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Conducting A Background Check: 4 Things You Need to Know

March 23rd, 2017 Comments off
background checks

Hiring new employees can be like walking a tightrope. It is important to find the right candidate with the qualifications and integrity to do the job, but in today’s hiring climate it’s not enough to accept candidates at face value. For employers, a background check is a reliable way of verifying claims made by job seekers during the hiring process.

Still, job seekers are often confused about what a background check entails. Some think of it simply as a criminal history check. In reality, a background check is much more than that. It’s the process by which you find your best candidate by looking at, yes, criminal records, but also education and employment history, references, etc. Each is a very important piece of the puzzle. After all, the average cost of one bad hire is nearly $17,000.

According to a new CareerBuilder survey that outlines myths around background checks, not all companies or workers know the screening process – or may underestimate the importance of doing screenings. Below are four common myths employers think are facts and realities that show the truth.

Myth 1: Background checks aren’t always necessary.
Reality: Eighteen percent of employers said they made a bad hire because they didn’t conduct a background check. Given the cost of a bad hire, this can be an expensive misstep.

Myth 2: All background check systems are created equal.
Reality: Twenty-nine percent of employers made a bad hire because they received bad information about the candidate. Fifteen percent of employers have run into litigation for not hiring someone because of what was found in a background check. Make sure your provider keeps up with compliance standards, is National Association of Professional Background Screeners (NAPBS) Accredited, and ensures the candidate is informed and supported.

Myth 3: My background check system provides a good candidate experience.
Reality: Sixty-five percent of employers have never tested out their system themselves to see what the candidate experience is like. Not only is it crucial for employers to experience the process first hand, it’s important to seek direct feedback from candidates.

Myth 4: Background checks typically take one to two weeks.
Reality: The longer the background check, the higher the risk of losing the candidate because you couldn’t verify information fast enough and they moved on to another employer. Typically, background checks should return in less than five business days, but on average checks take 24 – 72 business hours to complete.

Why Should You Run Background Checks On Job Applicants?
First and foremost, you should run background checks to help keep your employees and your business safe. But it doesn’t stop there. Background checks are a critical way to safeguard the many facets of your business that need to be protected.

Here are five reasons background checks should be part of your pre-hire process:

  1. To provide a safe workplace for employees and customers
  2. To hire the most qualified people who will help to grow your business
  3. To minimize exposure from employee liability by practicing due diligence in the hiring process
  4. To encourage honesty in the application and interview process
  5. To eliminate uncertainty in the hiring process

 

Are you in the market for a background check provider but overwhelmed by the choices out there? Are you even sure you know how to identify a good background check provider? Check out this guide.

75% Of Employers Have Hired the Wrong Person, Here’s How to Prevent That

November 17th, 2016 Comments off
background check

Ben Goldberg, CEO of Aurico

Going deeper than what you see in a candidate’s resume is becoming more and more crucial as the competition in the job market continues to stay fierce. Candidates resort to practices such as embellishing or misrepresenting themselves to appear attractive to companies that are hiring. Some trained HR professionals might spot these details, but many of these so-called facts may not reveal themselves until a thorough background check is performed.

According to a new CareerBuilder survey, the majority of employers (72 percent) background check every new employee before they’re hired, but more than a quarter (28 percent) don’t at all. Similarly, while many (55 percent) drug test employees, only one in five (20 percent) continue to once an employee has been hired.

Those who do background check are analyzing these aspects:

  • Criminal background: 82 percent
  • Confirm employment: 62 percent
  • Confirm identity: 60 percent
  • Confirm education: 50 percent
  • Check for illegal drug use: 44 percent
  • Check licensing: 38 percent
  • Credit check: 29 percent

 

Knowing as much as possible about your potential hires is crucial. After all, the individual you hire will have access to critical data and documents that belong to your organization. And, if you hire the wrong person, you’ll likely find yourself looking for ways to reassign the employee or working tirelessly to fit him or her into the organization in some other way. Rather than simply letting the employee go, you’ll owe it to him or her to spend time and money on training and ongoing reviews. Eventually, he or she may become a satisfactory employee for your business, but there’s also a chance it just won’t work out. Either way, that bad hire is a drain on resources.

The Cost of a Bad Hire

According to the CareerBuilder survey, 75 percent of employers said they have hired the wrong person for a position, and of those who had a bad hire affect their business in the last year, one bad hire costs them nearly $17,000 on average.

When classifying what makes someone a bad hire, employers reported these issues:

  • The employee didn’t produce the proper quality of work: 58 percent
  • The employee had a negative attitude: 52 percent
  • The employee didn’t work well with other employees: 51 percent
  • The employee’s skills did not match what they claimed to be able to do when hired: 49 percent
  • The employee had immediate attendance problems: 45 percent

 

Background checks can help employers avoid making a bad hire. Among those who had a bad hire, 37 percent said it was because the candidate lied about his/her qualifications. The price of a bad hire like this adds up in a variety of ways. The most common ways employers say a bad hire affected their business in the last year are:

  • Less productivity: 36 percent
  • Compromised quality of work: 33 percent
  • Affected employee morale negatively: 31 percent
  • Lost time to recruit and train another worker: 30 percent
  • Cost to recruit and train another worker: 30 percent

 

Conducting Better Background Checks

Although the phrase “background check” is common in HR vocabulary, are you doing the right things to keep your company out of trouble? Here are three tips to follow:

Establish a standard policy: Having a mandatory background screening policy for every employee in an institution, from entry-level to the c-suite, not only provides clear guidelines for security, recruiting and HR professionals, but also eliminates any appearance of inconsistencies when checks are made.

Don’t forget international background checks: The workforce has become more global than ever before, and it is a best practice to check the backgrounds of all applicants who were born, educated or have worked outside the United States.

Know the regulations: There are regulations at both state and federal levels. Some information, such as arrest records that did not result in a conviction, cannot be accessed via a background check. The Fair Credit Reporting Act sets national standards employers must follow when conducting an employment background check.

Want more information about how to perform effective background checks on job candidates? Check out Aurico. Earlier this year CareerBuilder acquired Aurico, a leading provider of background screening and drug testing serving U.S. and international clients. Today Aurico announced it has been named one of the nation’s top 13 employment screening providers on HRO (Human Resource Outsourcing) Today magazine’s 2016 Baker’s Dozen list. This recognition marks the fifth appearance on the list for Aurico.

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