Examining the Backgrounds of Potential Employees

Back before society became so mobile, checking the backgrounds of potential employees was sometimes just a matter of asking around the neighborhood: Were the applicants honest? Reliable? Hardworking?

Obviously, things have gotten more complex. Today, virtually every company is vulnerable to hiring problem employees - not only those who are dishonest, but those who create untrue educational backgrounds and those who have spent time in jail for everything from fraud to rape.

Although certain institutions, such as schools, hospitals and HMOs, are required by law to conduct background checks on employees, many other employers are taking the matter into their own hands and hiring private investigators to make certain that applicants are telling the truth.

For instance, companies that send employees to customers’ homes want to be sure they will not physically assault the homeowners. And firms want to be certain that a new bookkeeper hasn’t been convicted of embezzling tens of thousands of dollars.

Conducting background checks can also help reduce your legal exposure if a problem should occur. They carry considerable weight in demonstrating that your business did its part to try to establish that employees are trustworthy and that your company was not negligent. Lawsuits resulting from a lack of due diligence can potentially cost a company thousands, if not millions, of dollars in litigation and damages.

Many employers used to have human resources personnel check potential employees’ backgrounds, but as companies have downsized, this work is increasingly being farmed out to private investigators and companies specializing in this service.

Investigators can also do criminal record checks, which can be more complex than you might expect. Although there are national criminal clearinghouses, the information is only available to law enforcement officials. So private investigators must gather their information through court records - and there are many courts across the country.

What Investigators Look For

Licensed private investigators often verify an employee’s academic credentials - an area that is frequently subject to out-and-out fabrications as well as exaggerations. Here are some other items they examine:

• Previous employers and professional licensing.
• Department of motor vehicle records, which often turn up drunk driving convictions.
• Gaps in resumes.
• Indications that the person is living beyond his means or has significant debt, particularly if an individual is going to be handling money. However, by law, an applicant must provide written permission before an employer can obtain a credit report. In addition, applicants must have a chance to review credit reports if they are used in an “adverse action,” such as rescinding a job offer. Also, federal law prohibits employers from discriminating because an applicant or employee filed for bankruptcy.

There are times when investigators are unable to ascertain someone’s background. Some reasons: Social Security numbers can be faked, records can be lost, names can be changed and so forth.

Important: Have the results of a background check in hand before hiring someone. In one case,  an employer hired an individual and then requested a background check. The private investigator did a criminal background check only to discover that this individual embezzled just a few months prior to being hired $25,000 from a previous employer. It’s better not to find out about surprises after an employee is on the payroll.

On the other hand, background checks often turn up positive news. You may find out that a potential employee has an excellent reputation - the type of person your competitors would love to hire and you can sleep better knowing you made the right decision.