Welcome to The Verifier XX, April 2010 Edition, brought to you by EmployeeScreen**IQ**. This publication is intended as an educational tool and information resource for employment screening professionals or anyone interested in keeping abreast of recent industry developments. Please let us know if there are any topics or issues you would like to see addressed in a future issue.

[Smoke, Mirrors and Resumes: The Growing Threat of Diploma Mills](http://www.employeescreen.com/DiplomaMills.pdf) by Nick Fishman 17 emails in one week! That’s right, 17 reminders that the diploma of my choice was just one phone call and a credit card transaction away. This could be exactly what I needed to impress my clients or bulk up my resume. And it’s so easy. [](http://www.employeescreen.com/DiplomaMills.pdf) [Criminal Recidivism Study Falls Short](VerifierXIX_Crimal_Recidivism_Study) by Jason B. Morris While future studies might indeed create a clear picture, this study is simply a stepping stone for additional research that incorporates a greater spectrum of criminal activity, a larger sampling size, a more diverse age group and a nationwide analysis. [](VerifierXIX_Crimal_Recidivism_Study) [Background Checks “Flash Forward”](verifierXIX_Background_Check_Flash) by Kevin Bachman In the new television show “Flash Forward” from ABC, everyone gets a brief glimpse into what their lives are like 6 months into the future. So I started thinking about what the future holds for the employment screening landscape. [](verifierXIX_Background_Check_Flash) [Ask the Screener](verifierXIX_Ask_the_Screener) Here at EmployeeScreenIQ, we answer hundreds of questions every day for HR professionals regarding a variety of topics: criminal records, verifications, drug testing, court research, I-9 verifications, etc. Therefore, we thought that we would address some of the questions we see on a regular basis so that all of our clients may benefit. [](verifierXIX_Ask_the_Screener)

[RecruiterEarth.com to Host “EmployeeScreenIQ Week” on October 19-23](VerifierXIX_EmployeeScreenIQ_Week) “EmployeeScreenIQ Week” will offer a series of podcasts aimed at recruiters and HR professionals, as well as videos and other downloadable content. [](VerifierXIX_EmployeeScreenIQ_Week) [Letter From the President](VerifierXIX_Letter_From_President) EmployeeScreenIQ Celebrates 10th Anniversary [](VerifierXIX_Letter_From_President) [Legislative Alert: E-Verify Mandatory for Federal Contractors](VerifierXIX_Legislative_Update) This is a reminder that all Federal Contractors are mandated to use E-Verify to confirm employee’s right to work status in the United States, effective September 8, 2009. [](VerifierXIX_Legislative_Update) [EmployeeScreenIQ Recognized as Weatherhead 100 Company for 5th Consecutive Year](http://university.employeescreen.com/announcements/EmployeeScreenIQ_Weatherhead100_2009) We are pleased to announce that EmployeeScreenIQ has earned recognition as a 2009 Weatherhead 100 Award Winner for being one of the 100 fastest growing companies in Northeast Ohio. [](http://university.employeescreen.com/announcements/EmployeeScreenIQ_Weatherhead100_2009) [Got Blog?](http://blog.employeescreen.com) Looking to catch up on the latest in background screening and relevant newsworthy events? Check out the IQ Blog! [](http://blog.employeescreen.com) [Upcoming Events](http://university.employeescreen.com/upcoming) Full schedule of EmployeeScreenIQ speaking engagements and conferences where will be exhibiting [](http://university.employeescreen.com/upcoming)

So we’ve all nearly made it through the first half of 2009, inarguably one of the worst financial periods in our lifetimes. And while we hope that the worst is finally behind us, we are all still fearful of what is to come. One of the most positive trends I am starting to see is that many of us are now focusing on the future. We are building up our individual departments and organizations to be leaner, smarter and stronger so that we can emerge from this whole thing in a position to thrive. We don’t seem to be as paralyzed by the fear described above and instead are using this fear to motivate us to push through. GreenlightJobs president and CEO Lisa Kaye recently wrote an insightful blog post on how we can and should use the fear and uncertainty we feel for motivation to fuel us.
The purpose of this essay is to examine how the state of our economy has affected the use and implementation of employment background checks. We will also discuss how it has driven some interesting trends and what it means for the future.

We’ll start with the obvious. Today, there are more people competing for fewer jobs. While hiring managers have the proverbial “pick of the litter”, they are being flooded with resumes. Further, the pressure to hire the right person the first time has never been greater as organizations no longer have the luxury of time or money that they once had to allow someone to develop. Those who are hired are expected to produce more work with fewer resources. This confluence of events means that employment screening and background checks are now more important than ever to organizations.

Observation 1: Background Checks Aren’t Being Sacrificed
While organizations are cutting expenses across the board, we have not seen that they are sacrificing their screening practices. In fact, some are even bolstering their programs because of the aforementioned glut of candidates. We have seen a rise in the number of clients expanding the scope of criminal records searches by including more counties or a national criminal record search. We have also seen organizations increase their efforts related to employment verifications and references. While these measures increase the cost of a background check, it allows organizations to evaluate more information so they can make an informed hiring decision.

Observation 2: Troubling Statistics Concerning Adverse Information
Unfortunately, we are taking notice of some disturbing trends that should be of concern to employers. Criminal hit rates have escalated since the economy hit the skids in the second half of 2007. EmployeeScreenIQ currently finds that roughly 19% of the applicants we screen have some type of criminal conviction on their record. This is up from 15% prior to 2007. It is important to note that not all of these records prevent an individual from being hired, however it requires hiring managers to look closely at each applicant to determine job relatedness of the indiscretion and employment eligibility. Here’s the breakdown of offenses we’ve identified over the past couple years.

Felony Record 15%
Misdemeanor Record 67%
Ordinance Violations 18%

At the same time, EmployeeScreenIQ continues to find a 50% discrepancy rate between what job candidates’ represent on their resumes and job applications and what employers and academic institutions reveal. This number has actually held steady for a couple of years, but it is elevated compared to pre-recession levels. The most common inconsistencies continue to be related to dates of employment, salary and job title. Here’s a breakdown:

Discrepancy in Dates of Employment 31%
Discrepancy in Salary 36%
Discrepancy in Job Title 33%
Misrepresentation of Academic Credentials Approx. 10%

Lastly, an obvious trend is that we are finding a rise in the amount of applicants with adverse information on their credit reports. We don’t keep actual statistics on this, but will address this trend in greater detail later in this report.

Observation 3: Hiring Standards Are Tightening
Now that we’ve addressed the sheer volume of job applicants and the rising tide of adverse information, we will discuss our observation that employers’ hiring standards are tightening. Before this recession, organizations were hiring at a blistering rate. There never seemed to be enough qualified candidates available causing some organizations to relax their hiring standards in order to be appropriately staffed. Of course, we now have the exact opposite effect. Employers are no longer letting anyone with a pulse through the door. White lies about past employment and qualifications are no longer acceptable, nor are borderline criminal convictions that might have slipped through in the past.

Observation 4: The Need for Speed
Weeding through the flood of resumes for ideal candidates and on-boarding them as quickly as possible is the name of the game. Organizations are increasingly turning to applicant tracking and talent management platforms to help them process applicants and to save money. Further, integrating your screening solution with your recruiting platform helps accomplish the same goals. All of the information needed to conduct a background check on a candidate is already there. Rather than wasting the time and money of having someone re-enter the information, integration allows the data to flow seamlessly and securely to your screening provider.

Observation 5: Shifting Reliance on Credit Reports
Anyone who reviews credit reports on a regular basis knows that even in a good economy, those with impeccable credit are hard to find. Nowadays, finding those with good credit is nearly impossible. As a result, we have seen a number of organizations relax their standards when evaluating credit. Failing to do so would significantly impede their ability to hire anyone.

For organizations who utilize credit reports, it is important to evaluate what information or combination of adverse information constitutes a red flag. It also makes sense to determine which positions require this information and how the credit report is related to that role.

Observation 6: Workplace Violence is on the Rise
Incidents of workplace violence had been on the decline over the past decade thanks to education, aggressive prevention programs and background checks. Unfortunately, these rates have begun to creep up again over the last couple of years. Reported cases of workplace violence rose 13% from 2006 to 2007. And while the 2008 statistics have yet to be reported, it is widely believed that these numbers will show an increase again. While a direct nexus between workplace violence and bad economic times hasn’t been established, Barry Nixon, Executive Director of the National Institute for Prevention of Workplace Violence, Inc. suggests that “as crime rates continue to rise throughout the country, incidents of workplace violence tend to follow”. This is important because a rise in criminal activity can be directly attributed to a poor economy. Nixon goes on to say, “as people become more concerned about personal finances and the possibility of layoffs, stress levels in the workplace tend to be elevated. Stress and anxiety can certainly contribute to incidents in the workplace.”

What does all of this information mean?
I think more than anything, this information should cause employers to take a closer look at their current screening program and make sure that it is in line with the new realities of this economy. Refining your processes and procedures does not necessarily equate to increasing your overall background screening budget. In fact, in some cases you might find opportunities for savings. It simply aligns your risk-management and recruiting efforts and allows you to focus on acquiring the best candidate for the job. Doing so now will ensure that as the economy improves, you will emerge in a stronger position than you were before.

Nick Fishman is Chief Marketing Officer for Cleveland-based EmployeeScreenIQ , a best practices provider of employment screening services throughout the U.S. and worldwide. Nick can be reached at (800) 235-3954 ext. 441 or nfishman@employeescreen.com.

• The addition of a new citizenship attestation for Noncitizen nationals
• Modifications to the Lists of Acceptable documents;
• No longer accepting expired documents; and
• Other technical changes.

For those currently using or interested in employeescreenIQ’s Electronic I-9 Process, we have already updated this form into our interface with the Social Security Administration and the Department of Homeland Security.

View New Form

While we often see stories in the news about employers who did not conduct background checks on their new hires (and subsequently regretted it), I think it is safe to say that the majority of businesses have some type of vetting process in place before making a hiring decision. In our current economic climate, it’s almost a given. For some, even a requirement. While we applaud those who have taken on the task to conduct their due diligence, we feel that there exists an opportunity to make business screening programs even better by making the background check more industry specific.

“What is that you say? Industry specific? A background check is a background check, right?” Wrong. You wouldn’t buy a size six shoe if you have size nine feet because “it’s just a shoe”, would you? I think not. You’d try it on for size and make sure it fits. You have to apply the same mentality when it comes to the background check. Employers should make certain that the background check they are running fits the industry they belong to. If you want to get even more granular, employers within these industries can (and should) customize the background check to the position they are hiring for.

For the purposes of this article, we are going to explore three industries and see how a background check for a prospective employee should differ between the three. We will analyze the Financial, Healthcare, and Construction sectors and determine the best case background check scenario for each.

But before we point out the differences, let’s talk about the similarities. A background screen for any industry should consist of a social security number trace and a comprehensive countywide criminal records check. Those are your staple services. It’s never a bad idea to complement the countywide criminal records check with a national database search to find those records that may fall outside the places where your applicant has lived or worked. If your employee will be working with the public, a sexual offender registry search is a must. A homeland security check will serve to identify a person who is a wanted fugitive by any number of federal and international law enforcement agencies. And if the position requires prior work experience, employment verifications will confirm that the know-how exists. These items make up the meat of your background check. Now, let’s choose our side dishes.

Financial Industry

In our struggling economy, businesses more than ever need to be careful with how their money is spent. For those working in the financial sector, we go a step further. When you have employees handling not only your money but the money of your clients, the public, etc., you have to be extra EXTRA sure that you’ve put the right person on the job. We’ve seen firsthand what can happen when you’ve got someone handling money that shouldn’t (think Bernie Madoff). So what types of services can a business operating in the financial district add to their background screen to ensure they have the right candidate?

The first item that comes to mind would be a pre-employment credit report. Seeing how your prospective employee handles his or her own finances can be a good indicator of how they will handle yours. This isn’t to say that any person who has been late on a payment or had an account go to collections will be a bad choice. As an employer, you have to look at the whole report and determine if there are any negative trends that could be carried over in the job and affect your business. A credit report alone should never be the only determining factor regarding whether a person is fit for a position requiring the handling of money, but it is a good clue.

Other services a finance-based employer would want to consider running on a candidate include federal district criminal record searches, an education verification, professional license verification, a federal bankruptcy search and a drug screen. With a federal district criminal records search, employers will identify criminal convictions prosecuted in federal court, many of which are white collar in nature: money laundering, tax evasion, interstate drug trafficking, etc. The homeland security search, already included in the list of services businesses should run as part of any background check, includes a search of the Office of Foreign Assets Control (OFAC) sanctions list. This list classifies those who have had finance-related sanctions placed upon them by various national and international government offices. If hiring an accountant or broker, making sure they have the education necessary for the position and a state license to practice is crucial. Having knowledge of any past bankruptcy filings isn’t a bad idea either (again, think of how they have handled their own finances). And testing for illegal drug use is important not only from the standpoint of evaluating the employee’s judgment, but also the safety and security of your employees, clients and business assets.

Healthcare Industry

Caring for the welfare of others is big business. Each year, millions and millions of people seek medical care for any number of reasons. Healthcare officials have an obligation to staff only those qualified to provide appropriate medical care to the people that depend on their expertise. There is nothing more outrageous than reading a story in the newspaper about a medical care facility who hired a doctor without a proper medical license.

Building on that last statement, it should go without saying that employers in the healthcare system should check to make sure that the doctor, nurse, surgeon, etc. they are looking to hire is able to practice their craft in their state and keeps up with any continuing education courses required to maintain the validity of their license. Additionally, a federal district criminal records search and a more comprehensive drug test are recommended as these are individuals with extensive access to both personal medical records (identity theft) and regulated pharmaceuticals (prescription drug abuse).

We’ve already mentioned that a sex offender registry search should be conducted on any applicant you are looking to hire. Within this field, the importance of this service cannot be stressed enough. As a healthcare provider, it is your duty to protect your patients from registered sex offenders and those with convictions for violent crimes. Employing a pediatrician convicted of child molestation, for instance, would be any healthcare employer’s worst nightmare.

For the healthcare industry, there exists a very specific tool that can be used during the vetting process that may prove vital to your hiring decision. This tool consists of a check against the Office of Inspector General’s healthcare sanctions list (commonly referred to as the OIG search). Parties on this list include those that are barred from participating in any federally funded health care programs, such as Medicare or Medicaid. According to the OIG’s website, “bases for exclusion include convictions for program-related fraud and patient abuse, licensing board actions and default on Health Education Assistance Loans.” If services are rendered to a patient who uses federal healthcare programs by a person included on the OIG’s sanctions list, payment for services will not be made to the individual or entity. What business wants to employ an individual to perform work for them for which they will not be compensated? My guess would be none.

Construction Industry

Think about where you are reading this article right now. If you are sitting in your office, is it located on the fourth floor? The ninth? How about your house or apartment? How many tons of wood, brick and/or steel do you think make up the framework of your home? These are important questions. Why am I asking? If the person who built your office or home didn’t do the job properly, your life and the lives of your co-workers and family are at risk. Like any other industry, employers in the construction business need to make sure that those responsible for building these structures are skilled to perform these duties.

A professional license verification is essential when hiring a worker on a construction site. If you’ve got unlicensed construction workers on a work site, that could spell big trouble in the form of fines or possible criminal prosecution. It is also important to verify that the worker holds the construction certification he or she claims to have. If the job responsibility of the employee is to operate a forklift or a bulldozer, you may want to check their driving history. If their motor vehicle record shows a history of DUI’s, you may want to re-think that offer of employment.

For this industry, there is one item I cannot stress enough that employers should (and may be required by law to) use during both the vetting process and on a continual basis: drug and alcohol testing. The operation of commercial equipment and the handling of heavy building materials is a tough job that requires a clear head. There have been too many instances of construction workers losing their lives on a work site due to either themselves or a co-worker being under the influence of drugs or alcohol. Random drug and alcohol screening serves as a deterrent to using and abusing drugs and alcohol while on the job.

Customizing your screening program to fit your company’s industry and/or the position you are hiring for is crucial to making the right choice in a candidate. The people you choose to work for you represent who you are as a company. So, what do you want your choices to say about you?

Stay tuned to employeescreenIQ’s website for more information on industry specific background checks.

Natalie Beck is Project Coordinator for Cleveland-based EmployeeScreenIQ, a best practices provider of pre-employment screening services throughout the U.S. and worldwide. Natalie can be reached at (800) 235-3954 ext. 459 or by email at nbeck@employeescreen.com.

An ominous trend could make it more challenging to hire the most qualified candidate

In today’s economic climate, companies that can hire have a distinct advantage. As unemployment soars, talented employees are available simply as a result of corporate downsizing. Individuals that were nowhere to be found at 4% unemployment are abundant at 8%. Trusted with conducting the employment verifications, a screening partner plays a vital role supporting these talent acquisition initiatives. As healthy companies position themselves for an economic upturn, it is necessary to validate whether the qualifications of the star performer who fell in their laps are true.

Here’s where things are beginning to get dicey. With the increase in organizations that are downsizing, we are finding an alarming trend. Often, these organizations are no longer adequately staffed to be able to provide verifications in a timely manner, if at all for former employees. It makes sense this function would be lost on the cutting room floor. It doesn’t add any value to the company and can be a time drain. Employees are encouraged to focus on tasks that help make money or cut costs. And providing dates of employment, job titles or the salary does neither.

So as companies refocus their efforts, EmployeeScreenIQ anticipates a further shift in personnel, human resources, and accounting departments. In honor of the typical experiences of the door to door encyclopedia salesman, here’s how the employment verifier could soon be as rare as a shelf full of Britannica’s.

• Try back later- Information that was once provided in one day with one phone call will now take one week and multiple phone calls.
• We’re not interested- An organization still says they will cooperate and provide information but doesn’t jump when the phone rings.
• No one is home- That department full of administrative staff that supported back office business functions has been laid off. Obtaining a verification, or a even a return phone call, is unlikely.

Looking beyond the salesman and the 9 year old who doesn’t get to learn about aardvarks and antelopes, what’s the broader impact of the downsized company’s disinterest? It’s the potential employee and the hiring company that are the big losers. The candidate misses out on an opportunity through no fault of their own. A company runs the risk of hiring an inferior candidate because their background check is “complete” even though another candidate has a stronger, yet unverified history. But even if information is obtainable, its quality is another worrisome trend potential employers may be faced with as is the time it takes for them to respond.

Many companies provide dates and title only, but you’d be surprised how many continue to provide information on the candidate’s performance, attitude, skills and experience. This information usually comes from that candidate’s direct supervisor and EmployeeScreenIQ passes along any insight this person offers. But if your candidate was downsized, chances are his boss was as well. Which means information available may be limited to what is in the payroll system. No more insight into whether he was a star performer or let go because of sticky fingers.

More and more companies outsource this verification process to a third party provider, like The Work Number and refuse to provide any information directly. In today’s economic environment, we project this to be the “fastest growing” segment of employment verifications. This third party administrator simply provides the payroll data that their client, your candidate’s former employer, uploaded to their system.

But if the data provided by these automated third party systems is materially different or confusing than what an applicant claims, EmployeeScreenIQ will, as an added, free service, contact the company directly and attempts to clarify what was provided. Usually, the original company would take the phone call. We anticipate, as a function of downsizing, fewer companies will do this going forward and the number of companies unable or unwilling to provide deeper insight will grow.

Kevin Bachman is Vice President of Quality Service for Cleveland-based EmployeeScreenIQ, a best practices provider of pre-employment screening services throughout the U.S. and worldwide. Kevin can be reached at (800) 235-3954 ext. 450 or by email at kbachman@employeescreen.com.