background screening presentation 2011
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What organizations need to know to protect their What organizations need to know to protect their employees, customers and assets.employees, customers and assets.
EmploymentEmployment ScreeningScreening::
Prepared by Corporate Security Services Inc.
Pre-Employment ScreeningPre-Employment Screening Don’t bring dangerous people into the workforceDon’t bring dangerous people into the workforce
Dig as deep as law and policy allowDig as deep as law and policy allow
Typically organizations expend more effort to select office Typically organizations expend more effort to select office equipment and supplies than screening of prospective equipment and supplies than screening of prospective employeesemployees
Robust employment screening prevents other risksRobust employment screening prevents other risks
Employment Roulette: No Robust Employment Roulette: No Robust Employment ScreeningEmployment Screening
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Employment RouletteEmployment Roulette Most employers expend more resources on selecting Most employers expend more resources on selecting
office equipment than on really knowing about the office equipment than on really knowing about the employees they hire.employees they hire.
Resume and application fraud is pervasive. 19% of Resume and application fraud is pervasive. 19% of applicants lie about criminal history; 30% of applicants applicants lie about criminal history; 30% of applicants misrepresent education history; 25% of applicants misrepresent education history; 25% of applicants misrepresent employment history. misrepresent employment history.
6-10% of applicants supply false social security number 6-10% of applicants supply false social security number information or are not eligible for hire in the United information or are not eligible for hire in the United States.States.
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Impact of Employment RouletteImpact of Employment Roulette
Employer Liability to a Third PartyEmployer Liability to a Third Party
Lost Revenue Poor Work Lost Revenue Poor Work PerformancePerformance
Lost Revenue from Tardiness and Lost Revenue from Tardiness and No/ShowNo/Show
Training Costs for Failed New HireTraining Costs for Failed New Hire
New Employee TrainingNew Employee Training
Downtime Between ChangeoversDowntime Between Changeovers
Damage to Equipment or FacilitiesDamage to Equipment or Facilities
Legal Implications Justification for Legal Implications Justification for Removal After HiringRemoval After Hiring
Job Error CostsJob Error Costs
Lost EfficiencyLost Efficiency
TurnoverTurnover
AbsenteeismAbsenteeism
Impact on Public ImageImpact on Public Image
Overall Employee MoraleOverall Employee Morale
Failure to Meet DeadlinesFailure to Meet Deadlines
Lower Profit MarginsLower Profit Margins
Damage by SabotageDamage by Sabotage
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Business Reasons to Conduct Business Reasons to Conduct Robust Employment ScreeningRobust Employment Screening
Reduce turnoverReduce turnover Avoidance of adverse hiring lossesAvoidance of adverse hiring losses Improved applicant qualityImproved applicant quality Liability avoidanceLiability avoidance Improved capability for IRS and INS complianceImproved capability for IRS and INS compliance Reduce negative personnel related incidents and Reduce negative personnel related incidents and
losseslosses
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Employment Screening: Employment Screening: Return on InvestmentReturn on Investment
For Every Dollar Spent On Employment For Every Dollar Spent On Employment Screening… Employers Screening… Employers AvoidAvoid Spending; Spending;
$ 3.07 in Employment Turnover costs$ 3.07 in Employment Turnover costs
$ 2.00 in Shrinkage / Theft costs$ 2.00 in Shrinkage / Theft costs
$ 21.65 in Information / Intellectual Property loss$ 21.65 in Information / Intellectual Property loss
$ 43.03 in Negligent Hiring costs$ 43.03 in Negligent Hiring costs
$ 67.63 in Workplace Violence related costs.$ 67.63 in Workplace Violence related costs.
Safety and Security depends on what you Inspect …. not what you Expect !
Corporate Security Services Inc © 2010
Why Screen? – Reduce Potential Why Screen? – Reduce Potential for Legal Liabilityfor Legal Liability
May Arise For Reasons Of:May Arise For Reasons Of:
Respondeat SuperiorRespondeat Superior (A legal rule that the principal or employer is liable for harms done by(A legal rule that the principal or employer is liable for harms done by agents or employees while acting within the scope of their agency agents or employees while acting within the scope of their agency or employment.) or employment.)
Negligent Hiring Negligent Hiring The failure to use reasonable care in the employee selection process, resulting in harm caused to others. Employers have a legal duty not to hire people who could pose a threat of harm to others, which can include everything from slight to fatal bodily injury, theft, arson, or property damage.
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Why Screen ? - Consumer Why Screen ? - Consumer ExpectationsExpectations
Consumers expect honesty, diligence, and a Consumers expect honesty, diligence, and a protection from criminal intent and other protection from criminal intent and other adverse incidents from their business adverse incidents from their business partners/suppliers.partners/suppliers.
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Why Screen ? – Business Why Screen ? – Business ReputationReputation
Robust Employment ScreeningRobust Employment Screening significantly significantly reduces the potential for adversereduces the potential for adverse incidents incidents and issues that can negatively affect the and issues that can negatively affect the employer’s business reputation.employer’s business reputation.
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Why Screen? Why Screen? Your Organization Your Organization Envisions Building A “Dream Team”Envisions Building A “Dream Team”
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So I Got the Job?So I Got the Job?
Misrepresented ApplicationsMisrepresented Applications
Former Employers not DisclosedFormer Employers not Disclosed
Unacceptable Driving RecordsUnacceptable Driving Records
Exaggerated/Misleading Claims of AbilityExaggerated/Misleading Claims of Ability
Gaps in EmploymentGaps in Employment
Disclose Criminal Convictions Disclose Criminal Convictions
Indicate Violent TendenciesIndicate Violent Tendencies
Identify History of Drug/Alcohol Identify History of Drug/Alcohol
AbuseAbuse
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Reliable Employment Screening Reliable Employment Screening Can Identify Issues ………..Can Identify Issues ………..
Implementing An Effective Implementing An Effective Employment Screening ProcessEmployment Screening Process
Employers Have Recognized Rights To Conduct Employers Have Recognized Rights To Conduct Employment ScreeningEmployment Screening
Federal & State Laws Apply To Employment Federal & State Laws Apply To Employment Screening Actions.Screening Actions.
Written Policy & Procedure Should Be In Place To Written Policy & Procedure Should Be In Place To Guide Employment Screening Methods And Guide Employment Screening Methods And Actions.Actions.
Employers Should Consult with Legal Counsel in Employers Should Consult with Legal Counsel in developing Policy, Procedure, & Forms used in developing Policy, Procedure, & Forms used in Employment Screening Process.Employment Screening Process.
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Regulations Governing Regulations Governing Pre-Employment ScreeningPre-Employment Screening
The Fair Credit Reporting Act (FCRA) The Fair Credit Reporting Act (FCRA)
The Gramm-Leach-Bliley Act 1999The Gramm-Leach-Bliley Act 1999
Financial Service Modernization ActFinancial Service Modernization Act
Federal Driver’s Privacy Protection ActFederal Driver’s Privacy Protection Act
State LawsState Laws
Employers Should Consult with Legal Counsel in developing Policy, Employers Should Consult with Legal Counsel in developing Policy, Procedure, & Forms used in Employment Screening Process.Procedure, & Forms used in Employment Screening Process.
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The Fair Credit Reporting ActThe Fair Credit Reporting Act The FCRA applies to –
Employers that use the services of a third party in preparation of an employment screening report. If a third party prepares or provides any portion of an employment screening report (such as criminal records, employment references, or education verifications), then the FCRA will apply.
The FCRA was most recently amended by the Fair
and Accurate Credit Transaction Act (FACTA or FACT Act) of 2003.
Strict adherence to the FCRA is required when utilizing Consumer Reports.
FCRA Employer RequirementsFCRA Employer Requirements Employer Requirements under the FCRA
1. Prior to receiving a consumer report, an employer must certify to the CRA in writing that it will do the following:
• Use the information for employment purposes only.
• Not use the information in violation of any federal or state equal
employment opportunity law.
• Obtain all the necessary disclosures and consents as required by
the FCRA.
• Give the appropriate notices in the event an adverse action is
taken against an applicant based in whole or in part on the
contents of the Consumer Report.
• Give the additional information required by law if an Investigative
Consumer Report is needed.
FCRA Employer RequirementsFCRA Employer RequirementsEmployer Requirements under the FCRA
2. Employers must provide a clear and conspicuous disclosure in writing to the applicant before the report is obtained. Also, employers must obtain a written authorization before obtaining a consumer report (FCRA § 604(b); 15 U.S.C. §1681b(b)).
The disclosure and authorization can be combined in a single document, but should contain nothing more than the authorization and disclosure.
FCRA Employer RequirementsFCRA Employer RequirementsEmployer Requirements under the FCRA
3. Employers need a disclosure form for an Investigative Consumer Report (FCRA § 606(a); 15 U.S.C. §1681d(a)). Often times, the forms are combined.
The applicant must be notified by the user of the Investigative Consumer
Report (e.g. the employer), within three days, that an Investigative Consumer Report has been requested and that he or she has the right to obtain additional information as to the nature and scope of the investigation requested.
See the FTC, Notice to Users of Consumer Reports: Obligations of Users Under the FCRA for further details.
Some states may have additional requirements
FCRA Employer RequirementsFCRA Employer RequirementsEmployer Requirements under the FCRA
4. Additionally, the applicant must receive a copy of the FTC document, A Summary of Your Rights Under the Fair Credit Reporting Act.
5. The adverse action rules apply to decisions not to hire an individual based in whole or in part on a consumer report. If adverse action is intended and before it is taken, an employer must provide the applicant with a copy of the report and the FTC document, A Summary of Your Rights Under the Fair Credit Reporting Act (FCRA §604(b)(3); 15 U.S.C. §1681b(b)(3)). This is the first notice, also called the Notice of Pre-Adverse Action.
FCRA Employer RequirementsFCRA Employer RequirementsEmployer Requirements under the FCRA
6. If, after sending out the first notice and related documents, the employer intends to make a final decision not to hire, then the employer must provide the applicant a second notice, also called the Notice of Adverse Action.
This Notice will inform the applicant of the employer’s final decision and
will provide a copy of the FTC’s form A Summary of Your Rights Under the Fair Credit Reporting Act. Additionally, the notice must provide the CRA’s contact information (name, address, and phone number), must advise the individual that: (1) the CRA did not take the action and cannot provide specific reasons why it was taken; (2) the individual has a right to
dispute the accuracy or completeness of the information; and (3) the individual has a right to another free copy of his or her consumer report within 60 days (FCRA § 615; 15 U.S.C. §1681m).
Scope of Pre-Employment ScreeningScope of Pre-Employment Screening
The scope of pre-employment background screening typically addresses the following three key elements:
1. Identity Verification2. Personal History Verification3. Credentialing
A pre-employment screening process should consist of background searches that determine if the applicant meets the employer’s requirements in each of the three elements.
The employer needs to determine which searches in each element constitute the best method to conduct the search.
Business factors to consider are:• Business necessity• Nature of the position (Job Relatedness)• Industry specific requirements• Cost• Time sensitive hiring needs
All Background Screening Methods All Background Screening Methods Are Not EqualAre Not Equal
Performed By An Investigative Performed By An Investigative Research Expert Or The Most Junior Research Expert Or The Most Junior Temporary EmployeeTemporary Employee
Source of Data – Is the Information Source of Data – Is the Information Reliable, Accurate ?Reliable, Accurate ?
Are There Safeguards to Prevent Are There Safeguards to Prevent “False Negative” and “False Positive” “False Negative” and “False Positive” Results. Results.
All Background Screening Methods All Background Screening Methods Are Not EqualAre Not Equal
Are Alias, Nickname, Maiden Name, and Are Alias, Nickname, Maiden Name, and Surname Searches Performed?Surname Searches Performed?
Are Court Record Dispositions Interpreted Are Court Record Dispositions Interpreted Accurately?Accurately?
Is the Information/Record returned Is the Information/Record returned Actually the Applicant’s or Someone Else Actually the Applicant’s or Someone Else With The Same Name?With The Same Name?
Are You Making Hiring Decisions Based On Are You Making Hiring Decisions Based On Reliable, Accurate Processes and Reliable, Accurate Processes and Information? Information?
All Employment Background All Employment Background Screening Processes Are Not Screening Processes Are Not
EqualEqual ““Online Instant” Background searches are Online Instant” Background searches are
problematicproblematic
A “National Online” criminal records search is not A “National Online” criminal records search is not available to the private sectoravailable to the private sector
The individual performing the screening must The individual performing the screening must have experience in background investigation have experience in background investigation practices and legal requirements.practices and legal requirements.
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Internal vs. Outsourced Internal vs. Outsourced Employment ScreeningEmployment Screening
Outsourcing eliminates drain and diversion of internal staff Outsourcing eliminates drain and diversion of internal staff resources.resources.
It is rare for internal staff to have investigative experience and It is rare for internal staff to have investigative experience and the ability to know whether the source of the data is reliable, the ability to know whether the source of the data is reliable, and to stay current on the intricacies of changing employment and to stay current on the intricacies of changing employment screening laws and methods.screening laws and methods.
Typically Use of Internal Staff results in assigning the most Typically Use of Internal Staff results in assigning the most junior, or temporary employees to perform pre-employment junior, or temporary employees to perform pre-employment
screening. screening.
Overall cost reduction and optimum quality control is realized Overall cost reduction and optimum quality control is realized using an outsourced provider.using an outsourced provider.
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Avoiding Pitfalls - All Employment Background Avoiding Pitfalls - All Employment Background
Screening Processes Are Not EqualScreening Processes Are Not Equal
““Most Most Online Instant InternetOnline Instant Internet” Background Services ” Background Services are less expensive are less expensive but may not yield data that is but may not yield data that is reliable for hiring purposesreliable for hiring purposes. There is a risk of . There is a risk of “ False “ False Positive” and “False Negative”Positive” and “False Negative” results with “Online results with “Online Instant Internet” searches.Instant Internet” searches.
A “Reliable National Online” Criminal Records A “Reliable National Online” Criminal Records Search Search is not availableis not available to the private sector. Only to the private sector. Only Law Enforcement Agencies are authorized to access Law Enforcement Agencies are authorized to access the FBI Nationwide Criminal Records System.the FBI Nationwide Criminal Records System.
Corporate Security Services Inc. www.corpsecure.com 2010 ©
Avoiding Pitfalls: All Employment Avoiding Pitfalls: All Employment Background Screening Processes Background Screening Processes
Are Not Equal!Are Not Equal!
The source or repository of the records The source or repository of the records and limitations of the records must be reliable for and limitations of the records must be reliable for making hiring decisions.making hiring decisions.
““Correctional Databases” and “Archive or Tape Correctional Databases” and “Archive or Tape Databases” sources are not reliable for making Databases” sources are not reliable for making hiring decisions. hiring decisions.
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Avoiding Pitfalls: Avoiding Pitfalls: “Online Instant “Online Instant National Background Checks”National Background Checks”
““Do-it-yourself” online background checks do not include Do-it-yourself” online background checks do not include alias names, maiden name, name variation searches, etc.alias names, maiden name, name variation searches, etc.
““Instant checks” usually involve searching purchased Instant checks” usually involve searching purchased databases vs. a true search of court system records. There databases vs. a true search of court system records. There is no way to evaluate the sources that were searched.is no way to evaluate the sources that were searched.
““Online Instant Internet”Online Instant Internet” searches results will frequently searches results will frequently indicate “No Records Found,” when criminal records indicate “No Records Found,” when criminal records actually exist.actually exist.
Corporate Security Services Inc. www.corpsecure.com 2009 ©
Reliable Criminal History SearchesReliable Criminal History Searches
Federal Criminal Records SearchFederal Criminal Records Search
Statewide Criminal Records SearchStatewide Criminal Records Search (Where available and Reliable)(Where available and Reliable)
County Court Records Physical County Court Records Physical SearchSearch
Sex Offender DatabaseSex Offender Database
Federal Criminal Federal Criminal RecordsRecords
Serious crimes such as robbery, kidnapping, drug trafficking, Serious crimes such as robbery, kidnapping, drug trafficking, white collar crime, interstate crimes, and organized crime are white collar crime, interstate crimes, and organized crime are typically handled by the Federal Court system. These cases typically handled by the Federal Court system. These cases can not be found in searches of state and county records can not be found in searches of state and county records systems.systems.
Best practices indicate that Federal criminal history searches Best practices indicate that Federal criminal history searches should be performed in the pre-employment screening process.should be performed in the pre-employment screening process.
Corporate Security Services Inc. www.corpsecure.com 2010 ©
About Corporate Security Services Inc.’s About Corporate Security Services Inc.’s Pre – Employment Screening ServicesPre – Employment Screening Services
Employment Screening Services Are Performed byEmployment Screening Services Are Performed by Human Resources and Investigative Experts Human Resources and Investigative Experts
Quick Turnaround (3-5 Business Days)Quick Turnaround (3-5 Business Days)
U.S. And International Background Screening U.S. And International Background Screening CapabilityCapability
Searches are Customized to Clients RequirementsSearches are Customized to Clients Requirements
Average Of Cost Effective, Tailored Screening Ranges Average Of Cost Effective, Tailored Screening Ranges From $40 - $100 Per ApplicantFrom $40 - $100 Per Applicant
Qualitative, Understandable Report FormatQualitative, Understandable Report Format
Toll Free Fax SubmissionToll Free Fax Submission
Model Hiring Process Forms Adaptable To Your Model Hiring Process Forms Adaptable To Your OrganizationOrganization
What Distinguishes the Corporate What Distinguishes the Corporate Security Services Inc. ProcessSecurity Services Inc. Process
Each Pre-employment Screening Case Is Handled As An Each Pre-employment Screening Case Is Handled As An Actual Investigation.Actual Investigation.
All Applicant Forms And Data Are Thoroughly Reviewed All Applicant Forms And Data Are Thoroughly Reviewed For Errors And Omissions Prior To Search Regimen.For Errors And Omissions Prior To Search Regimen.
All Name Variations Are Searched, Such As Maiden All Name Variations Are Searched, Such As Maiden Names, Aliases, Hyphenated Surnames, Etc.Names, Aliases, Hyphenated Surnames, Etc.
Robust Security Measures to Protect Applicant Data.Robust Security Measures to Protect Applicant Data. Use Only “ Real Time”, Direct Data from Court Records.Use Only “ Real Time”, Direct Data from Court Records. 17 Year History With No Incident of Reporting A “False 17 Year History With No Incident of Reporting A “False
Negative” or “False Positive Results.Negative” or “False Positive Results. Intense Client Communication/Update ProcessesIntense Client Communication/Update Processes
The “On Call” team of Security The “On Call” team of Security and Human Resource experts.and Human Resource experts.
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