BACKGROUND SCREENING POLICY – GOOD HIRING PRACTICES

Why have a background screening policy?

If you're reading this article, it's because you recently received a request from the company's operational departments, telling you that the client is requesting background checks for the employees who will be assigned to the project. The company is very interested in securing this project.

Why do they require background screening? You should know that a very, very important part of a company's internal controls for fraud prevention are background checks.

Fraud prevention in an organization begins with hiring. When internal fraud occurs in a company, people often wonder how the perpetrator was hired. Hiring a single person with an unethical value system can corrupt an organization. Depending on how much power that individual has, they may be capable of committing fraud from which the company may never fully recover. Furthermore, they may influence other employees to behave unethically or intimidate subordinates into making poor decisions.

Responsible companies have an established procedure for recruiting and hiring new employees. Their policies include a series of checks that you'll also need to implement in your company to ensure a fair system for all candidates.

We've had several cases where, first of all, the candidate lied on their resume. One of the employers had simply never worked there. A background screening determined they were lying on their resume. We've also had cases where candidates present false or falsified documentation about their previous education, and if the background screening procedure hadn't been applied, the employer wouldn't have known.

The most common checks are:

Resume Check

Resumes contain valuable information about candidates, but they can also contain factual errors. It's essential to verify the information on a candidate's resume. Someone who lies on a resume is likely willing to lie on the job and possibly commit fraud at some point. In addition to a resume, candidates are asked to complete a detailed application.

Perform a formal background check

A check on previous employment may be sufficient. More formal background checks may include credit checks, criminal background checks, driver's license verification, and Social Security history checks, depending on the location.

Depending on the position being filled, an informal background check using internet search engines may be helpful.

There have been cases where a person committing fraud in a company had already been fired for fraud in the past. If the hiring manager simply requests documents during the hiring process, they are unaware of the prior offense.

Contact with references

The most important information an employer can receive is the previous supervisor's perspective on the candidate's strengths and weaknesses. This is always done by specialized professionals who know how to read what they are told and what they are not told.

Ask interview questions that explore previous ethical dilemmas at work

According to the International Personality Item Pool, conscientiousness is the best predictor of work ethics and performance. People who behave ethically also tend to be responsible, reliable, and hardworking.

Take alcohol and drug tests

If applicable, conduct drug and alcohol testing as a final assessment of the candidate's integrity.
Research shows that drug and alcohol abuse negatively impacts productivity, safety, and workplace morale. The importance of these tests depends on the organization's industry and the candidate's potential position.

If someone applies for a job as a delivery driver and appears to be a heavy drinker, that's a serious problem. Also, keep in mind that people who are drug or alcoholic may be more likely to steal from their employer to support their habits and to miss work frequently.

It's critical that management conduct due diligence during the hiring process to ensure prospective employees are of integrity and have a positive work history.

By using a strict hiring process, an organization demonstrates to candidates and employees that it is actively involved in fraud prevention.

Background checks are very important. If you don't do them, you don't get the information. I know people who say to me, "Oh, why should I even do a background check? I'm not going to get any information that isn't already in their work history. You know, there are so many legal restrictions around what I can say—what previous employers can and can't say. Well, if you don't do the check, you won't get any information."

So do it. Find out what the outcome is. Use it when making the decision about whether or not to hire that person.
The other really important part of this is that we sometimes see employees who have been fired from previous jobs for inappropriate behavior at work, even fraud.