The Importance and Value of
Pre- Employment Background Checks
HUMAN RESOURCES
HUMAN RESOURCES
Business owners might wonder if including a
pre-employment background check during the hiring process is worth the
additional time and expense. But when seriously considering a candidate for an
open position, it can be very important to consider conducting a
background check. It can offer employers the potentially valuable benefits of:
·
Hiring well-qualified candidates
·
Reduced employee turnover and the related
expenses
·
Limiting exposure to claims of negligent
hiring
When is the right time to conduct a background check? In
general, the process should take place after initial applicant screening
procedures are complete and an employer has made a conditional job offer. Once
the process is underway, employers should not permit the new employee
to begin working until the background check is complete.
Hiring
the Best
Simply
having a pre-employment screening program in place could discourage applicants
with a troubled history from applying for an open position. Since the Society for Human Resources
Management estimates that as much as half of all resumes and applications
contain false or misleading background information, the background
check can help verify candidates’ qualifications
before interviewing has even begun.
A background check can help ensure that only qualified
individuals are considered for the job. Eliminating unqualified candidates
can also mean less likelihood of having to terminate an individual later
on and incurring the additional expense of starting the recruitment process all
over again.
Types
of Background Checks
There are a variety of background checks that employers
can utilize to obtain candidate information, including motor vehicle reports,
national criminal search, national sex offender search, and the terrorist watch
list, to name a few.
Employers can make use of consumer reporting agencies to
obtain background information on job candidates. Employers who utilize Consumer
Reporting Agencies must comply with the applicable guidelines in the Fair
Credit Reporting Act (FCRA) and applicable state laws, including but not
limited to the following:
1.
Request applicant sign a separate disclosure and release form. When the job seeker completes the employment
application, the applicant should sign a consent form declaring that the
potential employer is seeking a consumer credit report as part of a
background check. He or she must also receive a Summary of Rights explaining
his or her rights under the FCRA. An investigation cannot proceed without
this signed consent form.
2.
Notify applicant of negative report findings before taking action. If the report includes information that may cause
the employer to disqualify the applicant, the applicant must receive a
Pre-Adverse Action Letter, a copy of the consumer report, and a copy of his
rights before any negative action is taken.
3.
Make a hiring decision. If the applicant
fails to respond or can't provide information explaining the negative findings,
the employer can proceed with the decision not to hire. But before taking this
action, it's best to seek legal counsel to protect against any exposure to
litigation or violations of state or federal law.
4.
Notify applicant of decision. Disqualifying
a candidate requires the employer to provide appropriate notice to the
applicant in compliance with FCRA guidelines, including an Adverse Action
letter, copy of the report, and a copy of the Summary of Consumer Rights.
5. Dispose of findings and
records. In compliance with the Fair and Accurate Credit
Transaction Act, the employer is required to properly dispose of the
background report information and records to guard against unauthorized access
to or use of the information.
Employers should be aware that credit checks and criminal
history inquiries may be restricted and/or mandated by federal guidance from
the Equal Employment Opportunity Commission as well as applicable state laws.
The best practice is to consult with an attorney who is familiar with those
requirements.
Protect
Against Negligent Hiring Litigation
A potential benefit of a consistent pre-employment,
post-offer background check policy may also include helping your business avoid
claims of negligent hiring. By conducting background checks following a
conditional offer of employment and prior to the applicant starting work,
businesses may be able to reduce their exposure to claims of negligent hiring
and the associated litigation costs. Making a
comprehensive background check an essential part of the hiring process can
benefit your company.
Looking for more information? Contact
us, Secure Employment Group
(SEG) at 888-610-2566. Or visit our website www.secureemploymentgroup.com for
more information on all your pre-employment screening needs including Background
Checks, Drug Screening and Personality Assessments to ensure stronger hires and
a safe environment for your employees!
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