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The Complete Payroll Blog

Why Failing To Screen Applicants Can Put Your Company At Risk

Posted by admin | Mar 22, 2015 8:44:34 AM

Background CheckNo matter how good you are at interviewing, as an employer or manager you can’t rely only on candidate interviews to make hiring decisions. There’s too much at stake.

That’s why pre-employment screening is so important. It not only allows you to verify that a candidate has told the truth about their education and experience, but if can reveal important information about a candidate’s prior behavior that can help you assess potential risk.

What types of risk?

Wouldn’t you want to know if a job candidate had a history of substance abuse, a poor credit history, a spotty driving record or past criminal convictions? That’s not to say that people can’t change, but depending on the job you’re hiring for, someone’s past may have an effect on their present. For example, would you hire someone with a history of DWI or driving without a license if they’re going to be driving a company vehicle? Would you want someone who’s been accused of embezzling in the past to handle your company’s finances?

How does pre-employment screening help you find better employees?

Using pre-employment screening should lead to higher quality applicants, which will leads to better workers, higher productivity, increased quality, and lower employee turnover. Just making it clear from the start to all applicants that you conduct background checks will discourage some candidates from applying.

Also, candidates will be more likely to represent themselves honestly if they know you’ll be checking. It’s been proven that more than 50% of all resumes contain inaccuracies in employment, job performance and educational achievement.

Isn’t it expensive?

The return on investment for background checks is made up in turnover reduction, if not avoiding seriously damaging situations, like an unchecked employee who embezzles or drinks on the job. The repercussions of such acts can include lost customers, deflated employee morale, and the destruction of your company’s image and brand.

Isn’t it illegal to deny employment based on what you find?

The Equal Employment Opportunity Commission (EEOC) stipulates that employers can consider arrest and conviction information, and misdemeanor offenses, when hiring as long as they consider the whole picture of an applicant: interview performance, education, work experience and job fit assessment results in addition to background screening information. The EEOC lists four criteria that employers should follow when reviewing pre-employment screening results:

  1. Determine whether the applicant has actually been convicted of the alleged conduct.
  2. Consider the nature and significance of the offense(s). There should not be a blanket policy in place against hiring anyone with a conviction.
  3. Consider the amount of time that has passed since the conviction.
  4. Consider how the offense(s) relate to the core responsibilities of the job.

Also, the Fair Credit Reporting Act (FCRA) is a federal law that governs the use of background screening for employment purposes. The FCRA rules apply to employers who use a third-party provider to complete background investigations. Complying with these rules means you are within the boundaries of the law.

At Complete Payroll Processing, we offer background checks and employee profiles to help your company hire the best and brightest. We also offer many other services to help your company run more smoothly. Give us a call to find out more.

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