Want the truth? Beef Up Your Background Checks
03/05/07
A job candidate does well during the interview and seems to have the right skill-set. You are ready to hire. But before you proceed, step back and allow yourself a few healthy moments of skepticism. What do you really know about this individual? Does the person actually have a master’s degree in a certain discipline from a particular university? Is it true the applicant has no criminal record? Are you sure the applicant has a valid Social Security card? Remember: The facts are difficult to come by in the hiring process.
The numbers are staggering. Of the 4.9 million background checks conducted by ADP* in 2005, almost half (49 percent) of the education, employment and credential verifications contained data inconsistencies. Other key statistics from these background checks are just as disturbing: - Credit reports — Of all credit report checks, 46 percent showed a judgment, lien, bankruptcy or collection agency involvement.
- Driving record — Among driving record checks, 24 percent had one or more violations or convictions, and 5 percent had four or more.
- Workers’ compensation — Of the workers’ comp records reviewed, 8 percent had an existing claim.
- Criminal history — 5 percent of the background checks revealed a criminal record in the past seven years.
Criminal history checks are particularly delicate. Each person applying for a position in your company should be informed if a criminal check for all full- and part-time personnel is required once a conditional offer of employment is extended. When asking an applicant about his/her criminal background, indicate that a previous conviction does not automatically disqualify that applicant from consideration for employment. But make clear the applicant will be disqualified from further consideration if there’s an attempt to withhold information, or falsify a record pertaining to previous convictions.
Stay in-house or look outside?
Some companies rely on their own personnel to do background checks, such as HR departments or hiring managers. But an HR department may not have the time and resources it takes to do a thorough review of both permanent and temporary potential hires. If a manager does the screening, the manager typically looks into a candidate’s previous employment history and may even attempt to talk with the candidate’s former supervisor. But the manager may not be inclined to verify other information, such as academic degrees.
That’s why many companies turn to screening vendors to perform a series of background checks. These checks may include a search for felony and misdemeanor warrants, motor vehicle reports, professional licensing verifications, address checks and Social Security card verifications. Depending on the scope of a particular check, companies can choose one of several search packages or order a specific search. The credentials of candidates who have lived in various states will, generally, cost more to verify, as will those pertaining to foreign-born candidates.
Don’t forget FCRA requirements
Consumer reports, criminal reports or driving history on an applicant are all important parts of the background check process. But before you can request such a report, you need to follow certain procedures as outlined in the Fair Credit Reporting Act (FCRA). For example, the FCRA requires the applicant’s written consent before a credit reporting agency (CRA) releases information about the person. (Written consent generally is not required in the trucking industry.) If you use the information to deny an application for employment, you must disclose that to the applicant and provide the individual with the name, address and phone number of the CRA that produced the report. G.Neil can help you meet your responsibilities with our attorney-approved FCRA Disclosure/Authorization Form.
*ADP Screening and Selection Services’ annual Screening Index includes background results within specific industries, including manufacturing, health care, hospitality, construction, retail, auto dealerships, transportation and business services.