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Posts Tagged ‘Hiring Employees’

Ready to Hire Employees? Here’s How to Do It Better

Thursday, January 27th, 2011

Some employers are out of practice when it comes to hiring employees. Maybe it’s been a couple of years since you’ve had enough business to justify adding staff–so if you’re a little rusty, check out these quick tips for sorting through the applications, resumes and interviews and getting the best new employee possible.

  1. Revisit your needs: What do you really need help with? Where are the gaps in your current production or service offerings and how can you best fill them? Perhaps you need to hire three people, not one, as you planned. Or even better, a thorough needs audit may reveal you only need one new staffer, not two.
  2. Revisit the position you’re hiring for: Has it changed since you last filled it? For example, the employee who’s currently fulfilling the role may have taken on more duties through the recession. If so, adjust the job description and tighten up your requirements before you place any ads.
  3. Consider the new ways of recruiting job candidates: You might not have heard that not many job seekers use the newspaper’s classified ads anymore, but it’s true. Online job boards, social media sites, Craigslist and local news sites are probably your best bets for placing ads.
  4. But you might not need to advertise at all: word of mouth can be the most effective method to get new employees through the door. When you and your staff spread the word that you’re hiring, you’re more likely to have people you know apply for the job: customers, friends, family members and friends of friends will start coming through the door. These are likely going to be people already familiar with your company and its products or services. They may have a good feeling for the company culture and require less time to get up to speed.
  5. Hire for attitude, train for skill: Making sure a new employee fits your culture and has a passion for what you’re all doing there is vital to long-term success. Skills are important, but a positive, cooperative employee beats a grumpy, difficult genius any day of the week!
Hiring? The best pre-employment screening process includes employee background checks, employee credit checks, and criminal background checks. You’ll know you’re hiring safe when you screen employees before offering a position.

Difficult Economy Equals More Employee Theft

Thursday, December 9th, 2010

employee background checkCrime statistics show that thefts and burglaries increase during difficult economic times. So it makes sense that employee theft would increase as well. The news is filled with stories like the one from Minneapolis of a man who stole nearly $1 million from his employer, a wrecker company. It took him four years, but he managed to embezzle over $933,000 by cashing checks made out to the business or to vendors.

Theft is not always in the form of cash—but it can cost businesses plenty of that, too. Two Starwood Hotel executives stole information about its brand and used it to develop a competing hotel. Over 10,000 electronic and hard-copy files were stolen in this case, which resulted in a lawsuit against the competitor as well as the two employees.

Even your coffee server could be skimming money from her employer. One Dunkin’ Donuts employee admitted to ringing up sales for less, taking the full amount from the customer, and pocketing the difference. The woman claimed that it was in retaliation for having her hours cut due to the recession. She’s never been caught, although it seems like a few safeguards would make that easy. Requiring receipts would show customers that they are paying $2.00 for a coffee that’s being entered at $1.50. And keeping inventory on coffee cups, comparing them to sales by size, would indicate a discrepancy between what’s being entered on the cash register and what’s going out the door.

Most employers avoid the attention and bad publicity of employee-theft cases, so they don’t always prosecute—which only serves to prevent future employers from knowing the full criminal history on the thief.

Employee theft can happen anywhere, whether your business is “like a family” or a large, more corporate environment. School employees and coaches. Cashiers. Managers. Law firm assistants. Police records are full of scenarios where employers “can’t believe” an employee would steal from them.

The best way to prevent employee theft is to know whom you are hiring. And the best way to know that is to conduct thorough, professional background screening on every potential employee. You’ll know whether they are living among their means with a credit check and whether they have a criminal history with a criminal background check. Even whether they move around a lot to avoid paying back rent, or have evictions on their records—putting together a complete picture of a potential employee is one excellent means of stopping employee theft before it happens to you—especially in this economy.

SHRM Tells EEOC of “Compelling Public Interest” in Employee Credit Checks

Friday, November 19th, 2010

credit check, background check, employee background checkLast month the Equal Employment Opportunity Commission (EEOC) conducted a public hearing about employers’ use of credit history when making hiring decisions. The goal of the EEOC was to determine the extent of the practice, its effectiveness, and potential impact on various populations.

While some states have restricted use of credit reports in hiring decisions, most have not taken action against pre-employment credit checks. According to the EEOC Chair at the start of the hearing “questions have emerged about the fairness of the practice, whether the results…correlate to job performance and whether there are any adverse impacts.”

A representative from the Society for Human Resource Management (SHRM), a respected industry association, told the commission that the federal government should not eliminate an employer’s use of credit histories to make hiring decisions. Christine Walters said, “SHRM believes there is compelling public interest in enabling our nation’s employers…to assess the skills, abilities and work habits of potential hires.”

She also brought to the commission’s attention that employers typically do not conduct background checks and credit checks on employees until they are about the make a job offer. This contradicts the opposing belief that employee credit checks are discriminatory or represent a form of economic segregation.

SHRM Research on Employee Background Screening

  • Recent data revealed that only 13 percent of organizations surveyed conducted credit checks on 100% of job candidates. 47 percent take the credit history of candidates for selected jobs into consideration.
  • 91 percent of employers conduct credit checks only for jobs with financial or fiduciary responsibilities; 46 percent check the credit histories of senior executive candidates and 34 percent only check those who would have access to confidential employee information.
  • Four out of 10 organizations do not conduct credit checks.
  • Credit history ranked lowest on a list of criteria employers use in hiring decisions.
  • Medical bills are not typically considered when scrutinizing employee candidates’ credit histories. And only 11 percent of respondents consider home foreclosures.
  • The vast majority of employers—87percent—allow candidates the opportunity to explain their credit check report results.

Walters also told the EEOC that while employers typically don’t tell candidates they can’t work for them because they have bad credit, they want the option to use credit histories to help determine which candidate is the most qualified. The Commission did not disclose whether it will issue any guidance on the issue of employers’ use of credit histories.

What Employee Traits are Employers Looking for Today?

Wednesday, November 3rd, 2010


pre employment screening, background check employeeHiring employees
has been off the to-do list for business owners struggling to recover from a down economy and for those who are again starting to do well after a couple of tough years. So, what has changed? Have employers’ needs changed due to a different economic reality? Have potential employees changed, too?

Ask a dozen employers what they’re looking for in employees today, and you’ll probably hear a variety of answers—as well as some commonalities. Here are a few answers we’ve received to that question:

Attitude: “I’m seeing a new commitment to work from potential employees,” says Andrea, a floral shop owner. “A respect for me as an employer and a real desire to work is replacing the ‘you owe me a job’ attitude that some employees exhibited over the past several years.” Andrea says hiring for attitude is her #1 goal. “Positive people contribute to a great company culture and make customers feel great about dealing with my company.”

Appreciation: “I want people who appreciate my company and my customers,” says Kevin, a heating and air conditioning company owner. “They represent me with every interaction and I can’t afford to hire employees who are not customer-centric.” Kevin makes sure he asks every potential employee to give examples of how they have gone above and beyond for customers in their previous jobs. “If they can’t answer that question, I won’t hire them.”

Excellent references: With so many more people looking for work, it pays to know whom you’re hiring. Checking with previous employers, running pre-employment screening checks and calling references are more important then ever before.

Easier recruiting: Your best new employee could be a link or two away. “I ask my contacts on LinkedIn for referrals when I’m hiring,” said Jeanne. “And, I ask my employees if they know of a good person for a particular position.” Employees usually try to make good recommendations, since it reflects directly on them.

Community involvement: “I always look closely at applicants who say they volunteer or are otherwise active in the community,” said Mark. “Their contacts usually become my customers.” And it goes both ways. Mark says he works toward supporting the groups hisvolunteer with. “It makes for a better community, which is important when times are tough.”

Alternatives to Traditional Salary-and-Benefits Offers

Wednesday, September 29th, 2010

employee screening, pre-screening, employment screeningUnemployment is still stubbornly clinging close to the 10% mark. Talented people have been out of work for 12, 18, even 24 months or more. Many are getting desperate; some might consider “desperate” an optimistic view of their situation.

If your company is hiring, plenty of highly-experienced workers might be willing to do almost anything to land a position—any position. We’re hearing reports of job candidates agreeing to more employer-friendly hiring conditions, such as working for greatly-reduced salaries, accepting limited benefits packages, trying out performance-based pay and taking temporary positions.

Some employers see offering temp-to-hire jobs as a win/win way to add needed staff without maximum risk. Others are using contract freelancers in the same way, with even less risk, since they do not come onto the payroll until a hiring decision is made. Several innovative companies are offering an ownership stake in lieu of higher salaries and benefits—which works well for risk-taking, entrepreneurial types of employees.

These new-reality ways to add staff without increasing expenses or risk are worth considering if your company is teetering on the edge or rebounding from the recession. But remember—whether you offer lower salary, part-time work, temporary positions, or a stake in your company, don’t make the mistake of skipping the pre-employment screening process.

Reducing risk by hiring temporary or part-time employees is a wash if you increase the risk to your company by leaving out background checks. All contract, temporary and part-time workers should be properly pre-screened. And before you offer a stake in your company to a new employee, don’t you want the peace of mind that comes with knowing you’ve conducted all the criminal and credit checks you can?

Who knows how long unemployment will remain at this rate, or how much longer employers will be able to hire such high levels of talented employees under favorable conditions?

Is that Independent Contractor Actually an Employee?

Wednesday, September 22nd, 2010

Employers have weathered the economic storm in a variety of ways. Some have replaced laid-off workers with independent contractors, usually known as “consultants,” or “freelancers.” The advantages to employers are many: no payroll taxes, social security or benefits to pay. And, no guilt when it’s time to end the contract—freelancers are used to short-term employment! Independent contractors can be the answer to one of an employer’s biggest headache—payroll.

The downside is when that invisible line is crossed and an employer misclassifies an employee as an independent contractor. Whether it is done intentionally or not, the IRS does not like missing out on revenue it is owed.

And since deficits are so high, those misclassifying employees will be a target of the additional 100 agents the IRS is hiring for fiscal year 2011. Random audits of 6,000 businesses over the next three years is planned.

How to Determine Whether a Worker is an Employee or Independent Contractor
According to the IRS, it’s a matter of degrees of control and independence in the following three categories:

  • Behavior: Do you control what the worker does and how they do their job?
  • Financial: Do you control the financial aspects of the worker’s job, such as when they are paid and who provides and pays for tools, supplies, etc.?
  • Type of Relationship: Is there a written contract? Are there benefits provided to the worker? Is the work performed a key aspect of the business?

There are no real guidelines to help employers determine whether a worker is an employee or independent contractor. The IRS recommends businesses weigh all these factors and acknowledges that factors that are relevant in one situation may not be relevant in others. The keys, the IRS says, are to “look at the entire relationship, consider the degree or extent of the right to control, and document each of the factors used” in making the determination.

If the determination cannot be made, either party may file a Form SS-8 and the IRS will review the form and officially determine the worker’s status.

Do Your Employees Know the Full Value of Working for You?

Thursday, September 16th, 2010

pre employment screening, employee background checkI was once presented a job offer that included the usual items: salary, health benefits and number of paid vacation days. But the smart businesswoman I would come to work for included a few extras. She itemized the yearly value of my health insurance package, the amount of Social Security Taxes the company would pay on my behalf and the contributions the company would make to the state worker’s compensation fund.

The salary number was great—but seeing the real numbers behind the perks (mandated or not) really opened my eyes to the value of this company bringing me into their employ. Value to me; cost to them.

Years later, when I had my own company and was hiring my own employees, I used this same tactic. Whether it impressed my staff as much as it did me, I don’t know. But I, too, wanted my employees to how hiring them would put more money in their pocket than their net paycheck might indicate.

If your employees are unaware of the real cost of their employment—and the real contribution you as an employer are providing to their well-being and their future—remember, there’s no law against telling them.

6 Benefits Your Employees May not See

  1. Vacation: How much is their paid time off worth? Two weeks and a half-dozen or so paid holidays can add up to thousands of dollars. Your staff might think they’re owed paid vacation (and of course everyone deserves time off), but it is still a hit to the company’s bottom line.
  2. Social Security and Medicare: This is a big one. Do your employees realize that you contribute up to $6,621 per year to their future Social Security earnings? And 1.45% of their earnings to Medicare, with no cap? Chances are they do not. Informing them of this fact might just make them appreciate you someday!
  3. Unemployment: When an employee is laid off, the first thing they usually do (after sleeping in) is file a claim for unemployment benefits. Do they realize that you, the employer, is obligated to pay into this fund? Probably not.
  4. Worker’s Compensation: Just as your company makes unemployment contributions on its employees’ behalf, they might not know that worker’s comp is also available to them because of employer-paid premiums. All they know is that they can file a claim when they’re injured and collect the payments.
  5. Retirement plans: Whether it’s through profit sharing or contributions to a 401K, a company-paid retirement plan is free money in your employees’ pockets. They should understand that it’s optional and generous.
  6. Health Insurance: It might seem obvious, but seeing the dollar value of a year’s worth of paid health insurance premiums can really open an employee’s eyes to the sacrifice employers make to do the right thing.

Disclosing to your employees the true cost of bringing them into your company can be a good thing, when handled correctly. In my case, my employer made me feel very fortunate to be hired, and communicated a real commitment to her employees. Making an employee feel like a burden is the wrong approach.

Interviewing Candidates: It’s More than Just Asking Questions

Thursday, September 9th, 2010

employeescreeningblog.com, employment screeningWhen that nervous job applicant walks into your office, it’s not enough to just ask questions and take notes. There are so many personality quirks, body language giveaways and clues to a candidate’s skills or lack thereof that you could be missing. Taking stock of a potential employee’s complete package is a better way to evaluate a good fit for your company.

Six Other Things to Look for in Job Candidates

Do they pay attention to the little things? We’ve heard of flawlessly-produced resumes followed by a thank-you email full of errors and misspellings. Or a cover letter addressed to the wrong company. A telephone message returned more than 48 hours later. Even of candidates parking in a handicapped space. Lack of attention to these details is an indicator of things to come.

Are they polite? An HR manager we once knew followed every interview with a quick walk through the company’s offices, asking receptionists and others who had contact with the candidate how they were treated. She often heard that an applicant who was exceedingly polite to her was surly to the staff.

Are they engaged? Showing an interest in the position duties, the company culture, the department, and the person they’ll report to are good signs. An interviewee who has absolutely nothing to say when asked if they have any questions is either unprepared or uninterested.

How are their phone manners? Telephone interviews are more common these days. While not as formal as an in-person interview, serious candidates will take them seriously. That means no taking calls at a party or the mall, no laying in bed for the call, and definitely no munching, crunching, drinking or smoking.

Do they follow instructions? Do you offer interviews to candidates who do not provide a cover letter, even though your advertisement asks for one? Then why are you surprised when they become employees who do not follow instructions properly?

Are they on time? This is a no-brainer. Unless there was an accident or other unavoidable circumstances, there is no excuse for being late to an interview.   Conversely, it’s rude to show up for an interview more than 10 minutes early. Candidates who are too late or too early think their time is more important than yours.

When you pay attention to a job applicant’s complete package, you may find the real truth about whether or not you should hire them. And don’t forget to conduct thorough pre-employment screening for background information you need to make the right hiring decision.

Is it Hiring Time Yet?

Thursday, July 22nd, 2010

criminaldata.comWhen it comes to the economy, everyone seems to be waiting for something to happen. Reports we used to pay little attention to, like unemployment, consumer confidence, savings rates and housing starts, capture our attention and are analyzed closely.

Employers are no exception. They’ve weathered the economic storm, and many want to know if it’s ever going to turn around. You may be asking yourself if it’s time to spend some of the cash you’re holding on to, or if it’s time to hire again. Or you may just want to know if you can exhale yet!

We can’t tell you the answer to Questions 1 & 3, but here are some tips for question #2: How do you know if it’s time to hire?

1. You and your employees are stressed out. You might have cut positions, combined workloads, or just kept piling tasks on yourself and your staff. If your people are starting to show signs of discontent, are leaving things undone, or are threatening to walk out—you know you have a problem. It just might be solved with a new employee.

2. You are profitable. Profitability is a very good sign. But only when it happens for several months in a row. Much of this depends on your business, but if you’ve been turning a profit for 18 months, and your current staff is overworked, it might be time to hire. If you’re not steadily seeing profits, see #3.

3. The new hire will produce profit. If you’ve crunched the numbers and a new hire will pay for him or herself and then some, what are you waiting for?

4. You’re paying for temps or independent contractors. If there are services you need enough to pay higher temp and contractor fees, can you afford to turn that expense into an employee? Consider hiring a good-fit contractor or temp. If they have skills you need, then find a way to create a sustainable solution.

When you make the decision to hire, be sure to properly screen employment applicants. Pre-employment screening is an easy way to mitigate the risk of hiring staff with questionable backgrounds, criminal histories, or unacceptable credit problems.

Hiring Tips for “Do It All” Small Business Owners

Wednesday, June 23rd, 2010

employeescreeningblog.comEntrepreneurs are accustomed to “doing it all.” Their work styles make them self-starters, hard drivers and hard workers. One result is that sometimes, entrepreneurs are unable to let go. They believe the idea that if they don’t perform every task, it won’t get done properly—or at all.

However, this approach is not healthy for either the entrepreneur or the business. Hiring a “second in command” person is not always seen as priority for “I can do it all” business owners—but it is something they should absolutely consider.

This high-level employee can be invaluable to busy business owners, enabling them to focus on larger projects like strategic planning, or emergency problems requiring the owner’s full attention. They can also literally save their lives, by reducing the stress, lack of sleep, and poor health habits that plague most workaholic control junkies.

Hiring a second can save a business, too. What if the owner is the sole information of vital company information? How long would it take the business to recover if something happens to him or her? What about the employees, vendors, and customers who depend on the company—what happens to them if the business owner becomes ill, suffers an accident, or dies unexpectedly?

Not letting go of control is just too risky—for most every business. And while “I must do it all” entrepreneurs might think they’re the only ones capable of handling the details of running their businesses, chances are they lack a number of skills. After all, nobody can truly “do it all.”

Besides, when objectively analyzed, most day-to-day operations can easily be handled by a qualified executive-level hire. It’s best to recruit a second-in-command with skills the business owner lacks; a complementary work style is beneficial, too.

So if you’re a business owner who thinks you’re the only one who can do it all, think again. The job market is full of super-qualified people who could give you your life back—and make your business more productive, efficient, and successful.

Because this is such a crucial position, due diligence is a must when hiring a second-in-command. Check references, and run a thorough employee background screening to be sure you’re hiring someone you can really trust.