Background Screening Policy Helps You Avoid Hiring Pitfalls
Background screening has become almost universally adopted, and according to the Society of Human Resources Managers (SHRM), more than nine out of 10 companies screen candidates.
This rising trend exists for good reason. Failing to make safe hiring decisions not only puts people at risk but also carries heavy financial penalties. According to the Human Resource Management Journal, the average settlement for a negligent hiring lawsuit is nearly $1 million.
However, even though most companies today conduct pre-employment screening, not everyone is doing it right.
Out of the many companies I’ve worked with, only about half conducted background screening in a way that reduced their liability and optimized their screening costs. Because background screening is heavily regulated by federal and state laws, there are many legal pitfalls. Furthermore, choosing the right type of screening products is essential to thoroughly assess a candidate and optimize your hiring budget.
In a tight labor market, companies need to efficiently screen candidates with limited resources. They need to mitigate risk while moving candidates through the talent pipeline as quickly as possible. That’s why developing an effective background screening policy is one of the best investments a company can make.
A background screening policy has two main benefits:
- It provides clear guidelines that optimize your screening process.
If you set parameters for what you’re screening for and why it helps you narrow down specific pre-employment screens that are the best fit for your needs. There are many types of background screens that pull a wide variety of information. It’s possible to screen a candidate for information that includes criminal, civil, financial history, and more.
However, just because you can screen for something doesn’t mean it’s the right fit for your company. For example, unless a candidate is applying for a driver position or will be using a company vehicle, it’s usually a poor investment to pull their Motor Vehicle Report (MVR). Having a screening policy helps you identify essential screens to run, which maximizes your hiring budget.
- It supports requirements from the Equal Employment Opportunity Commission (EEOC).
It’s a federal requirement from the EEOC to show that your “selection procedure is job-related and consistent with business necessity.” In other words, you must justify why you use information from pre-employment screening to make a hiring decision. You also have the burden of proof to demonstrate how you apply screening policies equally to all candidates, regardless of that person’s race, color, religion, sex, national origin, age, disability, or genetic information. Having a screening policy shows how you apply the same hiring policy consistently to everyone.
Avoid a Class-Action Lawsuit — Develop an Effective Screening Policy Today
Companies without a consistent screening policy often run afoul of organizations like the EEOC. To avoid possible lawsuits, it’s vital for companies to craft an effective background screening policy. This helps companies follow best practices to avoid liability and streamline their screening process.
To help companies protect themselves, we’re pleased to partner with SmartSearch for the following webinar:
Avoiding Pitfalls in Creating a Background Screening Policy
Tuesday, February 27, 2018, at 10 am MST
Register today to reserve your seat!
Our host, SmartSearch, has led the way in the development and deployment of recruitment software for over 30 years. Because their goal is to revolutionize the future of recruiting and corporate staffing, they understand the importance of efficient pre-employment screening.
The webinar is free to attend, but seating is limited. Register today to lock down your opportunity to learn about this timely topic. An explanation of the core concepts of a well-designed background check and how to stay within EEOC compliance, along with best practices in the changing legal landscape for background checks.
Photo courtesy of Chris Hsia.