Tag Archive for: hiring process

Answering All of Your Fair Credit Reporting Act and Adverse Action FAQs

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The Fair Credit Reporting Act (FCRA) guides the background check process for employers and offers privileges and rights to the candidates who undergo screenings. Following the FCRA is essential for any hiring team, especially when it comes to adverse action, which is the process of removing an applicant from consideration due to screening report results.

Complex and important aspects of the background check process, both the FCRA and adverse action can raise plenty of questions for employers. One Source’s team can guide you through the FCRA and answer any questions about adverse action. Below we have discussed some frequently asked questions.

How long do I have to wait to remove an applicant from consideration after I notify them of my intent to take adverse action?

Once you decide to take adverse action against an applicant, you must notify them of your decision and the specific parts of their report led to your choice. You must then put any further actions on hold to give the applicant the opportunity to dispute their report. Generally, you must wait five business days before sending a final notice. The waiting period can vary by state, though, so be sure to check with your background check agency.

What if a candidate declines to consent to a background check?

If screenings are one of your company’s requirements for employment, then refusal to participate in a screening would disqualify them. However, the FCRA does not apply to applicants who don’t want to be screened. By refusing a background check, they waive their FCRA rights. Therefore you can remove them from consideration without taking adverse action.

Do I have to follow adverse action with contractors and volunteers?

Yes. Contingent employees and volunteers are protected by the FCRA, so you must follow FCRA guidelines in order to remove them from your recruitment process. There are several functions to which FCRA applies, including contractors, and volunteers. 

What if the information we are basing adverse action on is vague?

Sometimes, a criminal record won’t provide much context to a charge, so you’ll have to take adverse action without a full understanding of how an applicant got a criminal record. That’s why it’s required to wait several business days before you can finalize adverse action. You leave space for an applicant to provide details about their charges or dispute their accuracy. Plus, this gives you time to consult your screening firm. They will help you decipher what the codes on a criminal record mean and explain how the record translates into actual crimes. You can then make a better judgement about whether or not to keep the applicant in consideration.

With the help of an expert screening partner like One Source, your team can navigate the FCRA with ease. Contact the One Source Client Relations team today to see how we can help you manage your hiring process.

How Can I Expedite My Background Check Process?

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When a position opens up at your organization, you want to fill it as quickly as possible so the new team member can start contributing their talents. Before you can select the right candidate and get them to work, however, your organization should vet each applicant with a thorough background screening process.

If you or your organization are new to the background screening process, you may be concerned with your screening agency’s timelines. Complete, accurate background reporting takes comprehensive work and should not be rushed, but that doesn’t mean screenings will slow your hiring process down.

One Source completes most background checks in 48 hours or less. We can provide the information you need to make informed hiring choices within your timelines. But if you need checks outside of the TotalCheck system or require services outside One Source, it can be trickier to estimate turnaround time. Regardless, background checks are meant to advance quality hiring, not hinder it. To expedite your background check process, prepare your applicants and team by doing the following tasks.

Have applicants provide relevant information up front

Be sure you can proceed with the screening process as soon as you have an applicant pool. In order to keep moving, get all the identification information you’ll need to run screenings from your applicants early on. Screening agencies may need addresses, educational degrees, past salary data and other information to build accurate reports, so ask for that information in the job application. When all of that data is in one place, you can access it easily and your background check agency can quickly get to work building a precise report.

Streamline your process using electronic signatures

With today’s paper-thin labor pool and low unemployment rates, eliminating paper from your hiring can speed up the process. At One Source, we offer applicant entry options which can be as simple as sending your applicant(s) a link, having them enter their personal identifiable information (such as full name, address, DOB and SSN). The applicant then signs the disclosure and authorization form electronically as well. The complete release attaches to the consumer report for your reference at any time. Applicant entry helps streamline your process and assist in hiring those that may be relocating for work or working remotely.

Understand the process of adverse action

Adverse action occurs when an organization refuses to hire a candidate because of the contents of their background report. If your screening agency’s search comes back with information that may lead you to eliminate an applicant from consideration, the agency will double check that the information is correct before including it in a report. This diligence is part of the Fair Credit Reporting Act (FCRA) that protects applicants from potential inaccurate data that could hinder their job search. So, if your screening agency thinks a piece of information could make you take adverse action, they will take a bit longer to finalize the report to ensure you are fully informed and the applicant is treated fairly.

Make applicants aware of their screening rights

The FCRA gives several rights to job applicants to ensure background check agencies represent them legitimately. It is meant to make candidates more comfortable with the screening process and empower them to dispute incorrect reports. When your applicants are familiar with their rights, they will be more willing to cooperate with screening agencies. Your agency may reach out to an applicant to gather old pay stubs or diplomas to further verify their identity and speed along the reporting process. Make your applicants familiar with their FCRA rights and they may help accelerate your hiring.

To receive complete, fast and accurate reports with excellent customer service, reach out to One Source Client Relations.

What To Do Before You Run an Employee Background Check

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Established companies and new businesses alike must manage workplace safety and avoid fraud to stay secure. Background checks offer protection and peace of mind as you bring new people into your organization. However, developing an effective screening system to run an employee background check is sometimes easier said than done. Regardless of where your organization is in its development, it’s worthwhile to reflect on your background screening practices.

In order to help your company reap the benefits of background screenings while staying compliant with consumer protection laws, make sure you complete the following before screening applicants.

Create a consistent screening policy

Work with your HR department to build a comprehensive hiring process that includes your background check procedures. You can create a flow chart of the proper steps to take and how to proceed in different situations.

Vague background check practices may cause your hiring team to treat applicants’ reports differently, which can lead to legal trouble. To stay consistent with the Fair Credit Reporting Act (FCRA), you must follow a strict process when taking adverse action—the removal of applicants from consideration because of their background report. So, if that process is already in your procedure, your hiring team will respond correctly.

Hire an FCRA-compliant, PBSA-certified credit reporting agency

The FCRA determines proper background check practices, and you must follow its guidelines to protect your business from negligent hiring charges. According to the FCRA, you need written consent from anyone you want to screen. And you have to explain your reasoning if you take adverse action. Under the FCRA, applicants have the right to know what information is in their report and they can dispute anything they deem incorrect.

Compliance is crucial, and the best way to guarantee a legal hiring process is to hire a reputable screening agency. Hence, the best agencies are FCRA experts that help you navigate its requirements with ease.

The Professional Background Screening Association (PBSA) determines the ethical and performance standards for the screening industry. So, if a consumer reporting agency has PBSA approval, it meets ethical standards and can be considered a trustworthy company.

See from the perspective of your applicants

Background checks are an increasingly common part of job searches. Applicants likely complete a screening for every job they apply for, and the FCRA empowers them to take an active role in the process. Your candidates will be familiar with the screening process and may have questions you should be prepared to answer.

Make sure your applicants feel comfortable asking questions, voicing concerns, seeking clarification and viewing their results upon request. Therefore, by preparing yourself to meet applicants’ needs, you’ll help them build trust with your organization and expedite the hiring process.

That’s the first steps in learning how to run an employee background check. Learn more about employment screening and how you can improve your hiring process by contacting the One Source Client Relations Team.

3 Ways Background Checks Improve Your Hiring Process

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Integrating a pre-employment background check into your company’s hiring process gives you the best chance of making the best hire. Folding rigorous, thorough vetting into your decision helps you go beyond taking an application and interview purely at face value. Instead, carefully curated employment background screenings provide invaluable data to validate your perspective on the applicant’s fit.

Read how administrating background checks improve your hiring process and gives you the clarity and confirmation to hire the right person for the right job.

Verifying application information

Resume fraud is real. So, background checks help employers find the truth, and the right type of screening will uncover inconsistencies between resume and reality. Finding a difference between what was submitted and what is actually real for an employee’s history helps determine which applicants are worthy of consideration.

Hiring an applicant that fabricated parts or all of their job history opens your organization up to a loss in credibility. Then, preserve your business’s reputation by avoiding a fraudulent hire.

Double checking competencies and capabilities

On top of confirming the accuracy of an applicant’s basic information, you also want to corroborate what they say about their qualifications and skills. A job applicant may misrepresent or mischaracterize their actual experience or educational accomplishments. It could be their job title at a previous job. Or it could be their academic degree. It could even be a credential—like licensure or certification for job-specific roles—essential to your vacant position.

The wrong hire could affect your company’s bottom line. Hiring an applicant that over-embellished their abilities can lead to financial losses over time. Bringing in an underqualified person for a job they’re unable to perform means low productivity and, thus, lower profitability.

Making a safe choice for your company and community

Above all else, a pre-employment screening should ensure your hire won’t jeopardize the safety of those you employ and those you serve. Upholding the trust and equity your business has built with its own employees and the public at-large should never be sacrificed. So, background checks help you cover the bases and provide insurance for deciding on the right hire. 

Certain jobs entrust individuals with high levels of responsibility, from driving company vehicles to even using firearms. A background check uncovers the applicants truly qualified to carry out these sorts of tasks. Implementing a background check into your screening helps find out if an applicant’s past raises any red flags. It can’t preclude you from hiring an employee—that protection is law, part of the Fair Credit Reporting Act—but it can help you make the appropriate determinations. For example, if you’re hiring a delivery driver, you’d want to know if an applicant has any DUIs.

A background check helps you hire with confidence. Hiring managers carry the burden of making critical decisions for their businesses, and they need to make informed ones. Therefore, bringing on the right employee helps keep the company’s people and community safe while preserving its credibility. So, making the wrong hire can have a devastating ripple effect on each of those criteria.

New to the world of how background checks improve your hiring process? Then, explore our wide array of insights, tips and employment background screening guides on the OneSource blog.