What the Trend in Online Databases Means to the Employment Screening Industry

The most prominent trend in the employment screening industry has been a proliferation of online databases offering cheap background checks. Any one can access the internet and with a quick search be able to purchase, for example, criminal records for a low fee. While that is very appealing to companies looking to trim the budget on background checks, it may in fact be a dangerous trend.

The most prominent trend in the employment screening industry has been a proliferation of online databases offering cheap background checks. Any one can access the internet and with a quick search be able to purchase,What the Trend in Online Databases Means to the Employment Screening Industry Articles for example, criminal records for a low fee. While that is very appealing to companies looking to trim the budget on background checks, it may in fact be a dangerous trend.

What do the companies say that have been running background checks, back when employment screening industry was just a concept and not an accepted practice?

Tom Lawson, the founder of APSCREEN, the oldest screening firm in the country, says The necessity of a background check has been established now, and that’s why we are seeing such a proliferation of people getting into the business – particularly because the internet makes it an easy field to enter because of the low start-up costs.

Lawson continues, But back in 1980, when we practically invented the concept of employment screening, companies had to be convinced that there was a good reason to spend money on background checks. We have always been a business that focused on training our specialists to screen applications for completeness, thoroughness and accuracy and provide our customers with individualized service. This trend of online databases is very disturbing to us because the potential for error and liability is very high.

The Dangers of Databases – Caveat Emptor of the Quick Turnaround

Databases are only as good as the search logic used to retrieve stored data, and search logic is expensive and only as good as the amount of money the database companies are wiling to invest in it. Unfortunately, the advent of the internet has made starting an online business easy for anyone. As a result, many companies that start an internet data selling business do so because the start-up costs are small which means the databases can only provide limited information.

Even worse, most online database providers lack an intimate working knowledge of how to screen potential applicants. Their focus is on selling units of information for profit.

Database companies cannot simply use off-the-shelf software to retrieve publicly compiled repository information. It comes in too many proprietary operating systems’ and while good, expensive search logic helps to delineate between the different languages of the information entered into the database company’s archival system, it can NEVER be 100% competent, even if it is a very robust retrieval architecture.

By the sheer science of databasing, 100% information retrieval capability is impossible, unless (as demonstrated recently by the IRS and FBI Computer fiascos) the source data originates from wholly compatible systems. This means that going in you can never expect to have a complete file when you compile data from different systems. This results in data drops in which bytes of information mysteriously disappear, as well as computer viruses which can reside undetected in mainframes for years and indiscriminately wipe out data, which would be undecipherable in a foreign operating environment, such as a third party compiler.

A classic example of this occurred on January 17, 1990, when screening client District Cablevision received a now infamous incorrect report of a felony cocaine conviction on one James Russell Wiggins, which was not verified for accuracy or its relationship to the subject Wiggins, and which resulted in a serious elimination of candidacy lawsuit brought against the provider based upon slander. This error dealt a major blow to the reputation of the provider and resulted in the payment of a substantial monetary settlement. (US District Court, District of Columbia; Civil Action 90-199; Wiggins (et al) v. Equifax Services, Inc. (et al).)

Database companies outnumber legitimate employment screeners almost 75 to 1 in the industry today. The main problem with such vendors who advertise nationwide criminal checks, statewide criminal checks, instant, or online, is the veracity of the data they are selling and the competency of the search used to retrieve the data.

Many vendors acquire data from a multitude of sources, not having any idea who compiled the information in the first place. This data is then combined into each vendor’s own format, which often does not contain complete information. The common term in the database industry is data drops, which in addition to the above meaning also means that not all of the data, such as criminal record information from a court jurisdiction that is put into the database, is available to be extracted, retrieved or researched. This occurs because of the following:

1. The bridge software used to import the jurisdictional data into the database company’s memory banks can never be 100% reliable, as long as the compiler is gathering information from foreign repositories

2. The computer has to handle many different formats while compiling information into a standardized format so that some of the data simply does not transfer.

This is a problem because of the technical department’s inability to inform the sales/marketing department properly as to the database’s limitations or unwillingness to tell the customer that the product it is selling may be deficient in some areas. As a result, approximately 5 to 8% of the data is lost. That means that there is a 92% to 94% chance (at best) to identify a record on a candidate. Also, data drops are indiscriminate. Rape convictions are dropped as easily as traffic tickets.

The second problem with databases is the psychological dependence they engender on those using them. As time progresses, the databases’ ease-of-use causes the user to forget just how important it is that the database be accurate and complete, and that the need for thoroughness in screening an employment candidate should never vary, as to ensure consistency in the screening process, thus precluding the successful prosecution of the employer for Title 7 claims. The results of falling into this pattern of laziness can be disastrous as litigation may not be far behind.

Crucial Steps in the Employment Screening Process

Historically, and until the late 1970s when the personnel department recognized the need to get involved in employment screening, background checks were performed by security departments – typically comprised of highly qualified, and often retired professionals.

Today it’s up to the HR department to create the mandatory steps needed to develop a thorough employment screening procedure including for starters, a positive candidate identification process. If this isn’t the first step in the background check, the results of your searches could be faulty and therefore prove useless.

For example, critical identification data needs to be gleaned from credit bureaus and other repositories including unused maiden names, or intentionally omitted information such as date of birth and variations in social security numbers. This is where the difference between true employment screeners and data sellers comes into play. It takes years of experience to be able to differentiate, for example, intentionally omitted information versus an honest mistake.

The same holds true for incomplete disclosures such as partial criminal history in which the full story can dramatically change your assessment of the applicant. One such case involved an applicant who disclosed to the company that she was convicted of trespassing. When the criminal check came back, however, it was discovered that while she had indeed told the truth that she was convinced of trespassing, she had also been convicted of trafficking in child pornography and possession of controlled substances – a serious error by omission.

Hiring decisions must not be made on partial, incomplete or incorrect data, but on thorough information and a consistent application of thorough scrutiny of all of the information regarding criminal, credit, work and education history, driving attitude, whether or not the candidate has completed the application completely, as well as identity disclosure.

A screener must have extensive knowledge about each vendor source to make the appropriate follow-on decisions that develop into a full and comprehensive report.

Online databases don’t provide highly trained researchers who can spot red flags and other indicators in an application that demand further consideration. You can only get this kind of service from an interactive screener who has years of experience in processing background checks.

Another reason online databases can be cause potential liability is because most databases contain information that may not be used in the screening process such as arrest records, or unadjudicated matters, or matters for which an expungement exists at the Court but is not reflected in the database.

As previously stated, professional background checks require an experienced researcher who knows what to look for including: verifying a applicant’s true identity, obtaining verification of past employment and education, fully investigating the applicant’s criminal past (a skill that requires an intense, and multi-level knowledge of court procedures, credit evaluation including legal records such as bankruptcies, tax liens and judgments, driving analysis, as well as a history of being a sex offender or involved in domestic violence or retraining orders for stalking. All of the factors contribute to, but may not necessarily be germane to the job description, at hand, and while exciting, could lead an employer into court, for using the information to deny candidacy, for inapplicability.

By now it should be fairly clear that professional background checks are a comprehensive package that far outweigh any bits and pieces of information that can be provided by any individual online database. When a person is thinking about hiring someone and they believe that all I really need to do is run a fingerprint check, they are really missing the point. So much more information is needed to make a careful, informed hiring decision. Besides, only police departments run fingerprint checks, not employers.

Liability Risks of Not Performing Background Checks

Posted in Uncategorized | Comments Off on What the Trend in Online Databases Means to the Employment Screening Industry

Macedonia vs. Unemployment – Proposal Submitted to the Government – Part III

By: Dr. Sam VakninFormer Economic Advisor to the Government of the Republic of Macedonia

Administrative Measures: Public Education and Dissemination of Information – The Functioning of the Employment Bureau

The dissemination of information regarding employment practices,Macedonia vs. Unemployment – Proposal Submitted to the Government – Part III Articles opportunities, market requirements, etc. should be a prime component of the activity of the Employment Bureau. It must transform itself from a mere registry of humans to an active, computerized exchange of labour. This can be done through computerized employment exchanges and intermediation.

To change the image of the Employment Bureaus from places where the unemployed merely registers and receive benefits to a labour exchange can be done by publishing examples of successful job placements.

I recommend to prominently display and disseminate information regarding the rights of the unemployed, their obligations and services available to them and to publish weekly or daily employment bulletins.

I recommend to place computer terminals in all bureaus with the latest data regarding jobs offered and sought. Both employers and the unemployed should be able to directly access and update the system from PCs or laptops or by submitting forms.

To organize seminars for the unemployed and to employers in which the rights of the unemployed, their obligations and the services offered to them and to their potential employers will be described. This can be combined with employment fairs. Separately, the unemployed should be taught in these seminars how to find a job, prepare a curriculum vita (biography), entrepreneurial skills, preparation of business plans, marketing plans, feasibility studies, credit applications and interview skills.

The Employment Bureaus in collaboration with the local authorities should organize job clubs, labour exchanges and employment fairs – places where employers can meet potential employees, currently unemployed. These should not be one-off, haphazard events. They should be periodic, regular, and predictable.

I recommend to oblige the mass media by law to dedicate at least an hour weekly (could be broken to as many as 4 segments of 15 minutes each) to unemployment: disseminate information, organize a televised labour exchange, a televised entertainment show (where employers will offer a job to a winner) and so on.

I recommend to link by a Wide Area Network (WAN) or Intranet with firewalls the National Employment Bureau, the Health Fund, the Pension and Disability Insurance Fund and the Social Security Office. To cross and compare information from all these bureaus on a real time basis (to specifically cater to the needs of an unemployed person) and on a periodical basis for supervision and control purposes.

The National Employment Bureau should maintain a regular presence in employment fairs abroad. Many fairs are global and work can be obtained in them for Macedonian workers (especially the more skilled).

I recommend the creation of a special office within the Ministry of Labor and social Work with the aim of actively soliciting employment abroad for qualified and skilled Macedonians (from construction workers to computer programmers). This office will:

– Scan for job offers in foreign countries

– Make contact with government structures, public sector, and private sector employers abroad

– Sign agreements with said employers and negotiate with them all employment terms and conditions. These terms and conditions are bound to be better than anything individual laborers can obtain by themselves.

– Advertise for workers in Macedonia, based on the agreements afore signed.

– Match workers with job offers abroad, based on the signed agreements.

– Self-finance by collecting a commission based on a the first pay of every placed worker.

A National employment Contract

A “National Employment Contract” should be signed between the government, the trade unions, the employers (Chamber of Commerce) and the Central Bank. All parties will have to concede some things.

The Employers will guarantee the formation of new work places against a freeze on employee compensation, a separate treatment of part time labour (exclusion from collective bargaining), flexibility on minimum wages and with regards to job security, hiring and firing procedures, social and unemployment benefits, indexation of wages and benefits, the right to strike and the level of salaries.

The employers will obligate themselves to fixed quantitative targets over a number of years against the receipt of the unemployment benefits of the newly hired (or another form of subsidy or tax incentive) and/or a discount in social contributions.

The National Employment Contract should aim to constrain inflation by limiting wage gains to productivity gains (for instance, through dividends on the shareholdings of the workers or through stock options schemes to the workers).

In return, the trade unions will be granted effective control of the shop floor. This is the neo-corporatist approach.

It means that the tripartite social contract will increase employment by moderating wage demands but the unions will control policies regarding unemployment insurance, employment protection, early retirement, working hours, old age pensioners, health insurance, housing, taxation, public sector employment, vocational training, regional aid and subsidies to declining and infant industries.

In Sweden and Germany there is co-determination. Workers have a quasi-constitutional shop floor representation even in non-wage related matters (such as the work organization).

Many countries instituted an “Incomes Policy” intended to ensure that employers, pressurized by unions, do not raise wages and prices. In Sweden, for instance, both labour and management organizations are responsible to maintain price stability. The government can intervene in the negotiations and it can always wield the whip of a wage freeze, or wage AND price controls. In Holland the courts can set wages. Wages and unemployment benefits are perceived as complementary economic stabilizers (contra the business cycle).

Another possibility is a Guaranteed Wage Plan – Employers assure minimum annual employment or minimum annual wages or both to those employees who have been with the firm for a minimum of time.

Firms and trade unions must forego the seniority treatment (firing only the newly hired – LIFO, last in first out). The firm should be given a free hand in hiring and firing its employees regardless of tenure.

Labour Disputes Settlement

The future collective agreements should all be subordinated to the National Employment Contract. All these agreements should include a compulsory dispute settlement through mediation and arbitration. All labour contracts must include clear, compulsory and final grievance procedures. Possibilities include conciliation (a third party bring management and labour together to try and solve the problems on their own), mediation (a third party makes nonbonding suggestions to the parties) and arbitration (a third party makes final, binding decisions), or Peer Review Panels – where the management and the employees together rule on grievances.

A strike will be allowed only AFTER the failure of OBLIGATORY arbitration, mediation, or conciliation procedures.

I recommend allowing out of court settlement of disputes arising from the dismissal of employees through arbitration, an employees’ council, trustees or an employer-employee board.

Unconventional Modes of Work

Work used to be a simple affair of 7 to 3. It is no longer the case.

In Denmark, the worker can take a special leave. He receives 80% of the maximum unemployment benefits plus no interruption in social security providing he uses the time for job training, a sabbatical or further education, or a parental leave. This can be extended to taking care of old people (old parents or other relatives) or the terminally ill – as is the case in Belgium (though only for up to 2 months). It makes economic sense, because their activities replace social outlays.

Posted in Uncategorized | Comments Off on Macedonia vs. Unemployment – Proposal Submitted to the Government – Part III