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
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