Background Screening Presentation 2011


Published on

Published in: Business, Technology
1 Like
  • Be the first to comment

No Downloads
Total views
On SlideShare
From Embeds
Number of Embeds
Embeds 0
No embeds

No notes for slide

Background Screening Presentation 2011

  1. 1. Employment Screening:What organizations need to know to protect their employees, customers and assets. Prepared by Corporate Security Services Inc.
  2. 2. Pre-Employment ScreeningDon’t bring dangerous people into the workforceDig as deep as law and policy allowTypically organizations expend more effort to select officeequipment and supplies than screening of prospectiveemployeesRobust employment screening prevents other risks
  3. 3. Employment Roulette: No Robust Employment Screening Corporate Security Services Inc. 2010 ©
  4. 4. Employment RouletteMost employers expend more resources on selectingoffice equipment than on really knowing about theemployees they hire.Resume and application fraud is pervasive. 19% ofapplicants lie about criminal history; 30% of applicantsmisrepresent education history; 25% of applicantsmisrepresent employment history.6-10% of applicants supply false social security numberinformation or are not eligible for hire in the UnitedStates. Corporate Security Services Inc. 2010 ©
  5. 5. Impact of Employment RouletteEmployer Liability to a Third Party Job Error CostsLost Revenue Poor Work Lost EfficiencyPerformance TurnoverLost Revenue from Tardiness and AbsenteeismNo/Show Impact on Public ImageTraining Costs for Failed New Hire Overall Employee MoraleNew Employee Training Failure to Meet DeadlinesDowntime Between Changeovers Lower Profit MarginsDamage to Equipment or Facilities Damage by SabotageLegal Implications Justification forRemoval After Hiring Corporate Security Services Inc. 2010 ©
  6. 6. Business Reasons to Conduct Robust Employment ScreeningReduce turnoverAvoidance of adverse hiring lossesImproved applicant qualityLiability avoidanceImproved capability for IRS and INS complianceReduce negative personnel related incidents andlosses Corporate Security Services Inc. 2010 ©
  7. 7. Employment Screening: Return on InvestmentFor Every Dollar Spent On Employment Screening… Employers Avoid Spending; $ 3.07 in Employment Turnover costs $ 2.00 in Shrinkage / Theft costs $ 21.65 in Information / Intellectual Property loss $ 43.03 in Negligent Hiring costs $ 67.63 in Workplace Violence related costs.
  8. 8. Safety and Security depends onwhat you Inspect …. not whatyou Expect ! Corporate Security Services Inc © 2010
  9. 9. Why Screen? – Reduce Potential for Legal LiabilityMay Arise For Reasons Of: Respondeat Superior (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 or employment.) Negligent Hiring The failure to use reasonable care in the employee selection process,resulting in harm caused to others. Employers have a legal duty notto hire people who could pose a threat of harm to others, which caninclude everything from slight to fatal bodily injury, theft, arson, orproperty damage. Corporate Security Services Inc. 2010 ©
  10. 10. Why Screen ? - Consumer ExpectationsConsumers expect honesty, diligence, and aprotection from criminal intent and otheradverse incidents from their businesspartners/suppliers. Corporate Security Services Inc. 2010 ©
  11. 11. Why Screen ? – Business ReputationRobust Employment Screening significantlyreduces the potential for adverse incidentsand issues that can negatively affect theemployer’s business reputation. Corporate Security Services Inc. 2010 ©
  12. 12. Why Screen? Your Organization Envisions Building A “Dream Team”Corporate Security Services Inc. 2010 ©
  13. 13. So I Got the Job?
  14. 14. Reliable Employment ScreeningCan Identify Issues ………..Misrepresented Applications Gaps in EmploymentFormer Employers not Disclosed Disclose Criminal ConvictionsUnacceptable Driving Records Indicate Violent Tendencies Identify History of Drug/AlcoholExaggerated/Misleading Claims of Ability Abuse Corporate Security Services Inc. 2010 ©
  15. 15. Implementing An EffectiveEmployment Screening ProcessEmployers Have Recognized Rights To ConductEmployment ScreeningFederal & State Laws Apply To EmploymentScreening Actions.Written Policy & Procedure Should Be In Place ToGuide Employment Screening Methods AndActions.Employers Should Consult with Legal Counsel indeveloping Policy, Procedure, & Forms used inEmployment Screening Process. Corporate Security Services Inc. 2010 ©
  16. 16. Regulations Governing Pre-Employment Screening The Fair Credit Reporting Act (FCRA) The Gramm-Leach-Bliley Act 1999 Financial Service Modernization Act Federal Driver’s Privacy Protection Act State LawsEmployers Should Consult with Legal Counsel in developing Policy,Procedure, & Forms used in Employment Screening Process. Corporate Security Services Inc. 2010 ©
  17. 17. The Fair Credit Reporting ActThe FCRA applies to –Employers that use the services of a third partyin preparation of an employment screeningreport. If a third party prepares or provides anyportion of an employment screening report (suchas criminal records, employment references, oreducation verifications), then the FCRA will apply.The FCRA was most recently amended by the Fairand Accurate Credit Transaction Act (FACTA orFACT Act) of 2003.Strict adherence to the FCRA is required whenutilizing Consumer Reports.
  18. 18. FCRA 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.
  19. 19. FCRA 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.
  20. 20. FCRA Employer RequirementsEmployer Requirements under the FCRA3. 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
  21. 21. FCRA 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.
  22. 22. FCRA 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).
  23. 23. Scope of Pre-Employment ScreeningThe scope of pre-employment background screening typically addresses the following three key elements: 1. Identity Verification 2. Personal History Verification 3. CredentialingA pre-employment screening process should consist of backgroundsearches that determine if the applicant meets the employer’srequirements in each of the three elements.The employer needs to determine which searches in each elementconstitute 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
  24. 24. All Background Screening Methods Are Not EqualPerformed By An InvestigativeResearch Expert Or The Most JuniorTemporary EmployeeSource of Data – Is the InformationReliable, Accurate ?Are There Safeguards to Prevent“False Negative” and “False Positive”Results.
  25. 25. All Background Screening Methods Are Not EqualAre Alias, Nickname, Maiden Name, andSurname Searches Performed?Are Court Record Dispositions InterpretedAccurately?Is the Information/Record returnedActually the Applicant’s or Someone ElseWith The Same Name?Are You Making Hiring Decisions Based OnReliable, Accurate Processes andInformation?
  26. 26. All Employment Background Screening Processes Are Not Equal “Online Instant” Background searches are problematic A “National Online” criminal records search is not available to the private sector The individual performing the screening must have experience in background investigation practices and legal requirements.Corporate Security Services Inc. 2011 ©
  27. 27. Internal vs. Outsourced Employment ScreeningOutsourcing eliminates drain and diversion of internal staffresources.It is rare for internal staff to have investigative experienceand the ability to know whether the source of the data isreliable, and to stay current on the intricacies of changingemployment screening laws and methods.Typically Use of Internal Staff results in assigning the mostjunior, or temporary employees to perform pre-employmentscreening.Overall cost reduction and optimum quality control isrealized using an outsourced provider. Corporate Security Services Inc. 2010 ©
  28. 28. Avoiding Pitfalls - All Employment Background Screening Processes Are Not Equal “Most Online Instant Internet” Background Services are less expensive but may not yield data that is reliable for hiring purposes. There is a risk of “ False Positive” and “False Negative” results with “Online Instant Internet” searches. A “Reliable National Online” Criminal Records Search is not available to the private sector. Only Law Enforcement Agencies are authorized to access the FBI Nationwide Criminal Records System.Corporate Security Services Inc. 2010 ©
  29. 29. Avoiding Pitfalls: All Employment Background Screening Processes Are Not Equal!The source or repository of the recordsand limitations of the records must be reliable formaking hiring decisions.“Correctional Databases” and “Archive or TapeDatabases” sources are not reliable for makinghiring decisions.Corporate Security Services Inc. 2010 ©
  30. 30. Avoiding Pitfalls: “Online Instant National Background Checks” “Do-it-yourself” online background checks do not include alias names, maiden name, name variation searches, etc. “Instant checks” usually involve searching purchased databases vs. a true search of court system records. There is no way to evaluate the sources that were searched. “Online Instant Internet” searches results will frequently indicate “No Records Found,” when criminal records actually exist.Corporate Security Services Inc. 2009 ©
  31. 31. Reliable Criminal History Searches Federal Criminal Records Search Statewide Criminal Records Search (Where available and Reliable) County Court Records Physical Search Sex Offender Database
  32. 32. Federal Criminal RecordsSerious crimes such as robbery, kidnapping, drug trafficking,white collar crime, interstate crimes, and organized crime aretypically handled by the Federal Court system. These casescan not be found in searches of state and county recordssystems.Best practices indicate that Federal criminal history searchesshould be performed in the pre-employment screening process.Corporate Security Services Inc. 2010 ©
  33. 33. About Corporate Security Services Inc.’s Pre – Employment Screening ServicesEmployment Screening Services Are Performed byHuman Resources and Investigative ExpertsQuick Turnaround (3-5 Business Days)U.S. And International Background ScreeningCapabilitySearches are Customized to Clients RequirementsAverage Of Cost Effective, Tailored Screening RangesFrom $40 - $100 Per ApplicantQualitative, Understandable Report FormatToll Free Fax SubmissionModel Hiring Process Forms Adaptable To YourOrganization
  34. 34. What Distinguishes the Corporate Security Services Inc. ProcessEach Pre-employment Screening Case Is Handled As AnActual Investigation.All Applicant Forms And Data Are Thoroughly ReviewedFor Errors And Omissions Prior To Search Regimen.All Name Variations Are Searched, Such As MaidenNames, Aliases, Hyphenated Surnames, Etc.Robust Security Measures to Protect Applicant Data.Use Only “ Real Time”, Direct Data from Court Records.17 Year History With No Incident of Reporting A “FalseNegative” or “False Positive Results.Intense Client Communication/Update Processes
  35. 35. The “On Call” team ofSecurity and HumanResource 888-822-4277