|
 Let’s start with the facts. According to
a study done by the
Society of Human Resource Management (SHRM) it is estimated
that 40% of resumes contain false or “tweaked” information.
The cost of a poor hire is estimated to be three times the
annual salary of the position. And finally, the probability
of a successful hire increases by 20% when reference or
background checks are conducted.
What does this all mean? The hiring process is often a very
subjective process. Determining and evaluating an
applicant’s knowledge, skills and abilities can involve a
fair amount of “gut” feeling. However, it is important to
develop systems that move the hiring process from a
subjective process to an objective, fact-based process. In
addition to asking all applicants the same set of questions,
documenting results using standardized rating sheets or
forms, and developing organized systems to track candidate
materials (resumes, applications, assessments, etc.) and
status; it is imperative that you check references and in
some cases conduct background investigations on those
candidates you are considering for employment.
The State of California has recognized a cause of action
against employers for “negligent hiring” which may result in
employers being liable to injured third parties, for
negligence in “hiring or retaining” an incompetent or unfit
employee. More and more employers are coming under increased
scrutiny for “negligently” hiring or retaining employees
whose criminal records, history of drug or alcohol abuse or
related problems create an unreasonable risk of harm to
others. This is particularly true with employees whose work actions may
affect the health and safety of co-workers, clientele
(thinking of patients, etc.) and the public. Many obvious
pitfalls can be avoided by conducting reference checks or background
investigations.
Conducting Reference Checks and Background Investigations
One way employers can protect themselves is by conducting
reference checks which are meant to verify work history,
duties performed, pay, skills, experience, etc. Another
method is background checks which look into possible
criminal background, credit history, education credentials,
Department of Motor Vehicles driving record and other
employment-related activities. Employers should review their
application form to be sure it includes a statement that
authorizes the employer and/or it’s agents to conduct such
checks.
In the case of conducting Background Investigations,
employers are also required to notify candidates in writing
and get written authorization (on a separate form) that they will
be conducting a background investigation, as well as provide
the candidate with their rights as outlined by the Fair
Credit Reporting Act (FCRA). At a minimum a background check
will verify social security number, employment history and
the candidate’s addresses for the last seven years. At most
it can include credit history, driving record and criminal
history.
If employers decide not to hire because of information from
the background investigation, candidates must receive a
pre-adverse action disclosure that includes a copy of the
report as well as the candidate’s rights. The
name and address of the Consumer Reporting Agency and
information on their right to dispute the report must also
be provided.
Just as standard questions should be used during the
interview process, the same holds true for checking
references. Some examples are:
• Dependability
on completing work assignments
• Ability to take responsibility
• Attendance
• Work attitude and work relationships
• Honesty
• Tendency toward or association with workplace violence
• Customer service approach
• What are the candidate’s greatest strengths?
• Does the candidate have any areas they need to develop?
• Would you re-employ? If not why not?
As a matter of
course applicants should supply employers with at least 3 work
references – people who can actually speak about
information as outlined above. But what if they just give
the number for human resources? Most HR departments will only verify
dates of employment, job title and sometimes salary (if
approved by the employee to do so). So what is a hiring
manager to do to find out the real information on whether or
not a candidate is the right fit for the organization? One
solution is to ask the applicant for another professional
reference. Some hiring managers are turning to
social networks to find out more information on potential
candidates.
There has been more and more literature lately about the use
of social networks (Facebook, MySpace, Friendster, etc) in
conducting reference or background checks. It is important
to remember that that under the law, each stage of the
screening process used in selection of prospective employee
is, legally, a “test.” To that end each “test” – be it an
application form, interview questions, assessments or
reference checks should all be relevant to the job being
filled and analyzed for any potential adverse impact.
 TPO trains managers and supervisors in recognizing and
stopping discrimination regarding any term, condition or
privilege of employment. Questions asked during an interview
need to be directly related to the position. We advise
hiring managers to avoid questions about a person’s marital
status, religion, age or other membership in a "protected
class". Applications forms are carefully
designed to elicit only the necessary information to confirm
an applicant’s job-related experience, skills, and
education. They do not ask about physical limitations or
conditions, Social Security number, number of children,
marital status, etc. If it isn’t job related – don’t ask it
- even out of curiosity or as idle chit chat.
The type of information found on social networks typically
includes information about friends and family, likes and
dislikes, dating/sex, religion, political affiliation as
well as anecdotal information about parties, dogs/cats,
concerts or the like. Most of the information found on a
social network site is NOT job related. And given that, why
would an organization want to “break the rules” and even
give the perception that they made a hiring decision based
on this type of information.
Employers should also be aware that under California law, it
is illegal to reject or discriminate against an applicant
because he or she participates in lawful conduct during
non-working hours, away from the employers’ premises, or
engages in political activities, or has political
affiliations. If employers obtain this type of information
while using a social network to check out a prospective
employee, and then reject the person even though he or she
is otherwise qualified, the burden of proof is on the
employer to prove whether the information affected the
hiring decision.
Bottom line: all applicant search activities from creation
of a job description, job ad, interview questions,
assessments to reference checks should be reviewed to ensure
that all applicants are treated fairly and equally. If it
isn’t job related, don’t ask it or do it!
For more information on TPO workshops or recruitment
services, please contact us at 800-277-8448 or visit our web
site www.tpohr.com
Article written
by: Kelsey Escoto,
sphr |
CALIFORNIA
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Support your current demands with an extra pair of hands 
I
read an article that Wage & Hour class action suits are on
the rise. What should I do to protect my company?
Class
action lawsuits are on the rise, and while your organization
might not be the large, often international employers who
are named in such a lawsuit, every employer is impacted by
such suits – particularly since these high dollar suits are
covered prominently in the media (radio, newspaper, blogs,
etc.). Employees learning of such suits are certainly able
to make the link between the proposed unlawful employment
practices detailed in the suit and the practices of their
current employer.
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