To credit check or not to credit check?
The popular KnowHR blog recently ran a post that generated lots of comment from HR types. The title was A Master’s Class in Hiring a Person With Credit Wrecked By Bad Health and Being Laid Off.
The blogger shared the story of a person who’d been out of work for some time because of medical problems. Because he was out of work and had medical bills, his credit suffered. The blogger asked how other HR people would handle the use of a credit report in hiring or not hiring the person.
The discussion devolved into a question of whether or not you should use a credit check if a position is not, as once commenter put it, “cash sensitive.” But this isn’t an either/or kind of question. The real question is: “How do you use a pre-employment credit check?”
A credit check gives you straight credit information, of course. But it also gives you some data on addresses and employment. You can check that data against resume or application entries.
No matter how you use it, a credit check should never make your hiring decision for you. Use it as a starting point for questions. Use it as one of several sources of information.
In the case of the person the blogger wrote about, the claim was that the sole cause of the poor credit was the combination of job loss/medical expenses. If that’s true, then the current credit situation might not be a barrier to hiring.
But you have to keep asking questions. It […]
Fitting Your Background Check to Your Hiring Strategy
The Macon Telegraph recently ran a story with this provocative headline: “Problem principals: Bibb school leaders had problems at previous jobs.” Here’s the lead.
In the past 18 months, four Bibb County principals were investigated for allegations ranging from choking a student and mismanaging federal money to testing blunders and having an affair with a subordinate.
Three of the principals had repeated problems in previous jobs, and the other one was the subject of several complaints before he was placed on paid leave and then resigned, school records show.
Those “problems in previous jobs” are the things that background checks are supposed to catch. They did. Once you catch something, you need to take some action.
A criminal background check does you no good if you don’t use what you find. Usually, that means you use it as a starting point for investigation.
Investigation is the key. After investigating one of the principals who had “issues” in a previous job, Bibb County hired him anyway. Here’s how Sylvia McGee, Bibb County’s deputy superintendent put it: “We want strong principals who are going to be what we consider to be change agents.”
The principal in question had improved the test scores at the school where he was. This particular hire turned out to be controversial. But McGee is sure that the district gets it right most of the time.
Even if they do, this story raises a bigger question for Bibb County and for you. What are your overall hiring criteria? What is it you’re looking […]
How do they steal? Let me count the ways
Theft you will always have with you. The fact is that people steal. They will steal from you. They will steal from you no matter what you do.
You can throw up your hands and let the thieves have their way. Or do something about it.
Start by being aware of some of the many ways that employees steal. It comes to you courtesy of one of the standard professional references: The Small Business Fraud Manual from the Association of Certified Fraud Examiners. Here are just a few ways that employees can get into your pocket.
They steal cash. They may take money right out of the till or the petty cash fund.
They steal by setting up phony vendors and paying them. This is a bit more sophisticated, but very common. Putting in for more pay than they deserve is a variation of this one.
They steal inventory or supplies. Sometimes this is low-cost items, like office supplies. Sometimes it’s merchandise or machines worth hundreds or even thousands of dollars.
They steal by using equipment for their personal needs. This can be anything from hand tools or the office copier to giant construction equipment and sophisticated computers.
What can you do? Start with good hiring.
Use criminal background checks and pre-employment credit checks to help you spot potential trouble. Be sure to check references.
Set up policies and procedures that make it hard to steal or misuse equipment and that make it easy to catch when it happens. Your accountant can offer guidance on good […]
Trouble Ahead
I love old black-and-white Western movies. One standard scene involved two trains speeding through the country toward each other. You knew that if something didn’t happen, there’d be a big, nasty wreck.
That’s the scene in business today. Except, instead of two trains we’ve got screening practices and legislative efforts to make sure that everyone gets a fair shot at a job speeding toward each other.
Over the last decade, more and more companies have started using criminal background checks and pre-employment credit screening. There’s nothing wrong with that.
But many of the employers who’ve climbed on the background screening train simply haven’t’ followed the rules. They’re not giving the notice and getting the permission that laws require. They’re using background screening as a quick way to turn a big pile of applicants into a smaller pile, without tying decisions to legitimate business purpose.
Those kinds of slipshod practice result in some people being denied employment unfairly. As more and more of them complain, the legislators are taking note. Workforce Management describes it this way:
“Congress is considering a bill that would prevent employers from using credit reports in their hiring or promotion decisions. In June, Hawaii joined Washington state in limiting the use of credit checks in pre-employment screening; bans or restrictions also are under consideration in Michigan, Ohio, Connecticut, Missouri, New York and Texas. A California bill that restricts credit checks in pre-employment screening cleared the state Legislature in 2008 and 2009, only to be vetoed twice by Gov. Arnold Schwarzenegger.”
You can’t […]
E-RACE and You
Recently, HR Morning carried an article titled: “EEOC warns about background checks.” It’s about the E-RACE program. Here’s a core paragraph.
“The EEOC program designed to combat discriminatory practices tied to background checks is called E-RACE (Eradicating Racism And Colorism from Employment). It started when the agency noted, in the last few years, a steep climb in complaints from applicants who said they were unfairly excluded from competing for a job because of information that showed up on a background check.”
The key word here is “unfairly.” If you’re using background checks the right way you should be in compliance with the program.
Here are some guidelines. Note that I’m not a lawyer. I don’t even play one on TV. But I have been around the hiring process for a while and I know that the key thing isn’t whether you use background checks, but how you use them.
Check everyone. If you’re just checking people of a certain race or gender or age or from only one part of town, it’s like hanging an “I’m discriminating” sign around your neck.
If you’re going to refuse to hire an otherwise-qualified person because of their criminal record, make sure the record is relevant to the job. Consider the nature of the offense and when it occurred.
If there’s a record, but it doesn’t point to a specific problem on the job, it still may point to character issues. Just remember that the background check alone won’t be enough.
Use what you’ve found as the starting point for […]
Preventing workplace violence
Labor attorney Todd Wozniak, writing in QSR (Quick Serve Restaurant) lays out a program that will help you reduce the threat of workplace violence, beginning with conducting background checks on all applicants. His article is titled “Violence in the Workplace.”
Wozniak starts by sharing a few stunning statistics. Did you know that assaults and violent acts account for 14 percent of workplace deaths? Did you know that workplace violence costs employers $36 billion a year?
Did you know that almost three quarters of employers have no formal program that addresses workplace violence? What about your company?
There are lots of reasons you should address the threat of workplace violence. A safe workplace is more productive. Morale is higher. And then, there’s the law.
As Wozniak points out OSHA requires an employer to provide a workplace that’s “free from recognized hazards that are causing or are likely to cause death or serious physical harm to employees.” Here’s how he suggests you proceed.
Do a diligent job of hiring, including background checks on applicants.
Create a threat management team.
Assess vulnerabilities on a regular basis.
Adopt violence prevention policies.
Conduct regular training.
Fire respectfully.
Ban weapons.
None of these things is rocket science. None of them cost a lot. The trick is to cover your employment situation from beginning to end, to have clear policies and procedures, and to make sure that you follow them diligently and consistently.