When a New York department store was seeking to fill positions in its credit department, a job that would involve handling reams of customers' personal financial data, it requested full background checks, including the credit history and criminal records of its top applicants.

But when that same department store was seeking a team of employees to promote fragrance samples to incoming customers, the company recognized that such checks were neither warranted nor needed.

"Not every position needs a background check and it's silly to recommend them for everyone," said Linda Gaebler, Westaff's Vice President and Director of Marketing & Communications. "If you have areas that involve the handling of sensitive information, background checks can be useful. But companies need to use their own best judgment. Background checks are not a one-size-fits-all answer."

Requests for background checks by companies have risen dramatically over the past year and a half. Employment and privacy experts attribute the increase to a number of causes, including the safety issues resulting from Sept. 11 to the aftermath of the Enron-type corporate scandals. In addition, some studies show that 30 to 40 percent of all job applications or resumes include some false or inflated facts.

It's reached the point at which some employment newsletters recommend background checks for all new hires. That kind of blanket policy, however, is debatable.

A background check can certainly weed out potential problem employees. And if you do opt for one, make sure it is high quality and appropriate for the situation. Background checks range from a full criminal search to employment and education verification as well as credit checks.

At Westaff, for example, when a client requests a background check, the process begins with a Social Security trace to figure out in which counties a person has lived, worked, attended school, applied for credit, etc. The next step is a criminal conviction review of those counties. Birth dates and other identifiers, if needed, are cross-referenced for increased accuracy.

But not every hiring mistake can be avoided by background checks and employers should certainly not be frightened into requiring them for every job. Companies should make sure they are using background checks in a fair and balanced manner, said Stacy Brice, president and chief visionary officer of AssisU, a virtual administrative assistants network. "They need to think about creating a policy for themselves," she said.

Few people would argue, for example, with the need for a thorough check when a position involves working with children or another vulnerable segment of the population, such as the elderly and disabled. In some of those cases, background evaluations for criminal records are legally required. Such checks may also be important for employees who are handling money, reviewing personal customer data, or even dealing with sensitive workplace equipment. Financial corporations that are insured by the federal government also have mandates for background reviews.

Again, it's important for companies to weigh the need for full personal disclosure from the job applicant given the responsibilities of the position against the applicant's rights to privacy.

"Some employers may feel a background check is not needed for non-sensitive jobs or ones that don't require handling money," said Tena Friery, research director of the Privacy Rights Clearinghouse, a San Diego, Calif.-based nonprofit that offers consumer information and education about privacy issues. "In fairness to the employee, a background check should have some relevance to the job at hand."