DON’T FORGET EMPLOYEE BACKGROUND CHECKS
By Jodi Tetelbaum, New England Domestic News

When you count the time and money it takes to recruit, interview, hire and train an employee, it only makes sense to include pre-employment background screening. Don Graham, co-owner of Graham & Sheehan, a leader in background checking of nannies and household help, says this type of screening helps ensure candidate honesty and helps to weed out bad hires.

“It’s similar to drug testing,” says Graham. When candidates know that an employer will be running pre-employment background checks, those candidates are much more likely to be truthful. And if they do have something undesirable to hide, they are less likely to continue the application process, thus saving employers from the countless damages that can result from a bad hire.

Well worth the price

Prices vary, but Graham & Sheehan, for example, has several different packages, ranging from about $70 to $99. Although they are based in New England, they can do background checks throughout the country from their offices in New Hampshire.

A basic yet comprehensive pre-employment screening package includes a criminal report, driving record, credit report and Social Security trace. They also offer verification of past employment and education, and workers compensation and civil suit histories.

The background checks are usually completed in three business days.

Information from these searches comes from several different sources, including police, court and county records, database searches, driving bureaus and credit agencies. At times, hands-on research is required. And employment checks are done by phone.

How current and reliable is the information?

“It is as current as the system is,” says Graham. Credit and driving reports are always up-to-date, but criminal reports are all dependant on the court systems. Graham says that some court records go back further than others do. Also, if something happens today, there could be a delay before it goes into the record system. However, combined with the other searches and the fact that the candidates know they are being screened, red flags can be seen and bad hires weeded out from the get go, he said.

Although there are Web sites that offer access to public and commercial records so you may gather background information for yourself, such sites aren't necessarily trustworthy, Graham said. You might end up with incorrect information.

There are also Web sites that offer country-wide criminal searches, but “that doesn’t even exist,” says Graham. He says he personally tested some of these sites by searching for names of people known to have criminal records, and the results came back showing that no criminal records were found.

Protect yourself

One would assume that business for companies specializing in background checking would be up since 9-11, but this is not the case. “We see what the economy sees,” says Graham. “We’re probably down 10 to 15 percent since pre-9-11.” He attributes this to the fact that companies are downsizing and have cut hiring and spending.

But the need to investigate potential hires is vital, especially for certain positions such as security, law enforcement, health care and childcare. And in general, you should consider screening any potential employee who will interact with the public, work in customers' homes or offices, or handle financial or other sensitive information.

Although you may not need a criminal background check for every hire, you should at least check information on an application form and verify basic information on a resume. The key to protecting yourself is doing your best to verify information provided by candidates. Keep written documentation of your efforts, including whom you talk to, the dates and the questions you ask, while making every reasonable effort to check employee statements.

And when verifying past employment, be aware that many companies today, due to liability concerns, will only confirm dates of employment and offer no other information.

This is one of the reasons hiring a third-party investigator may be in your best interest. Good ones understand these rules and know how to work around them.

“We are often able to get past employers to fax us the original application that the candidate filled out,” says Graham, “along with the name and number of their supervisor at the time.” Graham explains that supervisors, rather than human resource personnel, are often more willing and able to offer information about past employees. But acquiring that kind of information can be difficult for most people.

Legal Issues

State and federal laws regulate the kind of information employers can use when making employment decisions. Most states follow federal guidelines, but there are variations. It is important to check your state's requirements before proceeding.

Most regulations take effect only when you hire a third party to do the investigation. If you verify information yourself, many laws do not apply. Even so, research the issues or talk to an employment lawyer or a veteran human resources consultant before beginning.

You also need to set up clear company policies about screening and select the positions that require background checks.

Do not, for example, investigate random candidates or applicants who make you suspicious. That appears arbitrary and discriminatory and could lead to legal trouble. The idea is to consistently screen for a position, rather than investigate any individual.

Also, there are specific regulations about investigations that end up revealing unfavorable results. So, legally, you can refuse to hire people for some reasons and not others. You must also let the candidate know in writing what you have learned and give him or her reasonable time to rebut the information.

Better safe than sorry

Despite some of the legal complications, pre-employment background screening is well worth the time, money and effort. By helping to prevent the countless damages that can result from a bad hire, pre-employment background screening should be an essential component in the hiring process.

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