Background in Focus 

Sylvia is located in a major U.S. city where she runs a nice little business providing background references for anyone with a $20 bill. Here's how it works: a job applicant pays Sylvia and she gives them a secret phone number they can give to prospective employers (like you, for instance). When you call the number Sylvia answers and says hello. You ask, "Is this the ABC Company?" and she says it is.

Of course, Sylvia won't volunteer any information but will verify anything you ask. And she will take the time to remember how everyone at ABC (or whatever company she's been asked to impersonate) loves and misses the applicant in question and how strongly they would recommend him to any prospective employer. If you fall for Sylvia and her tricks, you may being making some bad hiring decisions.

Good hiring requires good information; the sad news is that relying on one or two quick calls to past employers is not a background check. The good news is that our computerized society is making it easier for employers to do a high-quality background search for an affordable amount of money.

It's easy to understand why companies often overlook background checks: it's difficult to get information, and hard to handle the rejection from people who are insistent on not giving you any information.

Most companies limit themselves to a couple of calls to previous employers, just to check dates of employment. Some will hire a private investigator or a specialized background checking service to make a report on an applicant, but usually this is reserved for key positions because of the costs involved. The irony is that most of the information the private investigator brings in is publicly available. The problem is that most employers have no idea how to go about getting it.

How to Access the Records
There are many sources of public Information available to employers through both public and private records. State and county regulations sometimes limit an employer's access to information in public records or limit the use of information you find: it's important to acquaint yourself with your local laws and stay within them.

There are two types of information sources: government agencies and private Industry data banks. Government sources include police and court records, military records, professional licenses, social security records and a host of others. Private data banks include credit histories, association memberships, education records, telephone numbers, utility records and more.

Preparing for the Background Check
You can ease the burden of your search (and protect yourself) in three important ways.

First, have the applicant sign a release authorizing you to obtain -- and make your hiring decision based on -- information from public records. These releases protect you and also warn potential applicants. If they are providing fraudulent information, they may decide to withdraw the application.

In using your release, remember that the majority of your applicants are honest: don't offend them. The fraudulent applicant will understand the reason behind the polite presentation of the release and will react accordingly.

Second, make sure you get adequate information from your applicant. Within reason, the more complete the information the better. Have someone take the time to go over the background information with the applicant to make sure the information is accurate and complete. Check for full names, complete social security and driver's license numbers, full addresses and a full employment history going back five years with no gaps. Then provide all that information to the people doing the background checks.

Third, gear the search to verification of the data provided. It is possible for a particularly adept professional criminal to create a complete false history that will stand up to a complete check, but it's difficult. Fortunately, you're unlikely to encounter such an applicant. For the purposes of the average business organization, verifying background information provides you reasonable security at a reasonable price. It also speeds the search process. If you are unable to verify the information the applicant provides you, you don't need to hire that person.

The Records You Can Check And What You Need To Know
Voter Registration Records: This is the first place to start because voter registration records provide complete information, including full names, current and former addresses, even signatures.

Driver's license number: Because of today's high liability insurance rates, an applicant's driving record is of obvious importance if the applicant is going to be driving on company business, whether in their own or a company vehicle. An employee with a history of reckless driving can endanger public safety, and you'll pick up the tab when a lawsuit gets flied. Obviously, an employer has a right to know about repeated tickets, DWI citations or suspended licenses. Furthermore, such information can give you an insight into the character of the applicant. A person with DWI citations might have more than a problem driving a car: they may well have a serious substance abuse problem.

Social Security Verification: Growing responsibility is being placed on the employer to verify that an applicant has a Social Security number and, if they are not a citizen, that they may legally work in this country. Since many databases use Social Security numbers as identifiers, an applicant can hide a wide range of past problems just by changing the spelling of his name and a number or two on his Social Security number.

Criminal Arrests/Convictions: Arrest and conviction records are kept in county courthouses all across the country. In many cases, they are also kept in state files. In most states, these are public records that anyone can get just by walking up to the counter and asking for them. Arrest and conviction records can be important, particularly if the arrest or conviction record is related to the job being offered, such as the check fraud conviction of someone applying for a job with financial responsibilities. While such a fact should not necessarily be the only criterion in making a decision not to hire, it may be used if you can show job-relatedness.

Civil Suit Records: Records of civil suits can sometimes provide important information about an applicant. If an applicant has an unusually litigious nature (demonstrated by being listed as a plaintiff In a number of suits), he or she might not make a productive member of your team. The same may be true if the applicant is a defendant in a number suits. This is not to say an applicant shouldn't be involved in a suit -- that's a constitutional right -- but it may provide insight into a past that is unusually punctuated with lawsuits.

Worker's Compensation Claims: Some people make a living out of worker's comp claims. Fraudulent claims are a major factor in the high cost of insurance premiums in some companies. Other applicants have no intention of making a false claim, but have a history of injury that may make them unsuitable for the job in question. Each state keeps a record of Worker's Comp claims, and you can search those records to make sure the applicants you are considering don't have a history of injuries or claims that they haven't told you about.

Educational Degree Verification: Many employers take an applicant's word about a degree, and rarely check with the educational institutions. Yale University claims to get only five inquiries a month from employers checking references. Often applicants list the college they attended and either list a degree different from the one they actually received or claim a degree when they didn't actually graduate. Others simply falsify their entire educational history or lack of it.

You can query the institution and get a written statement of the actual degree received. This can be invaluable in jobs where a degree really counts, particularly with younger employees, whose lack of on-the-job experience may make a degree their only asset. The federal Family Educational Act may limit our access, and it's vital to have a release.

Military Records: The Freedom of Information Act allows you to access military records easily. Through the Defense Locator Service in Washington, D.C. (or locator services for the individual services), you can receive a verification of military service and the place and time of discharge.

Professional Associations and Licensing Boards: Almost every profession has associations and licensing boards. If an applicant claims to have worked in an occupation that has such an organization, you may find valuable information from his local association, beginning with membership. If he claimed to have been a realtor, for instance but didn't belong to the local Board of Realtors, you may want to ask why. Associations can also tell you if there were any complaints filed against the applicant.

Credit Reports: It may be important to you to have an idea of an applicant's fiscal responsibility, and a credit report can show their debt load, their payment history and information on civil actions, such as judgments, liens or bankruptcies.

Credit reports can let you verify information like previous addresses and previous employers. You can use this to double check information the applicant has given you, and it may help you form a picture of an applicant's sense of responsibility and reliability.

Using A Database Service
Unless you perform an exceptionally large number of records searches, you are probably better off to use a professional service. These services access databases across the country and can provide you thorough records searches for an inexpensive fee. These are helpful for a number of reasons. In today's mobile environment, a local search is likely to miss important data. A search of counties where an applicant is thought to have lived may uncover more information, although an applicant with an out- of-state criminal record may not disclose that he had lived in that state or county. Also, most people don't know their way around county records and don't find it convenient to go through the process to check on every employee. The database services are usually operated by professionals with investigative backgrounds who may be able to offer the benefit of their expertise in expediting a search.

Response Times: The time required to get the information back from the various agencies depends on the type of information and the agency reporting. Social Security number verifications normally come back within twenty-four hours. Arrest and conviction records, as well as Worker's Comp records, can take anywhere from two days to two weeks, depending on the state. A database service can process a request within minutes but has no control over the agencies from whom it is requesting the information. When agencies require requests to be made in writing, as some still do, the agency can handle that for you.

Your success with a database service will depend on the extent to which you do your homework. For each name you give them, there are hundreds (if not thousands) of people with the same name around the country. The better the information you can give them, the better the information you'll get back. If there are typos or mistakes in the information you provide, you'll get useless information back. If you have information on previous employers, landlords, military or education history, make sure you provide it.

(Reprinted with permission from The Advisor, vol 7, No 4. Copyright © 1991, all rights reserved. Published by Delphi House, N. Sam Houston Parkway E., Suite 990, Houston TX 77060. Publisher: Carl E. King. Editor: Dain Dunston)