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WELCOME TO THE OPENEDGE
Helping Clients to Stay Informed and Up-To-Date
Client Newsletter | April 2008
OPENonline's Quarterly Newsletter - The OPENedge
Volume 10, Issue #06 | April 2008
President's Message
by President and COO, Rich Henderson

In this fast-paced business environment, it can be a challenge to find enough time in your day to accomplish all of your tasks. As a current OPENonline customer, you are already familiar with our extensive menu of background screening services. OPENonline has developed a special employment screening tool that has been designed to assist your busy HR Department - SelectHire®.

With SelectHire®, OPENonline's skilled staff works with you to customize a package that fits your company's hiring requirements, and could include items such as employment and education verifications. Ordering a report is easy. Simply enter the applicant information one time, select the desired screening package from your company's customized menu, and we do the rest! Our representatives, who are certified Safe Hiring Specialists, perform the searches you need and return the results quickly to you online in a summarized, concise, easy-to-read report.

You can be assured that our staff will go the extra mile to assist you in making the best possible hiring decisions for your company. We have the expertise to review the reports and notify you when applicants meet the hiring criteria that you've identified.

This competitively priced service will not only save you time, but you will be assured of consistency and compliance because you're using our background screening experts.

If you'd like more information regarding SelectHire®, please contact us at 800.935.6736 or by email at info@openonline.com.

OPENonline Customer Support Staff Earn Safe Hiring Certification

OPENonline's Customer Support and Compliance staff has gone back to school - to earn their Safe Hiring Certification. This training is an essential professional development certification for anyone with the responsibility for hiring or screening. Graduates of this program learn skills that minimize the risks due to negligent hiring and obtain the knowledge necessary to implement an effective, legal Safe Hiring Program.

This comprehensive course has been organized so that individuals may develop the critical policies, practices and procedures to implement a Safe Hiring Program in their respective companies. Key concepts of the course include:

  • Effective employment applications, interview processes, and reference checks.
  • Legal use of criminal records, credit reports, social security traces, drug tests, education & credential verification and other critical screening tools.
  • Compliance with discrimination & privacy laws, the Fair Credit Reporting Act (FCRA) and state FCRA type laws.
  • Development of the skills needed to perform a 25-point Safe Hiring Audit on your own firm.
  • Learn the issues required to select an effective background screening company.
  • Development of the skills needed to demonstrate due diligence and minimize the legal risks and costs related to poor hiring decisions.

Safe Hiring Certification is just another way that OPENonline strives to provide the best possible service to its customers. For more information about the Safe Hiring Certification process, call our Customer Support Line at 800-366-0106 or email us at customersupport@openonline.com.

New Regulation Would Restrict SSN Use

A new regulation proposed by the U.S. Office of Personnel Management (OPM) would significantly restrict use of Social Security numbers (SSNs) throughout the federal government as a way to combat identity theft.

Some federal agencies have taken steps to reduce their use of SSNs in certain functions, but there are inconsistent approaches and standards that can lead to misuse of those numbers, according to the OPM.

The proposed new regulation calls for:

  • Added wording that restricts collection and use of employee SSNs in employee records and human resources information systems.
  • Adding wording that requires special safeguards for automated records.
  • Restrictions on collecting and using SSNs would include:
    • Agencies would not use the SSN as an employee's unique identifier in internal or external data processing activities.
    • Agencies must make sure SSNs are not printed, such as on forms or reports, or displayed on computer screens.
    • Agencies must restrict access to SSN to those with a legitimate business need for that information, and maintain and regularly review a list of everyone who has that access.

Efforts are under way to develop requirements for a new government-wide employee identifier to replace the federal agencies' use of Social Security numbers as their primary employee identifier for business activities. The complete proposed regulation can be seen in the Federal Register at www.federalregister.gov.

Trend Watch: Increased Screening of Temps, Independent Contractors and Vendors

A tightening labor market means that companies may increasingly be hiring temporary, contingent or short-term employees. According to the American Staffing Association, temporary or contract employees make up 10 to 30 percent of the average workforce at U.S. companies - a much larger percentage than it was a decade ago. Screening the extended workforce is one of the five most important HR trends for 2008, according to a Staffing Management survey.

Industry statistics reported by the American Staffing Association show that temporary workers are more than 50 percent likely than full-time workers to have a felony or drug-related record. HR Departments need to be just as diligent in ensuring that the backgrounds of those employees are vetted as thoroughly as those of full-time employees.

Some employers have well-thought out screening programs for their employees, but routinely allow temporary workers, independent contractors and vendors access to their premises, clients, or computer systems with no idea of who they are. Employers need to examine their practices for screening members of their extended workforce and vendors. Putting an extended workforce screening policy in place that mirrors the one that is used to screen the full-time workforce is the best way to ensure that due diligence is performed on all employees - full-time or temporary.

If you have questions about this or any other service, contact OPENonline's Customer Support Department at 800-366-0106 or by email at customersupport@openonline.com.

Jury Awards $12 Million Verdict Against Apartment Owners for Negligent Hiring

A Los Angeles Superior Court jury recently awarded a $12 million verdict against an apartment owner that hired a maintenance man without first performing a background check. This maintenance man then raped and murdered a 30-year old tenant. The maintenance man was a convicted felon and a registered sex offender who was given keys and access to all apartments in the complex. This wrongful death case, brought by the victim's family, alleged that the maintenance man was the perpetrator, and that a background check would have revealed his criminal past.

This verdict underscores again the value of background checks in protecting human life. The apartment owners could have easily discovered this criminal record before any harm came to the other employees and residents of the complex. By failing to exercise due diligence in hiring, employers open themselves to this type of negligent hiring lawsuit. The old adage, "An ounce of prevention is worth a pound of cure" is relevant here.

If you haven't already done so, take a moment to review your background screening program. Contact our Customer Support staff at 800.366.0106 or by email at customersupport@openonline.com if you have any questions or if you would like our assistance to improve your existing program.

Increased Red Flags Seen as More Background Screenings are Performed

The percentage of "hits" or "red flags", showing up in background checks is increasing as more companies are opting to conduct more complete background checks for larger segments of their job applicant pools and current employees, according to the Society of Human Resource Management (SHRM).

Most of the red flags were seen in five areas: Reference Verifications (education, employment and credentials), Criminal Background Checks, Driving Record, Credit Reports and Workers' Compensation claim records.

Industries with the highest hit ratios include:

Reference Verifications

  • Employment Verifications
    • Transportation - 56.5%
    • Construction - 54.3%
    • Nonprofit - 51.6%
  • Education Verifications
    • Nonprofit - 35.8%
    • Construction - 33.2%
    • Transportation - 27.5%
  • Criminal Background Checks
    • Construction - 16.1%
    • Automotive - 12.6%
    • Retail - 12.5%
  • Driving Record
    • Construction - 48.9%
    • Automotive - 47.8%
    • Retail - 12.5%
  • Credit Reports
    • Service - 55.9%
    • Business Real Estate - 51.3%
    • Automotive - 50.7%

According to SHRM, some trends are seen:

  • More thorough background checks include more complete data.
  • Companies are screening all employees, not just managers.
  • Smaller companies are recognizing the importance of screening.
  • Screening methodology is growing more sophisticated.

If you would like to have your current employment screening program reviewed by one of our Safe Hiring Specialists or if you have any questions about any other service, contact OPENonline's Customer Support Department at 800-366-0106 or by email at customersupport@openonline.com.

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