Stephen O'Connor, SPHR, is senior director of Professional Search Services for the MHA Service Corporation, Lansing, and can be e-mailed at soconnor@mha.org

Staff Matters Newsletter July/August 2001
A Peach or a Bad Apple?:
Conducting Background Investigations
By Steve O'Connor

Sometimes reading resumes can be like translating a foreign language. The exaggeration and hyperbole can leave you flummoxed. Scott Adams in the Dilbert Principle suggests some examples. "I was the community liaison responsible for enhancing our corporate image through partnering with a multimillion-dollar fund-raising concern" really means "I got stuck organizing the annual United Way campaign". "I was an integral part of the project team that created a strategy responsible for increasing our firm's revenues by $30 million" translated is, "I attended a few meetings. They were pretty boring but the Danish was good". In similar fashion, there are things that you'd rather not hear during an interview. The Humor of the Day website has isolated a few red flags that should give one pause. Questions like, "What's your policy on severance pay?" or "How long does it take to fire somebody for incompetence?" are definite reasons to check some references. "How frequently does the Accounting department audit the petty cash?" is an inquiry that should surly trigger a criminal background check.

Speaking of criminal background checks, more Human Resources professional are hiring outside screening companies to help them avoid workplace disasters involving theft, violence and fraud. In the March 2001 issue of HR Magazine, Charlotte Garvey offers tips for the employer to help limit their legal exposure in the hiring process through regular background checks of potential employees. The Fair Credit Reporting Act (FCRA), the primary federal statute governing third-party background checks, provides limited legal immunity to employers who hire outside investigators. Generally, applicants must be notified in writing that a background check will be conducted and they must sign a consent form. The Federal Trade Commission (FTC), which administers the law, suggests that these disclosure statements include date of birth, Social Security number, and driver's license number and address information. Most of these reports are exculpatory but what to you do with negative information? To protect yourself, be sure it's accurate and up to date. For example, information involving civil suits and judgments that is more than seven years old must not be included in the report. Ms. Garvey, points out that the FCRA lays out specific procedures to follow if you decide not to hire based on the results of the background check. Applicants must be given reasonable time to contest the information (usually three to five days). Once the applicant has had a reasonable opportunity to respond, the employer is free to take adverse action, assuming that they have provided the applicant a copy of the negative report, a "notice of adverse action" informing them of the negative decision and a Statement of Consumers Rights, developed by the FTC. These are the basics. For further clarification and specific legal guidance, please check with your attorney.

In an effort to bring this important service to healthcare employers, the MHA Service Corporation has endorsed Pre-Employment Screening Inc. from St. Louis, Missouri as the preferred provided of comprehensive background checking services.

Pre-Employment Screening Inc. (PES) was founded in 1992 and is the largest background checking company in the Midwest.

  • They provide background searches on:
  • Social Security verification
  • Criminal background
  • Motor vehicle report
  • Credit history
  • Previous employment verification
  • Academic credentials
  • Drug screening
  • Workers' compensation history
  • Federal criminal docket search
  • Medicare fraud sanction verification

For more information on this highly responsive and cost-efficient service contact Kreg Gunter at PES Inc. at 1-800-298 8344 or Steve O'Connor at 1-517-485-3240. If you should be asked, "Can I bring my goat to the company daycare center?" or have an applicant assert, "I can make explosives from Windex, white-out and copy machine toner", it's definitely time to conduct a thorough background check.