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March, 2004 Vol. 4, No. 3
1. New SHRM Survey Shows Employment Screening on the Rise
2. Yearly Hiring Index Demonstrates Why Employment Screening is Increasing
3. Privacy-The Inherent Problem in Sending Personal Data Abroad
4. ESR Featured in Nationwide Conferences on Safe Hiring and Due Diligence
A study released by the Society for Human Resources Management (SHRM), revealed a significant increase in the number of employers that conduct pre-employment screening. The findings were part of a study published in 2004 publication entitled Workplace Violence Survey.
According to the study, 82% of the respondents indicated they conducted some degree of screening on potential employees in 2003. This was up from 66% in the 1996 survey.
Reference checks (80%), past criminal checks (80%) and work history (79%) were the most widely used tools by those employers surveyed. The remaining tools were verification of education records (55%), motor vehicle records (44%), credit checks (35%), and military discharge information (21%). The survey also broke down the use of screening tools by the size of firms. Large firms with 500 or more employees were more likely to check education than small firms. Overall, the larger the firm, the more comprehensive a pre-employment investigation seems to be.
The two screening tools that had the largest increase in usage were criminal records (80% in 2003 compared to 51% in 1996) and credit reports (35% in 2003 compared to 19% in 1996).
Although the number of respondents was not large, the statistics do reflect HR and security trends, post 9/11, where a dramatic increase in employment screening has occurred. Each of these tools has their pros and cons. Credit reports, for example, should be approached with caution to ensure they are used fairly and do not invade privacy. See the Special ESR report on Credit Reports and Job Hunting at http://www.esrcheck.com/articles/article.php?article_id=article7.html
A copy of the full survey is available online at the www.SHRM.org
The reason for the increase in employment screening and safe hiring is demonstrated by a yearly hiring index showing the degree of fraud, discrepancies or criminal records found in background screening. For example, ADP, a large national provider of employer services, releases a yearly survey and according to their 2003 Sixth Annual survey, 10 percent, or approximately 300,000 records, contained an area of concern or data inconsistency. The 2003 Hiring Index showed that among records checked:
The study can be found at: http://www.investquest.com/iq/a/aud/ne/news/adp51903study.htm
An increasing issue for Americans is the trend by US firms to send personal and private identifiable data abroad to call centers and data centers to take advantage of low-cost foreign labor. Privacy advocates are concerned that US firms are sending all sorts of records offshore beyond the reach of US privacy laws, such as medical records, social security numbers and credit card numbers.
Legislation is underway in California to protect the privacy of US citizens. A bill has been introduced in California to require that any firm that sends confidential data out of the US must disclose to consumers that their personal information is being shared overseas. Another bill would put an outright ban on any work involving California consumers' data sent overseas. In Washington, D.C., Rep. Edward Markey (D-Mass.) is involved in an effort to make regulatory agencies take action to protect privacy rights form being harmed by overseas outsourcing of data.
ESR supports these efforts to protect privacy. According to the ESR privacy policy:
"All information about consumers stays within the United Sates in order to be under the protection of US Privacy laws. The only exception is information that is necessary to conduct international searches, for those employers who have received permission from applicants to access information about employment, education, credentials or criminal records outside of the United States. In those situations only the data needed to obtain the information leaves the United States."
ESR will be featured in national conferences involving safe hiring, as well as two audio conferences sponsored by prestigious national publishers.
September 2, 2004 -- Long Beach, CA
"Safe Hiring Audit-Implementing and Measuring Due Diligence." 2004 Professionals in Human Resources Association (PIHRA) Annual Conference. (see www.PIHRA.org)
May 19, 2004 -- Sacramento, CA
" How to Avoid the Nightmare of a Bad Hire." American Society of Safety Engineers (ASSE).
May 18, 2004 -- San Rafael, CA
"Ten Safe Hiring Tools Employees Can Use Today and Cost Nothing." Marin HR Forum-noon
May 6, 2004 -- National Audio Conference sponsored by BNA
"Criminal Records Use: What the HR Professional Must Know To Avoid Bad Hires and Legal Problems." Expert panel including ESR president Lester S. Rosen. Time: 2:00 to 3:15 EST. Additional details to be posted
April 20-21, 2004 -- Washington, D.C.
SHRM 35th Annual Employment Management Association (EMA) Conference and Exposition.
Topic: "Safe Hiring Audit-Implementing and Measuring Due Diligence in Your Hiring."
April 13, 2004 -- Houston, TX
"How to Avoid Hiring Criminals and Problem Employees." Gulf Coast Symposium. See www.hrhouston.org
April 6, 2004 -- Oakland, CA--Privacy in the Workplace. Seminar sponsored by Lorman Seminars (Details www.lorman.com))
March 23, 2004 -- San Jose, CA
"Identify Theft: How Individuals and Businesses Can Protect Against Fraud and New Legal Obligations on Employers." San Jose EAC (breakfast meeting).
March 18, 2004 -- National Audio Conference sponsored by Stafford Publications
"The Fair Credit Reporting Act: Recent Change." Expert panel including ESR president Lester S. Rosen: Time: 1:00 to 2:30 EST.
See: http://www.straffordpub.com
March 16, 2004 -- Pleasanton, CA
"Dodging the Bullet--Keeping Criminals and Imposters Out of Your Workplace in Ten Easy Steps." TriValley Human Resources Association(TVHRA) (noon meeting)
Contact ESR for further details.
Please feel free to contact Jared Callahan of ESR at 415-898-0044 or jcallahan@esrcheck.com if you have any questions or comments about the matters in this newsletter. Please note that ESR's statements about any legal matters are not given or intended as legal advice.
Employment Screening Resources (ESR)
www.ESRcheck.com
1620 Grant Avenue, Suite 7
Novato, CA 94945
415-898-0044
Employment Screening Resources (ESR) Rated Top Background Screening Firm in First Independent Industry Study
http://www.ereleases.com/pr/2002-12-12e.html
