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Why you need to Choose an accredited Employee Background Screening Company. Why Salary Verifications Should be a standard Part of Your Background Screening Package.

Most Background Screening hiring managers don’t know and most hiring managers also don’t know that they could be making a grave mistake by choosing to work with a company who does not have this distinction. The NAPBS accreditation ensures that a company meets the highest standards when it comes to the highest level of compliance, the highest level of accuracy and utilizes best practices when it comes to background screenings.Dispelling The Top 7 Myths Of Background Screening-Vivek Khanna - BW  Businessworld

There are an estimated 2000+ background screening companies in the in US and Canada yet less than 40 corporations have the designation of being accredited by the NAPBS. However, there are about 400 affiliated with the NAPBS, yet are not accredited. There are over 700 individual members of the organization, so there certainly may be a member working at a background screening company that itself, is not accredited. In order to become accredited, a company will face an intense audit of their practices and procedures, including: compliance with the law, security of information, accuracy and expertise.

So, when you take all of the information available from the NAPBS, even those affiliated with the organization have to be a good choice to work with, right? That gets us to about 20% of all background screening companies out there as accredited by the NAPBS. This means, odds are good, that the background screening company you are using is not accredited with the main accreditation company in the industry. Is this a chance that you want to take when it comes to your background screenings?

You may think that choosing a company that is accredited over one that is not accredited is no big deal, but with no one really regulating these companies until there is a problem, you could really be making a mistake. Take the fly-by-night companies out there that advertise “instant” background checks online. You can guarantee that these companies are not accredited by the NAPBS. You can almost also guarantee that you will not get the most accurate information. For example, these companies are notorious for giving outdated information, not giving the full story of someone’s background and even giving information on the wrong person. This is certainly not information you want to base something like a hiring decision on.

The value verifying the prior salary of an applicant is often overlooked. While verifying the past employment dates and titles are common parts of mid-level and executive background screening package, make sure you understand the procedures being used by your applicant screening vendor. Do they also attempt to verify salary information? If so, to what extent? After all, a verification of salary through a business owned by the applicant’s uncle, friend, neighbor, parent, etc, can make for a tempting opportunity to have someone “verify” a seriously inflated or even nonexistent salary. Likewise, if an applicant knows that his prior company will not disclose salary information, they may feel confident in exaggerating their stated income.

At a lower level position with standard pay guidelines, it really doesn’t. You’re going to pay the employee based on the positions rate and raises will come from performance and time. But when you’re looking at someone to fill a mid or high level position that has a wide range of pay based on previous performance and/or experience, it matters a lot. This person is an investment and you need to know if they pulled their own weight at their previous employers.

An impressive talker is not always an impressive worker and you wouldn’t be the first to place a “bouncer” in a high paying position. (“bouncer”: One who bounces from company to company siphoning a large salary until the company realizes they’ve been duped. ) Imagine hiring a regional sales person with a salary of $200, 000 plus bonus/commission based on a great interview and an impressive resume citing years of sales experience, accolades, and C-level pay. Only to find out months later that they never actually earned more than a base salary of $40, 000 and very little commission from their past two employers. You’re back to square one. You have lost $100, 000 of payroll and an equal amount in training and expenses. Trust can be overrated at times.

The most common method can also be the most inconsistent if it is not completed by a professional.
This is where a professional researcher, as opposed to a call center, can make all the difference. A researcher will verify that they are calling a legitimate business, cross referencing information from the company’s website, Secretary of State filings, and phone listings, against the data provided by the applicant. With a signed authorization, about 50% of companies will provide salary information. That percentage drops to approximately 20% with smaller employers that do not have designated HR staff.

A prime example would be “The Work Number”, which is a company that manages the past employment records of many large corporations. Your background screening vendor will often have an existing account with “The Work Number” so that they can quickly access employment records of applicants when needed. Salary information however, is not always a default part of this search. It depends on the internal policy of the company itself as to if they allow salary information to be released. If they don’t allow this information… See Option 4, as that may be your only option.

This option simply means that the screening agency requests documentation directly from the applicant such as a W2, 1040, Check Stub or other official document. Again, the experience of a professional researcher can make a big difference in obtaining what documents make the most sense and then evaluating those documents for authenticity.

That’s right, the IRS will actually do something for you! For a small fee of course. And while you can get this information yourself, you’ll get it in a matter of days instead of weeks if you pay a few extra dollars and go through a reputable background screening company. With this type of verification you can select a particular year or multiple years, and request a copy of stated income from tax documentation. Of course, you’ll need a signed authorization from the applicant to do this.

In summary, a good background screening provider will start with option one and work their way down. They will verify the legitimacy of the company and if an HR or Payroll department exists, proceed to request information. For small or self owned companies they may jump to Option 3 or Option 4 depending on the situation. Larger companies may require Option 2. Option 4 is blanket option that can work in any situation where salary information is essential. In the end, it’s important to remember that the dishonest resume comes from a dishonest applicant, and lies about experience or salary can be as bad, if not worse, than a criminal conviction.

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