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New York, April, 5 2006
Verified Person, provider of the industry's most advanced background screening and identity verification services, has launched the first workforce audit solution for corporations and their auditors to gauge the effectiveness of their existing employment screening practices. Results will reveal the aggregate number of employees and contractors who were hired with undetected criminal records, as well as those who have acquired criminal records since being employed. Companies and auditors interested can submit their requests at http://www.verifiedperson.com/audit through 2006.
"Background screening might appear to be a cut and dry decision for a corporation, however, common buyer misperceptions are placing corporations at increased risk of regulatory non-compliance, workplace violence, fraud and possible litigation," said Tal Moise, CEO of Verified Person. "Based on an audit of over 500,000 employees, Verified Person estimates that current employer practices are identifying only 66 percent of relevant criminal offenses."
To help dispel the myths about proper procedures for conducting background checks, Verified Person has developed the following list of Top 10 Buyer Misperceptions about Background Checks:
1) All the data is the same
All providers are not drawing from the same well of data. For example, accurate knowledge of the applicant's address history stretching back, at least, seven years is critical because it provides the roadmap for which sources of data to search, yet, not all providers sell the same directions. The process of compiling a complete address history requires the cross- referencing of multiple data sources and personal identifiers, but most providers limit their queries to only one. As a result, incomplete information provides a partial picture of an applicant's criminal history.
2) State criminal registries are comprehensive
Many employers assume statewide criminal registries are complete and up- to-date. However, because criminal courts assume that people are innocent until proven guilty, they only report information if they know the outcome of the case. As a result, for the vast majority of states, over 50% of the potential criminal offenses are left off the list at any given time. In addition to this limitation, these registries rely greatly on county level data to be sent to the state level, yet this reporting is often not consistently and comprehensively delivered.
3) The FBI's Database Contains All Criminal Infractions
While the FBI database is one of the best singular sources of criminal data, it is expensive, latent, and fraught with missing and inaccurate information. This is a known problem. In fact, Verified Person has identified that up to 14 percent of criminal records are missed when using this source alone. If not already doing so, companies should consider using the FBI database in conjunction with a commercial provider.
4) Searching the county of residence is good enough
To rein in costs, many companies don't cast a wide enough net and only search the county of residence, which is dangerous because 40 percent of crimes are committed in surrounding counties. Companies should seek the most efficient and reliable method for retrieval to reduce costs, while effectively and accurately canvassing the surrounding counties.
5) National means nationwide
Many providers claim to have undergone the painstaking process of creating a nationwide digital criminal file. However, companies should not assume that the diligence taken by every provider is comparable. For example, the variance in the true coverage from one provider to another can be as high as 30 percent.
6) Temporary staffing agencies automatically conduct background checks of workers
A Nokesville, VA woman who had her Social Security number stolen from the billing department at the Prince William County Hospital by a temporary worker, who had recently been released from prison, has filed over $60 million in lawsuits against the hospital, a temp agency and several credit companies. The temp provider says, as most do, that it only researches criminal records upon the client's request.
7) Employees with clean criminal records will keep it that way
On average, one to two of every 1000 employees acquire a criminal record post-hire, every year. Industries like healthcare, financial services, and transportation face hefty fines and lengthy litigation if they hire or retain the wrong person.
8) Ongoing screening and workforce audits are not permitted or against the law
Policies, consent forms and narrow searches that zero-in on the offenses that threaten the safety of employees or the compliance of the organization are the key to conducting ongoing screening with a clear conscience and ensuring your workforce is constantly compliant. Furthermore, the Fair Credit Reporting Act (FCRA, 15 U.S.C. 1681 et seq.) as amended by the Fair and Accurate Credit Transaction Act of 2003 (FACTA) specifically provides for corporations to investigate any noncompliance with pre-existing employer policies and procedures, or with federal, state, or local laws or regulations.
9) The background screening industry is antiquated and commoditized
The industry is finally evolving thanks to new technologies, methodologies and a new breed of providers. Routine audits help companies ensure they are getting the most accurate results at the lowest cost in the shortest amount of time.
10) Not knowing the results of an audit is better than knowing
Courts have upheld that "not knowing" of a problem is not sufficient protection for corporations or their directors. In fact, corporations are held to an "assumption of knowledge" standard based upon currently available tools. While no real-time, low cost auditing mechanisms existed in the past that is no longer the case. The reasonable standards of care are changing and it will not be long before plaintiff lawyers begin demanding the results of these audits as proof of sufficient due diligence.
About Verified Person
Verified Person provides the industry's most advanced background screening and identity verification services, applying leading-edge technology to traditional search methodologies in order to deliver faster, more accurate results at a significantly lower price. The company's solutions help healthcare, staffing, financial services, retail, and other industry organizations to comply with regulation and to mitigate corporate threats such as workplace violence, internal theft & fraud, and poor employee selection. Verified Person was founded by John Sculley, former CEO of Apple Computer, and Tal Moise, former Co-CIO of Clarian Health Partners, a multi-billion dollar healthcare organization. The company is headquartered in New York, NY. More information is available at http://www.verifiedperson.com .
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