January 22, 2010 Background Checking: Conducting Reference Background Checks.
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Transcript of January 22, 2010 Background Checking: Conducting Reference Background Checks.
January 22, 2010
Background Checking: Conducting Reference Background Checks
Background Checking | ©SHRM 2010
Conducting Reference Background Checks
2
Background Checking | ©SHRM 2010
Reference Background Checks
For the purpose of this research, the phrase “Reference background checks” refers to any verification of information provided by a job applicant (e.g., employment history), or communication with people regarding the job applicant (e.g., former supervisor or co-worker). It does not include credit and criminal background checks.
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Background Checking | ©SHRM 2010 4
Does your organization, or an agency hired by your organization, conduct reference background checks for any job candidates?
76%
22%
2%
All job candidates
Selected job candidates
No, my organization does not conduct this type of background check for any of its job candidates
Note: n=433. Respondents who responded “Not sure” were excluded from the analysis.
Background Checking | ©SHRM 2010 5
Which category of job candidates does your organization conduct reference background checks on?
Job candidates whom are placed at specific clients locations
Job candidates for positions involving national defense or homeland security
Job candidates who will work in health care or with access to drugs (e.g., hospitals, nursing homes, clinics, pharmacies, rehabilitation centers)
Job candidates who will work with children, the elderly, the disabled, and other vulnerable populations
Job candidates for positions that applicable State law requires a background check (e.g., day care teachers, licensed medical practitioners, etc.)
Job candidates who will have security responsibilities (e.g., security guards)
Job candidates who will be employed in safety-sensitive positions (including operating heavy equipment, transportation, etc.)
Job candidates for senior executive positions (e.g., CEO, CFO, CHRO, etc.)
Job candidates who will have access to company or other people's property or otherwise placed in a position of financial trust (e.g., information technology, administrative services, cleaning crews)
Job candidates for positions with fiduciary and financial responsibility (e.g. handling cash, banking, accounting, compliance, technology)
Job candidates who will have access to highly confidential employee information (e.g., salary, benefit, medical information or other personal information about employees, etc.)
0% 10% 20% 30% 40% 50% 60% 70% 80%
14%
19%
22%
24%
34%
45%
47%
59%
62%
72%
76%
Note: (n = 86) .The data in this figure represent organizations that conduct reference background checks on select job candidates. Percentages do not total to 100% as respondents were allowed multiple choices.
Background Checking | ©SHRM 2010
In general, how frequently does your organization, or an agency hired by your organization, conduct any of the following reference background checks for its job candidates?
Verification of articles published, speaking engagements
Military discharge information
Government agency record search
Verification of past salaries
Check for malpractice or professional disciplinary action
Driving record check
Verification of certifications, licenses, etc.
Verification of former job responsibilities
Verification of schools, colleges, and/or universities attended
Verification of degree(s) conferred
Verification of former job titles
Verification of dates of previous employment
Verification of former employers
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
61%
47%
46%
23%
37%
13%
12%
13%
12%
10%
6%
4%
2%
25%
16%
16%
22%
22%
13%
14%
12%
17%
15%
5%
4%
3%
12%
20%
21%
31%
16%
47%
37%
34%
26%
26%
23%
16%
14%
2%
17%
17%
24%
25%
27%
37%
41%
45%
49%
66%
76%
81%
Never Rarely Sometimes Always
6Note: n=301-398. Respondents who responded “Not applicable” were excluded from the analysis.
Background Checking | ©SHRM 2010
In general, how frequently does your organization, or an agency hired by your organization, conduct any of the following reference background checks for its job candidates?
Nonprofit organizations conduct verifications of the following more than other sectors.• Verification of schools, colleges and/or
universities attended: NP (65%) > Privately (PFP) (36%)
• Verification of degree(s) conferred: NP (66%) > Privately (PFP) (40%)
• Verification of certifications, licenses, etc.: NP (74%) > Publicly (FP) (32%), Privately (PFP) (23%)
• Verification of schools, colleges and/or universities attended: Large (50%) > Medium (34%)
• Verification of degree(s) conferred: Large (54%) > Small (36%)
• Driving record check: Medium (40%) > Large (22%)
• Verification of certifications, licenses, etc.: Large (41%) > Medium (26%)
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Comparison by Organizational Sector
Note: Comparison by organizations’ sector, staff size and scope of business represent those who answered that their organizations “always” conduct reference background checks. Privately owned for-profit organization = Private (PFP) Publicly owned for-profit organization = Publicly (FP) Nonprofit organization = NP Government sector = Govt Small = 1-99 employees Medium = 100-499 employees Large = 500 or more employees
Comparison by Organizational Staff Size
• Verification of certifications, licenses, etc.: Primarily state based (58%) > Primarily nationally based (33%)
Comparison by Scope of Organization's Business
Background Checking | ©SHRM 2010
In general, how frequently does your organization, or an agency hired by your organization, conduct any of the following reference background checks for its job candidates?
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2009(n = 301-398)
2004 (n =268-
321)
Verification of former employers 81% 66%
Verification of dates of previous employment 76% 66%
Verification of former job titles 66% 53%
Verification of degree(s) conferred 49% 35%
Verification of schools, colleges, and/or universities attended 45% 34%
Verification of former job responsibilities 41% 37%
Verification of certifications, licenses, etc. 37% 41%
Driving record check 27% 30%
Check for malpractice or professional disciplinary action 25% 22%
Verification of past salaries 24% 19%
Government agency record search 17% --
Military discharge information 17% --
Verification of articles published, speaking engagements 2% 2%
Note: Table represent those who answered that their organizations “always” conduct reference background checks. Where possible, 2009 data are compared with 2004; a dash (--) indicates that this particular option was not asked in 2004.
2009 Compared With 2004
Background Checking | ©SHRM 2010
How often do you discover information that is inaccurate compared to what job candidates presented during the interview process when conducting reference background checks on job candidates regarding:
Military discharge information
Certifications, licenses, etc.
Former employers
Schools, colleges, and/or universities attended
Degree(s) conferred
Driving record check
Former job responsibilities
Government agency record search
Former job titles
Malpractice or professional disciplinary action
Past salaries
Dates of previous employment
Articles published, speaking engagements
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
24%
15%
11%
11%
9%
8%
7%
15%
8%
11%
5%
2%
18%
57%
58%
46%
46%
47%
46%
43%
55%
40%
60%
38%
32%
58%
16%
23%
39%
39%
40%
42%
46%
25%
47%
23%
51%
60%
16%
3%
4%
4%
4%
4%
4%
4%
5%
5%
6%
6%
6%
8%
Never Rarely Sometimes Always
9Note: n=107-365. Respondents who responded “Not applicable” were excluded from the analysis.
Background Checking | ©SHRM 2010
In general, after conducting reference background checks, if inaccuracies/misrepresentations were discovered compared to what the job candidate presented during the interview process what types of information are MOST likely to impact your decision to NOT extend a job offer?
Malpractice or professional disciplinary action taken against the job candidate as applicable
Certifications, licenses, etc. as applicable to position
Articles published, speaking engagements, etc., as applicable to position
Former job titles
Former job responsibilities
Schools, colleges, and/or universities attended
Past salaries
Degree(s) conferred
Dates of previous employment
0% 10% 20% 30% 40% 50% 60% 70%
1%
2%
3%
10%
11%
18%
25%
49%
64%
10Note: n=185. Respondents were allowed to select their top three options.
Background Checking | ©SHRM 2010 11
Does your organization allow job candidates, in certain circumstances, the opportunity to explain the results of their reference background check that might have an adverse effect on an employment decision?
71%
19%10%
Yes, after the reference background check is conducted prior to the decision to hire ornot hire is made
Yes, after the decision to hire or not hire has been made
No, not at any time
Note: n=371
Background Checking | ©SHRM 2010
What are the primary reasons that your organization conducts reference background checks on job candidates?
Other
To determine if salary history is accurately represented by the job candidate
To assess the overall trustworthiness of the job candidate
To comply with applicable State law requiring a background check (e.g., day careteachers, licensed medical practitioners, etc.) for a particular position
To ensure a safe work environment for employees
To reduce/prevent theft and embezzlement, other criminal activity
To assess past performance and predict future performance
To determine that credentials (education, position, skills, etc.) are accurately represented by the job candidate
To reduce legal liability for negligent hiring
0% 10% 20% 30% 40% 50% 60%
5%
1%
16%
19%
19%
21%
27%
35%
55%
12Note: n=369. Respondents were allowed to select their top two reasons.
Background Checking | ©SHRM 2010
Demographics: Organization Industry
Industry
Health care, social assistance (e.g., nursing homes, EAP providers) 18%
Services—professional, scientific, technical, legal, engineering 12%
Manufacturing—other 11%
Educational services/education 8%
Government/public administration—federal, state/local, tribal 5%
Financial services (e.g., banking) 5%
Transportation, warehousing (e.g., distribution) 5%
Insurance 5%
Retail/wholesale trade 4%
Construction, mining, oil and gas 3%
Other services (e.g., nonprofit, church/religious organizations) 3%
High-tech 3%
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Note: n=312. Percentages may not total 100% due to rounding.
Background Checking | ©SHRM 2010
Demographics: Organization Industry (continued)
Industry
Telecommunications 3%
Utilities 3%
Services—accommodation, food and drinking places 2%
Publishing, broadcasting, other media 2%
Arts, entertainment, recreation 2%
Consulting 1%
Manufacturing—auto/auto-related 1%
Real estate, rental, leasing 1%
Association—professional/trade 1%
Pharmaceutical 1%
Other 1%
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Note: n=312. Percentages may not total 100% due to rounding.
Background Checking | ©SHRM 2010
Demographics: Organization Sector
Government sector
Publicly owned for-profit organization
Nonprofit organization
Privately owned for-profit organization
0% 10% 20% 30% 40% 50%
8%
25%
25%
43%
15
Note: n = 319. Percentages may not total 100% due to rounding
Background Checking | ©SHRM 2010
Demographics: Organization Staff Size
Small (1-99 employees) Medium (100-499 employees) Large (500 or more employees)0%
10%
20%
30%
40%
50%
60%
70%
7%
28%
65%
16
Note: n = 312. Percentages may not total 100% due to rounding
Background Checking | ©SHRM 2010
Demographics: Organization Region
West
Northeast
South
Midwest
0% 10% 20% 30% 40%
19%
20%
29%
32%
17
Note: n = 312. Percentages may not total 100% due to rounding
Background Checking | ©SHRM 2010
Demographics: Organization Operations Location
Primarily nationally based
Primarily locally based Primarily state based Primarily multinationally based
0%
10%
20%
30%
40%
50%
43%
24%
18%14%
18
Note: n = 315. Percentages may not total 100% due to rounding
Background Checking | ©SHRM 2010
Background Checking
• Response rate = 19%• Sample comprised of 433 randomly selected HR
professionals from SHRM’s membership• Margin of error is +/- 5 • Survey fielded November 18 – December 4, 2009
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Methodology