Recruiting in China

Executing pre-employment background checks can save your company time, money and its reputation.

It is a company¡¯s worst nightmare. A star employee gets caught funneling money from the company coffers. This was not the first business she¡¯d robbed. In another instance, a security guard unjustly detains a customer whom he suspects of shoplifting. The customer was injured during the restraining and sues the company for negligent hiring / training of the guard, and excessive use of force. The court case reveals that the guard has a history of domestic violence and alcohol abuse, and rules in favor of the plaintiff: $100,000 in damages payable by the guard¡¯s employer.

Each of these incidents could have been avoided if the employer had performed a simple background check before making an official offer to the employees. With negligent hiring lawsuits on the rise, companies must take every precaution in looking into an applicant¡¯s background. One bad decision can wreak havoc on a company's budget and reputation; and ruin the career of the hiring executive.

What type of information is included in a pre-employment background check?

Employment background checks can vary depending on the nature of the position for which the company is hiring. Here is some of the information that might appear in a background check:

* Driving records
* Vehicle registration
* Credit records
* Criminal records
* Social Security no.
* Education records
* Court records
* Workers' compensation
* Bankruptcy
* Character references
* Neighbor interviews
* Medical records
* Property ownership
* Military records
* State licensing records
* Drug test records
* Past employers
* Personal references
* Incarceration records
* Sex offender lists

Employers who are actively recruiting may be able to find some of these documents on their own via the Internet, however this task could be quite time-consuming, and has the potential to uncover second-hand information. Legal experts agree: the most accurate, efficient option is to hire a company that specializes in employment screening.

What to look for in an employment background check firm?

There are thousands of background check companies ranging from private investigators, to firms that do nothing but employment screening, to online data brokers. A corporation with many employees may use a third-party background checking company on a retainer basis, or may even use an affiliated company for employment screening. Other background checking firms work on a less formal basis with their clients.

In choosing an employment screening firm, look for a professional partner as opposed to just an information vendor selling data at the lowest price. Use the same criteria that you would use in selecting any other provider of critical professional services. For example, if your company needed a business development consultant, you would not make your selection based on the lowest price, but would instead choose a firm that was experienced, reputable and fairly priced.

An employment background check firm should have an understanding of the legal implications of background checks, particularly the federal Fair Credit Reporting Act. Avoid companies that claim to be able to uncover everything about everyone. Such companies run the risk of breaking federal and state laws, particularly provisions that require accuracy of employment background check reports.

Doing this type of ¡°due diligence¡± will confirm your decision to hire the best candidate for the job, and potentially save your company millions of dollars in damages in a negligent hiring or retention lawsuit.

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