on documents, and organizing screening results.

Outsourcing these tasks to a qualified provider can reduce the administrative burden on HR teams, allowing them to focus on interviews, candidate assessment, onboarding, and other recruitment priorities.

3. Support Better Hiring Decisions

A résumé or interview alone may not provide a complete picture of a candidate’s background. Professional screening can provide additional information that helps employers assess whether an applicant’s stated qualifications and experience align with the requirements of the position.

When discrepancies appear, organized verification findings can help employers determine which issues require clarification and which may materially affect a candidate’s suitability.

The final hiring decision should remain based on verified, job-related information and the employer’s established evaluation criteria.

4. Help Identify Potential Employment and Business Risks

Depending on the scope of the screening, background checks can help employers identify discrepancies involving required qualifications, employment history, professional credentials, or other relevant information.

This is particularly important for positions involving financial responsibilities, confidential information, sensitive business operations, or access to company assets.

Identifying concerns before employment begins can help organizations make more informed decisions and reduce avoidable recruitment risks. However, screening findings should be assessed in context rather than treated as automatic grounds for rejection.

5. Promote Consistent Screening Procedures

Without a structured process, different HR personnel may apply different standards when reviewing candidate information. This can lead to inconsistent assessments, overlooked discrepancies, and decisions based on subjective assumptions.

A professional provider can help establish a more organized screening workflow, with defined verification steps and documented findings. Employers should still maintain clear internal policies to ensure that applicants are evaluated fairly and according to consistent, job-related standards.

6. Support Responsible Handling of Personal Information

Background checks involve personal information that must be collected, accessed, used, and stored appropriately.

Working with a provider that follows suitable data protection and information security practices can help employers manage screening records responsibly. Before engaging a provider, businesses should review its data handling procedures, access controls, retention practices, and contractual responsibilities.

Conclusion

Discrepancies discovered during background checks require careful assessment, clear communication, and a consistent review process. Employers should verify the information, give applicants a reasonable opportunity to explain inconsistencies, and determine whether the findings are genuinely relevant to the position before making a decision.

Hiring a professional background check provider can help organizations improve verification procedures, reduce administrative work, identify potential recruitment risks, and maintain a more structured screening process. However, employers must continue to exercise sound judgment, protect applicants’ personal information, and ensure that hiring decisions are based on accurate, relevant, and fairly assessed findings.

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