RISKVUE ARCHIVE | FEATURE STORIES

Pre-Employment Screening, Part 2:
Types of Background Checks

By Jim McSherry and Karen Caruso

Within the often-hurried timeframe of hiring, it is nearly impossible to obtain all relevant information about potential candidates. Nevertheless, the following reports are available to all employers as a way to check the relevancy of the information supplied by potential candidates.

Social Security Number Tracing

This report will verify the Social Security number provided by the applicant as valid and used by the person to whom it was issued. It is the least expensive report and should be done first. It gives the employer valuable information to cross-reference with job interviews and applications. By highlighting prior addresses, the Social Security trace alerts the employer where to begin and how extensive a criminal record check is necessary. Determining that the Social Security number provided is legitimate and is being used by the proper person can help rule out false identities.
   This tool also can aid in verifying previous addresses and sometimes provides date of birth and employment information. In addition, a message may appear whenever a listed Social Security number has been used previously in fraudulent activities. It also may identify individuals who are using the Social Security number of a deceased person.
   Cost: $5 to $10
   Time to get report: Usually within 24 hours

Criminal Record Checks

Criminal conviction records research is recommended for all applicants. It provides a history of the applicant’s criminal activity, an indicator of the person’s attitude toward honesty, and helps identify applicants who are prone to violence. It especially can help prevent and defend negligent-hiring lawsuits. Caution: State records usually rely on county records that may or may not be electronic. If they have paper records, the lag time for the county information to reach the state level may impact how current a state criminal report might be.
   Cost: $14 to $19 for a county search; $20 to $40 for a state search
   Time to get report: 24 to 72 hours

Credit History

Tracing a person’s credit history can identify those who are financially overextended or on the brink of problems that could adversely affect their performance on the job. Credit histories also will identify previous jobs, inquiries for additional credit and public record identifying bankruptcies, liens, etc.
Cost: $5 to $12
Time to get report: Around 24 hours

Motor Vehicle Report

Motor vehicle records research is a must for any applicant seeking a position that requires driving responsibilities. This research reveals the applicant’s type or class of driver’s license, any restrictions or violations, convictions and license revocations, auto insurance cancellations, accidents, full name, and in some states, applicant’s address at the time of last license renewal.
   Cost: $2 to $20
   Time to get report: Varies greatly by state now due to recent legislative changes. In the state of Pennsylvania, for example, employers are now required to mail a signed, notarized release to the Department of Motor Vehicles.

Education Verification

Information found on resumes is often exaggerated or outright false. The lack of appropriate credentials also may mean that the individual is not competent to perform in the position being considered. It also lends to the applicant’s level of honesty.
   Cost: $8 to $10
   Time to get report: Varies from 24 hours to several weeks, depending on the requirements of the institution queried

Work and Personal Reference Interview

Many employers do not find the time to do this. Previous employment and experience are often overstated and sometimes fictitious. Reference-checking verifies references listed on applications for authenticity including dates of employment, job titles and responsibilities. Salary, circumstances of termination and eligibility for rehire are researched and reported if available. As an employer, you should check all references that are provided to you by the applicant.
   Cost: $8 to $20, depending on the level and depth of the reference verification
   Time to get report: Varies from 24 hours to several weeks

Professional License Verification

The search is critical when a particular professional designation is claimed and is necessary for job performance, job description, or credibility. Verification includes the type of license, expiration date, standing, and license number.
   Cost: $8 to $10, depending on the level and depth of the reference verification
   Time to get report: 24 hours to several weeks 

ABOUT THE AUTHORS

Jim McSherry is President and CEO of the workplace HELPLINE of Boston, a provider of “value-added” human resource loss control services to businesses through insurers, associations and business-to-business providers. He can be reached at 617/247-6100 or jmcsherry@hrhelpline.com.

Karen Caruso is principal of Mind Your Business, Inc., an investigations group providing security solutions for its clients’ business and personal needs. Specializing in background investigations, Mind Your Business, Inc. provides a broad range of services aimed at increasing the level of information, profitability and security for clients. She can be reached at 888/758-3776 or kcaruso@mybinc.com.

riskVue | The webzine for risk management professionals
March 2001