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Don’t Hire Your Problems
A Simple, Cost Effective Approach to Pre-Employment Screening




           John Pate - LS Scree...
Today’s Webinar
1. Pre-employment Screening is Really
   “Risk Management”.
2. Where the Best Information is and How
   to...
Pre-Employment Screening is
     Risk Management
              What Are Your Risks?
•Financial:       Will new hires stay ...
One way to go…




        Now Hiring: Losers
When it comes to hiring, no one has
a crystal ball so remember…


       The best
      predictor of
   future behavior
  ...
How Can You Learn About Past
         Behavior?
• Consistent Interviewing
• Knowledge and Skills Tests
• Background Checks
Let’s Meet Your Potential
           Workforce
• 6 -12% have a criminal record
• 4 -16% will test positive for illegal dru...
The Perfect Interview Question




 “Is there anything you haven’t told me that, if I knew, would cause me not
           ...
The Question Not Asked Can
   Lead to Negligent Hiring
• “Negligent Hiring occurs when, prior to
  the time of the employe...
The Cost of a Bad Hire
• Conservatively – 20% of the annual
  salary
• For a minimum wage employee - $2900

           Let...
What Can You Do?
At a minimum:

• Check all applicants for criminal and sex
  offender records
• This can be done for appr...
The Alternatives
• $25 for a background check
• $2900 – minimum cost of a bad
  hire
• $1.6 million – average settlement i...
Where is the Best Information?
Where is the best information?
1. In 2001:
   – 44% lied about work histories
   – 41% lied about their education
   – 23%...
Trust But Verify
4. The people you want to avoid – serial
   offenders – know how to “game the
   system” by altering thei...
Who Has the Best Data?
5. Go to the “Source”
  – Two levels of records: State and Federal
  – The County Courthouse is the...
Where is the best information?
5. Assume an average of 2-3 business
   days to complete the process
6. Nine Words about da...
How Do I Figure All This Out?
• Partner with a licensed, insured
  company to provide this service – your
  provider shoul...
Why Drug Testing Improves Your
Bottom Line
• First – let’s admit to a general feeling of
  “discomfort” associated with dr...
Why Drug Testing Improves
Your Bottom Line
• DOL says drug using Employees are:
  –   2.2 times more likely to ask for tim...
How much better would your life be if
all your employees were:
• Always on time
• Never had an accident or missed work
• S...
Applicant Rights-Employer
Responsibilities
• The Hiring Process is regulated by:
  – The Fair Credit Reporting Act (FCRA)
...
Applicant Rights
• The right to know if a prospective
  employers runs a background check
• The right to dispute informati...
Employer Obligations
• Disclose to an applicant if they are
  doing a background check
• Notify the applicant if the backg...
Summary
1. The best predictor of future behavior is
   past behavior.
2. Verify basic applicant information
   through a t...
Remember…
• Time you spend hiring is time not spent
  running your business




• Effective background checks will reduce
...
Thank You.

        Free Download of
        You and Your Data
How Your Personal Data Affects Your Job Search

          w...
Don’t Hire Your Problems
A Simple, Cost Effective Approach to Pre-Employment Screening




           John Pate – LS Scree...
Don’t Hire Your Problems – A Simple, Cost Effective Approach to Pre-Employment Screening - webinar
Don’t Hire Your Problems – A Simple, Cost Effective Approach to Pre-Employment Screening - webinar
Don’t Hire Your Problems – A Simple, Cost Effective Approach to Pre-Employment Screening - webinar
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Don’t Hire Your Problems – A Simple, Cost Effective Approach to Pre-Employment Screening - webinar

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Can you afford to put your company at risk by making negligent hiring decisions? Hiring the right people is critical to the success of your organization. Pre-employment screening helps limit your liability by making sure the information presented by the applicant is truthful and by attempting to reveal undisclosed information.

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Transcript of "Don’t Hire Your Problems – A Simple, Cost Effective Approach to Pre-Employment Screening - webinar"

  1. 1. Don’t Hire Your Problems A Simple, Cost Effective Approach to Pre-Employment Screening John Pate - LS Screening
  2. 2. Today’s Webinar 1. Pre-employment Screening is Really “Risk Management”. 2. Where the Best Information is and How to Access It. 3. Why Drug Testing Improves Your Bottom Line 4. Applicant Rights and Employer Responsibilities
  3. 3. Pre-Employment Screening is Risk Management What Are Your Risks? •Financial: Will new hires stay long enough to justify the cost of hiring them? •Environmental: Will they “fit in”? •Reputation: Can they do the job?
  4. 4. One way to go… Now Hiring: Losers
  5. 5. When it comes to hiring, no one has a crystal ball so remember… The best predictor of future behavior is past behavior
  6. 6. How Can You Learn About Past Behavior? • Consistent Interviewing • Knowledge and Skills Tests • Background Checks
  7. 7. Let’s Meet Your Potential Workforce • 6 -12% have a criminal record • 4 -16% will test positive for illegal drugs • 25 – 35% will have someone else’s name associated with their SSN.
  8. 8. The Perfect Interview Question “Is there anything you haven’t told me that, if I knew, would cause me not to hire you?”
  9. 9. The Question Not Asked Can Lead to Negligent Hiring • “Negligent Hiring occurs when, prior to the time of the employee is actually hired, the employer knew or should have known of the employee’s unfitness” (Garcia v Duffy – 1986) • Employers must do what is “reasonable” to check applicant’s past. Courts have decided a basic background check meets the standard.
  10. 10. The Cost of a Bad Hire • Conservatively – 20% of the annual salary • For a minimum wage employee - $2900 Let’s do the math 10 people hired/termed in same year Costs $29,000
  11. 11. What Can You Do? At a minimum: • Check all applicants for criminal and sex offender records • This can be done for approx. $25 and takes 1-3 business days.
  12. 12. The Alternatives • $25 for a background check • $2900 – minimum cost of a bad hire • $1.6 million – average settlement in a Negligent Hiring Lawsuit in 2001 (SHRM) [End Part 1]
  13. 13. Where is the Best Information?
  14. 14. Where is the best information? 1. In 2001: – 44% lied about work histories – 41% lied about their education – 23% falsified credentials 2. Don’t believe everything the Applicant tells you – even their name, SSN, date of birth or where they’ve lived or worked. 3. (Some) Applicants lie.
  15. 15. Trust But Verify 4. The people you want to avoid – serial offenders – know how to “game the system” by altering their information. Even the slightest change can allow them to slip through
  16. 16. Who Has the Best Data? 5. Go to the “Source” – Two levels of records: State and Federal – The County Courthouse is the genesis for all state criminal records. – The “National Criminal” file is a marketing ploy and doesn’t exist. – Use an address history report to determine where you will search. – Ah… The Texas DPS Database
  17. 17. Where is the best information? 5. Assume an average of 2-3 business days to complete the process 6. Nine Words about databases 1- Fast 2 - Inexpensive 3 - Inaccurate 4 - Incomplete 5 – 9 - Not Compliant with Existing Laws
  18. 18. How Do I Figure All This Out? • Partner with a licensed, insured company to provide this service – your provider should reduce your liability, not increase it. • Read the fine print…. [End Part 2]
  19. 19. Why Drug Testing Improves Your Bottom Line • First – let’s admit to a general feeling of “discomfort” associated with drug testing – Some Employers think it’s too personal – There’s a bit on “ick” factor – Social attitudes appear to be softening towards marijuana – which accounts for approximately 50% of all positive results.
  20. 20. Why Drug Testing Improves Your Bottom Line • DOL says drug using Employees are: – 2.2 times more likely to ask for time off/leave early – 2.5 times more likely to be absent – 3 times more likely to be late – 3.6 times more likely to have an accident – 5 times more like to file workers comp claim – 2 times more likely to change jobs – Function at 67% of their capacity
  21. 21. How much better would your life be if all your employees were: • Always on time • Never had an accident or missed work • Stayed with your company forever resulting in zero turnover. • Always performed at 100% [End Part 3]
  22. 22. Applicant Rights-Employer Responsibilities • The Hiring Process is regulated by: – The Fair Credit Reporting Act (FCRA) • Full disclosure prior to background check • Records used must be “current” • Notice of Adverse Action • Does it affect you? – EEOC • Sets a very high standard for use “non- conviction” records
  23. 23. Applicant Rights • The right to know if a prospective employers runs a background check • The right to dispute information they believe is incorrect. • The right to work in an environment that is safe and non-threatening
  24. 24. Employer Obligations • Disclose to an applicant if they are doing a background check • Notify the applicant if the background check contributes to a decision not to hire • Do what is “reasonable” to provide a safe, non-threatening work environment
  25. 25. Summary 1. The best predictor of future behavior is past behavior. 2. Verify basic applicant information through a third party 3. Do what is “reasonable” 4. Add drug testing to your hiring process 5. Use a licensed, insured, provider
  26. 26. Remember… • Time you spend hiring is time not spent running your business • Effective background checks will reduce your turnover and decrease the time (and money) you spend on hiring.
  27. 27. Thank You. Free Download of You and Your Data How Your Personal Data Affects Your Job Search www.youandyourdata.com Enter: “GNAP” in the Promo Code Box
  28. 28. Don’t Hire Your Problems A Simple, Cost Effective Approach to Pre-Employment Screening John Pate – LS Screening www.lsscreen.com www.youandyourdata.com
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