Copyright Institute of Management & Administration Aug 2004Checking the backgrounds of job applicants and employees is becoming a standard business practice-and, as a result, a much easier one to accomplish.
Among the reasons attention to background checks is growing:
* Organizations want assurance that applicants have no criminal backgrounds that could compromise company finances or security.
* They want to establish the truth of academic and work credentials listed on resumes and applications.
* Background checks protect them in the event of negligent-hiring claims.
WHO'S CHECKING?
According to research by the Society for Human Resource Management (SHRM), 82% of employers conducted applicant background investigations in 2003, up from 66% in 1996.
The biggest increase has been for criminal record checks, now conducted by 80% of employers, according to SHRM, compared to only 51% in 1996. Also, 35% of employers now check credit history, up from 19% in 1996.
Larger organizations are more likely to check backgrounds. SHRM found that companies with fewer than 100 employees are least likely to search.
Concern by employers and employees about maintaining a safe workplace seems to be the leading reason for the increase in background checks, according to SHRM, a result of Sept. 11.
"While employers can't protect employees from all of the world's ills, they can take important steps to increase both the actual security of their workplaces and the sense of security for employees," noted Susan Meisinger, president and CEO of SHRM.
HR is seen as the place to develop programs to prevent workplace violence in 60% of the organizations SHRM polled most recently.
CONSISTENT POLICY NEEDED
Companies must develop a policy on background checks that is relevant to the type of employment, noted Lewis Maltby, president of the National Workrights Institute (Princeton, N.J.), a research and advocacy organization focusing on employment issues. Employers need to verify a relationship between the information being screened and the job in question.
The most questionable practice in background checks from civil liberties and human rights points of view, Maltby said, is the refusal of employers to hire people with a criminal background that has nothing to do with the job for which they applied. It is illegal to have a blanket "no felons" policy, he added.
Sometimes it's difficult to make the distinction, however, said Robert Howie, a management attorney at Riddell Williams (Seattle). For example: While some say domestic violence could be a harbinger of workplace violence, others see it as a family crime that is unlikely to occur outside that context.
Inconsistency is the greatest danger for employers, Howie said, "because it leads to discrimination claims." Employers must decide what background information is essential, and then make no exceptions to collecting it, regardless of the applicant's qualifications.
Remember: You must verify the accuracy of the information you receive-background check results are not infallible.
IDENTITY PROTECTION
You can have too much information as well, Howie maintained. While employers want to check applicants' educational and employment histories, conducting a credit check for anyone other than those in accounting or financial services positions could produce a level of information that could "be tempting to identity thieves."
Employers need to keep all background information including Social security numbers, dates of birth, and home addresses secure, said Pam Dixon, executive director of the World Privacy Forum (San Diego). "Employment data are so rich and so sensitive [that they are] targeted heavily by identity thieves." Establish procedures to dispose of background reports for rejected applicants, to make sure the information isn't "floating around in the ether or on paper somewhere." Destroy this information by shredding or overwriting it rather than just throwing it in the trash.
Another good reason to dispose of this information is that retaining it can be a "gold mine" for opposing counsel if the files are ever subpoenaed, Howie noted.
MIND YOUR STATE'S LAW
A number of states have laws concerning background checks: In fact, background checks are required in some form in 39 states. State statutes requiring background checks often target employees of organizations that offer services to children or vulnerable adults, such as the elderly and the disabled. Other positions for which background checks may be required include security personnel, firefighters, real estate brokers, financial institution personnel, humane society investigators, bus drivers, and emergency service personnel.
Because there are so many different laws in various states, HR professionals must stay up to date on the laws in the states where their organization operates.
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