Tuesday, June 8, 2010

Background Screening - How to Cut Costs, Not Quality

With forty % or more of employment applicants lying on their applications or resumes and the fact that fifteen % of candidates have a criminal record, you can't afford to underestimate the value of a full background screening. If you don't, the odds are about even of you sending a staffer to your client that causes you both big problems, perhaps even legal liability.

"Most clients who want a temporary placement want a warm body immediately."

"Having a background check done on every prospective worker we consider -- even those who only go out for a day -- would be way too expensive."

"The client is liable for such things, not us, so why should it worry us?"

These seem to be reasonable assertions, but upon closer consideration, they are simply incorrect. And when things go badly and an employer files a negligent hiring lawsuit, these statements (and the thinking behind them) will come back to haunt you.

Perhaps a closer look at these assertions is in order...

Yes, clients often give brief notice of their need for a temporary worker. Still, if the client insists - perhaps via written release - and we place someone who has never been screened, the client should be told that background screening is in the works. If something unsuitable is discovered in the subject's past, it is highly recommended that they be immediately removed. We do not recommend this course, since background inquiries can be done within 48 hours.

What about the expense issue? We have all heard that "staffing agencies only care about profit." And, this is partially true - after all, that is why people go into business. But, OSHA guidelines require a safe workplace, and we are all responsible for compliance. If the cost of the background screening prevents a multi-million dollar lawsuit, it will seem very inexpensive. After all, it only takes one bad placement to cause you all sorts of legal problems.

And, about that view of these concerns being just the client's? I hope you're starting to see that this is just untrue. The courts have held time and time again that this is a joint area of responsibility and liability.

Only last December 2009, ProPublica and the Los Angeles Times finished a study showing that temporary staffing companies are a magnet for unfit nurses and healthcare workers. It is probable that this holds true for staffing companies in general. These unsuitable workers realize that screening is often neglected by temp agencies, and the trouble only becomes worse in a bad economy with high unemployment -- particularly of those with unsuitable pasts, habits, or work histories.

The present economy has caused the best providers of background screening services to think about ways to reduce cost without the risk of losing quality. Introducing,... "bundled" services.

For example, a sound background check consists of an Address History (usually via the social security #), Criminal Record Checks based on those addresses, and a National Sex Offender inquiry. This can be quite affordable to do for all candidates, especially when done in conjunction with other services that actually bring in cash credits.

The Work Opportunity Tax Credit (WOTC) program is one instance of a service around which "bundling" can be centered. These credits are often left behind simply because employers and staffing agencies don't know about them or think they are too much of a problem to deal with. But, before the screening has even completed, a diligent background screening company should be able to ascertain if the prospective worker qualifies the client for any of these credits. No cost to you, but possibly saving you serious money.

Another service where an HR outsourcing firm can help you cut costs is through employment verifications. Banks and prospective employers are continually needing to verify candidates' past employment. This takes time and time is money. An innovative screening company will, of course, come up with a time-saving answer. They will run those HR inquiries for you AND pay you for the privilege, saving you both time and money, and providing only that information which is relevant, accurate, and consistent, and only that which you want given out.

Why should your background screening company be merely another vendor? They should be your partner, protecting both you and your clients' interests, responding to fluctuations in the market, proactively enhancing your reputation and improving your bottom-line. Finally, they ought to be easily accessible and available to assist you, whether you only screen a few applicants or thousands.

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