an employment decision is a big deal.
only can a hiring decision have a tremendous impact (positive
or negative) on the company's profits due to their performance,
it can also effectively place a stranger in your business,
where the wrong person can potentially cause irreversible
example - some of the most notorious fraudsters are people
that have a lot of experience with finances and "balancing"
the books. Just imagine how damaging it could be for a business
to hire someone to manage finances or records who's skilled
at covering up illegal activities with complicated record-keeping
(or any other fraudulent activity).
think about the far-reaching, chain reaction of consequences
that would wreak havoc if, say, the company got audited -
and that new accountant you hired was fudging the numbers.
The IRS wouldn't care - as far as they're concerned, whoever
signs the return is responsible.
one example of thousands. The bottom line is that a company
is only as good as its employees. Or as bad
proceeding further - it's important to point out there
are laws that dictate how and when you're able to conduct
a background or credit check prior to making an employment
decision, as well as what information can be taken into consideration,
and what legally cannot. Laws vary from state to state, so
make sure that you do your research.
starters, be sure to acquaint yourself with the applicable
rules set forth by the FCRA (Fair Credit Reporting Act), which
you can view in "summary" at http://www.ftc.gov/os/statutes/2user.htm,
or the complete text in PDF format: http://www.ftc.gov/os/statutes/031224fcra.pdf
example - before screening an employee, your company is required
to have that individual sign a disclosure agreement authorizing
the background check. It's important to know what you can
and can't do before you proceed with any kind of screening
to Screen Employees Effectively Based On Your Needs
you've determined what you can legally search/use as part
of your employment decision-making process according to your
local laws, then it's time to consider the options. (For the
purposes of this article, it's assumed that you'll already
be asking your prospective employees for trade or personal
references and following up accordingly).
general, a background check consists of searching for previous
criminal acts within public records, with an emphasis on court
records, convictions (or prison sentences) and where applicable,
financial/civil background information.
two options, generally speaking:
Find out what you can on your own
Outsource the task to an investigation firm and/or purchase
data from an accredited reporting agency
the nature of the job requires your company to review the
applicant's credit history, then you'll have to obtain this
directly from a reporting agency such as EquiFax or Experian,
with the employee's consent and within legal requirements.)
a smaller business not requiring a credit check, it might
make more sense to conduct more of a "self-service"
to save time while searching more records, it would be worthwile
to use our recommended online "all in one" public
records search engine.
a larger business with a high turnover rate (or employment
volume), then it would make more sense to outsource the task
to a firm who specializes in performing legal screening and
employment background checks. This also caters more to doing
"batch" searches in the case of screening multiple