January 22, 2010 Background Checking: Conducting Reference Background Checks.

January 22, 2010

Background Checking: Conducting Reference Background Checks

Background Checking | ©SHRM 2010

Conducting Reference Background Checks

2


Reference Background Checks

For the purpose of this research, the phrase “Reference background checks” refers to any verification of information provided by a job applicant (e.g., employment history), or communication with people regarding the job applicant (e.g., former supervisor or co-worker). It does not include credit and criminal background checks.

3

Background Checking | ©SHRM 2010 4

Does your organization, or an agency hired by your organization, conduct reference background checks for any job candidates?

76%

22%

2%

All job candidates

Selected job candidates

No, my organization does not conduct this type of background check for any of its job candidates

Note: n=433. Respondents who responded “Not sure” were excluded from the analysis.


Which category of job candidates does your organization conduct reference background checks on?

Job candidates whom are placed at specific clients locations

Job candidates for positions involving national defense or homeland security

Job candidates who will work in health care or with access to drugs (e.g., hospitals, nursing homes, clinics, pharmacies, rehabilitation centers)

Job candidates who will work with children, the elderly, the disabled, and other vulnerable populations

Job candidates for positions that applicable State law requires a background check (e.g., day care teachers, licensed medical practitioners, etc.)

Job candidates who will have security responsibilities (e.g., security guards)

Job candidates who will be employed in safety-sensitive positions (including operating heavy equipment, transportation, etc.)

Job candidates for senior executive positions (e.g., CEO, CFO, CHRO, etc.)

Job candidates who will have access to company or other people's property or otherwise placed in a position of financial trust (e.g., information technology, administrative services, cleaning crews)

Job candidates for positions with fiduciary and financial responsibility (e.g. handling cash, banking, accounting, compliance, technology)

Job candidates who will have access to highly confidential employee information (e.g., salary, benefit, medical information or other personal information about employees, etc.)

0% 10% 20% 30% 40% 50% 60% 70% 80%

14%

19%

22%

24%

34%

45%

47%

59%

62%

72%

76%

Note: (n = 86) .The data in this figure represent organizations that conduct reference background checks on select job candidates. Percentages do not total to 100% as respondents were allowed multiple choices.


In general, how frequently does your organization, or an agency hired by your organization, conduct any of the following reference background checks for its job candidates?

Verification of articles published, speaking engagements

Military discharge information

Government agency record search

Verification of past salaries

Check for malpractice or professional disciplinary action

Driving record check

Verification of certifications, licenses, etc.

Verification of former job responsibilities

Verification of schools, colleges, and/or universities attended

Verification of degree(s) conferred

Verification of former job titles

Verification of dates of previous employment

Verification of former employers

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

61%

47%

46%

23%

37%

13%

12%

13%

12%

10%

6%

4%

2%

25%

16%

16%

22%

22%

13%

14%

12%

17%

15%

5%

4%

3%

12%

20%

21%

31%

16%

47%

37%

34%

26%

26%

23%

16%

14%

2%

17%

17%

24%

25%

27%

37%

41%

45%

49%

66%

76%

81%

Never Rarely Sometimes Always

6Note: n=301-398. Respondents who responded “Not applicable” were excluded from the analysis.



Nonprofit organizations conduct verifications of the following more than other sectors.• Verification of schools, colleges and/or

universities attended: NP (65%) > Privately (PFP) (36%)

• Verification of degree(s) conferred: NP (66%) > Privately (PFP) (40%)

• Verification of certifications, licenses, etc.: NP (74%) > Publicly (FP) (32%), Privately (PFP) (23%)

• Verification of schools, colleges and/or universities attended: Large (50%) > Medium (34%)

• Verification of degree(s) conferred: Large (54%) > Small (36%)

• Driving record check: Medium (40%) > Large (22%)

• Verification of certifications, licenses, etc.: Large (41%) > Medium (26%)

7

Comparison by Organizational Sector

Note: Comparison by organizations’ sector, staff size and scope of business represent those who answered that their organizations “always” conduct reference background checks. Privately owned for-profit organization = Private (PFP) Publicly owned for-profit organization = Publicly (FP) Nonprofit organization = NP Government sector = Govt Small = 1-99 employees Medium = 100-499 employees Large = 500 or more employees

Comparison by Organizational Staff Size

• Verification of certifications, licenses, etc.: Primarily state based (58%) > Primarily nationally based (33%)

Comparison by Scope of Organization's Business



8

2009(n = 301-398)

2004 (n =268-

321)

Verification of former employers 81% 66%

Verification of dates of previous employment 76% 66%

Verification of former job titles 66% 53%

Verification of degree(s) conferred 49% 35%

Verification of schools, colleges, and/or universities attended 45% 34%

Verification of former job responsibilities 41% 37%

Verification of certifications, licenses, etc. 37% 41%

Driving record check 27% 30%

Check for malpractice or professional disciplinary action 25% 22%

Verification of past salaries 24% 19%

Government agency record search 17% --

Military discharge information 17% --

Verification of articles published, speaking engagements 2% 2%

Note: Table represent those who answered that their organizations “always” conduct reference background checks. Where possible, 2009 data are compared with 2004; a dash (--) indicates that this particular option was not asked in 2004.

2009 Compared With 2004


How often do you discover information that is inaccurate compared to what job candidates presented during the interview process when conducting reference background checks on job candidates regarding:

Military discharge information

Certifications, licenses, etc.

Former employers

Schools, colleges, and/or universities attended

Degree(s) conferred

Driving record check

Former job responsibilities

Government agency record search

Former job titles

Malpractice or professional disciplinary action

Past salaries

Dates of previous employment

Articles published, speaking engagements

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

24%

15%

11%

11%

9%

8%

7%

15%

8%

11%

5%

2%

18%

57%

58%

46%

46%

47%

46%

43%

55%

40%

60%

38%

32%

58%

16%

23%

39%

39%

40%

42%

46%

25%

47%

23%

51%

60%

16%

3%

4%

4%

4%

4%

4%

4%

5%

5%

6%

6%

6%

8%

Never Rarely Sometimes Always

9Note: n=107-365. Respondents who responded “Not applicable” were excluded from the analysis.


In general, after conducting reference background checks, if inaccuracies/misrepresentations were discovered compared to what the job candidate presented during the interview process what types of information are MOST likely to impact your decision to NOT extend a job offer?

Malpractice or professional disciplinary action taken against the job candidate as applicable

Certifications, licenses, etc. as applicable to position

Articles published, speaking engagements, etc., as applicable to position

Former job titles

Former job responsibilities

Schools, colleges, and/or universities attended

Past salaries

Degree(s) conferred

Dates of previous employment

0% 10% 20% 30% 40% 50% 60% 70%

1%

2%

3%

10%

11%

18%

25%

49%

64%

10Note: n=185. Respondents were allowed to select their top three options.


Does your organization allow job candidates, in certain circumstances, the opportunity to explain the results of their reference background check that might have an adverse effect on an employment decision?

71%

19%10%

Yes, after the reference background check is conducted prior to the decision to hire ornot hire is made

Yes, after the decision to hire or not hire has been made

No, not at any time

Note: n=371


What are the primary reasons that your organization conducts reference background checks on job candidates?

Other

To determine if salary history is accurately represented by the job candidate

To assess the overall trustworthiness of the job candidate

To comply with applicable State law requiring a background check (e.g., day careteachers, licensed medical practitioners, etc.) for a particular position

To ensure a safe work environment for employees

To reduce/prevent theft and embezzlement, other criminal activity

To assess past performance and predict future performance

To determine that credentials (education, position, skills, etc.) are accurately represented by the job candidate

To reduce legal liability for negligent hiring

0% 10% 20% 30% 40% 50% 60%

5%

1%

16%

19%

19%

21%

27%

35%

55%

12Note: n=369. Respondents were allowed to select their top two reasons.


Demographics: Organization Industry

Industry

Health care, social assistance (e.g., nursing homes, EAP providers) 18%

Services—professional, scientific, technical, legal, engineering 12%

Manufacturing—other 11%

Educational services/education 8%

Government/public administration—federal, state/local, tribal 5%

Financial services (e.g., banking) 5%

Transportation, warehousing (e.g., distribution) 5%

Insurance 5%

Retail/wholesale trade 4%

Construction, mining, oil and gas 3%

Other services (e.g., nonprofit, church/religious organizations) 3%

High-tech 3%

13

Note: n=312. Percentages may not total 100% due to rounding.


Demographics: Organization Industry (continued)

Industry

Telecommunications 3%

Utilities 3%

Services—accommodation, food and drinking places 2%

Publishing, broadcasting, other media 2%

Arts, entertainment, recreation 2%

Consulting 1%

Manufacturing—auto/auto-related 1%

Real estate, rental, leasing 1%

Association—professional/trade 1%

Pharmaceutical 1%

Other 1%

14

Note: n=312. Percentages may not total 100% due to rounding.


Demographics: Organization Sector

Government sector

Publicly owned for-profit organization

Nonprofit organization

Privately owned for-profit organization

0% 10% 20% 30% 40% 50%

8%

25%

25%

43%

15

Note: n = 319. Percentages may not total 100% due to rounding


Demographics: Organization Staff Size

Small (1-99 employees) Medium (100-499 employees) Large (500 or more employees)0%

10%

20%

30%

40%

50%

60%

70%

7%

28%

65%

16



Demographics: Organization Region

West

Northeast

South

Midwest

0% 10% 20% 30% 40%

19%

20%

29%

32%

17



Demographics: Organization Operations Location

Primarily nationally based

Primarily locally based Primarily state based Primarily multinationally based

0%

10%

20%

30%

40%

50%

43%

24%

18%14%

18



Background Checking

• Response rate = 19%• Sample comprised of 433 randomly selected HR

professionals from SHRM’s membership• Margin of error is +/- 5 • Survey fielded November 18 – December 4, 2009

19

Methodology

January 22, 2010 Background Checking: Conducting Reference Background Checks.

Documents

Transcript of January 22, 2010 Background Checking: Conducting Reference Background Checks.