HEALTHSOUTHPresenters:Russ Blitz, Director of SalesJason Kimbrell, Executive Vice PresidentSheila Benson, CEOMay 27, 20101Why Screen?
What percentage of people do you thinklie or embellish on their resumes?2A recent study found that 53% of job applicationscontained false information.The Society for Human Resource Managers
How can you be really surewho you are hiring without performingpre-employment background screenings?3People are not always who they seem.
4George O’Leary,Notre Dame Football CoachClaimed to have a Master’sDegree from NYU and playedfootball at University of NewHampshire.He attended NYU but did notreceive a degree. He also neverplayed in a game at University ofNew Hampshire.Robert Irvine,Host of ‘Dinner Impossible’on Food NetworkClaimed that he made PrincessDiana’s wedding cake and that heworked in the White House kitchens.Both claims were false.Joseph Biden, Jr.,Vice President of theUnited StatesDuring his 1988 bid for thepresidency, he claimed that heattended Syracuse UniversityCollege of Law on a full academicscholarship and graduated in thetop half of the class.He actually received a partialscholarship based on financial aidand finished 76thin a class of 85.
A background screening, also known as a “consumer report,”is a tool many employers use to learn more about potentialemployees during the hiring process.80% of HR Professionals use pre-employment screening.SHRM Reports5What is background screening?
Companies often say that their employees are their mostimportant asset. Likewise, performing a background screeningof prospective employees is the most important step in evaluatingthese assets.Background screening can:Reveal criminal arrests and convictionsVerify employment and educationReduce the risk involved in making a hiring decision6Why Screen?
7Why Screen?Statistics30% of all business failures are due to poor hiring practices.Department of Commerce30% of all business failures are caused by employee theft.American Management Association and US Chamber of CommerceIf recent incarceration rates remain unchanged, an estimated1 of every 20 persons (5.1%) will serve time in a prison duringtheir lifetime.Bureau of Justice StatisticsIt costs $7,000 to replace a salaried employee, $10,000 to replacea mid-level employee, and $40,000 to replace a senior executive.Recruiting Times
9Types of ScreeningA Social Security Number provides a direct link to anapplicant’s background information.Any effective, dependable, and compliant criminal backgroundcheck begins with a Social Security Number Search.Provides:Address history (great tool to determine specific court jurisdictionsthat should be researched for criminal records)Alias names that have been associated with that SSN, which can becross-referenced with the same courtsSocial Security Trace
10Real ExampleFormer Nurse/Administrator in NJ pleadguilty to charges she embezzled as much as$900K from her employerHer plea agreement may spare her from prison when she issentenced. However, she is currently working elsewhereas a nurse supervisor!According to authorities, she made numerouspersonal purchases with the company AmericanExpress account, authorized wire transfers toaccounts she controlled, filed false & fraudulentstate income tax returns.
11Types of ScreeningWhen hiring employees who will be handling funds or valuableinventory or interacting with your customers, you need to be sureyou can trust them — and that they dont have a criminal orviolent history. Your safety and the safety of your employeesdepend on it.Criminal Report Options:Federal & Civil RecordsStatewide CriminalCounty CriminalCriminal
12Types of ScreeningCounty courts provide the most up to date, accurate andcomprehensive data available.County Criminal SearchesStatewide repository of state police and criminal records.Relies on reports from counties.State Criminal Searches
13Types of ScreeningThe most comprehensive search availableNational CrimSearch is an instant, nationwide search of availablecriminal records which some states and counties report to.Provides information in a reader-friendly, digest format for quickreview.Helps lower the cost of county criminal reports by pinpointingspecific counties to conduct a search.National CrimSearch
14Types of ScreeningConsiderations when doing Criminal SearchesSome but not all counties report their information to a staterepository.If you request a background check only in the state where yourbusiness is located, you could miss important information.Nationwide criminal database casts the broadest net, but may havethe largest gaps as well. It’s not a perfect database.Should not be used as your only check.
16Types of ScreeningEducation and Employment VerificationAccording to the American Management Association, 60 percentof college registrars report attempts to falsify credentials. Verifiycollege attendance and type of degree earned and attendance forhigh schools, vocational & technical schoolsReports verify employment, dates, position and eligibility for rehire,as well as information regarding applicants previous job. Revealgaps in employment that might indicate past problems or issues ofwhich you need to be aware.References can help determine the true character of an applicant asit relates to the job and provide information about their competenceand fitness for the job in question.
17Types of ScreeningWhile sex offenders do have the right to work, you also havethe right to know about their history.Not only can past behavior restrict where they can work and whatkind of job they can obtain, but you need to maintain the safety ofyour employees and of those that your organization serves.While rules vary from state to state regarding the availability of thisdata, reports may include the subject’s address, type of offense andFBI and state offender number.Sex Offender
18Types of ScreeningDrug and alcohol abuse in the workplace cause 65% of on-the-jobaccidents. U.S. Department of LaborSubstance abusers are 10 times more likely to steal from thecompany or from other employees. U.S. Department of LaborSubstance abusers use three times the normal level of employeehealth benefits and incur 300% higher medical costs.U.S. Department of LaborCompanies reduce risk in the workplace when drug testsare performed.Drug Testing
19Latest NewsExpanded use for criminal background checks to include screeningvolunteers and contractors.The U.S. Supreme Court recently upheld the federal government’sability to conduct background security checks of contractedemployees.NASA v. NelsonThe Equal Employment Opportunity Commission (EEOC) hasincreased their scrutiny of hiring practices, exposing employers to agreater risk of discrimination lawsuits.Recent Trends
20Latest NewsIndustry accreditation sets the bar for screening providersIn 2010, National Association of Professional BackgroundScreeners (NAPBS) announced a new Background ScreeningAgency Accreditation Program (BSAAP).Hiring controversies due to social networking. Social networkinghas exploded in popularity and employers now use Twitter andFacebook to influence hiring decisions. However, many sites haveno verification process and several can be edited by anyone withaccess to the Internet—putting companies as risk for violatingFCRA (Fair Credit Reporting Act) regulations and EEOC guidelines.Recent Trends
22TipsObviously, perform screens to prevent the hiring of criminalsand dishonest people in your company.Consider how you are protecting the data in your office. Peoplecan easily steal data, not just physical items.ESS goes to great lengths to encrypt and protect all of our datawithin our office and when transferring it to our customers.Be mindful of how your office is protecting data received and datain the office as well!
23ConclusionAfter all the frightening stats today, lets focus on ROI:For every dollar an employer invests in employment screening,the return on investment ranges from $5 - $16, resulting fromimproved productivity, reduced absenteeism, lower turnover –decreased employer liability.U.S. Small Business AdministrationPay Now or Pay Later