7_deadly_sins

The Seven Deadly Sinsof Background Checks

A SafestHires Publication

Mistakes That Should Be Avoided at All Costs

ForwardEmployment background checks are now being used by most organizations. In recent surveys, approximately 73% of employers have reported requiring some form of background check as part of their hiring process. As more companies and human resources departments determine that background checks can protect company assets, keep workers and stakeholders safe, and prevent negligent hiring claims, this number will likely increase.

Employment background checks have evolved to include much more than a person’s criminal history. While criminal record checks are the still most common type of search used, many organizations have expand the screening process to include information about past employment, education, driving records, drug testing and other search types.

As background checks become more prolific, more employers are likely to make mistakes implementing these programs and these mistakes can be costly. Since 2014, there has been a 265% increase in employer lawsuits for technical violations of the FCRA alone.

This paper details seven common mistakes that organizations make when performing background checks, and these mistakes are being made by organizations of all sizes.

The Seven Deadly Sins Summarized> Not Having Established Screening Policies

> Not Following Basic Compliance Procedures

> Strict Reliance on Criminal Database Records

> Not Screening Contractors, Vendors or Temps

> Not Verifying Employment & Education History

> Not Using a CRA for Background Checks

> Not Using a Provider With FCRA Certified Personnel

Mistake #1: Not Having Established Screening Policies

Having a formal policy in place that describes a company’s screening practices may seem obvious, but not doing so is one of the most common and costly mistakes employers make. Companies targeted for screening compliance violations become extremely vulnerable without a formal policy in place.

Here are the top reasons for having a formal policy:

1. Practices align with the policy for compliance 2. The appearance of discrimination is avoided 3. Background checks are applied uniformly

Even when a policy has been adopted, litigation can still result when employees cut corners. For this reason, it’s critical that everyone who will be involved with background checks be trained and re-trained, and to formally acknowledge their participation in the training process.

Best Practice Suggestion You should create formal screening policies and adopt a training program with annual renewals. Also, a formal review process will help ensure that you update your policies based on changing laws and regulations, and the evolving needs of your industry and your organization.

“Litigation can still result when employees cut corners.”

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Mistake #2: Not Following Basic Compliance Procedures

Nearly all states have begun to scrutinize the use of criminal history, credit history and other records in employment screening. As a result, numerous laws have emerged throughout the country and regulations are changing all the time. An employer must be compliant with all regulations.

For example, exclusion of job applicants based on conviction records is prohibited unless the employer can show business necessity. You must be able to show you have considered the nature and gravity of the offense, the time that has passed since the conviction and the nature of the position sought.

Many states have tight restrictions on the use of credit reports, and these restrictions are not consistent from state to state. When screening with a credit report, it is best to show that the individual’s credit history is relevant to the position.

Best Practice Suggestion Focus on compliance. By ensuring your screening provider is equipped to provide you with only the information you are legally allowed to have, you can ensure your hiring decisions are based on relevant information and avoid bias. Your provider should be able to do this automatically.

“An employer must be compliant with all regulations.”




Mistake #3: Strict Reliance on Criminal Database Records

There are two sources for criminal records: a criminal record on file at the courthouse and a record stored in a criminal database. The former is extremely accurate; the latter is much less so. However, many employers are not properly educated on the differences and can get into trouble by strictly relying on database records.

There are two potential problems with database records. First, they are subject to human data-entry or data-editing errors, which makes them about 50% accurate. The other is that there are no rules requiring courts to upload records to the databases, which means they are frequently incomplete.

For these reasons, criminal database records should never be considered a primary information source. Rather, they should only be used as a pre-screening indicator of possible criminal activity. Any criminal records delivered from a criminal database should be independently verified for accuracy.

Best Practice Suggestion (1) Verify the applicant’s identity and address history. (2) Then conduct a county criminal search in their counties of residence. (3) Then conduct criminal database searches. (4) Verify any database hits by ordering the record on file at the reporting jurisdiction. (5) Take adverse action, if needed.

“Criminal database records are subject to data entry errors.”




Mistake #4: Not Screening Subcontractors, Vendors & Temps

Subcontractors, vendors and temps can be at your facilities, interacting with employees and even clients. If you aren’t screening these people to the same standards your employees are held to - before they come to your property - you may be creating unnecessary risk for your workforce and customers.

The companies that employ these people may have conducted inadequate background checks. Since these people are more likely to roam your halls unsupervised, and may even gain access to sensitive areas, requiring their employer to use your screening vendor and package is critical to keep your workforce, assets and customers safe.

When it comes to screening subcontractors, you should conduct a reference check with other employers the company has worked for. If these references vouch for them, then you can conduct your background check on each of their employees to find any “bad apples” who might pose unwanted risks.

Best Practice Suggestion Screen contract employees, temporary employees, vendors and even interns the same as you would screen any regular employee. They must use your screening company and the types of background checks you perform on the people you hire, giving you the utmost confidence in the results.

“Employers should reference check subs before hiring them.”




Mistake #5: Not Verifying Employment & Education History

According to the Wall Street Journal, 34% of all job applications contain outright lies about the candidate’s experience, education and ability to perform required job functions. Even worse, the estimated average cost of a bad hire equals about 30% of the employee’s annual earnings.

While many companies do background checks, most conduct criminal record checks only. But these aren’t enough to get the full picture of a candidate’s character. Some candidates list education from “Degree Mills,” which are fake universities that conceal their true identity and purpose with marketing materials and websites that seem authentic.

If degree mills weren’t bad enough, there’s a new fraudulent employment tool available to dishonest people: the Reference Mill. For a modest fee, a person can engage the services of an organization pretending to be a former supervisor or college professor, ready and willing to give a great reference.

Best Practice Suggestion Often times, it can be difficult to detect education fraud, which is why it’s helpful to screen potential hires with an experienced screening vendor who will confirm the degree type, major and dates attended. Also, conduct an employment verification whenever possible because it is easier to determine authenticity versus reference checks.

“Some candidates list education from Degree Mills…”




Mistake #6: Not Using a CRA for Background Checks

Imagine preparing a meal in your kitchen and you accidentally cut your hand with a knife. The cut is long enough and deep enough that it will require stitches. Do you run to the closet for a needle and thread so you can stitch yourself up at home? Of course, not. You go to the ER for professional medical treatment.

Some companies try to conduct background checks in house, using Google, cheap online databases and sometimes even accessing court websites that are publicly available, but all of these options are risky because they lack human interaction and professional training to verify authenticity. Often, they are using outdated or completely inaccurate information.

A credible Consumer Reporting Agency (CRA) sends researchers to courthouses and uses professional quality data sources to obtain background information. Their people are trained to review and discover information that should not be released or viewed, ensuring maximum possible accuracy.

Best Practice Suggestion Use a Consumer Reporting Agency (screening provider) that combines human investigation, professional quality data sources and people trained to recognize and omit bad information. Doing so will help you make safe, compliant hiring decisions while avoiding mistakes that can lead to costly litigation and reputation problems for your company.

“Do you stitch yourself up at home with a needle & thread?”

Expunged




Mistake #7: Not Using a Provider With FCRA Certified Personnel

This section could be called “Getting the Best Value for Your Investment.” Some screening providers are credible and wildly expensive. Others may be super cheap, but their people lack proper training. If you want a CRA that is both economical and credible, request their prices and their FCRA Certification.

The FCRA Certification program is intended for background screening professionals committed to Legal Compliance, Consumer Protection, Client Education, Researcher and Data Product Standards, and Verification Standards. Candidates must earn an 80% and bi-annual testing is required to stay current with the changing regulatory climate.

Subjects covered include FCRA Basics, CRAs, Other Industry Players, FCRA Litigation, State Variants, Reporting Accuracy, Disclosure & Authorization Forms, Reporting Adverse Information, and related topics.

Best Practice Suggestion A first step is to check the provider’s website for specific language about FCRA Certification. Look for more than just a mention of the NAPBS. Most background check companies are members of the NAPBS but very few require their people to earn the FCRA Certification. If they reference FCRA Certification, then ask to see a copy of their certificate.

“Request their prices and their FCRA Certification.”




ConclusionEmployment background screening is now a critical step in the hiring process. By avoiding the “Seven Deadly Sins of Background Checks,” employers can make safer hires while maximizing compliance and reducing risk.

About SafestHiresIn an effort to deploy new software designed to speed up turnaround time, drive additional cost savings and satisfy other HR software needs, like mobile recruiting, applicant tracking, paperless on-boarding and payroll services, SafestHires was launched in partnership with veteran screening provider Precise Hire.

Led by a team of co-founders who are US Navy Veterans, SafesHires uses the same servers, security features, software team and customer service team that has made Precise Hire an industry leader for the past 15 years.

Our FCRA-Certified technicians and customer service agents collaborate to ensure you get the safest screening experience possible. You also get easy ordering, superior customer care, accurate information, and rapid turnaround at the most economical rates in the market.

Additionally, our software development team created a simplified user-interface backed with multiple layers of data protection so that ordering a background check is as easy as a Google search, only backed with government level security.

Because the employment background-screening industry is highly regulated, we require our senior customer service agents to earn their FCRA Certification and they must have at least 10 years industry experience. They are also required to properly educate every new customer on screening Best Practices and what to expect when receiving a person's background information.

We invite you to register for a live demo – and we’ll even throw in a free trial – because we want you to experience it all for yourself.

6841 Virginia Pkwy, #121 I McKinney, TX I 75071 I 800.588.1774 I SafestHires.com



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