Most employers have a typical hiring process of advertising a position, weeding out applications, conducting interviews and hiring the best-fit candidate. However, there are extra steps in the process that you may be overlooking that could help your company hire better-quality employees, and even reduce your turnover.

Screening applicant resumes: While the number of applicants for a given position may affect resume review, there are some standard procedures you can implement to help make the best choice:

• First, make a list of your must-have and can-live-without qualities for your new hire. Is following the instructions for applying for the position absolutely critical? If you asked for a cover letter and an otherwise-standout resume is missing it, will it be tossed?
• Next, to avoid reading every word on every resume, determine what keywords best describe the employee you need to hire, and then scan resumes for those words.
• Be sure to apply the same parameters and requirements to every applicant.

Start conducting phone interviews: The purpose of a phone interview is to be certain a candidate understands the job description and requirements, and that the salary range aligns with their expectations. If it’s not a good fit for either side, going further is a waste of time.

Phone interviews are also a good way to determine if the candidate has the communication skills necessary for the position. If they’re applying for a customer service job, but cannot establish a good rapport over the phone, they will probably not be successful.

First-round interviews are typically the next step, for applicants who pass the initial screening and do well on the phone interview. Expect to spend 45 minutes to an hour with each candidate; if the interview is not going well and needs to be cut short, you may have a problem with your process up to this point. If the candidate is not a good fit or not qualified for the job, the resume screening and phone interview should have revealed this.

Follow up after the interview: Be polite—it can pay off! The frustration of job seekers can be exacerbated when they don’t hear anything after an interview. It’s just as important to make a good impression on potential employees as it is for them to make a good impression on you. Once you’ve eliminated a candidate from contention sure to send a brief email thanking him or her for their time and informing them that another candidate was selected.

Why is this so important? You never know what can happen, whether your first choice candidate declines the job offer, or you decide you’ve made a hiring mistake a month in. Plus, it’s all about your company’s brand—do you want to be known as a professional and polite firm or the onethat leaves people hanging? Developing good relationships with everyone who comes in contact with your company is a great way to spread goodwill.

Make the decision: When it’s time to choose the applicant who will join your company as an employee, look for enthusiasm and culture fit. If a candidate has the same basic skills as four other applicants, but is pumped up about coming to work and excelling, you probably have a winner. Before making the hire offer, be sure to conduct a pre-employment screening to ensure that the candidate’s credit and criminal history are clean. Keep your other employees and your company safe from potential harm with pre-employment background checks.

A recent survey of 1,400 workers by a Philadelphia management firm reported that 84 percent of respondents said they plan to seek a new job in 2011. What would happen if you surveyed your employees? Would the number be that high? And if they all resigned, how would your company look after the exodus?

Employers know that finding and keeping great employees is one of the toughest aspects of running a business. It takes a great deal of resources—both time and money—to hire a new employee, and there are no guarantees that a new hire will stick around long enough for the company to recoup its investment.

The tough economy has added to employee dissatisfaction. Working conditions at many companies have been difficult, with fewer employees doing the same amount of work. Benefits and hours have been cut, too, leaving plenty of people ready to jump ship as soon as hiring starts up again.

What can an employer do to keep a good employee from jumping ship? And how can one avoid a surprise batch of turnovers?

Listen and observe your staff. Do you see general apathy? A lack of enthusiasm for new tasks? Are people coming in late and leaving early? Your employees may be trying to tell you that all is not well.

Try moving people around to different positions. Cross training can perk up and employee, make their job more interesting and keep him or her from looking for a new job.

Engage your staff more often. If you need fresh ideas on how to improve sales, cut costs or increase customer satisfaction, hold a brainstorming session to get everyone’s input. Who knows your business and customers better than your staff? Asking for their help builds value.

Remember that keeping a good employee longer starts with recruitment. Hire for a great attitude and provide tools a new employee needs to succeed. And don’t overlook the importance of pre-employment screening. It’s the best way to know that you’re hiring a qualified and trustworthy employee and building a strong team.

One might think that the Capitol Police Department would know enough about criminals, persons of risk and habitual liars to avoid placing them on their staff. But last year, halfway through a 12-week training period, fifteen newly-hired recruits were asked to return to DC and resign—or be fired. The problem? They had either lied on their application, failed a criminal background check, or failed a psychological examination—but were hired anyway!

Despite what the Capitol Police describe as a “stringent recruiting process,” including a written exam, application review, interviews, background investigation, polygraph, medical exam and psychological evaluation, each of the fifteen recruits had made it through the hiring process. The result? Not only was the HR Director fired, but also affected were the fifteen families that had been relocated from all over the country. Fortunately, even more damage was prevented by the forced resignations—who knows what could have resulted from hiring these fifteen officers?

In another case, an adult home in Virginia was ordered to pay $750,000 to a disabled resident after he was sexually assaulted by a Certified Nursing Assistant employed there. The CNA had a criminal history before he was hired, and continued to rack up charges, including assault and battery and public intoxication while working for the facility.

Another scary example includes a teacher hired to teach middle school in Nashville, TN, even though he had been suspended from another Tennessee school system after allegations surfaced that he was engaging in misconduct with minors. Even more shocking is the fact that the teacher was hired despite having outstanding warrants for his arrest on sexual battery and rape charges. Not surprisingly, at the new middle school, he was accused of additional crimes involving two 14 and 15 year old students.

Hiring employees is no easy task; there are many risks involved, too.  Employers must take every available precaution when hiring staff, especially when the safety and well-being of at-risk populations, children, and the public are hanging in the balance. The lack of proper background screening in each of the above cases resulted in serious consequences for the employers—and unnecessary suffering for the innocent victims.

All employers must comply with the regulations of the Federal Consumer Reporting Act (FCRA)–whether you have one employee or one thousand!  Make sure you’re in compliance, and avoid making these common mistakes:

1. Using social media sites or a Google search as a background check: Browsing an applicant’s Facebook or MySpace page, or researching them through an internet search engine does not equal a background check.

2. Performing the background check yourself: Employers must ensure they are in compliance with the FCRA. The best, easiest way to accomplish this is by using the services of a reputable background screening company.

3. Burying the screening approval language in the application: You must provide a separate document to obtain the applicant’s approval for credit and background checks.

4. Failing to obtain the applicant’s signature: Applicant signatures must be obtained before you run any type of credit checks.

5. Improper disclosure when rejecting an applicant: If you reject an applicant because of poor credit history, provide them a copy of their credit report, along with the reason they will not be hired.

6. Failure to obtain permission from online applicants: You cannot simply state online that you will be performing a background screening and/or credit check—you must have an electronic approval from the applicant.

7. Inconsistency: You cannot require a background and credit check for some applicants, but not others. Inconsistent policy enforcement could lead to accusations of discrimination.

8. Believing that FCRA doesn’t apply: Even small employers are subject to the law. There is no distinction made between a one-person business and a huge corporation.

9. Not obtaining permission from current employees: If you decide to run credit checks on your employees after they were hired, you must disclose your intention and get their approval in writing.

10. Improper disposal of information: Employers must comply with the Fair and Accurate Credit Transactions Act of 2003 (FACTA), an amendment to the FCRA. This law requires proper disposal for information contained in or derived from a consumer report. That means no tossing reports in the trash can—they must be shredded or otherwise destroyed so they cannot be reconstructed. Digital information must be destroyed before a computer is sold or donated.

What do employers need to know about complying with the Fair Credit Reporting Act (FCRA)? It may seem unlikely that you would have to worry about legislation designed to protect consumers against unlawful use of their credit and personal information. But you must comply with FCRA if you:

• Want to check the credit history of an applicant for a cash-handling position;

• Intend to promote a long-term employee, but want to be certain they have a good credit record;

• Have already obtained a credit history on a job applicant, which is unfavorable; however, it is a lack of experience, not the credit record, that impacts your decision to not hire this person.

Employers are entitled to run consumer credit reports on applicants or existing employees at any time, providing they comply with the FCRA. Employers who use consumer reports have legal obligations under FCRA, which was designed to prevent applicants from being denied jobs or employees being denied promotions unjustly.

You cannot obtain a consumer report until employees or applicants have given their written permission for you to do so. This cannot be accomplished on the employment application.  A separate disclosure must contain the proper notification, and the employee must sign it.  If employees gave permission in the past, you must ensure that they receive a separate notice stating that reports may be obtained over the course of their employment. 

So, what if you didn’t include the disclosure and obtain permission during the hiring process and now you want to run reports on your employees? You must notify employees and get their written permission before you run the reports.

Who can supply pre employment screening reports to ensure an employer is in compliance? To be covered by FCRA, employers must use employee screening reports provided by a Consumer Reporting Agency (CRA). The reports can range from simple credit checks to criminal, housing, employment, and driving record checks. 

The FCRA requires employers to comply with reporting requirements. These include: 

• Certifying that the employer is obtaining information for employment purposes;
• The proper disclosure has been provided to and written authorization has been obtained from the applicant or employee; 
• The applicant or employee will be provided with a copy of the report;
• And the information will not be used in violation of equal opportunity laws.

What happens if you deny an applicant or a promotion based on information you obtained from a CRA? 

Before you take adverse action, such as terminating an employee, or denying a job or a promotion, you must give the individual a pre-adverse action disclosure, including a copy of their consumer report and a copy of “A Summary of Your Rights Under the Fair Credit Reporting Act.” This document can be provided by your CRA.

After you have taken adverse action, you are required to give the individual notice, either orally, electronically, or in writing, that the action has been taken. The notice must include the name, address and phone number of the CRA that supplied the report, as well as a statement that the CRA did not make the decision for adverse action and cannot give specific reasons for it. In addition, the individual must be notified that they have the right to dispute the accuracy or completeness of the information and their right to obtain a free report from the agency within 60 days.

Bad Hires can Break up Great Teams

Even one bad hire can have a huge impact.  A friend recently shared the story of a “nightmare” she once worked with at a small Midwest company. At the time, small teams interviewed each potential hire, and the boss made the final decision based on the group’s evaluation. In the case of the “nightmare,” everyone liked and recommended her. Except my friend.

Turned out she was right. The candidate looked perfect on paper and interviewed extremely well, but proved to be a dividing force with a biting personality. No one could work with her and the boss stood by his decision for far too long. She wasn’t dealt with until several long-term employees had already resigned—but by then she had nearly destroyed the entire company.

It’s very easy to be deluded by a perfect-sounding resume and a charismatic interviewee.  The trouble starts when those factors alone make up the hiring decision. In my friend’s case, the employment offer was made before proper reference checks were performed. Oops!  Finally, my friend did some sleuthing into the “nightmare’s” background, and found she overstated her education and understated her experience.  Phone calls were made to former employers, who said they wouldn’t recommend or rehire her.  But by then, it was too late—the good people had already left.

The story sounded unbelievable, but was 100% true—and it happens every day. It proves how overlooked policies—in this case, checking all references—can lead to real disaster. 

An easy way to avoid bad hires is to require background checks on all applicants. You can verify education, previous employment, military service, even credit—in one easy step.  And in my friend’s case, the “nightmare” with the false credentials probably wouldn’t have agreed to the pre employment screening—a big red flag in itself!

Don’t risk your company’s security to a single bad hire. Make pre employment background checks a standard policy for every single hiring decision!