In the current economic landscape, it would not be shocking to hear a company was considering eliminating background checks from their hiring program due to the cost of screening potential applicants. Businesses are under immense pressure to reduce expenditures wherever they can in order to remain afloat. Companies may decide that the cost of screening is too high and may look to alternative methods for vetting their candidates. We’ll explore a few of those options here, weigh the pros and cons, and then decide if any of these alternatives are viable options to replace a thorough background check. For the purpose of this article, the term “thorough background check” includes a county criminal records check and verification of any information provided by the applicant that pertains to the job responsibilities of the position they are applying for.

Employee Referrals

There was a recent blog posting about this very topic on EmployeeScreen University. The Head of HR for one of India’s top BPO companies stated that employee referrals are a great alternative for conducting background checks on potential employees. According to this individual, this method saves time, money, and promotes camaraderie among employees. While these factors are true to varying degrees, referrals are no substitute for verifying information through a proper background check. Relying on employee referrals instead of conducting background checks may get new employees in the door faster, have a lower initial cost (unless employees are provided compensation for the referral), and contribute to a friendly work environment because employees are, most likely, referring their friends. But should companies depend on employee referrals to replace a thorough screening procedure? Absolutely not! Here’s why:

Unless the employee and their friend have been inseparable for the entirety of their adult lives, they cannot be sure that their friend hasn’t gotten themselves into some trouble in the past. There may be criminal records the employee doesn’t know about that should disqualify the friend from employment with the company. The friend may have gotten fired from their last two jobs because of a bad attitude or lack of experience. They may not have the degree or licensure required to perform the type of work the job entails. In other words, the employee can’t know their friend’s entire life history. On the contrary, maybe they do and are just trying to help their friend out. As much as the employee has the company’s best interests at heart (or it is believed that they do), taking their word for it would be a mistake. Businesses may end up hiring a person that doesn’t belong in their organization.

Instant Nationwide Database Searches

If you were to type the phrase “instant background check” into Google, you would end up with thousands upon thousands of sites that offer instant nationwide database searches at a fraction of the cost of a background check provided by a pre-employment screening firm. These sites claim to cover the entire country. Sounds like a great deal right? Wrong!

If you are a faithful Verifier or EmployeeScreenIQ blog reader, this is a familiar subject. For the uninitiated, any best practice criminal check starts with a criminal search in each county courthouse in which the applicant has lived, worked, or attended school over the last 7 to 10 years. Most criminal cases are handled at the county level and the county courts contain the most accurate and up-to-date criminal record information. Not all counties report their information to any one particular database, if any. If they do report information, they may do so infrequently. So, if an applicant was convicted of theft three months ago but the county court he went to only sends information to a certain database once a year, there is a very good chance that this record will not be found. And if this person will be working with money or around expensive equipment, businesses cannot afford to not know about this record. So while this option seems like a good tool to use to run a comprehensive background check on an applicant, it really isn’t the best choice. Databases contain many holes and inaccuracies that would have to be verified at the county level anyway.

Applicant-Provided Background Checks

There are some companies that require their applicants to have background checks run on them and then provide the company with a copy of the information. This idea is definitely worth exploring. Not only does the company still get a background check on the individual but they also don’t have to absorb the cost of it. Where can this scenario go wrong? Let’s review:

How does the employer know that the background check this applicant supplied is a bona fide document? Documents are easily forged. We’ve seen quite a bit of that in our line of work, especially with college degrees. And if employers are not aware of what the document should look like from the agency the applicant obtained it from (police station, court, school, employer, etc.) and the applicant has some savvy Photoshop skills, many hiring managers may fall victim to this con. But, assuming they’ve got an ethical applicant who produces an actual document from the county court of the county they live in stating they have no criminal records, how do they know that is the only place the applicant lived? If the applicant lived in Kansas five years ago, it is doubtful they are going to make a trip back to obtain documentation from that court (especially if they have a record there they don’t want anyone to know about). This same scenario could be applied to education, employment, professional licenses, and so on. Any documentation submitted directly by job applicants should be verified with the institution that issued the document.

This should not suggest there is no place for the options described above in a best practice organization’s recruiting and hiring processes. These tools do provide some benefits. Employee referrals are a great way to find talent for an organization. National criminal database searches, while not reliable as a standalone option, are a very good complement to a county criminal record search to find records outside of the places an applicant lived, worked, or attended school. Having an applicant provide documentation of a court search or degree and then verifying those documents with the issuing agency is another way of determining how truthful the applicant is being. But none of these options should ever replace a thorough background check.

So, for companies looking to stop conducting thorough background checks and replace that process with one that is faster, cheaper, and less comprehensive, here’s some food for thought. The cost of conducting a thorough background check and finding the right person for the job the first time is cheaper than a.) having to replace an employee who has only been on the job for a few weeks because they had something in their past that disqualifies them from employment, b.) having to replace an employee who lacks the experience needed for the job which was not discovered until after they were hired, c.) a negligent hiring lawsuit. Considering recruiting, training, and salary paid to an employee that is a bad fit and/or the cost of a negligent hiring lawsuit, the cost of doing it right the first time is much cheaper in the long run.

Natalie Beck is Project Coordinator for Cleveland-based EmployeeScreen IQ, 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.

From our position as a leader in the global employment screening industry, we see a wide range of background check programs. Through our diverse client base, we are positioned to observe how each company strives to meet its goals. While different clients have different objectives, there is one set of principles almost everyone comes together on. Get the most accurate information. Get it as fast as possible. Make the best decision for your organization.

But disparities do exist. It’s not where you might think though. The strongest differences are not among each company but within each company: security and loss prevention, human resources, recruiters, hiring managers. All want to serve their company well. All have good intentions. But inherently, they have different ideas on how to accomplish that. And sometimes, they conflict.

This article will illustrate how organizations can create, account for, and accommodate a diverse set of needs within their own departments. It will also address ways to fold your screening partner into the mix. For the purposes of discussion, let’s assume the following:

• Security and loss prevention professionals want to minimize the risk to the organization.
• Recruiters want to fill open positions and serve their internal customer; the hiring manager.
• Hiring managers want to fill a position with their preferred candidate so they can fulfill their responsibilities.
• All want to complete the process as quickly and accurately as possible.
• All believe their individual objective is the most important.

Now, all the above are certainly valid aims. And none are short sighted or compromise the integrity of the organization. However, these objectives can bump against each other at times. The resulting conflict can create a negative impact within an organization. The following examples are not unique to our clients:

• A hiring manager’s need to hire quickly leads to a less comprehensive background check than the risk manager would like.
• A hiring manager’s desire to conduct more reference interviews after the background check leads the recruiter to fear a qualified candidate will accept a competitor’s offer due to the delay.
• A risk manager’s worry about a candidate’s background could lead to a hiring manager not meeting production goals.
• A hiring manager’s need to hit production goals could create a potential danger a risk manager is not comfortable taking.
• A hiring manager likes a candidate’s background check, but the recruiter just talked to another candidate who might be a better fit.
• A recruiter wants an employee to start working before the background check is finished to lock up that “talent,” but a risk manager disagrees.

Our role is not to decide which opinion is right and which is wrong. It is to help clients establish criteria, discuss scenarios, and provide feedback throughout. Therefore, the suggestions below invariably present more questions than answers, but can be used to create solutions that work to suit your individual needs.

Know How It Ends Before It Starts

When push comes to shove, which department “wins?” If one department’s objection trumps all others, fine. If it is a collaborative effort or if it depends on the situation, that’s fine too. But discuss ahead of time how the process plays out when there is conflict. Role play scenarios where the hiring manager, recruiter, and risk manager differ. What happens next? Follow the dialogue to the end.

Tell Your Partner “Who Wins”

Your screening partner is aware of your organizational structure but by no means is as well versed as you. A good partner will attempt to proactively address issues and obtain information by anticipating your questions and needs.

Naturally, feedback you’ve given on one candidate a few weeks ago can drive the actions they take today. In your eyes, is that good or bad? This process could take an extra day or two. Do you appreciate the effort, or is each candidate viewed in its own light? Are they making it worse?

By sharing your process, they can have much of the legwork done by the time you and your teams sit down to discuss. They’ll know when to push forward, and when to stay out of your way.

Who Might Pick Up the Phone?

Clients designate a few people to work directly with their screening partner, however many people may be involved in the process on your end. Let your partner know who the “players” are ahead of time. For security purposes, we restrict information to authorized users. If someone wants access, we authenticate them through you. Reduce delays by letting us know who your VP of Loss Prevention is before he or she calls.

Who Is In Charge?

Within your organization, the chain of command may be clear. To your screening partner, it may be less apparent. When the recruiter and the risk manager give opposing instructions to your screening partner, who should they listen to? Who, in the end, speaks for your company?

Is Your Screening Program Built to Handle a “Turf War?”

This builds on the last point and is found within organizations that use a collaborative or “it depends on the situation” model. Does your screening partner know to be on the lookout for rogue behavior from others within your organization? Do you need them to be? How will they interpret the issue at hand if it arises again in 2 months? Will they act differently because they’re not sure who to listen to?

Again, this doesn’t mean the collaborative decision making process is wrong. But putting your screening program in the middle of an interoffice crossfire can lead to delays and misunderstandings.

Step Back and Watch

Is the program running as expected? Are competing interests aligned to ensure consistency, yet flexibility if necessary? Is there an unintended negative consequence as a result of your decision making process? For example, a process that is too collaborative could backfire. Do candidates wind up moving on to other opportunities because it takes too long to make a decision?

Don’t Be Afraid to Change Your Mind

Sit down once a year with your organization. Then sit down with your screening partner to amend the plan if needed. Times change. Opinions change. There’s no harm in reviewing everything to make sure what the preferred option in 2007 is still the preferred option in 2009.

The environment we create for our clients is extremely important to us. We try to make the process of doing background checks as easy as possible. Then, we direct our efforts toward creating comprehensive solutions, guiding clients through results, and offering world class service. Everything leads toward enabling clients to make the best decision for their organization. These tips are steps along that path. Create structure ahead of time so when there is a difference of opinion, energy goes toward finding the best solution, not figuring out where to start.

Kevin Bachman is Vice President of Quality Service for Cleveland-based EmployeeScreen IQ, 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.

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Let’s face it. We’re all looking for creative ways to speed up our daily tasks. We got Blackberrys so we could quickly respond to messages when we weren’t sitting at our computers. Instant messaging became en vogue when we didn’t want to take the time to write out a long email message. We even invented our own IM language because we didn’t have the time to write out complete words or sentences. Example: r u going 2 finish that project. That would b g8. L8er. Tks.

Those of us who focus on hiring and on-boarding are no different from the rest of society. We are constantly looking for solutions that allow us to expedite the hiring process and decrease the cost of processing applicants. One such method is the electronic job application which then populates the applicant tracking solution. The applicant simply fills out the application on-line and the data flows seamlessly without the need for duplicate data entry. This saves both time and money.

A Panacea for Background Checks, Right?

Now that the applicant’s personal data has been captured in the electronic application, wouldn’t it stand to reason that the background check process can become fully automated? Yes and No.

We all know that the Fair Credit Reporting Act mandates that our applicants’ must grant written authorization that allows us to conduct a background check. Traditionally, employers provide this document to job applicants and ask for a “wet” (traditional ink) signature on the document. This document is then filed away for proof of signature or sometimes faxed to the background screening provider for processing. So with all the technology available today, why can’t we just obtain consent electronically and move on?

The answer is that we can. The Electronic Signatures in Global and National Commerce Act was signed into law by President Bill Clinton in 2000 (both electronically and in ink), giving electronic contracts the same weight as those executed on paper (be it for background checks, or any other purpose). However, just because it made this form of consent lawful doesn’t mean that it mandated recognition of such signatures if both parties didn’t agree to the format.

A Fly in the Ointment

While employers are obligated to certify that they have received consent to conduct a background check, most services requested do not require a hard copy of the authorization form. However, when employers conduct employment, education or professional license verifications or access Motor Vehicle Records in a handful of states, it is rare when proof of signature is not required. Most employers and academic institutions will not release information without proof. And here’s where things can unravel with electronic signatures. This requires the requestor of information to fax a hard copy of the release to their screening provider and for the screener to fax it to the information provider, thus adding time and effort to the process.

In a recent study conducted by EmployeeScreenIQ , we submitted 500 electronic releases to past employers and academic institutions as proof of applicant consent. Only 45% of the time, were these signatures recognized and information provided. 55% percent of the time, the source of information refused to provide a response until a wet signature was faxed or scanned and emailed as proof. That means that 55% of the time, we had to go back to the requestor and ask for a hard copy of the signature. In each case, the requestor had to go back to the applicant and seek a wet signature. Once received, they had to fax or email the executed document. This of course, slowed down the process drastically and ran the risk of creating a negative impression on the job applicant.

Other findings:

• Academic institutions only accepted the electronic signature 41% of the time
• Employers only accepted the electronic signature 43% of the time
• Larger employers rejected the electronic signature far more often than small to mid-size employers

When Does The Electronic Signature Work?

If an employer does not conduct employment, education or professional license verifications or check Motor Vehicle Records in a handful of states, the electronic signature will do the trick. At the time the background check is conducted, the employer simply certifies that it has written authorization to conduct a background check. In this case, the electronic signature allows the process to be completely automated. No more faxing of releases. The electronically signed document is simply submitted with the other applicant information and seamlessly transferred to the background screening company. That document can then be fed electronically to the information source and the information sought can be returned by them in the same fashion. For those looking to cut down on paper, this has the added benefit of being an environmentally friendly process.

In 2008, the National Association of Professional Background Screeners (NAPBS)  presented some helpful guidelines for utilizing electronic signatures.

• E-signature process should require the applicant to consent to electronic storage and submission
• Choices for consent should be stated in unambiguous terms (“I consent” & “I decline” vs. “send” or “submit”)
• Applicant should be informed of their right to withdraw consent and explain any conditions, consequences or fees that would result from such a withdrawal
• Provide explicit instructions for the applicant to request a copy of their record in non-electronic form (A Summary of Your Rights Under the FCRA)
• An electronic record should be retained and readily available for reproduction
• You should outline the hardware and software requirements for accessing and retaining the electronic records that the applicant is consenting to receive

How Do We Improve Recognition of E-Signatures?

Certainly as time goes on, more and more institutions will begin recognizing these signatures. But rather than wait for that time, organizations are getting more and more creative. One of our strategic ATS partners, MyStaffingPro, allows releases to be signed electronically with a mouse, rather than a checkbox. They are then able to catalog the signature and store it on file through a third party auditor for future authentication. Other advanced organizations obtain signatures through electronic pen. Both forms of electronic signature should significantly improve acceptance as most verifying institutions want to just see some form of a scribble.

Conclusion

The concept of developing a completely automated and paperless background screening process is right at our fingertips. For those that do not require verification services, electronic signature is a proven way to expedite the process and reduce the labor involved in requesting a background check. The process has not yet been perfected for those that do require verification services, but we are closer than ever to realizing success in this regard. We can’t make people recognize these signatures, but we will continue to innovate creative solutions until they do.

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.

It’s a common misconception that the only information required to perform a background check is a person’s name and social security number – that these two pieces of data will provide you with everything you would ever need or want to know about an applicant. While those are two very important pieces of information when it comes to checking your applicant’s background, additional information is required to find other pieces of information that may be of interest to you. Employers should always endeavor to verify information provided by the applicant by cross checking it with official documentation.

Name and Social Security Number

As stated, the applicant’s name and social security number are key components to any thorough background check. The SSN trace provides a 7-10 year address history for your applicant so we know in what jurisdictions to conduct the criminal check and under what name (or names if aliases are found on the trace as well). Employers should capture this information directly from the applicant’s SSN card to ensure the accuracy of the name and number your applicant is providing to you.

Date of Birth

Once our researchers walk through the door of that courthouse, the importance of the SSN with regards to finding any criminal records somewhat diminishes. Most courts have stricken SSN’s from public access terminals due to the risk of identity theft. And if you search only by name, you could come up with a multitude of false positives (think Joseph Smith, Michael Jones – all very common names). Most courts will not even allow researchers to conduct the criminal check with this limited information. SSN’s may be used as additional identifiers on criminal records but in most cases is not a search method for locating the information. That is where your applicant’s date of birth comes into play. Most courts classify their records by a person’s name and DOB – not name and SSN as many might think.

Dates of birth are vital to the background screening process. Obtaining your applicants date of birth is extremely important so as to identify the record and confirm that it does belong to your applicant and not another person. Our recommendation is to obtain this information from an official record, such as a birth certificate, passport, or any other document issued by a state or federal institution. While we would all like to believe every applicant that we interview is being 100% truthful, there will always be those few that will give you a different month, day, or year (or all three!), so you will not find that felonious assault charge they know exists.

Driving History

All states issue a license number to those who are legally allowed to operate a motor vehicle in their state. License numbers are different for every single person and information about the holder of that license is classified by the license number. So, the only effective method to run a motor vehicle check on your applicant would be to obtain your applicants drivers license number and state of issue and authenticate it with a copy of the applicant’s actual license.

Just a side note – a state ID card is NOT the same as a driver’s license. They may look the same, depending on the state, but they are most certainly not. A state ID card is not a license to drive so there would be no driving history found if we were to attempt to run a state ID number in the motor vehicle check. So, when obtaining a copy of your applicant’s driver’s license, make sure it is a driver’s license and not a state ID card (and if you can’t tell, just ask!)

Education / Employment Information

I can’t tell you how easy it would be for pre-employment screeners if there was a one stop shop for all information pertaining to your applicants educational and employment history. That there exists one phone number to call, one website to check, or one place to mail a request to obtain this information with only a name and SSN as the search criteria. Unfortunately, that isn’t the case and we don’t see that being the case anytime soon. So, this is information your applicant will have to provide to you on their own whether by resume or your company’s application. If you want to be extra careful, ask to see transcripts from the school(s) they attended or W-2 forms from their previous employers. Either way you get it, rest assured that our staff will call the institution directly to verify the information provided and get the real story.

Professional Licenses

If you are hiring a doctor, nurse, lawyer, CPA, etc., those are positions that require a state license to practice. It is extremely beneficial to obtain the most information you can from your applicant regarding their professional license. The best practice would be to, again, have the applicant provide you with a copy of the license. If for some reason they cannot provide it, the minimal information required to see if this person does in fact have a license to practice in their field would be their name, type of license, and state of issue. But the more information you have (license number, date of issue, date of expiration, etc.), the quicker the verification will be completed.

The Consequences of Erroneous Information

Should your applicant provide you with any erroneous information, we will sometimes be able to catch it. If the SSN or drivers license doesn’t trace, we’ll know and contact you for clarification. If your applicant claimed receipt of a particular degree or that he worked for a particular company but neither actually occurred, we’ll be able to confirm that from the school and the former employer. But what if your applicant’s name is spelled wrong or the date of birth provided is not correct? Well, that is something we won’t know and throws everything off balance with regards to the criminal check which many consider to be the “jackpot” of the search. For example, if your applicant’s name is Michael Jones but he tells you his name is Michael Janes, we won’t find any possible criminal records for your applicant with that misspelling. Our court researchers go into the courthouse and search court records with the name provided. So, if Michael Jones has a burglary charge and our researcher is searching the name Michael Janes, the record will not be found. If the spelling is just a little bit off (Michael Jones vs. Micael Jones), we may still catch it but there is no guarantee. If name is spelled correctly but the DOB is a little off (11/12/1950 vs.11/12/1951), we may still catch that as well and go back to you to confirm the DOB (but of course, no guarantee). But if the DOB provided is drastically different that what the true DOB is, all bets are off and you will not receive an accurate criminal history report on your applicant. Not to mention, an incorrect name and/or DOB will provide inaccurate results for additional services, such as the Sex Offender Registry, Homeland Security Search, OIG/GSA search, etc.

Double checking the information provided to you by your applicant from official documents is the best practice to ensure that the background check you will be receiving at the end of the day is an accurate portrayal of your applicant’s history. Should erroneous information be discovered after the fact, we are always happy to re-run the search for you. But it is definitely in your best interest to make certain that all pieces of information are as accurate as possible so as not to incur any additional cost or turnaround time for your applicant’s background check.

Natalie Beck is Project Coordinator for Cleveland-based EmployeeScreen IQ, 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.

Related Links:

EmployeeScreenIQ

Definitions of Background Screening Services

4 Ways to Personally Benefit From Your Background Check Program

Bolster your image as a valued business partner by taking advantage of these low tech solutions to improve the quality of your background checks.

The latest technological revolution that is percolating within the background check industry is the seamless, electronic transfer of information from a client to the background check company. Applicant tracking systems (ATS), XML Transfers and online job applications are all useful tools to reduce labor costs and go paperless. And don’t get me wrong, these are great solutions. However, we have seen many companies excited about these capabilities get right to the water’s edge, and then step away due to the complexity and resource commitments required to implement them.

On our end, we simply work with a client’s IT department; exchange schema, then plug and play. It tends to be a pretty simple process. However, we have noticed that for many of our clients, getting to that point can be challenging. In the face of competing projects, the resources that are allocated and the collaboration that needs to take place between IT, Legal, Human Resources, and other departments, even the best intentioned integration efforts can derail.

Luckily, there is still enough low hanging fruit, if picked properly, to create an even stronger screening program without immense investments of time and resources. At the same time, this is an opportunity to demonstrate your commitment to your company and the value you can bring to the table as a business partner. Follow these simple steps and make yourself look good doing it.

What do you want us to find?

Some clients ask us to verify employment or education but don’t provide any information other than the name of the company or college the applicant attended. We find discrepancies on approximately 50% of all employment verifications and college degrees are among the most fraudulently claimed components of a background check. The more information we receive, the more we can compare and contrast to what we are told. Some companies and schools will only verify what is provided to us. If we receive nothing, there’s no way to ascertain if the degree, the title, the salary, the dates of employment or the reason for leaving he/she said in an interview were lies. For the clients that provide to us limited information, we report back fewer discrepancies, because there is nothing to compare what we are told. Let’s hope applicants for these companies are more honest! The result of getting this information ahead of time is a better background check which enables you to make an informed hiring decision.

How can you benefit? Put your company in a position to make a good hiring decision by telling us all you know. The more information we receive, the more thorough the background check. Take an extra minute when entering orders through My EmployeeScreen 4.0. If faxing orders, send us the job application, rather than the resume. Job applications tend to ask for more detailed information.

What do you want us to find, part II?

A comprehensive criminal check includes a felony and misdemeanor criminal records search under every name the applicant has gone by in every county the applicant lived, worked or went to school in over the last 7-10 years. We recommend our clients take this approach to accomplish their screening strategies. Choosing to not run all names and all counties often means missing criminal records that you may have otherwise found.

Many of our clients have begun using our instant Social Security Number Trace (Address History Search) tool when placing orders online. This feature gives our clients more control over their orders and allows them to choose alias names and counties for criminal research themselves. The primary advantage is that the client knows immediately how many previous addresses and/or alias names will be involved in the criminal background check. Clients that do not desire to run a full 7 year criminal check may utilize this functionality to limit the scope of the background check. It is important to note that using this tool for this purpose is not recommended, because it will defeat the purpose of running a best practice background check on your applicants. Exempting previous addresses from the criminal history research on a consistent basis WILL result in fewer criminal records identified and increase risk to your organization. Please contact our Client Relations Department or your Sales Representative if you would like more information on this tool.

How can you benefit? By choosing to run a thorough, compliant, criminal records check, you can mitigate the physical, legal and financial risks associated with hiring and employing a workforce. Decide to find all criminal records your applicant may have over the past 7-10 years. Prevent someone who should not have access to money, customers or employees from affecting your bottom line. Or, by the confidence generated from a good background check, hire those who should.

Save money by doing a better background check

That’s right. There is an opportunity to do better background checks and spend less money to do it. As companies across the world evolve from “doing background checks” to “doing better background checks” we have spent a lot of time collaborating with our clients on efforts to focus on the applicable services that offer the most benefit.

In conjunction with our clients, we’re shifting some programs away from conducting the same seven services (for instance) for each applicant across the board, no matter what. Instead we are creating screening programs based on levels of responsibility, or by position. Thus, we would now provide three services for example, for 33% of applicants, five services for the other 33%, and nine services for the remaining 33%. By reshuffling dollars, clients are able to do an even better background check for the level of candidates that need it most, while at the same time saving money across the board.

How can you benefit? On an annual basis, convene with your hiring or recruiting managers to reconfirm which services are most applicable. This communicates within your company that you are committed to making good hiring decisions while at the same time adhering to a budget, innovating and delivering cost savings.*

Use the resources at your disposal

Many areas of responsibility that Human Resources, Security, and Loss Prevention personnel oversee are extremely complex and regimented. These obligations can be well documented with clear standards. Non-conformity is usually easy to determine. In many cases, these regulations are dictated by a regulatory agency or legislative body.

The background check industry is not as clear cut. This is an evolving industry; one where state and federal legislatures propose vague umbrella laws like “all contractors should do a background check” and where court clerks allow or restrict criminal record information depending on the week. There are few mandates that stipulate the certain type of a background check that should be done in order to hire a certain type of applicant for a certain type of position. It is the “do it good” directive. Companies are told to do it, and to do it well, without guidance on how and without direction on what constitutes a thorough and compliant search.

So how can a company “do it good” without being told what that entails? Just ask! As a best practices provider, we get together. We talk. We listen. We ask questions. In tandem, we design a program that provides you with as much protection, information, and compliance at an affordable price.

How can you benefit? Take advantage of all we are willing to offer. Ask our opinion of your hiring program, your job application and your screening classifications. Demonstrate within your organization you are current with the changing nature of this industry and how the services you request continue to suit your needs.

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 kbachman@employeescreen.com”.

Background check on youth sports volunteers have exploded in popularity within the last few years. Administrators within these organizations take steps to protect children, recognizing the opportunity athletics affords people with bad intentions. Professionals in our industry work with these organizations, striving to create a solution that achieves this goal. However, there is no magic bullet, no way to guarantee, each and every time, someone who intends to do harm cannot. Therefore, it is important to look at the methods and tools youth organizations choose to protect children and limit opportunity.

Recently, a man who volunteered with his youth organization was arrested for possessing child pornography. This national organization has partnered with a company to administer a background check. Each local organization receives 80 free checks to screen their volunteers. After 80, each additional check costs one dollar.

Now, my point is not to attack a competitor or say there are definitely criminal records on this individual that should have been found. And this is not an attack on youth sports or the people who devote their time to running these organizations.

But I played youth sports and spent several years coaching when my “athletic” career was finished. And, prior to joining this industry, I spent time working in radio and television news. I look at this from three angles.

* A former player and coach. * A background check* professional. *A journalist.

As a Former Player and Coach

I observe the way in which this product is presented to this youth organization. It is certainly well intentioned. There are clear communications and instructions. It is easy to use. There are safeguards protecting the personal information of volunteers.

The story does not say conclusively if a search was run on this person or if there were any previous convictions, but suggests many organizations do not screen comprehensively. Based on my experiences, I believe this. Many volunteers have done so for years. They do not want to provide confidential information to a fellow volunteer who coordinates this. I know from personal experience coaches are concerned with personal information that will be available to others. I understand. And strongly disagree with them. Parents are not at every game or practice. Games end at dusk or later. There can be 40-50 opportunities per season for coaches and players to interact in a one on one setting. Coaches and volunteers absolutely should be screened.

As a Background Check Professional

I look at the product provided. Each background check up to 80 is free, and then costs just one dollar?

Think of the service your company provides. How much value does a product have if it’s provided for free? At most a buck? A buck doesn’t get you a cup of coffee anymore. What exactly does a dollar background check get you?

My colleague recently blogged on national database searches. These searches tend to be “data dumps” and contain incomplete, inaccurate, and outdated information. Many courts choose not to “dump” their criminal record information anyways. These are very cheap products and unfortunately, not good enough as the sole source of a criminal records check.

Generally speaking, when a company provides criminal record information, federal law requires one of two things. The first option is the providing company ensures the information is as accurate and current as possible. Doing this from information that originated out of a database demands a considerable amount of legwork and oversight.

The second option is to ping the database, provide what comes up, then send the applicant what amounts to a “maybe, maybe not” letter. It basically says “information was found and shared. It may or may not be accurate. It may or may not be you.”

Now remember how much this service costs. Maybe there are subsidies provided by the national organization or mass discounts behind the scenes I don’t know about. And a rule of thumb in this industry is that any type of search is better than nothing. And I do not advocate abandoning this service if the alternative is nothing. But there’s very little about this product that makes me feel as comfortable and safe as the marketing materials suggest.

Finally, As a Journalist.

Unfortunately, this story is too common. Volunteers, crime, children, followed by shock and outrage. However, I can’t recall the last time I saw a news organization report this story, use the words background check and actually say what that means.

A professional service that costs a dollar and pings a database that may or may not be accurate, complete or up to date? That can be called a background check*.

A professional service conducted by trained experts personally visiting county courthouses looking for felonies and misdemeanors? A mandate to provide information that is as accurate and complete as possible? This is what EmployeeScreen IQ does. This can be called a background check also.

What’s your perspective?

Think back to the situation described above. What if a different volunteer in another organization had a criminal record that should have prevented him from being around children, but wasn’t found? Depending on the type of background check*, I might not be surprised. An unfortunate, regrettable, and potentially avoidable situation.

What is a reasonable budget for a background check? Many companies approach this question from a logical purchasing perspective: find the cheapest product available that is sufficiently user-friendly. If your employees like it and your accountants don’t hate it, you have done well.

However, there are some important considerations that are not so obvious when shopping for the best value. Legal compliance and risk management can easily be overlooked in this decision process. If price is your only decision criteria, understand that it costs a little more to get reliable information; don’t put yourself or your company in a position to be second-guessed in the future, especially by a judge or jury.

Easy street

To cite the obvious example, it is easy to go online and sign your company up to run instant national criminal database checks. The database professes to contain millions of criminal records, it says it is a “national” check, the website interface is effortless, the results flash across the screen virtually instantaneously, and the cost is typically $10-20 or less. Many of these companies will even give you a “pass/fail” or “red light/green light” notification as to whether you should hire the individual. Why in the world would any company consider spending $30, $50, $75, or $100+ on a background check when a service like this is available?

The answer is risk management. The Fair Credit Reporting Act (FCRA) is a federal law whose purpose is to ensure that job applicants are treated fairly and objectively when employers hire screening companies to dig up information upon which they will base their employment decision. Bargain basement background checks do not measure up to FCRA criteria.

What, me worry?

Hopefully, your company will not be sued anytime soon for negligent hiring, based on an employee’s criminal act. However, if this situation arises, your screening process will come under intense scrutiny to determine if the individual in question had a checkered past that might have predicted the criminal behavior. The legal precedent is that if the employer “could have known”, then that employer “should have known” about that person’s propensity for criminal behavior.

A $10 instant background check does not provide you with reasonable confidence that you will weed out criminals on a consistent basis. There are hundreds of counties across the country that do not share criminal records with any national database. Those that do share records are extremely inconsistent in whether or how often they update the databases. There is no audit trail to determine the reliability of information. Criminal records will be missed.

Additionally, many counties that share criminal records have redacted any personal identifiers (DOB, SSN, etc.) from those records because of the prevalence of identity theft. This means that you could also invite litigation by disqualifying applicants based on criminal records that are matched only by a common name.

On the money

Reliable information requires checking criminal records at the county level. To maximize the probability that existing criminal records will be found, each county of residence, work, or school over the past 7 years should be checked, including any alias names used by the individual (courts file criminal records by name; they do not have the methodology or the resources to update criminal records every time someone gets married or changes their name). A “national” database can be useful as a supplement to the county check but doesn’t guarantee additional records will be found. Any criminal records that are found in a database must be validated by the local prosecuting jurisdiction (county) to ensure they are accurate and current for FCRA compliance.

Bottom line – what should I be prepared to spend?

The cost of a 7 year county criminal check is variable, because you can’t predict how many times each job candidate has moved or how many names they’ve used until the Social Security Number Trace is run. Each company’s average cost is variable as well because demographics of employees vary across companies and industries. To benchmark, a good rule of thumb is that a comprehensive, reliable background check can be performed in most cases for less than a day’s pay of the position being hired, and in most cases far less. Investing a little more up front in this important due diligence process can save you from catastrophic consequences down the road.

Rob Thomson is Communications Manager and Senior Account Executive for Cleveland-based EmployeeScreen IQ, a best practices provider of pre-employment screening services throughout the U.S. and worldwide. Rob can be reached at (800) 235-3954 ext. 438 or rthomson@employeescreen.com.

For more information on the content provided in this article and, or the organizations referenced, please use the following helpful links.

employeescreenIQ
The Employment Screening Value Proposition: A Primer
Practical Application of a Cost-Effective Employment Screening Strategy

Stop me if you’ve heard this before (or something similar): “I just don’t understand how my contractor could have placed a habitual convicted felon in my accounting department (for example). They said they performed background checks on all of their employees!”

Similar statements are being uttered in today’s workplace more than ever and most likely the contractor in the scenario above was telling the truth. They might very well have performed a background check. However, those who have spent time reviewing our past rants know that the term “background check” is a generic catch-all that can have many different meanings. Even specific elements within a “background check” can have different meanings. Take for instance a criminal background check. There are several different types of record searches: County, Federal District, Statewide, National Database, etc. Even a County Search can take on a different meaning. Some utilize off-site on-line technology to tie in with courts as opposed to on-site research. Some only search for felonies, while others will include both felonies and misdemeanors. This is clearly an issue on the minds of today’s HR professionals. In fact, HR Magazine recently highlighted the issue of “screening the extended workforce” as one of the top trends for 2008.

We have devoted much ink to defining the differences between all of these searches and by and large I believe that the market place is more educated about these differences than ever before. How then, does our example continue to take place?

Ask Questions and Define the Process

You spent a lot of time and energy developing a background screening process that allows you to hire the most qualified candidates and to minimize risk in the workplace. When it comes time to hire a contractor that will be placing their employees in your organization or in front of your clients, it is important not only to make sure that they perform background checks, but to understand what type of background check they perform. It is also important to let them know what defines a suitable candidate for your organization and what does not.

Too many companies are willing to accept that their contractors perform background checks and are satisfied with that. Don’t assume that their screening criteria and hiring standards are comparable to yours. Share with them your specific requirements. If your requirements for a specific job function are to conduct a 7 Year Criminal Record Search in all counties identified in an Address History Search, ask them to mirror these standards. If you include alias names, make sure that is included as well. Make sure that your definition of a county search is the same. There are too many misconceptions, misrepresentations and misunderstandings about what various searches do and it is important that everyone is on the same page here. Further, if there is more specific criteria you have for certain positions, ensure that these are being adhered to. For example, you might consider it important to evaluate a Motor Vehicle Record for each of your organization’s drivers. If your contractor is hiring a driver on your behalf, make sure they do so as well.

Further, inquire as to whether they ever update background checks over the course of their employees’ tenure with the company. If so, how often is the background check updated? What information is sought in these updates?

Caution! Don’t Assume You Have the Right to Review the Consumer Report.

A common misconception among employers is that you automatically have the right to review the background check of a candidate your contractor has screened. Don’t make this assumption. The FCRA prohibits those with a permissible purpose to execute a consumer report to share the information with any third party unless the signed Applicant Release specifically grants permission to do so. Therefore unless specific consent has been granted you do not have the right to review the report. You have two options here: 1) Communicate your hiring standards for what constitutes an acceptable candidate and cede control of the process to your contractor or 2) Consult an employment attorney who can modify the Applicant Release to legally allow you to review such information.

There are pros and cons to each scenario. If you cede control of the hiring process you lose the ability to ensure that your standards are being met, however you do insulate yourself from the liability associated with negligent hiring decisions. I’ve seen organizations do it both ways and it is important to consider your unique needs and requirements before making such a decision.

Who Should Be Screened?

The following are examples of contract workers that should be screened before being cleared to work at your organization.

• Contract (PEO for example) and 1099 Employees
• Temporary or Temp-to-Perm Workers
• Onsite Vendors’ Employees

When is the Proper Time to Address This Issue?

No rocket science here. Addressing this issue before you sign a contract is obviously the best practice. Sweat the details and have them agreed to in writing. This is an important issue and one which requires both parties to be on the same page.

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

Fair Credit Reporting Act
Instant Nationwide Criminal Database Searches: Know What You Don’t Know
employeescreenIQ

Buyer beware! You get what you pay for. Garbage-in, Garbage-out. Overused clichés all, but nonetheless spot-on when describing the perplexing process of researching and selecting an employment screening vendor. There are literally thousands of vendors selling all kinds of products under the name “background check” in this fragmented industry, and there are thousands of contradictory messages. How do you determine what messages are valid and what priorities should apply to your business and employees?

The earliest civilizations realized that starting a fire requires heat, fuel, and air (oxygen); the absence of any one of the three means you needn’t bother, as fire will not be achieved. Similarly, it can be stated that there are three main elements necessary for an effective background screening program: quality, low price, and fast turnaround time. While we take the elements of fire for granted in modern society, many organizations embark on an employment screening program with a critical misunderstanding of how the elements of an effective screening program fit together. Let’s look at these elements from a logical perspective.

Economics 101

We’ll come back to quality in a minute. Price and time are somewhat narrowly defined variables and very simple: they can be low (good) or high (bad). If all else is perceived equal and you can choose between vendor A, who is cheaper, and vendor B, who is faster, some people will choose A and some people will choose B. If vendor C then introduces a product that is cheaper AND faster everyone will have a strong incentive to choose C. These are generally accepted tenets of a free market economy. The simplicity of price and time in the free market means the third and more complex element, quality, is frequently ignored.

Quality: The X-Factor

The most ambiguous and complicated of these decision elements is quality. One of the biggest misconceptions in the industry, and the equation that far too many vendors perpetuate, is that low price + fast turnaround time = quality. Quite the opposite is true. Quality is much more dynamic, and thus harder to comprehend in a value proposition against price and time. Quality in a background check must be discussed as a combination of, but not limited to, the following brief overview of vital attributes:

• Reliability of Information – a screening vendor should adhere to industry standard research methods and provide practical oversight to achieve confidence that any criminal conviction reported is valid, compliant, and identified with the correct individual. Similarly, a “clean” record must come with reasonable confidence that there are indeed no existing reportable convictions in the areas where the individual has resided, worked, or attended school
• Customer Service – a screening vendor should have customer service personnel available to answer questions within a reasonably urgent response time. Customer service representatives should be knowledgeable about the vendor’s practices, products, and methods, and should be able to explain the sometimes less-than-clear legal language or credit codes and abbreviations included in consumer reports
• Legal Compliance – a screening vendor must make every effort to ensure all clients are in compliance with all applicable federal, state, and local laws governing access to and reporting of consumer information. The vendor should be sufficiently networked to be cognizant of pending legislation at all levels and have communication procedures in place to notify affected clients of changes that may impact their screening strategy or candidates
• Privacy Protection/Data Security – a screening vendor must perform due diligence on each new client to mitigate the risk of identity theft and security breaches. Industry-mandated due diligence requires validating the existence and physical address of the client, and that reasonable security is present at the facility. Screening vendors must educate clients on the sensitivity of consumer information and the importance of keeping consumer data secure and confidential. Similarly, a screening vendor must have extensive internal technology, procedures and precautions in place to protect the privacy of the individuals on whom it produces consumer reports

If these quality attributes sound important, it should be obvious that quality is directly correlated with both price and turnaround time; that is to say, increasing quality requires commensurate increases in price and time. Once you begin to understand what quality in background screening means, you can then make a more educated decision as to what your organization’s value proposition for a background screening vendor should include.

Important note: if you are currently utilizing an instant nationwide database check as the sole criminal history inquiry on your applicants and employees, you are using a product that is cheap and fast. This should be raising a flag by now. More information on instant nationwide criminal database searches can be found here.

Beware the perfect storm

We’ve discussed the three elements required for fire and paraphrased them as the three elements necessary to constitute an effective background screening program. Yet, a low price and fast turnaround time are still too compelling to ignore for many organizations, and if this results in a false perception of quality, the screening vendor has little incentive to correct it. Choosing your screening vendor based solely on price and turnaround time creates a risk that is immeasurable, but regularly perceived to be small. To help understand this risk, consider another three elements. All three don’t happen in succession every time, but like the proverbial perfect storm, you probably don’t want to be around when they do:

• Bad apple – the average job candidate that applies to the average company has not been convicted of a serious or violent crime. Most candidates will probably be considered “good apples” by your organization’s employment standards. There will also be candidates that walk through your door that have been convicted of one or more serious and/or violent crimes that would disqualify them according to your organization’s employment standards. These are the “bad apples”
• Poor quality background check – the faster and cheaper the background check, the more likely it is that an existing criminal record will be missed. Conversely, you could be sued by a “good apple” candidate for disqualifying her/him from a position based on a bogus or expunged record attributed to that individual by a background check lacking sufficient oversight
• Incident on the job – This is where the perfect storm occurs. A bad apple with a history of serious or violent convictions applies for a position with your company. Your instant, cheap background check fails to reveal this conviction history and you hire the bad apple. This employee commits theft or assaults a customer or co-worker. Suffice to say that plaintiff’s attorneys will spend significantly more time and money than you did looking for information that could be considered a predictor of the current incident. The consequences can be devastating

What constitutes reasonable quality?

Your selected screening vendor should be able to discuss the quality attributes described above in detail. Best practices in employment screening dictate criminal history research in each county jurisdiction and under all alias names revealed by a Social Security Number (SSN) Trace. It typically takes up to three business days to accomplish this and the cost will vary depending on how many places the candidate has lived or spent significant time. “Nationwide” databases should only be considered as a supplement to county criminal research to attempt to identify “vacation” criminal records. Depending on the position applied for and the level of responsibility or access the individual will have, additional screening services may be relevant.

Conclusion

With virtually any service product, organizations are naturally predisposed to be concerned with price and turnaround time. It is typically only when something bad happens that everyone is suddenly interested in the quality of your background screening program. If your organization believes background screening is worthwhile, do not leave quality out of your value proposition. A cheap, instant background check will provide little shelter in a perfect storm.

Rob Thomson is Communications Manager and Senior Account Executive for Cleveland-based EmployeeScreen IQ, a best practices provider of pre-employment screening services throughout the U.S. and worldwide. Rob can be reached at (800) 235-3954 ext. 438 or rthomson@employeescreen.com.