Use Background Checks to Prevent Hiring Problems
Use Background Checks to Prevent Hiring Problems
Employers in every industry are waking up to the fact that background checks are essential to their hiring process. Although these checks can be time consuming and difficult to complete, if you do not do them, you may find that applicants with a history of problems slip through your hiring process and create havoc. Problems you may face include performance and discipline issues, higher turnover, and an increased likelihood of accidents and illegal activities, as well as lawsuits for careless hiring procedures.
Clearly, background checks are more of a "must do" than just a "should do." But, you have to be prepared to conduct them properly and effectively. In last week's E-Tips, you learned about five legal claims that can be filed against you for inadequate or improper background checks.
(If you missed that issue, click here for a copy:
http://www.ppspublishers.com/ez/html/051705txtb.html.) This week, you'll find out the six types of background checks you can perform and four rules to ensure that they are completed legally and effectively.
* Many Checks Available, Not All Advisable *
While you may now agree that background checks are necessary, what kind of background checks should you conduct? Rather than attempting to uncover every detail about all applicants, your background checks should be specifically tailored to obtain information that relates directly to each individual's suitability for the particular job and your organization.
* "Bare minimum" screening. Background checks for every individual hired should include at least a verification of employment information for jobs held in the last five to seven years. In addition, you should check at least two, and preferably three or more, work-related references regarding the individual's qualifications, job performance, work behaviors, and any potential problems.
* Criminal history. As a general rule, criminal conviction records should be checked when there is a possibility that the person could create significant safety or security risks for coworkers, customers, clients, or the public. Examples include employees who will:
(1) have close contact with minors, the elderly, disabled, or patients;
(2) have access to weapons, drugs, chemicals, or other potentially dangerous materials;
(3) work in, or deliver goods to, customers' homes; and
(4) handle large sums of money or other valuables, or have access to financial information or employee personal information.
In addition, some states require a check for criminal convictions before hiring individuals as employees of health care facilities, financial institutions, or public schools.
* Credit reports. Credit reports typically include financial information (such as payment history, delinquencies, amounts owed, liens, and judgments) relating to an applicant's credit standing, creditworthiness, or credit capacity. Arbitrary reliance on the results of these checks can result in adverse impact discrimination against women and minorities. Accordingly, use of credit reports should be limited to situations where there is a legitimate business justification, such as for jobs that entail monetary responsibilities, the use of financial discretion, or similar
security risks.
* Driving record. Motor vehicle records (MVRs) are available from state motor vehicle departments. They usually contain information about traffic violations, license status, and expiration date. MVRs should be checked for any employee who will drive a company vehicle or a personal vehicle on employer business.
* Verification of academic credentials and licenses. Academic information (such as schools attended, degrees awarded, and transcripts) should be verified when a specified level or type of education is necessary for a particular job. Similarly, proof of licenses (and their current status, expiration dates, and any related disciplinary actions) should be obtained if a license is required for the position in question.
* Personal background checks. Some employers interview neighbors, friends, or associates about an applicant's character and general reputation. However, personal acquaintances tend to be biased in favor of the applicant and may reveal sensitive information – such as medical history or personal problems – that has no bearing on the applicant's ability to perform the job. Your possession of this information may provide the basis for a discrimination claim if the applicant is rejected. Further, if you hire an outside third party to conduct personal background
checks, the information generated is considered an "investigative consumer report" and is subject to the FCRA's comprehensive compliance requirements (see last week's E-Tips for more information on the FCRA. Go to: http://www.ppspublishers.com/ez/html/051705txtb.html
* Four Basic Rules for Effective Checks *
Regardless of the background checks you choose to conduct, you should adhere to the following rules to ensure that they are completed legally and effectively:
Rule #1: Obtain written consent before conducting any background check. The FCRA requires this for any consumer report obtained from third party consumer reporting agencies in conjunction with hiring activities. However, even when all preemployment screening is handled
internally, an explicit written authorization helps protect against invasion of privacy, defamation, and other tort (wrongful act) claims. Therefore, it is wise to expand the waiver language on your consent form so that it also releases the employer and those who assist with background checks (such as HR staff, former employers, and screening firms) from any liability that may arise from these activities.
Rule #2: Do checks as one of the last steps in the selection process. There is no need to spend the time and money, or to incur the legal exposure, for background checks on anyone who does not make it to your final round of consideration.
Rule #3: Evaluate results fairly and consistently. Avoid "knee jerk" rejections when negative information surfaces during a background check. Consider the negative information in the context of the job to be performed. For example, to reject an otherwise qualified candidate
solely because of a poor driving record may be inappropriate if the job requires no business driving. On the other hand, it could be the only prudent action in the case of a driving position.
Rule #4: Restrict access to information obtained in background checks. Background check materials should be kept in secure confidential files and disclosed only on a strict "need to know" basis. Managers and supervisors usually will need to review certain background information
about potential employees, such as employment verifications, references, licenses, and academic checks. However, access to records relating to criminal or financial history should be limited as narrowly as possible.
* Check Now, Avoid Trouble Later *
Recent news stories have made it clear that vigorous applicant screening is now more necessary than ever to assure a safe and productive workplace. There is no "one size fits all" formula for background checking programs. You should design screening procedures that are
appropriate for your industry and for specific job requirements. The guidelines above can help you structure a sound screening process and avoid costly mistakes.
**
Subscribers to the Personnel Policy Manual and HR Policy Answers on CD can find more information information on background checks in Hiring, Chapter 202, note 25.
Not a subscriber?
If you have any questions, please call us at 1-800-437-3735. We'll be happy to help you.
Employers in every industry are waking up to the fact that background checks are essential to their hiring process. Although these checks can be time consuming and difficult to complete, if you do not do them, you may find that applicants with a history of problems slip through your hiring process and create havoc. Problems you may face include performance and discipline issues, higher turnover, and an increased likelihood of accidents and illegal activities, as well as lawsuits for careless hiring procedures.
Clearly, background checks are more of a "must do" than just a "should do." But, you have to be prepared to conduct them properly and effectively. In last week's E-Tips, you learned about five legal claims that can be filed against you for inadequate or improper background checks.
(If you missed that issue, click here for a copy:
http://www.ppspublishers.com/ez/html/051705txtb.html.) This week, you'll find out the six types of background checks you can perform and four rules to ensure that they are completed legally and effectively.
* Many Checks Available, Not All Advisable *
While you may now agree that background checks are necessary, what kind of background checks should you conduct? Rather than attempting to uncover every detail about all applicants, your background checks should be specifically tailored to obtain information that relates directly to each individual's suitability for the particular job and your organization.
* "Bare minimum" screening. Background checks for every individual hired should include at least a verification of employment information for jobs held in the last five to seven years. In addition, you should check at least two, and preferably three or more, work-related references regarding the individual's qualifications, job performance, work behaviors, and any potential problems.
* Criminal history. As a general rule, criminal conviction records should be checked when there is a possibility that the person could create significant safety or security risks for coworkers, customers, clients, or the public. Examples include employees who will:
(1) have close contact with minors, the elderly, disabled, or patients;
(2) have access to weapons, drugs, chemicals, or other potentially dangerous materials;
(3) work in, or deliver goods to, customers' homes; and
(4) handle large sums of money or other valuables, or have access to financial information or employee personal information.
In addition, some states require a check for criminal convictions before hiring individuals as employees of health care facilities, financial institutions, or public schools.
* Credit reports. Credit reports typically include financial information (such as payment history, delinquencies, amounts owed, liens, and judgments) relating to an applicant's credit standing, creditworthiness, or credit capacity. Arbitrary reliance on the results of these checks can result in adverse impact discrimination against women and minorities. Accordingly, use of credit reports should be limited to situations where there is a legitimate business justification, such as for jobs that entail monetary responsibilities, the use of financial discretion, or similar
security risks.
* Driving record. Motor vehicle records (MVRs) are available from state motor vehicle departments. They usually contain information about traffic violations, license status, and expiration date. MVRs should be checked for any employee who will drive a company vehicle or a personal vehicle on employer business.
* Verification of academic credentials and licenses. Academic information (such as schools attended, degrees awarded, and transcripts) should be verified when a specified level or type of education is necessary for a particular job. Similarly, proof of licenses (and their current status, expiration dates, and any related disciplinary actions) should be obtained if a license is required for the position in question.
* Personal background checks. Some employers interview neighbors, friends, or associates about an applicant's character and general reputation. However, personal acquaintances tend to be biased in favor of the applicant and may reveal sensitive information – such as medical history or personal problems – that has no bearing on the applicant's ability to perform the job. Your possession of this information may provide the basis for a discrimination claim if the applicant is rejected. Further, if you hire an outside third party to conduct personal background
checks, the information generated is considered an "investigative consumer report" and is subject to the FCRA's comprehensive compliance requirements (see last week's E-Tips for more information on the FCRA. Go to: http://www.ppspublishers.com/ez/html/051705txtb.html
* Four Basic Rules for Effective Checks *
Regardless of the background checks you choose to conduct, you should adhere to the following rules to ensure that they are completed legally and effectively:
Rule #1: Obtain written consent before conducting any background check. The FCRA requires this for any consumer report obtained from third party consumer reporting agencies in conjunction with hiring activities. However, even when all preemployment screening is handled
internally, an explicit written authorization helps protect against invasion of privacy, defamation, and other tort (wrongful act) claims. Therefore, it is wise to expand the waiver language on your consent form so that it also releases the employer and those who assist with background checks (such as HR staff, former employers, and screening firms) from any liability that may arise from these activities.
Rule #2: Do checks as one of the last steps in the selection process. There is no need to spend the time and money, or to incur the legal exposure, for background checks on anyone who does not make it to your final round of consideration.
Rule #3: Evaluate results fairly and consistently. Avoid "knee jerk" rejections when negative information surfaces during a background check. Consider the negative information in the context of the job to be performed. For example, to reject an otherwise qualified candidate
solely because of a poor driving record may be inappropriate if the job requires no business driving. On the other hand, it could be the only prudent action in the case of a driving position.
Rule #4: Restrict access to information obtained in background checks. Background check materials should be kept in secure confidential files and disclosed only on a strict "need to know" basis. Managers and supervisors usually will need to review certain background information
about potential employees, such as employment verifications, references, licenses, and academic checks. However, access to records relating to criminal or financial history should be limited as narrowly as possible.
* Check Now, Avoid Trouble Later *
Recent news stories have made it clear that vigorous applicant screening is now more necessary than ever to assure a safe and productive workplace. There is no "one size fits all" formula for background checking programs. You should design screening procedures that are
appropriate for your industry and for specific job requirements. The guidelines above can help you structure a sound screening process and avoid costly mistakes.
**
Subscribers to the Personnel Policy Manual and HR Policy Answers on CD can find more information information on background checks in Hiring, Chapter 202, note 25.
Not a subscriber?
If you have any questions, please call us at 1-800-437-3735. We'll be happy to help you.
posted by e-Learning Place at 8:16 AM
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