The overall success of any organization is dictated by its employees. Surely superior goods and/or solutions are a requisite ingredient, but an organization’s human capital will make the ultimate determination of general accomplishment. As such, certain emphasis must be placed on the abilities, expertise and background of all personnel.
The value of operating thorough, comprehensive background checks tremendously outweighs the perceived deterrents of cost, time and work necessary to conduct the exercising. Simply taking into consideration the expense of replacing an employee, it behooves an employer to ensure it has identified and retained the very best candidate for any position within the organization.
A handful of details demonstrating the significance of great screening tools when generating a hiring decision:
News articles report 1-third of all application forms contain outright lies.
Research show three out of ten company failures are caused by employee theft.
Replacing supervisory, technical and management personnel can price from 50 to numerous hundred percent of the person’s salary. (Society for Human Resource Management, 2008)
Analysis concludes that common awards in workplace violence lawsuits exceed $ 1 million.
The common settlement of a negligent hiring lawsuit is almost $ 1 million. (Human Sources Management, 2008)
Federal and State Laws Surrounding Background Checks
Federal and state laws call for background checks for particular positions. The importance of understanding any and all background verify specifications for your particular market can not be stressed adequate. For example, most states require criminal background checks for any position that works with youngsters, the elderly, or the disabled.
In the federal arena, employee background checks are governed by The Fair Credit Reporting Act (FCRA), which sets the standards for employment screening.
The FCRA utilizes the name “customer report” to define a background verify as effectively as a credit report and imposes strict, definitive suggestions regarding reported data. For example, employers are required to obtain customer consent to conduct a background verify and are thereby essential to give notification if damaging data is reported on the background check.
Several states have also passed their personal legislation concerning background checks. California has enacted the Investigative Consumer Reporting Agencies Act which has increasingly strict recommendations concerning what can be reported on a consumer report. California has also restricted the reporting of criminal convictions to seven years, even though the FCRA enables criminal convictions to be reported indefinitely. An rising number of states are regulating the info that can be reported, how that info is obtained, and how it can be used. Being properly versed in the federal and state requirements regarding background checks continues to be of utmost importance.
Use of Background Check Information
The proper and consistent use of information identified on background checks is key. It is very best for an employer to have a sound policy regarding which positions will be subject to background checks and is frequently considered greatest practice to conduct background checks, in some degree, to all applicants. Most background examine vendors function several packages of background checks, with every single package becoming equipped with a normal set of checks to promote uniformity and consistency amongst all candidates. Based on the position that is being filled, additional checks can be added, such as a driving history for a position that calls for travel.
Employers ought to also bear in mind that basically getting negative info reported on background checks can not be an automatic disqualification for employment. Damaging data need to be regarded when it is job associated, such as an embezzlement conviction for the position of Chief Financial Officer. However, if the very same applicant with the embezzlement conviction is getting regarded for a pet grooming position, the conviction would not be relevant to the job and could not be regarded as as an automatic bar to employment. Be conscious that if an employer engages in the practice of automatic disqualification for any/all damaging information returned on background checks, particularly if the details is immaterial to the position, it opens the door to potential discrimination claims.
A Beneficial Resource
Like the labor and employment law environment in California, best practices and compliance need to be observed when conducting background checks. Provided the innumerable quantity of regulations and possible for considerable penalties for any failure to comply, it is extremely critical to determine a respected vendor for background examine solutions.
Human capital getting the most important element of your organization’s accomplishment, identification of the best candidate to join your organization remains a priority. Although keen observation and compliance of federal and state laws is essential, the function involved in the screening approach is vastly outweighed by the addition of a beneficial new team member armed with the appropriate skills and knowledge to make a good impact on your organization.
The Fair Credit Reporting Act
California Investigative Privacy Laws
Using Customer Credit Reports : What Employers Need to Know