HIRING THE RIGHT PEOPLE

The Role of Background Screening and Risk Management in Building a Better Workforce

If you have the wrong people on the bus, nothing else matters.

JIM COLLINS, GOOD TO GREAT

Finding the right people requires a hiring approach that is:

Fair to applicants

Delivers the best employees possible to the organization

At every step in the hiring process, and particularly in background screening, HR managers should address the threats of risk directly.

Position Description

BackgroundScreening

Key Steps in the Hiring Process

Sourcing

Filtering

The First Interview

Contingent Offer

Final Interview

Background Screening6 Key Concepts

Employers have a right to use background screening in making employment decisions.

1

Screening should be job-related and serve a business necessity.

2

The specific items researched in a background check for a job should be consistent for every applicant, and

used consistently in decision-making.

3

In general, employers should avoid blanket background check policies.

4APPLICATION

Have you ever been convicted?

[ ] yes [ ] no

Beware of “the box” and other blanket criteria that may unfairly disqualify an applicant.

Adverse action against an applicant should follow the two-step process defined by the Fair Credit Reporting Act

5 ADVERSE ACTION 2-STEP

1PRE-ADVERSE

ACTION NOTICE

2ADVERSE

ACTION NOTICE

NOT ACCEPTABLE

NO HIRE

CANDIDATE RESPONSE EXPLANATION / DISPUTE

OKNOT OK

FINAL DECISION

ACCEPTABLE

HIRE!

If a background check for an applicant indicates they have arrest or conviction records, an

individualized assessment is recommended.

THE “GREEN” FACTORS1. Nature & Gravity of Offense

2. Time Elapsed Since Offense & Sentence

3. Nature of Job

6

THE CONNECTION TO RISK

Organizations have humans engaged in many complex ways to achieve common purposes.

Their interactions within the organization and between it and external entities create risks of different types.

These human-generated risks create liabilities or expose the organization to losses

of capital, reputation, or market share.

Capital

Market Share

Risk

5 Classes of Human Capital Risk Mitigated through Employment Screening:

Occupational fraud

Employee profile

changes

Employee turnover

Catastrophic workplace

events

Negligent hiring and retention

Occupational FraudIt can happen to you.

of top line revenue is lost to fraud in any given year.

Fraud occurs in all types of organizations and at all levels.

changes to employee profiles

The person you hired today can be a “different person” tomorrow.

Perform regular background screening to verify such factors

as maintenance of professional licensing,

maintenance of acceptable driving

records, drug use, and criminal histories.

employee turnover & risk renewalAnytime you have to hire, you expose

yourself to routine hiring risks.

When there is a shortage of labor or positions need to be filled quickly, the risks can be greater as there may be a tendency to

hire less qualified applicants or to hire out of desperation.

Take advantage of repetitive hiring by analyzing your employee performance data to ensure the screening process is more targeted and more efficient.

Tips to mitigate turnover risks:

Use background screening to help identify replacement candidates within your workforce.

Boost the number of applicants you screen if possible. Work to find those “good apples.”

catastrophic workplace events

Employment Screening:

• Helps prevent workplace violence and promotes a more productive workplace culture.

• Helps to verify key qualifications and characteristics that may improve the chances of an employee performing well on the job.

• Prepares your organization for the likelihood of a litigious aftermath of a catastrophic event.

IN THE YEAR 2013: 3,007,300 nonfatal injuries and

illnesses in private industry4,405 workplace fatalities397 workplace homicides

– National Census of Fatal Occupational Injuries in 2013

negligent hiring & retentionBackground screening helps to mitigate the

risks of negligent hiring and retention:

Screening helps to exclude risky

applicants.

Screening for relevant factors helps provide an effective defense

against charges of negligence.

When you make better hiring decisions, you can better mitigate

the human capital and hiring-related risks that impact your organization.

It’s a win-win.

Learn more about hiring the right people.Download our complete guide to best hiring practices atproformascreening.com/lp/hiring-best-practices/

GETTING THERIGHT PEOPLE

ON BOARD

Tips for a Fair and Effective Hiring Process

Best Hiring Practices

Proforma Screening Solutions delivers a wide range of background checks and background screening services to help companies make better hiring decisions.

Learn more at proformascreening.com or call (866) 276-6161