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What A Business Needs To Know About Pre-Employment Screening

1) Why a business should do pre-screening
2) Why outsourcing this service makes sense
3) Why human resources departments should utilize ESR
4) Why pre-screening is cost-effective
5) Why ESR should be your choice
6) How you can pre-screen, and attract applicants and maintain employee trust
7) Getting started with ESR
8) Obtaining a report in three easy steps
9) What should we do with the reports and forms we send ESR and the reports we get back
10) Isn’t this information available over the Internet?

Business depends upon their employees. Yet, a bad hire can be disastrous, even for the largest companies. Failure to pre-screen applicants can result in:

Lawsuits from employees you have to terminate;
Lawsuits from third parties for negligent hiring, or from customers;
Unqualified employees;
Lost business and profits;
Time wasted recruiting, hiring and training;
Theft, embezzlement or property damage;
Workplace violence, or sexual harassment suits;

It’s an unfortunate fact of modern life that many applicants are falsifying their resumes, or leaving out information an employer needs to know. It has been estimated that as much as 30% of information on resumes is misrepresented.

With a program of pre-screening and credential verification, a business can reduce its risk of hiring the wrong employees. A business can substantially improve its chances of avoiding hires with false credentials, or who are hiding criminal records.

Businesses that pre-screen find that their profitability and productivity increase. They are able to concentrate on their business strength, instead of wasting time, energy and resources terminating bad employees, fighting lawsuits, and putting out fires.

IMPORTANT: Pre-employment screening and credential verification cannot reasonably be expected to uncover every bad employee. At the prices charged by pre-screening companies, an employer cannot expect to get an exhaustive background check that is guaranteed to uncover every negative aspect of an applicant or insure that there are no bad hires. But a professional pre-screening program can go a long way to eliminating unnecessary problems that can drain a company of vital resources, and has even caused business to go bankrupt. Many businesses find that just having a pre-screening program eliminates applicants with something to hide.

PLEASE NOTE:  Various rules and regulations are referenced in this report concerning particular types of information commonly used for background screenings.   This information in NOT intended to be legal advice, and should not be taken as legal advice,  It is only a discussion of commonly accepted human resources practices and understandings concerning the use and limitaitons of background screening information drawn from a number of industry sources.  Nor is the discussion in this report by any means meant to be a complete review of all aspects of pre-employment screening.  The purpose is to highlight some important areas.  If a company has a questions concerning the use of information in a specific situation, or has any other legal questions about the meaning or application of any laws or any other legal question, the company should contact it own attorney or legal department. (Back to top)

There is a growing trend among profitable and efficient organizations to outsource services that although vital, do not represent the company’s core strength. Many business are finding that it is an inefficient use of their time and energy to attempt to perform services that a third party provider can do efficiently and cost-effectively. To do pre-screening in-house, a company would have to devote time and energy to learning about how professional applicant screening is accomplished. The company would have to learn about the many complicated state and federal laws that govern what they can and cannot access. The company would have to find cost-effective sources of the information, such as DMV records, and criminal checks. The company would also have to devote time and resources to contacting employers and educational institutions to verify information, and have the staffing to wait for return phone calls, perform follow-up calls and track pending applications. A staff member would have to reduce the information to a report form that is useful for the hiring decision-makers

All of this is very time intensive, requires creating additional administrative bureaucracy and an investment to conduct an in-house screening program. Many firms have discovered they are better off spending their time and energy conducting the business they know—and leave the vital task of pre-employment background screenings to professional like ESR. 
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Human Resources professionals are leading the way in the trend to outsource HR services to make their departments more efficient and responsive to changing economic needs. According to an article in the April, 1997 edition of HRFOCUS (page 10):

By contracting with a firm such as ESR, a Human Resource professional is relieved of a time consuming and specialized task, and is better able to devote time and resources to the function of managing people and the delivery of vital HR services to employees. There are so many vital functions that only an in-house HR department can provide, that it makes a great deal of sense to identify those services that can be outsourced to a third party.

Furthermore, there are strategic advantages to having pre-screening performed by an outside contractor. Why should an applicant’s first contact with the HR Department be a background screening. Although ESR takes measures to make the screening process as non-intrusive as possible, HR managers have found that there is a substantial advantage to advising applicants that the screening portion is conducted by an outside agency.
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That is because the degree of screening normally increases in proportion to the position to be filled. For an entry-level employee working on a retail floor, or on a manufacturing line where there is managerial supervision, a basic screening is normally sufficient. For example, an $8.00 per hour employee receives $64.00 in just wages on the first day. In addition, a business must consider employee benefits and all the associated costs of hiring, training, equipping and supervising the employee. At ESR, our basic screening package designed for an entry-level employee is normally less then these first day’s cost. The basic screening as described in more detail on our price list includes:

1. A criminal check of the applicant’s current county of residence and employment (if different);

2. DMV report;

3. Social Security/Identity check.

This check allows a basic screening when combined with your company’s own interview. At approximately the cost of the employee on the first day, your firm gets not only a basic check, but also eliminates those applicants with something to hide who will not proceed any further.

As the positions to be screened increase in responsibility, the screening charges also increase, but so does the investment made by your company in wages, recruitment, training and most importantly, the damage that could be caused by a bad hiring decision. (Back to top)

ESR combines human resources, investigative and legal expertise in providing your company with fast, accurate and cost-effective employment pre-screening and credentials verification. By using ESR, your company is assured of professional reports that are timely and easy to use. A licensed private investigator with substantial law enforcement and corporate security experience and a very experienced attorney provided the impetus for ESR. This same high degree of professionalism is reflected through out the structure of the company.

Unlike other firms, ESR is not just a data gathering service that provides computer printouts or raw data. We understand the fact the companies need a program that fits into their human resources programs, so that the information they receive is useable, readable and reliable. Our reports highlight and summarize our findings for quick and easy reference.

Nor is ESR based upon the law enforcement mode of investigation. We are not ex-police officers with computers who assume that all applicants are presumed dishonest until proven otherwise. At ESR, we understand the fact that the applicants we screen may well become your trusted employees, and that it is important that the screening process is respectful to your applicants.

Furthermore, ESR has a full time legal staff member to ensure its compliance with various state and federal rules and regulations concerning consensual pre-employment screening. Although ESR does not give legal services to its clients, ESR does ensure that its procedures are in compliance with the law.

For example, under the new amendments to the Fair Credit Reporting Act effective September 30, 1997, a third party firm that does employer reference checks must send out to the applicant a notice of the applicant’s rights under certain circumstances. Failure to do so can have serious consequence for an employer. At ESR, we are aware of this requirement and we comply with it on the employer’s behalf. It is critical to make certain that your company only deals with a firm that understands the legal requirements for employment pre-screening and credentials verification.
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First, ESR focuses on the concerns of Human Resource professionals that the screening process not damage the bond of trust that a firm seeks to develops with their employees. Human Resources is placed in a difficult position. On one hand, the company does not want to make bad hires. On the other hand, the company cannot afford to alienate its employees. ESR recognizes that your employees are a valuable resource, and that the employment relationship cannot start off with an invasion of privacy. Furthermore, obnoxious background procedures will discourage good applicants. Some background investigators start with the proposition that all applicants are potential criminals until they prove otherwise.

At ESR, we view pre-screening as a sound business practice that not only benefits the company, but is for the benefit of all employees as well. No one wants to work with an unqualified person who obtained the jobs under false pretext or with co-worker with a criminal record. Once an applicant understands that the process is not a reflection on them, but is actually for their benefit as well, applicants understand that this is a good thing for a company to do.

The forms we use make it clear that these background benefits everyone. Furthermore, the applicant is assured that all procedures respect their rights to privacy, that all information is kept strictly confidential and is used only for employment purposes. We assure your applicant on the written form that all our procedures are in strict compliance with their rights. (Back to top)

7. Getting Started with ESR

Getting started with ESR could not be simpler. There are no membership fees, minimum orders or any other obligations. Simply fill out and return the New Client Agreement. (Back to top)

8. Obtaining A Report In Three Easy Steps

First, fill in the order form based upon the level of screening that is appropriate to the position to be filled. If your company has any questions, call ESR customer service. We will assist you in designing screening levels appropriate for your hiring needs.

Second, have your applicant sign BOTH the Disclosure form and Release and Authorization forms provided by ESR. (As of October 1, 1997, both forms are federally required and must be signed and a copy sent to ESR.)

Third, fax ESR the following:

ESR also provides a sample employment application form for your use.

You will be billed at the end of the month for your reports. It is just that easy. (Back to top)

9. What Should We Do With The Reports And Forms We Send ESR And The Reports We Get Back

ESR recommends that all materials sent to us for a screening, and all reports that you receive back, be maintained in a separate file from the employee’s personnel file. The reason is that sensitive information may be contained in the materials. Although this information is appropriate for screening for hiring purposes only, it may not be appropriate for any others to see it or use it. It also may not be appropriate for initial selection, or for supervisors or managers to view the information during a performance review. It is a generally accepted industry practice to maintain all screening applications and reports separately to protect employee privacy and to prevent the unauthorized use of such information. Furthermore, ESR recommends that the materials stay with your company for a minimum of three years. Record keeping requirements may vary state a state, so if there is any question, an employer should consult with their attorney or legal department. (Back to top)

10. Isn’t this information available over the Internet?

As a practical matter, an employer cannot conduct a cost-effective and professional screening program over the Internet that complies with all the various federal and state rules and regulations. There are some sites on the Internet currently that will sell information to anyone with a credit card regardless of federal and state requirements for disclosure and signed releases. However, there are a number of reasons that employers cannot and should not deal with these operators.

First, federal agencies because of the invasion of privacy are investigating these types of Internet providers. It is unlikely that these vendors will operate for long. An employer does not know whom they are dealing with. There is typically no customer service or anyone to talk to. The Internet sites also tend to be very expensive. Further, they only provide raw data or computer printouts, not useful written reports. There is no apparent effort on behalf of the Internet providers to comply with various federal and state laws that govern background screening, such as signed authorizations and federally required disclosures. Finally, there is no way to be assured of the reliability of the information you are receiving.

Services such as ESR, on the other hand, strictly complies with the Fair Credit Reporting Act, the Americans with Disabilities Act, equal employment laws and other federal and state laws. At ESR, investigations are only conducted after an applicant has signed an express authorization as provided by law. We only provide information to established companies with a legitimate need for employment pre-screening. We provide follow-up service, such as re-investigating any disputed information. The reports are delivered in a useful format, not merely raw data or computer printouts. Additionally, we are an established business. Our clients can always contact our customer service office for assistance. For these reasons, businesses should only deal with established and reputable providers, such as ESR. (Back to top)

End of Report