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Eastern Pennsylvania Business Journal
BE SURE TO CHECK BACKGROUNDS
Kathy Ruff, Business Journal Correspondent
In today’s litigious society, performing background investigations of prospective employees makes good business sense. While some industries including some long-term care and nuclear power sectors require such investigations, most do not. This under-used tool can help employers find better matches with positions offered and uncover potential information that could prevent future legal problems.
"A background investigation or background check examines anything that you have told your potential employer or written down in a resume or a job application," says Thomas G. Hackett, consultant with HR Synergy Solutions LLC, a human resource management firm in Mount Bethel. "You pick and choose from that and see if it’s true."
The specific position may dictate the scope of the investigation, but experts recommend following certain checks. A basic background investigation would include checking a person’s Social Security number, current and previous addresses and educational degrees.
"The key part to a background investigation is calling the previous employers," says Hackett. "Sometimes they would just give you a job description, but you can usually get them to tell you a little bit more than that. Sometimes they will tell you they would rehire this person, which does give you an idea of what they thought of the person’s performance."
Prior performance, including criminal activity, remains a vital factor employers should know. A criminal background investigation can show if someone has been convicted of any crimes or violent offences.
"For instance, if the person is going to be your bookkeeper or make bank deposits and they have spent time in prison for stealing or embezzling, a criminal background investigation will find that out," says Hackett. "If you’re going to be in a high stress situation or dealing with elderly people and this person has a history of beating people up, you want to know that."
But many smaller companies don’t make the time or fail to see the value of a background check.
"In small business, it’s a good idea because you’re going to learn more about this new employee you’re bringing in," says Hackett. "You don’t usually find things that are so bad that you will fire your employee, but the information you do find may result in that. But it may also result in your being able to connect better with the person and help them be a better employee."
Although checks require a minimal financial investment, the high costs of turnover and training remain a primary motivation to perform background checks.
"You’re saving money for the company because you are preventing a poor hire," says Tina Hamilton, president of InterSource Inc., Whitehall. "You are also protecting the company. For instance, if you have someone that has a violent background and you don’t uncover that because you do not do the reference check, the company has responsibility and could be liable in court."
Financial responsibility and stability represent another important component of a background check.
"If you’re going to give them a job to be in charge of books and they have just recently claimed bankruptcy (and) have lots of debt, there is a risk," says Hamilton.
Where higher risk is a factor, an employer may require a credit and more detailed investigations, depending on the responsibilities of the position.
"You should do the maximum today because you don’t want anything to come back and haunt you," says Marna Hayden, Haden Resources Inc., Bethlehem. "I’d want to be sure I’m doing as much up front work to be sure they don’t have anything in the background that can hurt you or your company."
Smaller companies may feel more impact when something goes wrong.
"With fewer employees, it’s more important they have the right people on board," says Hayden. "They may not want to go into a criminal background check depending on the job but I think it’s worth doing because you could create havoc in a small company."
Companies can also prevent havoc by requiring drug testing.
"If you run a hospital and all of the other hospitals in your area do drug testing and you don’t, what are you going to end up with?" asks Thomas J. Hubric, owner of Reading-Berks HR Management, West Lawn.
That same philosophy can apply to criminal and credit history checks.
Before the company enters into a relationship, the people doing the hiring want to make a decision that’s as informed as they can possibly make.
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