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43% of Employers Have Made a Bad Hire Due to Lack of (Or Insufficient) Background Check

March 27th, 2017 Comments off
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If your mother says she loves you, check it out. This saying—popularized by the City News Bureau—is intended to remind journalists that a sense of familiarity with a source doesn’t excuse you from verifying the facts.

While a healthy sense of skepticism helps reporters ensure that stories are true, it’s also applicable to employers looking to hire new candidates: Just because someone impresses you in an interview doesn’t mean you shouldn’t double-check their story.

That’s why background checks are so important.

Unfortunately, according to a new CareerBuilder survey, there is a great deal of confusion regarding background checks—for both employers and the candidates they are considering.

Forty-three percent of employers have made a bad hire because they either didn’t conduct a background check or didn’t receive good information about a candidate. Employees are also at a disadvantage—46 percent said they don’t know what information employers are looking for when conducting background checks.

What Does This Mean For You?

Background checks are always necessary and shouldn’t just be conducted on a case-by-case basis. Background checks verify a candidate’s story and ensure they are qualified for the position. Given that one bad hire can cost a company $17,000, this is an expensive mistake to make.

But before you decide on a background check provider, do some research. Inaccurate information can not only cost you a potentially great employee, there could be legal ramifications as well. One in seven employers have faced litigation for not hiring someone because of information that was found in a background check. Make sure your provider complies with the Fair Credit Reporting Act, which governs how background checks must be conducted.

 Do you believe these four myths about background checks?

Conducting A Background Check: 4 Things You Need to Know

March 23rd, 2017 Comments off
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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
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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.

Never miss a thing: Get CareerBuilder’s expert recruitment tips in your inbox.

What Small Business Employers Should Know About Background Checks

October 26th, 2016 Comments off
Close-up of hands searching in a file cabinet

If you think large companies are the only ones who need to worry about conducting background checks, you may be setting up your small business for potential problems. Because of close working quarters, staff members oftentimes have significant access to accounts and confidential information. Bringing to light past instances of untrustworthiness before hiring may save your small business from putting such sensitive things in the wrong hands.

Likewise, we all know the hassle involved in firing and rehiring when a new employee doesn’t work out. Discovering a candidate misrepresented his education or experience before adding him to your staff can save valuable time and money down the line.

And, heaven forbid, an employee or customer gets hurt by someone you hired. Besides the trauma of such a situation, you could be hit with a negligent hiring claim contending that you should have looked into the offender’s risk potential. Such legal cases, unfortunately, are on the rise.

While many small business owners understand the purpose of background checks, some still shy away from them due to costs or perceived complexity. When the well-being of your staff and your livelihood are at stake, however, can you really afford not to make the investment?

To make the process easier and more cost-efficient, many small businesses turn to full-service background-check vendors. (Some small business employers try to handle checks on their own through do-it-yourself sites, but experts warn that information obtained in this manner is often inaccurate and limited.) Look for one accredited by the National Association of Professional Background Screeners to ensure reputability. A knowledgeable background-check provider can help with issues such as:

  • Determining which screens should be performed. Searching motor vehicle records makes sense when hiring a delivery person but probably isn’t necessary when filling a spot in IT. Professionals know the various screens available and can pinpoint which ones will yield information valuable to your particular needs.
  • Legal compliance. Since small businesses may not hire employees as often as larger firms, they oftentimes aren’t up to speed on the latest regulations regarding background checks. But being unaware doesn’t get your company off the hook if it makes errors. The Fair Credit Reporting Act specifies how background checks must be conducted, and skilled human resource personnel can walk you through everything from obtaining necessary written consent from applicants to notifying candidates when something questionable turns up. They also can help your company develop consistent background-checking policies so that you don’t subject your small business to charges of discrimination or personal intrusion.

 

Don’t be shy about asking questions before selecting a vendor. A good background-checking firm should be transparent about costs, including any access fees. (With certain background checks, jurisdictional and data access fees are charged by select counties, states and data providers – and likely passed on to you.) You should be given an estimate of how long it will take to get results and what details will be included in your written reports. Knowing what to expect takes some of the mystery out of background checks and enables you to make the best decisions for your small business.

New Webinar: Get Tips From a Compliance Expert (& Earn an HRCI Credit)

August 9th, 2016 Comments off

Knowing how to be compliant in your recruitment process should be at the top of your priority list – but for many companies, trying to make sense of the lengthy, complex and ever-changing rules of background screening compliance is a job in itself. When it comes to background screening, you can’t afford to make mistakes – which is why we’re here to help.

Join CareerBuilder and Pamela Devata on Tuesday, August 16 at 1 p.m. CST for a special webinar, “Background Screening Compliance: Keeping Your Company Out of the Litigation Fray.” Pamela will share her expert tips to being compliant as an employer when it comes to your background screening responsibilities. Oh, and did we mention that participating in this live webinar will also earn you 1 HRCI credit?

You will walk away knowing:

  • Your employer responsibilities under the FCRA.
  • Recent employer litigation around background screening compliance.
  • The impact of the recent Robins v. Spokeo decision.
  • Best practices to avoid litigation in your own organization.

 

Reserve your spot now: Register for the webinar.

CareerBuilder Expands Into Background Screening with Acquisition of Aurico

March 2nd, 2016 Comments off
CareerBuilder acquires Aurico

On the heels of launching a series of exciting new software-as-a-service recruitment solutions, CareerBuilder is further expanding its product line to cover another critical step in the hiring process: background screening. To do this, the company has acquired Aurico, a leading provider of background screening and drug testing that serves U.S. and international clients.

Aurico’s resume is impressive when it comes to background screening and testing: Over the last 25 years, the company has delivered comprehensive background investigation products, including:

  • Identity and credit checks.
  • Criminal and civil records.
  • Employment, education and license verification and driver’s history.

 

Aurico, recognized as the leader in customer satisfaction for screening providers by HRO Today, has also built an extensive paperless, drug and health network to quickly deliver accurate, in-depth reporting on potential employees.

Aurico’s solutions, focused on enhancing efficiencies in the onboarding process–while still providing a good candidate experience–help companies meet federal and state compliance standards and feel more confident about their hiring choices.

CareerBuilder CEO Matt Ferguson is excited about what this acquisition means for our clients moving forward:

Background screening is an essential part of recruitment, and a natural extension of CareerBuilder’s product line. Aurico has differentiated itself in the market with great customer service and leading-edge technology that we can easily integrate into our software solutions. Working together, we can move people along the hiring process faster and with greater convenience for both employers and candidates.”

Aurico CEO is enthusiastic about the move as well:

CareerBuilder is a well-known, trusted, global technology leader that shares our passion for innovation and customer service. Becoming a part of the CareerBuilder family will enable us to quickly scale our business and bring new options to our clients. None of Aurico’s competitors will be able to match our combined solutions.”

Aurico’s secure, automated screening solutions are configurable and can integrate with CareerBuilder’s pre-hire platform or a client’s existing applicant tracking system or human resource information system. They can also be purchased as stand-alone products.

 

Learn more about Aurico here, and read the full press release.