What do you really know about an applicant? Applications, resumes and interviews can only give you a superficial impression. If you are trying to check out the references of a potential hire, do not expect to get much help from the person's former employer. Chances are, they won't talk about them. Unfortunately, these individuals, of whom little or nothing is known, may prove to be a danger to your company, other employees and your customers. Poorly selected employees will eventually erode an organization's profit due dishonest acts, internal theft, embezzlement and negligent hiring law suits.
Consider this: U. S. Department of Commerce statistics indicate 30% of all business failures are the result of poor hiring practices. Embezzlement costs industry $4 billion a year. Other employee crime, both blue and white collar, costs another $45 to $50 billion annually. Statistics also indicate that most people who steal, cheat, defraud or embezzle are never detected by their former employers. Did you know that at least 25% of applicants stretch the truth or lie on their applications?
NEGLIGENT HIRING
Lawsuits based on negligent hiring are another liability your company faces. With increasing regularity, courts are holding employers liable for acts committed by employees on the job and perhaps even more alarmingly, while off-duty. The term negligent hiring means that an employer has hired someone without properly confirming the information on their application is accurate and factual. For instance, your guard service is protecting a bank. You hire an employee, send him to the branch office and he performs his duties satisfactorily. However, while at the bank, a female bank employee catches his attention and the guard is somehow able to obtain her home address. Regrettably, on his day off, your guard goes to the employee's home and assaults her. You, as his employer, can be held liable for the assault. Why? Because you failed to check the employee's criminal background that included prior convictions for assault and battery.
WORKPLACE VIOLENCE
Workplace violence is an additional liability companies encounter. CAL/OSHA has developed a bulletin titled the "Model Injury and Illness Prevention Program for Workplace Security." Employees with a history of assaults or who exhibit belligerent, intimidating and threatening behavior to others are identified as one of the factors shown to contribute to the risk of violence in the workplace. Proper background screening may help minimize this threat. All too often we have seen instances of violent, homicidal behavior by employees or former employees. In 1993, an ex-mail carrier in California went on a rampage, killing two and wounding three others. In 1988, a former employee of a Sunnyvale company killed seven co-workers and wounded five others. In 1987, a former air line employee boarded a flight and killed an executive he blamed for his termination. He then killed the pilot and co-pilot and the resultant crash killed 44 passengers.
PRE-EMPLOYMENT BACKGROUND SCREENING
Pre-employment screening helps ensure that your employees are who they say they are. Being selective in the hiring process provides your business with a team of excellent employees, helps lower the high cost of turnover and protects you in the event you are sued for negligent hiring. The private security industry has been identified by the California Employment Development Department (EDD) as one of the fastest growing occupations in California. This growth rate demands that security companies become more diligent in their hiring practices. Your company needs to be assured its employees are competent, trustworthy and qualified. Pre-employment screening should include, at a minimum, criminal history, verification of prior employment, education claims and social security number. The applicant's driving record, credit report, and professional licenses should also be reviewed.
How did our hypothetical company fare? Well, they hired a guard that was not pre-screened. Convicted a year earlier of theft and burglary, the guard saw his job at the electronics warehouse as an opportunity. An opportunity to steal the company's most expensive and scarce computer chips. The company sues and wins because if you had verified the guard's background his criminal record and fraudulent references would have been exposed. You lose the contract, your reputation and ultimately your business.
Help limit your company's exposure through pre-employment screening. Safeguard your business for the future. The expression "an ounce of prevention is worth a pound of cure" certainly applies to the licensed security and guard business!
Patricia S. Jacobs is CEO of Advanced Personnel Profiles, a
pre-employment
screening agency. She can be reached at (805) 579-0630 or (800)
780-8696.
