Companies go out of business all the time when a simple background check could have protected them.
Cincinnati, Ohio (PRWEB) June 28, 2013
In the wake of news that NSA surveillance has breached privacy, criminal background check companies remind job seekers that employers already have access to information to help them avoid risky hires.
On June 24, ABC reported on this here:
As Edward Snowden evades intelligence officers from Hong Kong to Havana, and as civil rights groups raise concerns about the privacy of ordinary citizens, criminal background companies provide an important service for business owners. Information about arrests, credit history, employment history and educational history is available for employers to minimize the risk of bad hires.
With on-line access, employers are able to verify Social Security numbers, run credit checks, search criminal histories and more. When asked if this kind of access to information is a violation of privacy, Selection.com President, James Boeddeker says no. “We help employers identify risky hires and eliminate that risk. This reduces business loses and closures- it’s a real service to the business community. Employee theft, work-place drug abuse, absenteeism- all of these are expenses that companies can avoid by doing background checks. We see companies go out of business all the time when a simple background check could have protected them.”
Boeddeker’s claims check out. The American Council for Drug Education reports that more than 70 percent of substance abusers hold jobs. More alarming is the fact that one in three workers know of drug sales in the workplace. See more details here.
Research by the U.S. Small Business Administration shows that 40% of all new business failures are due to employee theft. Occupational fraud now results in the loss of five percent of annual revenue for every organization. See more details here.
Finally, the U.S. Bureau of Labor and Statistics reports that absenteeism and tardiness can equal up to 10% of annual payroll. Work-place absences are higher now than they have been in years. See more details here.
Boeddeker says that his company has compiled a database from over 1,300 sources which contains over 700 million criminal records. Is it legal to store this data or to share it with others? Boeddeker says yes. “We are in full compliance with the Fair Credit Reporting Act. More importantly, we help our clients comply with the law. In many cases employers do not know what’s required by law.”
The Fair Credit Reporting Act, or FCRA for short, provides protection of individual citizens and places a burden on employers using this sort of information. Even if civil rights groups wanted to stop the dissemination of this data, it’s unlikely that all the sources of data would shut down.
So, while the debate rages on about privacy of data among governmental agencies, it appears that criminal background research is an important part of a stable economy.
Selection.com has been a leading provider of background checks in Cincinnati and across the country for over 20 years. Thousands of clients across the country trust them with their business. Since they started, Selection.com has screened tens of millions of job applicants.
For more information or for an interview, contact Carl Brown at 513-522-8764.
Photos are used by permission from iStockphoto.