Best Practices for Selecting a Background Screening Provider
M anaging the risk that are inherent in the hiring process is a major challenge for employers in today’s litigious
environment. Employers’ face potential liability on many fronts; including the liabilities that can be created by the actions of their employees as well as the actions of their background screening provider.
With background screening having become ubiquitous and an integral part of the hiring process used in most organizations the importance of knowing the right way to select a background screening firm can make the difference between having a safe work environment and avoiding legal entanglements. Les Rosen, Attorney and CEO, ESR Check, an accredited background screening firm said, “Just one bad hire can set off a legal and financial firestorm if the person is dangerous, unfit, unqualified or dishonest and a background check would have raised a red flag. At the same time, employers also need to recognize that applicants have substantial legal protections and background checking is subject to ever increasing litigation and regulation.”
Getting the hiring process right can mean lots of success for the organization. Getting it wrong means dealing with the a myriad of negative impacts and costs related to making a bad hire.
How costly is a bad hire? The U.S. Department of Labor estimates that the average cost of a bad hiring decision can equal 30% of the individual’s first-year potential earnings. That means a single bad hire with an annual income of $50,000 can equal a potential $15,000 loss for the employer. 1
This loss is compounded by the impact of a bad hir e on productivity and team morale. One subpar employee can throw an entire department into disarray.
Done well, background screening can be a powerful first line of defense against making a bad hire and add value to the selection process by aiding in the identification of prerequisite competencies, validating experience and education.
Done poorly, background screening can lead to ‘garbage in, garbage out’ results, which will negatively impact your organization potentially leading to a lot of legal, reputational and financial problems.
Needless to say, all background screening firms are not created equal. The right partner can help you build an effective employment screening program that reduces negligent hiring risks, builds a safer and more productive workforce and supports the strategic talent management goals of your organization.
The purpose of this article is to increase your knowledge about the criteria that you should use to select a background screening firm that will help you pick the right talen t and avoid making bad hiring decisions.
It is also important to note that the landscape for background screening continues to evolve which means the importance of selecting a forwarding thinking and agile background screening partner is becoming more important. The background screening industry has reached maturity and all of the ‘usual suspects’ that accompanies an industry reaching this stage apply.
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