Background screening is critical for every organization, regardless of size or industry. It is particularly vital in the value-driven retail industry and particularly among the small and mid-sized stores and chains who have more to lose if a poor hiring decision is made. But there are many myths about the screening process which can lead to costly mistakes with lingering after effects.
Some of these myths relate to the laws surrounding the use of background information in the screening process. Other myths relate to the industry or data sources that can be used to do the screening itself. Become aware of some of these more common myths and assist hiring and human resources managers in creating informed policies and decisions.
Myth No. 1: Background screening purely relates to criminality.
There is much more to background screening than a criminal background check. For example, does the applicant or entity in question have the education, work experience, and/or skills to do the job for which they are applying? Even if the person has a clear record, does their past employer confirm the job responsibilities and skill level the applicant is claiming?
Myth No. 2: Getting a driver’s license or the equivalent is enough for identification verification.
Many of the IDs produced today use highly effective anti-forgery techniques, but you still need to use the newest security devices to detect forged documents. Identity verification is not a background check, nor is it governed by the Fair Credit Reporting Act (FCRA). It should be done before the background check is even conducted.
Emerging technology allows potential employers to easily access and confirm “out of wallet” information in the early stages of the hiring process. This information can confirm or add to the information provided on the application. And most importantly, linking technologies now available can identify if the applicant does not match the identity information he or she provided based on the web of information that connects Social Security numbers, previous addresses, phone numbers, names, and so forth.
Myth No. 3: Consents and waivers are not needed for some types of background checks.
This is a danger zone! It is highly advised that waivers and consents be reviewed and signed early in your relationship with an applicant or a contractor.
Why? The applicant is much more willing to sign a consent form during the initial stages of the relationship as a newly hired employee. Once the individual is part of the organization, the cooperative relationship might change as the crucial “impression period” is over. This is especially true if an investigation of wrongdoing occurs.
Therefore, whenever possible, and in those states that allow such agreements, be sure to obtain a signed consent form authorizing the right to conduct a background check anytime during the individual’s tenure. This is especially helpful in the retail industry if the employee is in a position where theft is possible. Do not get into a consent debate—just get the agreement and make it “evergreen” if possible.
Myth No. 4: The FCRA does not apply in certain hiring circumstances.
All applicants are also consumers, and the FCRA was written to protect consumers. If you intend to use any consumer reports for your background check, for instance a credit report, be sure to obtain a waiver and consent. If you make any portion of your decision based on an FCRA-compliant report, make sure you are in compliance. An FCRA complaint could and likely will result in costly fines, potentially bad press, disruption to business operations, and added stress.
Myth No. 5: Background checking companies do not have to be licensed.
Beyond the normal business licensing requirements, some states require companies to have private investigative licenses. Most national companies are licensed to operate in all 50 states, and all companies will provide proof of licensing when asked.
Myth No. 6: A multi-state or nationwide database is comprehensive and is an efficient and economical background screening resource.
Law enforcement and government agencies have access to the National Crime Information Center (NCIC), a contributory database. It is for law enforcement purposes only. But when companies use the phrase “national database” or “national criminal file,” it gives the impression that the information obtained is equally comprehensive and even possibly a subset of this file. This could not be farther from the truth. The multi-state files are aggregations of public databases obtained, sometimes for a fee, from state and local government agencies, compiled and stored in a database.
Some public criminal databases exist and can be aggregated to create a large footprint for a database. Some of the sources are very good and up-to-date, but many are not. These public databases can vary wildly, in the quantity and quality of information, by jurisdiction and state. For example, if you live in New York, the New York Statewide is a very good check, although very expensive. It covers all 62 counties. But it is stand-alone and cannot be obtained as part of any multi-state file.
Myth No. 7: You cannot ask for a date of birth without offering the candidate a job.
Many hiring managers believe that if you do not ask for the birth date, you’re safe from violating any age discrimination laws. However, asking for a date of birth to do a background check prior to offering a candidate a job is permissible. In fact, to do a criminal background check most jurisdictions require a birth date in order to provide the information obtained from a criminal background check. This is especially important with common names.
Well-documented processes will suffice here, however, if you are really concerned, there are many suppliers that have self-service tools, allowing the applicant to provide the data identifiers directly into their system. This also saves on administrative costs by off-loading data entry to the applicant.
Myth No. 8: Hiring someone with a criminal past is just bad business.
The issue is not whether a background check is run and criminality is validated; the question is whether you should hire the individual who has a past. The more important question is, was the information disclosed by the applicant? In other words, was the information asked for during your application process and disclosed freely by the applicant.
Policies and processes can be developed that address this very thing. You can have guidelines and processes that show due diligence, identify associated risks that allow you to make good hiring decisions in light of a diminishing labor pool in some areas. Hiring workers with imperfect backgrounds should be considered in many occupations, even those that are highly skilled and demanding positions.
Myth No. 9: Resumes are normally fairly accurate and should be good enough to make the initial hiring decision.
Various studies report that anywhere from a third to half of all resumes contain overstated, misleading and/or false information, blatant errors, and intentional omissions. A background check in and of itself does not speak to the authenticity or honesty of a candidate’s resume.
The documents that should be used for hiring decisions are the application in addition to the resume. Both include important information. However, the application is the legal document that allows you to initiate the hiring decision. It will also be signed with some attestations of accuracy. It can also refer to the applicant’s permission to allow you and potentially a third-party provider to complete a background check.
Myth 10: Doing a background check will ensure you have a solid prevention program to prevent violence in the workplace.
Past behavior is a pretty good predictor of future behavior. However, don’t be fooled, background checks should not be considered a panacea for preventing violence. Although vitally important, your organization should have a solid violence prevention program including supervisory training, management response teams, threat reporting and investigation strategies. Background checking is just one element of what needs to be a holistic approach to prevention of violence in the workplace.
Of course there are other myths circulating in the workplace and probably influencing the hiring process, however, those discussed in this article are the most prevalent. Background screening is not a cure-all. However, a well-rounded, robust background check process can prevent a company from losing time, money, and security to bad hiring decisions and outcomes.
Kim M. Kerr is vice president and general manager of LexisNexis Risk & Information Analytics Group, Screening Solutions. W. Barry Nixon is the executive director of the National Institute for Prevention of Workplace Violence. Kerr and Nixon are the authors of Background Screening and Investigations: Managing Hiring Risk from the HR and Security Perspectives (Butterworth-Heinemann).
