Reference checking, 6 keys in the hiring process

Why Reference Checking?

Hiring more people within a company no matter the size can be a lot of effort, waste a lot of time and cost a lot of money so it is important to do it right, which means reference checking. As a large company, it is often the case that there will be an in-house HR team or outsourced company to deal with new employment and reference checking. As a smaller company, it is likely the managing director or office managers handle the process themselves. Companies are at risk of losing a great deal of money from not following the correct employment process. Below are a few recommendations on how you can create and run an effective pre-employment screening process.

1) Understand your risk profile

While lots of businesses have the brand and reputational risk among the leading reasons to conduct background checks, but all organisations have different types of risk. While organisations understandably wish to avoid bad publicity, risk profiles inevitably vary between companies and industry sectors. Other risk-profile considerations include whether the company has regulatory responsibilities to demonstrate due diligence in hirings, such as financial institutions and those working with sensitive or vulnerable people.

2) Implement a strong policy

A background check policy is important because it streamlines the collection, storage and dissemination of employee or applicant background information. When established protocols are in place, incidents of people making mistakes because they had to make a judgment call are reduced.

3) Make It Company-Wide

Create and apply background check policies across the whole company, even for senior management. On average, supervisors spend 17% of their time managing poorly performing employees. In the same survey, 95% of employers said that a poor hiring decision affects the morale of the whole team. Ensuring that the people you hire have the correct qualifications saves time and effort while preserving company spirit.[1]

4) Be Consistent

Pre-employment background screening must be consistent. Most negligence issues start from inconsistency in applying HR policies. Inconsistent enforcement opens the door to discrimination charges, and background screening is no exception.

5) What information can I search for?

Creating pre-defined service packages ensures that your screening policy will be consistently applied. Best practices basic packages includes the following:

• Address Verification
• Identity Verification
• Previous Employment Verification
• Education and Credential Verification
• Reference Check
• Media Check
• Criminal Record Check

6) Understand local and regional screening variance

When building your pre-employment screening program, it is critical to understand that not all countries take the same view of the availability and use of certain types of pre-employment screening information. Creating compliant data and background screening processes is a complex and evolving challenge for all organisations and one that is multiplied by every country involved. As an essential means to ensure the safety and quality of staff, employers need to ensure that their screening programs are right for their organisation and their candidates; transparent, consistent and proportionate by design; and capable of handling an increasingly globalised workforce and disparate regulatory requirements.

References:

[1] https://www.smartrecruiters.com/blog/best-practices-for-building-an-effective-compliant-background-check-policy/

Let’s Talk!

If you have any further questions or interest in implementing background screening solutions, please contact us.

CRI Group has safeguarded businesses from any risks, providing investigations (i.e. insurance fraud), employee background screening, investigative due diligence, business intelligence, third-party risk management, forensic accounting, compliance and other professional investigative research services. In 2016, CRI Group launched Anti-Bribery Anti-Corruption (ABAC®) Center of Excellence – an independent certification body established for ISO 37001:2016 Anti-Bribery Management Systems, ISO 37301 Compliance Management Systems and ISO 31000:2018 Risk Management, providing training and certification. ABAC® operates through its global network of certified ethics and compliance professionals, qualified auditors and other certified professionals. Contact ABAC® for more on ISO Certification and training.

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How to handle the “Human Factor”: Top 3 risks when hiring

Talent acquisition in the hiring process requires a great deal of investment in both time and effort for the hiring manager and would involve even greater repercussions if the chosen candidate turns out to be a bad hire. Due to the ever-growing competitive nature of job seeking, it is becoming increasingly likely that a prospective employee may embellish their CV, making themselves appear more attractive to the employer. When hiring new employees, the company becomes vulnerable to human capital risk, which is often thought as the most damaging threat to an organisation yet is also the least well-managed. Hence, performing the appropriate background screening before confirming the hire can save the company from unnecessary costs later down the line.

Top 3 risks when hiring new talent

1. False Credentials

It is thought that generally, around 40% of all job applications contain some fraudulent information, and such a high percentage hence displays the necessity for thorough background checks in the hiring process[1]. One of the most common lies tend to be extending dates of employment to hide a suspicious employment gap which the candidate wants to cover up. Similarly, claims of fraudulent degrees found are on the rise which is a great indicator that the candidate is in fact not qualified for the role. Other false credentials may include exaggerating daily activities in job roles or improving the job title. Other times you may expect to find fraudulent references, or at least references that are not suitable[2].

2. Breach of Trust

In addition to the risks that a hire with false credentials may impose on the company in terms of being unqualified for the role, the candidate’s willingness to lie on their résumé can be a strong indicator of an untrustworthy candidate. If they are willing to lie to reach their desired position, then what else may they lie about within the company?

With access to sensitive company information and documents, and company reputation on the line, hiring a person that can be trusted to perform their role is critical. For example, theft within a company is estimated at roughly 5% of revenues each year[3]. Hence, pre-employment background checks can also act as a judgment of character of the prospective employee for the hiring manager.

3. Negligent hiring and employer liability

As well as having a background screening process in place having the power to discourage untrustworthy candidates, pre-employment background screening conveys that the employer has exercised the necessary due diligence as a preventative measure to protect the company from legal harm. Pre-employment background checks can also check for criminal checks, social media checks and right to work checks; all areas in which an employer can become liable if the correct due diligence process hasn’t been conducted. An employer who hires a candidate without the right to work “can now be subject to a maximum civil fine of £20,000 per individual and/or a criminal sanction of an unlimited fine or imprisonment of up to 6 months”, Ben Mason- employment law associate at Aaron & Partners LLP[4]. Hence, background checks can reduce the likelihood of encountering risk later on.

A cost-effective risk-management tool?

According to the US Department of Labor, a bad hire can cost the company at minimum 30% of that employees first-year salary[5], whilst Fast Company says that one quarter of companies surveyed estimated that a bad hire cost them at least $50,000 in the past year[6]. Hence, pre-employment background screening is a cost-effective risk-management tool to help deter fraudulent candidates, mitigate risk to the company and protect the company from liability in the future. This keeps the company safe and acts as an effective risk management tool in providing integrity and confidence in hiring new talent.

Let’s Talk!

If you have any further questions or interest in implementing background screening solutions, please contact us.

CRI Group has safeguarded businesses from any risks, providing investigations (i.e. insurance fraud), employee background screening, investigative due diligence, business intelligence,  third-party risk management, forensic accounting, compliance and other professional investigative research services. In 2016, CRI Group launched Anti-Bribery Anti-Corruption (ABAC®) Center of Excellence – an independent certification body established for ISO 37001:2016 Anti-Bribery Management Systems, ISO 37301 Compliance Management Systems and ISO 31000:2018 Risk Management, providing training and certification. ABAC® operates through its global network of certified ethics and compliance professionals, qualified auditors and other certified professionals. Contact ABAC® for more on ISO Certification and training.

References:

[1] https://www.forbes.com/2006/05/20/resume-lies-work_cx_kdt_06work_0523lies.html#5fd1c99c78b5
[2] https://www.thebalancecareers.com/do-you-know-who-you-re-hiring-1919148
[3] http://www.greenhouse.io/blog/4-risks-your-company-takes-when-background-checks-are-not-a-part-of-your-hiring-process
[4] https://www.personneltoday.com/hr/background-screening-eight-key-checks-employers-must-make/
[5] https://www.forbes.com/sites/falonfatemi/2016/09/28/the-true-cost-of-a-bad-hire-its-more-than-you-think/#652e877b4aa4
[6] http://www.greenhouse.io/blog/4-risks-your-company-takes-when-background-checks-are-not-a-part-of-your-hiring-process

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Employee Screening Process

How do you know the candidate you just offered a role to is ideal? Are you 100% sure you know that everything they’re telling you is the truth? 90%? They showed you a diploma; how do you know it’s not photoshopped? Did you follow the correct laws during your background check process? Background checks and necessary screenings are vital to avoid horror stories and taboo tales within HR, your business or even your brand – simply investing in proper employee screening can save you time, money and heartbreak. A complete employee screening process will result in fewer applications with serious discrepancies – it increases the quality of new hires due to an improved applicant pool and selection process. EmploySmart™ provides full in-depth background screening services for employees and candidates at all levels, from senior executives to shop-floor employees.

How Well Do You Know The People You Invest In?

CRI® Group has developed EmploySmart™, a robust new pre-employment background screening service to avoid negligent hiring liabilities. Ensure a safe work environment for all. EmploySmart™ can be tailored into specific screening packages to meet the requirements of each specific position within your company. We are a leading worldwide provider specialised in local and international employment background screening, including pre-employment and post-employment background checks.

Pre-employment checks/background checks/screening benefits:

• Reduce turnover & training costs
• Gain a competitive edge through the hiring of better people
• Increase productivity – help your employees be more productive, knowing that everyone employed by your company has been screened.
• Set your company apart & win more business
• Reduce employee-related problems
• Protect company reputation/brand & customer relations
• Comply with mandates created by state or federal law for certain industries
• Increase retention
• Reduce negligent hiring claims
• Avoid violence in the workplace (threats of violence & actual violence)
• Reduce theft & espionage
• Avoid lawsuits & the costs associated with the defence.
• Avoid loss of goodwill.

Pre-employment checks/background checks, what are they?

These checks are essentially an investigation into a person’s character – inside and outside their professional lives. Some checks you probably already carry out in-house, such as candidate’s qualifications (documents provided), work history (with a reference check), right to work in the country and even a quick social media presence scan. However, we provide a full in-depth background screening service for candidates and employees at all levels – from senior executives through to shop-floor employees:

• Address Verification (Physical Verification)
• Identity Verification
• Previous Employment Verification
• Education & Credential Verification
• Local Language Media Check
• Credit Verification & Financial History (where publicly available)
• Compliance & Regulatory Check
• Civil Litigation Record Check
• Bankruptcy Record Check
• International Criminal Record Check
• Integrity Due diligence… and more.

When should I conduct pre-employment checks?

Our pre-employment screening services will help you avoid adding potential fraudsters and other bad actors to your staff. These checks can be implemented before or after a job offer (with each having its pros and cons).

How to collect references, and what to ask?

Because it is impossible to know how your candidate will work daily from just one interview, you will need references. References are a great way to find out whether your candidates are suitable for the role or will fit with your company culture. A primary reference check asks for:

• Employment dates
• Employment main responsibilities
• Attendance record
• Any disciplinary actions against them
• Any reasons why they shouldn’t be employed

These references will help you back up their CV – however, many candidates tend to exaggerate or misrepresent themselves. Our EmploySmart™ team goes beyond to get a fuller picture for you:

• Greatest strengths?
• Are they suitable for the role they’ve applied for?
• Would they rehire the candidate?
• Suitable management style?
• Do they have any leadership skills?
• Situations in which they have excelled at?

Some companies have policies of not giving references and just providing necessary employment details, while others direct you towards HR, but the EmploySmart™ team is persistent.

What specific legal requirement should I ask?

You will need to check if they have the right to work in the region you are recruiting for. You are subject to statutory penalties if you employ foreign nationals who don’t have the correct visas. You will need to request criminal records checks depending on the role you are recruiting. Such roles with children or vulnerable people are highly regulated – and all of these differ from country to country.

CRI Group™ carries the burden of knowing the laws, so we can assist you with staying compliant and helping you to make the best decisions for your company’s needs. We have established an interdisciplinary team of experts in employment law, best practices and data protection. We can manage your employment background screenings across borders for you! Country by country, we have documented the different approaches to employment screening, ensuring we operate in harmony with local culture and within the limitations of local legislation.

With extensive local language capabilities, flexible working patterns and time zone intelligent workflow, we provide a comprehensive and fully compliant global screening service.

At CRI Group™, we specialise in employment screening, working as trusted partners to HR and recruiting managers of corporations and institutions worldwide. Our people work with energy, insight and care to ensure we provide a positive experience to everyone involved – clients, reference providers and candidates.

CRI Group™’s unique identity and vision evolved from our fundamental desire to support our clients and candidates. We have a passion for Screening and a simple belief in setting new standards. These qualities fuel our commitment to excellence and drive our culture.

Our EmploySmart™ background screening services expose vulnerabilities and threats within your organisation and can significantly reduce business and financial crime, fraud and malpractice within your workplace. Our experienced EmploySmart™ Team can safeguard your data security and your business integrity while you can focus on human conversations and interactions. Together, your organisation can deliver outstanding screening experiences.

We provide a host of professional services to HR managers representing significant corporations worldwide. Employees should be screened regularly to reveal any new information relevant to the business. That’s why our background investigations services also include:

• Employee monitoring and risk management
• Data protection compliance
• Employee testing and confidentiality
• Employee risk management
• Post-employment background checks

CRI Group™ is trusted by the world’s largest corporations and consultancies – outsource your employee due diligence to an experienced provider, and you will only ever have to look forward, never back.

BS 7858:2019 Screening: extra security level for your business and employees

CRI Group™ is trusted by the world’s largest corporations and consultancies – outsource your employee due diligence to an experienced provider, and you will only ever have to look forward, never back.

Get answers to frequently asked questions about background checks/screening cost, guidelines, check references etc. This eBook of compiled list of background screening related questions taken as a whole is the perfect primer for any HR professional, business leader and company looking to avoid employee background screening risks. It provides the tools and knowledge needed to make the right decisions.

READ MORE

Working with CRI Group™, you get:

• Extensive global coverage, with expertise in domestic and international Screening; one of the largest, most experienced and best-trained integrity due diligence teams in the world
• Our team of more than 50 full-time analysts is spread across Europe, the Middle East, Asia, and North and South America and is fully equipped with the local knowledge to serve your needs globally.
• The ability to manage multiple background checks online
• Quick turnaround times
• Our solutions are easily customisable and flexible, and we will tailor our scope to address your concerns and risk areas, saving you time and money.
• High-quality searches, backed by numerous checks and quality controls
• We have a flat structure which means that you will have direct access to senior staff members throughout the due diligence process.
• Our multi-lingual teams have conducted assignments on thousands of subjects in over 80 countries, and we’re committed to maintaining and constantly evolving our global network.
• Our extensive solutions include due diligence, employee pre and post background screening, business intelligence and compliance, and facilitating any decision-making across your business, no matter what area or department.

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Who is CRI Group™?

Based in London, CRI Group™ works with companies across the Americas, Europe, Africa, Middle East and Asia-Pacific as a one-stop international Risk Management, Employee Background Screening, Business Intelligence, Due Diligence, Compliance Solutions and other professional Investigative Research solutions provider.

We have the largest proprietary network of background screening analysts and investigators across the Middle East and Asia. Our global presence ensures that no matter how international your operations are, we have the network needed to provide you with all you need, wherever you happen to be. CRI® Group also holds BS 102000:2013 and BS 7858:2012 Certifications, and is an HRO certified provider and partner with Oracle.

LET’S TALK!

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