Human Resources Articles
Do You Know Whom You're Hiring?
A Realistic Look at Pre-Employment Background Screening
Hiring a person with a criminal record or falsified credentials can be a serious nightmare. Industry statistics suggest that the cost of a bad-hiring decision can exceed $100,000. And for a hard-working company trying to develop a new technology, build a brand, or be the first to market, a bad hire can mean even more than the loss of money. It can mean the loss of valuable intellectual property, time and energy.
It's no surprise that employers of all sizes are turning to pre-employment background screening as a way of minimizing hiring risks. Pre-employment background screening works in four critical ways:
- Just having background screening can discourage applicants with something to hide. A person with a criminal record or false resume will simply apply to a company that does not pre-screen.
- It limits uncertainty in the hiring process. Although using instinct in the hiring process can be important, basing a decision on hard information is preferable.
- A screening program demonstrates that an employer has exercised due diligence, providing a great deal of legal protection in the event of a lawsuit.
- Having a screening program encourages applicants to be especially forthcoming in their interviews.
The criminal record check is a primary example of a pre-screening process that helps promote safe hiring practices. Approximately 10% of job applicants have criminal conviction records; without a screening program, a company is very likely to hire one of them. Contrary to popular perception, there is no national database available to private employers. Qualified researchers, who visit courthouses in counties where an applicant has lived or worked, check criminal records. Since there are over 10,000 courthouses in America where records are kept, most employers outsource this task to qualified firms.
Another important tool is resume verification. Job applicants often use their resumes as a marketing tool, but the hiring company can find itself in trouble when resumes exceed the bounds of honesty. It is estimated that up to 30% of resumes contain material falsehoods that pertain to previous employment, education, and professional licenses. A professional screening firm can easily verify whether an applicant has the degrees or licenses claimed. Even verifying the job dates and job title is crucially important! Other tools can include credit reports (when relevant to the job), social security number traces, driving records, civil and federal court records, as well as judgments, liens and bankruptcies.
Given the advantages of screening, employers often ask if there are legal, financial, or practical drawbacks to starting a screening program. The answer is a resounding "no."
Legal
Employers have an absolute right to conduct lawful pre-employment screening in order to hire the best-qualified candidates, provided the inquiry doesn't seek potentially discriminatory information such as information about disabilities. A federal law, called the Fair Credit Reporting Act (FCRA), balances the right of employers to know whom they hire with an applicant's right of disclosure and privacy. Under this law, the hiring company first obtains the applicant's consent to be screened. Then, in the event that negative information is found, the applicant must be given the opportunity to correct the record. Certain State laws of privacy and required consent may also apply. A qualified screening company will handle all the legal compliance issues for the employer.