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The Importance of Employee Screening

By Elizabeth Rice, SPHR

Companies are consistently striving to hire the best candidates for the job. While they may get a sense of an individual's character and abilities during the interview process, a more thorough investigation can be helpful to protect the company and its employees. Unfortunately, candidates aren't always honest and a company must perform its due diligence during the hiring process. Negligence in conducting reference checks or background checks may cause a company to hire someone unqualified for the position, or in the worst-case scenario, someone with a criminal history. Additionally, with these procedures in place, persons with a criminal past may be discouraged from applying for the job.

At a minimum, employers must conduct reference checks to get additional information on a candidate from a third party, objective source. When requesting references companies should make it clear that they need to speak with persons who have supervised the candidate or have reviewed the results of their work. If they are applying for their first job, ask to speak to an employer for whom they worked part-time or perhaps a college professor.

Because of the legal limitations that companies face, past employers may provide limited information such as the dates of employment and job responsibilities. In order to obtain more candid information, potential employers should have candidates sign a release that directly names former employers, thereby protecting them from liability.

Criminal background checks go a step further than reference checks and are becoming more and more common as a result of increased access to information. Background checks can range from a verification of an applicant's Social Security number to a detailed account of the potential employee's history and acquaintances. Information that might be included in a background check can include:

• Driving records
• Education records
• Credit reports
• Criminal records
• Social security number
• Bankruptcy
• Sex offenders list
• Past employers
• Drug test records

Screening applicants for criminal background subjects the employer to certain notice and disclosure requirements under the federal Fair Credit Reporting Act (FCRA) and the state Investigative Consumer Reporting Agencies Act (ICRA). If a company chooses to outsource the background check to a third-party agency they must inform the candidate that a report may be requested for employment purposes and obtain the candidate's authorization. The employer then certifies to the agency that the proper disclosures have been made and that the applicant's consent was obtained. The employer must certify it will provide the individual with a copy of the report, if requested. If an applicant is denied employment based on their application, the hiring company must supply a copy of the background check and a summary of their rights. When conducting background checks in-house the same notice and disclosure requirements do not apply unless public records are involved.

While background checks and reference checks can be costly and time consuming initially, companies will find that over time the costs are recovered by having higher caliber individuals, less turnover and overall peace of mind.