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Hiring the Right People

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The Role of Background Screening and Risk Management in Building a Better Workforce: Our latest slideshow looks at key concepts employers should know about background screening; the connection between your hiring process and organizational risk management; and major classes of risk that can be mitigated through employment screening.

The Role of Background Screening and Risk Management in Building a Better Workforce: Our latest slideshow looks at key concepts employers should know about background screening; the connection between your hiring process and organizational risk management; and major classes of risk that can be mitigated through employment screening.

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Hiring the Right People

  1. 1. HIRING THE RIGHT PEOPLE The Role of Background Screening and Risk Management in Building a Better Workforce
  2. 2. If you have the wrong people on the bus, nothing else matters. JIM COLLINS, GOOD TO GREAT
  3. 3. Finding the right people requires a hiring approach that is: Fair to applicants Delivers the best employees possible to the organization
  4. 4. At every step in the hiring process, and particularly in background screening, HR managers should address the threats of risk directly.
  5. 5. Position Description Background Screening Key Steps in the Hiring Process Sourcing Filtering The First Interview Contingent Offer Final Interview
  6. 6. Background Screening 6 Key Concepts
  7. 7. Employers have a right to use background screening in making employment decisions. 1
  8. 8. Screening should be job-related and serve a business necessity. 2
  9. 9. The specific items researched in a background check for a job should be consistent for every applicant, and used consistently in decision-making. 3
  10. 10. In general, employers should avoid blanket background check policies. 4 APPLICATION Have you ever been convicted? [ ] yes [ ] no Beware of “the box” and other blanket criteria that may unfairly disqualify an applicant.
  11. 11. Adverse action against an applicant should follow the two-step process defined by the Fair Credit Reporting Act 5 ADVERSE ACTION 2-STEP 1 PRE-ADVERSE ACTION NOTICE 2 ADVERSE ACTION NOTICE NOT ACCEPTABLE NO HIRE CANDIDATE RESPONSE EXPLANATION / DISPUTE OKNOT OK FINAL DECISION ACCEPTABLE HIRE!
  12. 12. If a background check for an applicant indicates they have arrest or conviction records, an individualized assessment is recommended. THE “GREEN” FACTORS 1. Nature & Gravity of Offense 2. Time Elapsed Since Offense & Sentence 3. Nature of Job 6
  13. 13. THE CONNECTION TO RISK
  14. 14. Organizations have humans engaged in many complex ways to achieve common purposes.
  15. 15. Their interactions within the organization and between it and external entities create risks of different types.
  16. 16. These human-generated risks create liabilities or expose the organization to losses of capital, reputation, or market share. Capital Market Share Risk
  17. 17. 5 Classes of Human Capital Risk Mitigated through Employment Screening: Occupational fraud Employee profile changes Employee turnover Catastrophic workplace events Negligent hiring and retention
  18. 18. Occupational Fraud It can happen to you. of top line revenue is lost to fraud in any given year. Fraud occurs in all types of organizations and at all levels.
  19. 19. changes to employee profiles The person you hired today can be a “different person” tomorrow. Perform regular background screening to verify such factors as maintenance of professional licensing, maintenance of acceptable driving records, drug use, and criminal histories.
  20. 20. employee turnover & risk renewal Anytime you have to hire, you expose yourself to routine hiring risks. When there is a shortage of labor or positions need to be filled quickly, the risks can be greater as there may be a tendency to hire less qualified applicants or to hire out of desperation.
  21. 21. Take advantage of repetitive hiring by analyzing your employee performance data to ensure the screening process is more targeted and more efficient. Tips to mitigate turnover risks: Use background screening to help identify replacement candidates within your workforce. Boost the number of applicants you screen if possible. Work to find those “good apples.”
  22. 22. catastrophic workplace events Employment Screening: • Helps prevent workplace violence and promotes a more productive workplace culture. • Helps to verify key qualifications and characteristics that may improve the chances of an employee performing well on the job. • Prepares your organization for the likelihood of a litigious aftermath of a catastrophic event. IN THE YEAR 2013: 3,007,300 nonfatal injuries and illnesses in private industry 4,405 workplace fatalities 397 workplace homicides – National Census of Fatal Occupational Injuries in 2013
  23. 23. negligent hiring & retention Background screening helps to mitigate the risks of negligent hiring and retention: Screening helps to exclude risky applicants. Screening for relevant factors helps provide an effective defense against charges of negligence.
  24. 24. When you make better hiring decisions, you can better mitigate the human capital and hiring-related risks that impact your organization. It’s a win-win.
  25. 25. Learn more about hiring the right people. Download our complete guide to best hiring practices at proformascreening.com/lp/hiring-best-practices/ GETTING THE RIGHT PEOPLE ON BOARD Tips for a Fair and Effective Hiring Process Best Hiring Practices Proforma Screening Solutions delivers a wide range of background checks and background screening services to help companies make better hiring decisions. Learn more at proformascreening.com or call (866) 276-6161

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