Employment screening

What Is Employment Screening?

Employment screening is the process by which employers verify information and assess the suitability of job candidates and current employees. As a critical component of Human Resources management, it encompasses a range of checks designed to mitigate risk, ensure a safe working environment, and confirm the accuracy of applicant-provided data. This practice falls under the broader category of Human Resources Management, focusing on the due diligence aspect of hiring and maintaining a workforce. Employment screening helps organizations make informed decisions by providing insights into a candidate's background, including their work history, education, criminal records, and other relevant information⁵⁷.

History and Origin

The practice of employment screening has roots in the legal concept of "negligent hiring," which emerged in the early 20th century. Employers began to be held liable for the actions of their employees if they failed to exercise reasonable care in selecting competent and safe workers⁵⁵, ⁵⁶. A notable 1951 case underscored this, holding an employer responsible when a delivery person committed an "indecent attack" on a housewife, emphasizing the employer's duty to select fit employees, especially those interacting with the public⁵³, ⁵⁴.

However, comprehensive employment screening, particularly using third-party services, largely began to proliferate after the 1970s⁵¹, ⁵². The enactment of federal legislation like the Consumer Credit Protection Act of 1968 and the Fair Credit Reporting Act (FCRA) of 1970 played a pivotal role⁴⁹, ⁵⁰. These laws, initially designed to protect consumers regarding credit reports, created a framework that also regulated the collection and use of information for employment decisions, thereby professionalizing the background screening industry. The market for third-party background checks grew exponentially in subsequent decades, driven by increased employer liability and advancing technology for data aggregation⁴⁷, ⁴⁸.

Key Takeaways

• Employment screening helps employers verify candidate information, assess potential risks, and ensure a suitable workforce.
• Common checks include criminal history, employment verification, education verification, and sometimes credit history or drug testing.
• Federal laws, particularly the Fair Credit Reporting Act (FCRA) and Title VII of the Civil Rights Act, govern how employment screening can be conducted to protect applicant rights and prevent Discrimination.
• The process contributes to an organization's Risk Management strategy by reducing potential legal exposure and safeguarding the workplace.
• Despite its benefits, employment screening can be prone to inaccuracies, which may lead to adverse outcomes for applicants.

Interpreting Employment Screening

Interpreting the results of employment screening involves evaluating the information gathered against the requirements and risks of a specific job role. A criminal record, for instance, must be weighed against the nature of the conviction, how long ago it occurred, and its relevance to the position⁴⁶. Similarly, discrepancies in employment history or academic credentials, while potentially disqualifying, should be considered within the context of the overall application⁴⁴, ⁴⁵.

The interpretation process requires careful Due Diligence to ensure compliance with legal guidelines, particularly those prohibiting discriminatory practices. Employers should apply consistent standards to all applicants and avoid making snap judgments based on initial findings⁴³. The goal of employment screening is to confirm qualifications and identify potential issues, not to create barriers based on irrelevant or outdated information.

Hypothetical Example

Imagine a technology startup, "InnovateTech," is looking to hire a Senior Software Engineer. As part of their standard Talent Acquisition process, they conduct employment screening on their top candidate, Sarah.

The screening process for Sarah includes:

1. Identity Verification: Confirms her Social Security number and past addresses.
2. Education Verification: Verifies her Bachelor's and Master's degrees from the universities listed on her resume.
3. Employment History Verification: Confirms her previous job titles, dates of employment, and responsibilities at her last two companies.
4. Criminal Background Check: Scans for any felony or misdemeanor convictions.

During the employment screening, InnovateTech discovers a minor discrepancy in one of Sarah's employment dates on her resume—she listed her end date for a previous role as May 2022, but the former employer's records show April 2022. All other information, including her degrees and criminal record, is accurate and clear.

InnovateTech's HR department, adhering to best practices, notes this minor inconsistency but recognizes it's unlikely to impact Sarah's ability to perform the Senior Software Engineer role. They proceed with the job offer, confident that the employment screening process has validated her qualifications and revealed no significant concerns relevant to the position's duties or the company's Corporate Governance.

Practical Applications

Employment screening is broadly applied across various sectors to minimize risks associated with hiring and to ensure a qualified and trustworthy workforce.
Key applications include:

• Financial Services: Firms in finance heavily rely on employment screening, including credit report checks, to assess financial responsibility for roles involving access to sensitive financial data or client funds. This helps to prevent Financial Crime and maintain regulatory compliance.
• Healthcare: Healthcare providers conduct extensive background checks, including criminal history and professional license verification, to protect vulnerable patients and comply with industry-specific regulations.
• Government and Public Sector: Government agencies typically require rigorous security clearances and comprehensive employment screening for positions that handle classified information or involve national security.
• Childcare and Education: Organizations working with children or in educational settings perform thorough criminal background checks and sex offender registry checks to ensure the safety of minors.
• Transportation: Companies hiring drivers conduct motor vehicle record checks to assess driving history and ensure compliance with safety regulations.
  ⁴²
  Employers generally rely on employment screening to gain a comprehensive view of a candidate's past, helping them verify information and assess potential risks. ⁴¹The Federal Trade Commission (FTC) provides guidance for employers on complying with federal laws, such as the Fair Credit Reporting Act, when conducting background checks, underscoring the legal framework that governs these practices.

⁴⁰## Limitations and Criticisms

While employment screening is a vital tool, it is not without limitations and criticisms. A significant concern is the potential for inaccuracies in background check reports. Errors can arise from incorrect spelling of names, transposed numbers in birth dates, mistaken identity, or the inclusion of outdated information that should have been expunged. ³⁶, ³⁷, ³⁸, ³⁹Studies have indicated that private-sector background check companies, which are often loosely regulated, may produce reports containing mistakes. ³⁵These inaccuracies can have severe consequences for individuals, leading to denied job opportunities, damaged reputations, or even housing denials.
³³, ³⁴
Another limitation is the risk of Discrimination. Employment screening policies can inadvertently lead to disparate impact on certain protected groups, even if not intentionally discriminatory. ³¹, ³²For example, broad exclusions based on criminal history, without considering the nature of the offense or its relevance to the job, may disproportionately affect certain racial or ethnic groups. ³⁰The Equal Employment Opportunity Commission (EEOC) advises employers to consider factors like the nature and gravity of the offense, the time passed since the conviction, and the nature of the job held or sought, to avoid discriminatory practices.
²⁸, ²⁹
Furthermore, the legal and Regulatory Framework surrounding employment screening is complex and constantly evolving, with variations at federal, state, and local levels. ²⁶, ²⁷Employers must navigate laws like the FCRA, which mandates specific procedures such as providing disclosure and obtaining written consent from applicants, and allowing them to dispute inaccuracies before an Adverse Action is taken. ²⁴, ²⁵Non-compliance can lead to substantial legal consequences and lawsuits.
²³

Employment Screening vs. Background Check

The terms "employment screening" and "background check" are often used interchangeably, but there's a subtle distinction in their scope. A background check is a specific, investigative component of the broader employment screening process.

• Employment Screening refers to the comprehensive, multi-faceted process of evaluating a candidate's suitability for a role from initial application through to the hiring decision. It can include reviewing resumes, conducting interviews, skills assessments, personality tests, and ultimately, various types of background checks. Employment screening is a strategic approach within Human Resources Management aimed at identifying the best fit for an organization and mitigating potential risks associated with new hires.

• A Background Check is a particular type of inquiry conducted during the employment screening process to verify information or uncover relevant history. This can include criminal record checks, employment history verification, education verification, driving record checks, and sometimes credit history checks. ²¹, ²²Essentially, a background check provides the factual data points that contribute to the overall employment screening assessment.

Therefore, all background checks are a part of employment screening, but employment screening encompasses more than just background checks; it covers the entire candidate assessment journey.

FAQs

What types of information are typically gathered during employment screening?

Employment screening commonly gathers information such as criminal history, past employment dates and titles, educational qualifications, professional licenses, and sometimes driving records or credit history, depending on the job role. ¹⁹, ²⁰The types of checks performed vary based on industry standards and specific job requirements.
¹⁸

Is consent required for employment screening?

Yes, under the Fair Credit Reporting Act (FCRA), employers generally must provide written disclosure to an applicant or employee that a background check may be conducted and obtain their written authorization before procuring the report. ¹⁶, ¹⁷This disclosure must typically be a stand-alone document.
¹⁴, ¹⁵

What happens if there are errors in an employment screening report?

If an employer intends to take an adverse action based on information from an employment screening report (which is considered a consumer report), they must first provide the individual with a copy of the report and a summary of their rights under the FCRA. ¹², ¹³The individual then has the right to dispute any inaccuracies, and the reporting agency must investigate and correct or remove errors within a specified timeframe, typically 30 days.
¹⁰, ¹¹

Can employment screening lead to discrimination?

It can, if not conducted carefully. Federal laws like Title VII of the Civil Rights Act and guidelines from the Equal Employment Opportunity Commission (EEOC) prohibit discrimination based on protected characteristics such as race, color, national origin, sex, religion, age, disability, or genetic information. ⁷, ⁸, ⁹Employers must apply screening standards consistently and ensure that policies do not have an unlawful disparate impact on certain groups.
⁵, ⁶

How does employment screening benefit an employer?

Employment screening helps employers verify candidate qualifications, reduce the risk of negligent hiring claims, prevent Financial Crime or theft, and protect their company's reputation and assets. ³, ⁴It contributes to creating a safer and more productive work environment by ensuring that employees are competent, reliable, and trustworthy.¹, ²