Background screening assists potential employers in identifying mismatches in culture, unqualified candidates, dishonesty, and other risks during the hiring process, traits that could trigger significant negative consequences within the organization post-employment.
A poor hiring decision can result in decreased productivity, loss of clients, tarnished reputation, theft of company assets (employee theft accounts for 30% of business failures), and potential lawsuits amounting to billions.
Despite being the most effective method to mitigate financial, reputational, and operational risks linked to recruitment, background screening paradoxically introduces a new risk, compliance risk, when mishandled.
Comply With Screening Laws
Each province has legislation governing and restricting the utilization of specific data in employment background screenings. These regulations differ but typically mandate that an employer initiating a background check should have a prior business or personal connection with the individual under review.
Consequently, employers may be restricted from screening prospective employees who were not hired or individuals who resigned within the previous two years. Each state maintains distinct regulations regarding the duration needed to vet job candidates and ascertain their adherence to criteria like fingerprinting and identification prerequisites.
Creating a Policy for Background Checks
Developing a clear and thorough background check policy is the initial step to ensure adherence. Firstly, your policy should clarify its purpose - why background checks are essential for your organization. This could involve maintaining safety, building trust, or meeting regulatory obligations. Following this, specify the extent: to which positions necessitate background checks and the kinds of checks to be conducted (such as criminal records, employment verification, and credit checks).
Customizing your policy to suit industry requirements is vital. For instance, stricter driving record reviews may be necessary in the transportation sector instead of the retail industry, where customer interaction history holds more relevance.
Contemplate additional screenings for roles with financial transaction access or guest room responsibilities in hospitality. The goal is to adjust the policy while upholding compliance standards. You can use services like Triton Canada for online background checks to ensure compliance with industry-specific regulations.
Tailoring to Industry Requirements
While the fundamental components of a background check policy are consistent across sectors, each industry has unique characteristics. Adapting your policy to these distinct requirements isn’t just advisable; it’s imperative.
For instance, in the transportation sector, background checks typically centre around driving records and drug screenings. Guidelines in this area should conform to regulations set forth by government entities.
In retail and hospitality, where ensuring customer safety is crucial, background checks may heavily emphasize criminal records and sex offender registries. Policies within these realms should stress the significance of upholding a secure environment for both employees and patrons.
Conversely, the healthcare sector necessitates checks that adhere to PIPEDA guidelines to safeguard the confidentiality of patients' information. Policies should include screenings for any medical negligence or verification of qualifications.
Consent and Disclosure
Securing consent from candidates isn't merely a formality; it's a legal requirement. Before commencing any background check, be sure to obtain written consent from the candidate. This indispensable measure guarantees transparency, ensuring candidates understand the checks conducted and their purpose.
Equally crucial is offering transparent disclosures. This doesn't involve overwhelming candidates with technical terms but clearly outlining the background checks' nature, extent, and objective. It's about upfront and transparent communication, preventing any unexpected revelations for the candidate.
Adverse Action
Adverse action pertains to any negative employment choice based on details from a background check. This may involve actions like revoking a job offer or ending employment. Effectively managing adverse actions is vital for compliance.
It typically begins with a pre-adverse action notification. This notification should contain the background report and a summary of the candidate's rights. This step allows the candidate to review and challenge any inaccuracies.
If the decision remains unfavourable after addressing disputes, move on to the final adverse action notification. This should reiterate the candidate's rights, offer the reporting agency's contact details, and clearly state that the decision is final due to the background check findings.
Communicate Clearly
Give candidates detailed information about the background screening process at the beginning of the hiring process. Specify the types of checks, duration, and data collected. Keep them updated throughout, sharing the status and any needed details promptly. This proactive approach builds trust and clarity. Here are some tips for effective communication:
- Utilize an applicant portal: Implement an online portal for candidates to monitor their background check progress and pending tasks in real time.
- Automated email notifications: Create an automated email system to update candidates during key stages of the screening process. Send a confirmation when screening begins, request more details when necessary, and notify upon completion. Each email should be concise and informative.
Endnote
Adherence to employment background screening laws and best practices is crucial. Even with the best intentions of companies, hiring errors can happen.
