Is employment screening currently part of your
hiring process? Are criminal background checks part
of company policy? I hope your answer is “yes”,
because they should be, regardless of the size of
your business.
Over 82% of HR professionals
report that their companies do background checks of
new hires, up from 66% in 1996 according to The
Society for Human Resource Management, Workplace
Violence Survey.
Last year, a client
experienced a serious theft problem in his
warehouse. It took several months for the numbers
to reveal the extent of the theft.
In
retrospect, the employee who stole from his employer
would have flunked background checks in three areas.
He was on probation. He owed restitution for the
crime he had committed. His bill-paying history was
bad news because of how much he had to repay. A
background check of his criminal history and his
credit record may have caused our client to make a
different choice (they were giving him a chance).
But, the extent of his problems was never revealed.
It's all about reducing risk
Employment screening is your front line of
defense. It’s your first and best opportunity to
eliminate candidates who are dangerous, dishonest or
have a history of poor work performance.
Pre-employment screening is a necessary hiring
practice to avoid lawsuits and costly hiring
mistakes.
Wouldn’t it be nice to know that the
new person you’re hiring is telling the truth?
Absolutely. But don’t count on it. It’s estimated
that up to 40% of resumes can contain false or
tweaked information. It’s up to you and your
company to make sure you’re getting in an employee
everything that was represented and promised.
You’re not only responsible, you’re liable.
What is background checking?
Gone are the days of relying only on reference
calls to screen new hires. With increasing security
concerns, corporate scandals, and workplace
violence, pre-employment screening is not only on
the rise—it’s becoming standard operating policy.
And at all levels. From presidents and CEOs, to the
people in your creative department, to warehouse
workers and call center
representatives.
Pre-employment screening is
often conducted by, or outsourced to, third party
consumer reporting agencies, as defined by the Fair
Credit Reporting Act (FCRA) of the Federal Trade
Commission.
You not only can get information
on job applicants, but background checks on your
current employees, too. You’re able to get:
court-by-court searches of criminal records
nationwide, with up to date criminal activity, motor
vehicle reports, social security traces, employment
credit reports, workers’ compensation filings,
employment, education, and professional license
verifications, and reference interviews. Also
provided are drug and alcohol testing, employment
physicals and Form I-9 services (Immigration Reform
and Control Act).
What does it cost?
In most cases, expect to pay a screening
organization a one-time setup or administrative fee
of $100 or more for your company, plus the costs of
the background searches you want done. The fees are
not that much and discounts are usually given for
multiple screenings done within a year. A list of
providers is featured in the left column.
Setting up a screening program
policy
The FCRA sets the standards for screening for
employment. It defines a background check as a
consumer report. Before you can get a consumer
report for employment purposes, you must notify the
job candidate in writing and get written
authorization. This can be included within your
company’s employment application form. If you’re
simply conducting inquiries—rather than running
reports—you should also get consent.
Take the time necessary to educate yourself on
the process. Many small business agencies such as
SCORE or the Small Business Administration (SBA) can
provide counsel. Visit your state and local
government’s websites on FCRA and Americans With
Disabilities Act (ADA).
Become familiar with all necessary disclosure,
adverse action, and other critical forms and letters
you’ll need to be FCRA and state-law compliant. A
third party, as part of its service, generally takes
care of much of this work.
Be safe. Be smart. Don’t wait. Pre-employment
background screening should now be standard practice
of operating your business.
Executive Search International