Background Check Form Accenture Hiring With Confidence Recruitment

							Hiring With Confidence
 Recruitment & Retention For The New Economy
            Presented to HRA-NCA
                13 October 2004
                                      Welcome

• Who we are

  – Russell Klosk, Managing Consultant IBM Business
    Consulting Services Public Sector Human Capital
    Management Practice

  – Jay Lefkovitz, Seminar Coordinator Kroll Background
    Screening Group

  – Faith Johnson, Director of Human Resources Allegis
               Recruiting & Retention

• Understanding why we are here:

   – This is not to provide an end all be all turn key solution to these
     issues, but to provide some framework on the market at large
     and what you can do to improve efficiencies in these areas

   – To both recruit & retain the best employees you must understand
     both what attracted your top performers to your organization in
     the first place as well as why they stay and what motivates them.

   – Recruiting & Retention are strategic HR functions, but how well
     you do them is greatly influenced by how well you accomplish
     your tactical HR functions
       • What is tactical?
       • What is strategic?
          The Marketplace @ Large

• Attracting & Retaining Talent is influenced greatly by the
  marketplace at large. Some Statistics

    – August Unemployment
        • US Average was 5.4% (lower then the average for the 1960’s,
          1970’s, 1980’s or 1990’s)
            – This is very much a candidates market for key skills and top performers
        • Our Market
            – NOVA = 3.7%
            – Suburban MD = 3.9%
            – DC = 4.6%
        • Further breakdown for experienced candidates (3+ years
          experience) with a college degree
            –   National Average = 4.4%
            –   NOVA = 1.2%
            –   Suburban MD = 1.9%
            –   DC – 3.8%
         Where does the talent come from?


• McKinsey did a study of Fortune 500 & Midcap
  employers and asked where do you source your new
  hires from
   – 5% college hires
   – 2% Newspaper & classified advertising
   – 4%% Internet Job Boards
   – 3% head hunters and temporary staffing agencies
   – 3% Job Fairs
   – 6% open houses
   – 22% in house recruiter sourced
   – 55% employee referrals
                 Traditional Recruiting

• How have companies sought out new talent, and how
  have they evaluated that talent
   – Sourcing
      •   Newspaper classified adds
      •   On-line job boards
      •   On-line job postings (company web site)
      •   Open Houses
      •   Head Hunters
      •   Staffing Agencies (temp to perm)
      •   Employee Referral Programs
      •   Recruiter Cold Calling
      •   Job Fairs
        Traditional Evaluation Techniques


• And how do they evaluate the candidates
  – Interviews
     • Unstructured or Behavioral Based
     • What is a Behavioral Interview?
     • Who does them
        – Supervisor
        – Peers
  – Drug Screening
  – Reference Checks
      Current Recruiting Trends

• In addition to traditional recruiting companies are
  becoming more pro-active in how they seek out new
  talent.
   – Internet data mining
   – More aggressive in-house recruiter cold calling
   – Heavier use of professional associations as a source
     of talent
   – Reaching out to “non traditional” talent
   – Greater emphasis on internal mobility programs
   – Greater emphasis on employee referral and
     employee mentoring programs
   – More aggressive college and graduate school
     recruitment
               And how to evaluate

• And since the key to retention starts with the
  right fit in the first place shifts in evaluation
   – More structured interviews
   – Switch to case based interviewing
      • Problems with behavioral interviewing
      • What is case based interviewing
   – Formal shadowing as part of the interview
     process
   – More extensive screening of applicant
     backgrounds
          Emerging Trends Effecting Sourcing &
        Retention as well as traditional HR roles


• How HR is done in most companies (as well as
  public sector is changing). This affects how
  companies recruit as well as how they manage,
  train & retain their workforce
   – Shift to HR BTO for tactical functions
     • Outsourcing / Shared Services vs. off-shoring
  – HR Staff Augmentation
  – Shift to employees as supply chain
      So what are leading edge employers doing?



• View the recruiting function strategically
   – Include recruiters in development of sales proposals,
     workforce planning work, etc.
• Improve recruiting efficiencies
   – Do you have dedicated recruiters? Or if a smaller org
     dedicated times that are spent solely on recruiting?
   – Are recruiters spending 90% of their time or more
     actually recruiting
      • What structures work?
      • What can technology do? What can’t it do?
        So what are leading edge employers doing?
                                      (continued)


• When is staff augmentation appropriate
  – Contract recruiting?
  – Outsourcing recruiting?
• How should employee referral programs be structured?
   – Audience examples?
   – Best practices
        • Time tiered, rewards to both employee & referral over time; based
          on performance
• Leverage Technology
   –   Internal back-end HRIS
   –   Internal front-end HRIS
   –   External resume banks
   –   Push technology for job postings
• Track & Measure recruiting ROI
     So what are leading edge employers doing?
                                   (continued)


• Intern programs & Fellowships
• Outplacement Firms
   – What can they do for you for free?
• Survey your existing workforce
  – Where did they come from as a source of
    future candidates
  – Why did they come?
  – What is keeping them here?
• Branding as an employer of choice
         Crime and the Workplace

• A study of the Society of Human Resources Managers revealed:

   – 33% of all managers surveyed experienced at least one violent
     incident in the workplace

   – 54% of those managers had been involved in 2 or more violent
     incidents in the past five years

   – 42% of the incidents of violence in the workplace required
     medical intervention

   – 54% of the incidents were employee against employee
         From the News……

 The number of U.S. adults behind bars or under
  police supervision is over 5.9 million.

 One out of every 34 adults were in the nation’s
  prison and jails, or on probation or parole for
  various criminal acts.

 There are about 4.1 million people under
  supervision and 1.8 incarcerated.

                             ~CNN
                   Puffing

 “Puffing” is a statement that inflates an
  applicant’s level of experience or achievements.

 Numerous studies have shown that 30% of
  resumes contain some form of puffing.

 Yahoo Search for Fake Degrees shows 115,000
  hits. Many sites include a verification hotline.
           Litigation Statistics

• Over the past two decades discrimination lawsuits rose 2,200%

• Disability Discrimination – Average Award - $378,135.00

• Average Discrimination – Average Award - $551,646.00

• Race Discrimination – Average Award - $749,842.00

• Negligent Hiring – Average Award - $1.3 to $3 Million

• 20% of entry level workforce have a criminal record – 35% in
  healthcare – 50% to 70% in the manufacturing and construction
  industry.
             Still Not Convinced?

Each Workday:
 16,400 Threats are made.
 723 Workers are attacked
 43,800 are harassed
 Estimates are that workplace violence
  costs businesses as much as $4.2 billon
  annually.

~Workplace Violence Institute
    Why Do Background Checks?


• Identify high-risk applicants
  before they become high-risk
  employees.

• Identify applicants that interview
  well but perform poorly.
       Legal Implications of
           Employment

• There are 68 laws and guidelines covering
  the Employer-Employee relationship.

• Employment Laws/Title VII.

• Fair Credit Reporting Act (FCRA)

• EEOC/ADA guidelines.
                Pre-Employment Screening

Scope of Services…

•   Social Security Trace

•   Consumer Credit Report

•   County Criminal Records Search

•   Statewide Criminal Records Search

•   Motor Vehicle Report

•   Federal Criminal District Court Search

•   National Wants and Warrants Submission

•   Education Verification

•   Employment Verification
             Social Security Trace

• A social security trace verifies the
  following:
•   The validity of the social security number

•   To whom the social security number belongs

•   The approximate year the social security number was issued

•   The exact name to whom the social security number was issued

•   The current know address of the individual

•   Possible previous addresses associated with the individual

•   The number of times the social security number has been identified with that individual

•   Any other names that might be associated with the social security number
                 Crimes to Consider
Abduction                       Embezzling                  Perjury
Alcohol Violations              Explosives                  Impersonating Police
Assaulting a Child              False Statement to Police   Poison
Assaulting a Police Officer     Fire-False Alarms           Sex Offenses
Spousal Assault                 Frauds-Unlawful use of      Receiving Stolen Goods
Assault with Intent to Murder   Telephone cable companies    Littering
Assault with Intent to Rob      Controlled Dangerous        Robbery
Bad Checks                      Substance                    Hate Crimes
Bribery                         Gaming-Gambling             Blocking a Medical Facility
Burglary                        Harboring a Fugitive        Rogue & Vegabond
Breaking and Entering           Hazing                      Sabotage
Child Abuse                     Incest                      Shoplifting
Carrying a Weapon               Indecent Exposure           Sodomy
Handgun Violations              Kidnapping                  Telephone Misuse
Counterfeiting/Forgery          Theft/Larceny               Pickpockets
Cruelty to Animals              Maiming                     Trespass
Credit Card Violations          Manslaughter                Threats/Mailing Letters
Desecration of a Flag           Murder                      Extortion
Destruction of Property         Obscene Matter              Interfering with an
Fraud-Welfare                   Prostitution                Investigation
               Negligent Hiring

Negligent Hiring Occurs:

 When the Employer fails to exercise reasonable care in hiring

 Knew or should have known that the employee poses a risk

 To other Employees and or the public
      5 Steps to Avoid Negligent
               Hiring
– Include pre-employment screening in your corporate Policy and
  Procedures

– Make sure the screening services are related to the positions to
  be filled, and enforce the policy uniformly

– The employer must have a signed application and release for all
  searches

– Ask appropriate questions during the interview process

– Verify the information on the application through independent
  sources. One of the most important sources is public records
     Consumer Reporting Employment
       Clarification Act of 1998

• Major Changes:

   No 7-Year Limit on Reporting Convictions

   Reporting Arrest Records

   Transportation Employees Exempt from Written
    Release

   The Notice and Authorization Form can be the same
    Document
              Hiring from a Background
               Screening Perspective
•   Job Ads

•   Applications

     •   Identity

           • Name, Address, Phone #, SSN, DL#

     •   Profile

           • Education, Degrees, Licenses, Certifications

•   Legal Jargon concerning completion of application

     •   The application is not complete if any information is omitted.

     •   If you fail to complete information, you may not have an opportunity to
     •       correct your application.

     •   All completed applications will be reviewed and given consideration
              Hiring from a Background
               Screening Perspective
•   Questions eliciting specific qualifiers:

        Have you ever been convicted of a crime other than a minor traffic offense? (Do not limit
         number of years)

        Are you currently under any pending investigation, indictment or charge?

        Will you submit to a drug screen, background check or physical (if appropriate to the job
         position) as a part of the employment process?

        Can you perform the essential functions of this job with/without reasonable accommodation?

        Can you meet the attendance requirement of the job?

   Note: Is is recommended you present the applicant with a separate Authorization and Release
    form to conduct a background check – this information should not be hidden in small print.

   Establish a Background Screening Policy
        Background Screening Policy &
           Procedure Checklist

                  Pending/Current Charges
•   Our company will or will not consider an applicant with a
    current/pending charge for a barrier crime.

•   Our company will or will not consider an applicant with a
    current/pending charge for a non - barrier crime.

•   Our company does or does not have a policy requiring that current
    employees must disclose any current/pending charges during the
    course of their employment.

•   If an employee discloses, or evidence is obtained that an employee
    has an arrest, warrant or indictment for a criminal charge, that
    employee will be suspended without pay until resolved; given a set
    amount of time to resolve; needs review.
Best Practices and
          Insights:
 The Corporate Perspective
       Steps for Success

• Determine who you are as an organization.
  – Industry
  – Clients
• Determine what your needs are:
  – Where you do business.
  – Partner with your background check provider to
    develop policy.
  – Ensure it is a policy you can comfortably implement
    and follow.
  – Know the laws of your industry and the states you do
    business in.
        Steps for Success, cont.

• Determine your industry specific baselines.
  – Ex. For our organization we have a minimum policy
    (hiring criteria), but must also administer and adhere
    to client’s policies.
• Know your resources.
  – Use your provider.
  – User your legal team/resources.
  – Use outside resources (Ex. BRB publications, The
    SourceBook, etc.).
    Have the right team in place

• Ensure you have employees
  knowledgeable in the background process
  making your decisions.
  – Objective
  – HR Involved
  – In our case, not the individuals who will make
    revenue off the individual we place.
        Legal Thoughts

• Be consistent to avoid legal problems.
• Be thorough and complete your due
  diligence to avoid future legal problems.
  – Talk to the applicant.
  – Get additional data (court documentation,
    etc.).
  – Follow your policy.
  – Know the laws (ex. California, Minnesota,
    Wisconsin).
Questions?
                                Resources

•   Labor Trends
     – US Department of Labor (http://www.dol.gov)
     – Individual state departments of labor
     – Wall Street Journal (http://www.wsj.com)
•   Recruiting & Retention Trends
     – Society of Human Resources Management (http://www.shrm.org)
     – Human Resources Planning Association (http://www.hrpa.org)
     – American Management Association (http://www.amanet.org)
     – Washington Technical & Professional Forum (http://www.wtpf.org)
•   Recruiting Tools & Web Site lists
     – Career X Roads (http://www.careerxroads.com)
     – Professional Associations (not just HR, think where candidates would belong based on their
        specialization)
     – Sorcerers Apprentice (http://www.netcruiter.org)
•   Outsourcing & Shared Services Information
     – Shared Services and Business Process Outsourcing Association (http://sharedxpertise.org)
     – Large HR BTO & HR Transformation providers web sites (IBM, Hewitt, Booz Allen Hamilton,
        Convergys, NCS Pearson, CPS, Bearing Point, Watson Wyatt, Hay Group, Deloitte
        Consulting, Cap Gemini, Blue Pumpkin, Workbrain, Accenture, etc.)
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