Employment Screening: The Puppet Master of Background Checks

EMPLOYMENT SCREENING:   The Puppet Master of Background Checks

By Andy Andersen

 It’s not very often that I would intentionally attract attention to my competitors, but a recent development has prompted me to break with tradition because the subject merits full disclosure.

 A client shared this link with me today. It’s a new website, sponsored by FRS Software, promoting 11 background screening companies as “leading providers” to compete for your business when your company issues an RFP.

 Now I am not going to disparage any of the screening companies featured on this site because we do not build up our business by breaking down our competitors.

However, I am going to help educate readers about the difference between background screening companies that use a Third-Party Software platform like FRS Software and background screening companies that own and operate their own background screening software, like Precise Hire.

 Third-Party Software providers like FRS Software own and operate the background screening software system that processes orders and stores data for numerous background screening companies nationwide.

 There are many Third-Party Software providers that serve the background screening industry, including FRS, TazWorks, ClearStar, Deverus, BackChecked, Digital Delve and others.

 Very few companies that use background checks in their hiring process know about these Third-Party Software providers because the end-user only sees the background screening company’s website, logo and colors. It’s structured this way to create the perception that the background screening company is processing the orders, accessing the data, storing the data and securing the data. But this is not the case.

 Most Third-Party Software providers offer a reliable background screening platform with basic features and functionality. But they charge their clients – the background screening companies – a pretty steep service fee. Their fee covers hosting, customer service, invoicing, accounts receivable, data storage and many other services.

 This fee typically ranges from $2,000 to $10,000 per month, depending on how many services are being provided. And if the background screening company wants to add customized features for its clients, then additional charges will be applied.

 So what? This sounds like an innovative business model, you might be thinking.

Perhaps… but here’s the rub.

 In order to be profitable, a background screening company that leases space and support services from a Third-Party Software provider must recover the monthly fees it pays to be hosted on one of these systems.

 How do you think these fees are recovered?

 Of course! These costs are built in to their prices.

If you do business with a background screening company that uses a Third-Party Software provider, you will be paying artificially inflated rates that are substantially higher than you could expect from a background screening company that owns and operates its own software system.

 But price is not the only issue that may be cause for concern.

 Precise Hire used to be hosted with some Third-Party Software providers in the early days. We bounced around from one to the next, always angling for a lower monthly service fee so we could pass on savings to our clients.

The problem was, each time we left a Third-Party Software provider, they would not permit us to keep the background checks data that our clients had entered when placing orders. They wouldn’t even let us purchase the data. This made us extremely uncomfortable and is one of the main reasons why we invested in developing our own software.

 This is a problem because most companies (users) have no idea who possesses the confidential information of their applicants and employees. With so many recent stories about data breaches and the very real threat of identity theft, you really should have a business relationship with the company that controls your data.

 Perhaps this practice has changed since we were hosting with the Third-Party Software providers, but background checks data has value and most companies are loathe to part with something of significant value.

 Additionally, if there is ever a technological glitch with the background screening system, which may be causing a problem with orders or delaying reports, the background screening company is assuring their clients that a system fix is imminent, while pleading with the Third-Party Software provider to get the problem fixed. In other words, the background screening company has no direct control over the system. They can’t directly fix glitches, they can’t directly add customized features (without paying a steep fee that gets passed on to their clients), they can’t store data, they don’t secure any data and they can’t change data vendors to get better service at lower rates.

In other words, the background screening vendor – and the vendor’s clients – are at the mercy of the Third-Party Software provider, just like a puppet that is powerless until the puppet master pulling its strings.

 Knowing this, I must credit FRS for creating the RFP website mentioned above. This is a nice little bonus to help drive more business to its screening company clients. It’s hard to say if they are charging their screening companies a fee for this service, but it seems like a nice gesture on its face.

That said, this does nothing for the end user, who pays inflated prices while being at the mercy of a company that they likley didn’t even know existed and that they have no contact with whatsoever.

In terms of transparency and accountability for data management, system performance and price, it’s a model that can be extremely disruptive and potentially harmful to the companies that unwittingly rely on such a system for their pre-employment background checks.

The RFP website mentioned at the top of this post claims that the featured screening companies offer:

• Sophisticated web-based ordering and result viewing capabilities
• Highly compliant Applicant Management Center
• Integrations to your choice of HRIS or Applicant Tracking Systems

Actually, it’s the Third-Party Software provider (the puppet master) that offers these things to the background screening companies, who then pass it off as their own to the users.

At Precise Hire, we offer all of these things to our customers directly from our proprietary software that we own and operate.

 This means our development team is responsible for all features and functionality. Our development team programs the HRIS and ATS integrations. Our development team troubleshoots and fixes any technological glitches. Our development team manages the data, which our clients always have access to.

 Is your background screening vendor tied to a Third-Party Software provider? Have you ever talked with this company’s executives? How much do you know about them? If you have a contract with your background screening company, is their Third-Party Software provider listed in the contract for any accountability, financial stability or insurance purposes? You are using their software, after all. If not, why?

 If your background screening vendor is tied to a Third-Party Software provider, price is just one factor to consider – but access, accountability and knowing who possesses and controls the confidential data of your applicants and employees is quite another. At the very least, you should know who is really controlling the strings on your background checks.

  For more information on Employment Screening, please contact us:

866.773.5486  http://www.precisehire.com/  Precise Hire Employment Screening was founded by a top management team with expertise in Human Resources, Staffing, General Administration, Employment Screening, Telecommunication and Internet industries.

Our staff is highly experienced and knowledgeable. Precise Hire has over 25 years of combined experience in the Employment Screening, Human Resource and Internet businesses.

Therefore, our services provide the due diligence and security your company will need to ensure success for your employment screening needs.

Turnaround Time:  We provide accurate information quickly. Many searches yield instant results! With our state-of-the-art systems and network of nationwide researchers, most criminal searches are complete same day to 36 hours.

Convenience:  You have access to your employment screening account online, anytime, anywhere. Results can be delivered online, via email or fax.

Custom Tailored Solutions:  We can integrate directly into your HRIS/Applicant Tracking/Recruiting software. We can customize our system to meet your needs. We have designed delivery systems for Fortune 500 companies which link corporate offices to field operations allowing for information sharing. Our professionals can help you decide on the appropriate searches to run for your employees.

Monthly Invoicing:  You will receive an itemized statement monthly for easy record keeping. Payment is due on net 30-day terms. Here we can really flex our desire to make our customers happy.
Do you need a custom invoicing option? Do you need invoices subtotaled by branch or location? We can accommodate your needs here and get the invoice out of your hands.

Affordable Employment Screening:  There are no hidden charges, monthly fees or set up fees. There is no software to install or licensing fees. Precise Hire’s pricing is competitive, due to our nationwide network and volume pricing.

Employment Screening: Check Yourself Before You Wreck Yourself With New Self Background Check

EMPLOYMENT SCREENING:   Check Yourself Before You Wreck Yourself With New Self Background Check

By Andy Andersen

 As of this blog post, there are 319 million people living in the United States.

With so many people living here, it stands to reason that some folks share the same name and date of birth. This is certainly true for people with common names, but even some people with unique names share these traits as well.

 This can create some serious problems, especially when it comes to getting a job.

Consider the story of Catherine Taylor – a stay-at-home mom who wanted to start working again. Catherine applied at the Red Cross and was offered a job, but just a few days later the offer was pulled because her background check showed a lengthy rap sheet with drug felonies.

 Turns out, she was confused with a different person by the same name and date of birth. Of course, it took several weeks for Catherine to research and discover this error and by the time she did, the job was long gone.

 Most companies today run a background check before making a hiring decision. They do this to protect their workforce, vendors and customers, and to limit their exposure to negligent hiring claims. The background check helps reveal things like criminal history, employment verifications, education verifications and driving history, which helps the company determine a person’s suitability for employment.

 Among all of these searches, the criminal history is the most concerning and also has the greatest potential for error, based on the following reasons:

 – Criminal records are filed based on name and date of birth only. Everyone should know if their background check may be confused with someone by the same name and date of birth so they can be prepared to disprove a case of mistaken identity.

 – Identity theft is another cause for concern. Criminals who possess anyone’s Personally Identifiable Information (PII) will likely use this if they get arrested. Arrest records can be considered in hiring decisions so knowing if someone else has been arrested while using your identity can help avoid confusion during a job hunt.

 – A third reason for concern is that most background screening companies offer searches from public databases, which may contain bad information based on poor data entry or records that have been manipulated when the data was shared.

 Anyone one of these scenarios is entirely plausible and can quickly disqualify a job applicant from future consideration. This is why all job hunters should access their own pre employment background check before they start submitting resumes.

 Doing so will reveal any discrepancies that might be a red flag for the employer – and can be fixed (or explained) before the employer runs a background check.

 To see what an employer would see, the background check should be ordered from an official pre employment screening company. Some of these companies offer this service to people in transition, but only Precise Hire offers the comprehensive PEEK Report, which combines the following services:

 1 – Access to an official and comprehensive pre employment background check.

 2 – A Tip Sheet describing how to interpret the background check information and a

description of the laws that employers must follow when using background checks.

 3 – A 20 minute consultation with a pre employment screening executive to help understand the information and to receive detailed instructions on how to correct any bad information.

 4 – A PEEK logo that can be added to your resume and used on social network sites like LinkedIn, Twitter and Face Book, drawing attention to your status as a user of the PEEK Report.

 5 – An optional service is providing employers access to your PEEK account so they can view your background check first-hand, which can save them money.

 The benefits of using the PEEK Report include:

 1 – Knowledge: Accessing the PEEK Report will enable you to discover and quickly correcting bad information or shared identities.

2 – Honesty: Anyone who will invest in their own background check and share this information with a prospective employer is demonstrating that they are honest – and honesty is one of the most meaningful character traits to an employer.

 3 – Preparation: Running your own background check will enable you to see what the employer will see so you can be fully prepared and effectively explain anything that needs to be addressed during a job interview.

 All of this can help distinguish you from other applicants and ensure that you avoid any delays or worse, rejections, caused by inaccurate information.

 For more information on Employment Screening, please contact us:

866.773.5486  http://www.precisehire.com/  Precise Hire Employment Screening was founded by a top management team with expertise in Human Resources, Staffing, General Administration, Employment Screening, Telecommunication and Internet industries.

Our staff is highly experienced and knowledgeable. Precise Hire has over 25 years of combined experience in the Employment Screening, Human Resource and Internet businesses.

Therefore, our services provide the due diligence and security your company will need to ensure success for your employment screening needs.

Turnaround Time:  We provide accurate information quickly. Many searches yield instant results! With our state-of-the-art systems and network of nationwide researchers, most criminal searches are complete same day to 36 hours.

Convenience:  You have access to your employment screening account online, anytime, anywhere. Results can be delivered online, via email or fax.

Custom Tailored Solutions:  We can integrate directly into your HRIS/Applicant Tracking/Recruiting software. We can customize our system to meet your needs. We have designed delivery systems for Fortune 500 companies which link corporate offices to field operations allowing for information sharing. Our professionals can help you decide on the appropriate searches to run for your employees.

Monthly Invoicing:  You will receive an itemized statement monthly for easy record keeping. Payment is due on net 30-day terms. Here we can really flex our desire to make our customers happy.
Do you need a custom invoicing option? Do you need invoices subtotaled by branch or location? We can accommodate your needs here and get the invoice out of your hands.

Affordable Employment Screening:  There are no hidden charges, monthly fees or set up fees. There is no software to install or licensing fees. Precise Hire’s pricing is competitive, due to our nationwide network and volume pricing.

Employment Screening: Market Demands Inspire Innovation for Background Screening Technology

EMPLOYMENT SCREENING:   Market Demands Inspire Innovation for Background Screening Technology

By Andy Andersen

 The pre-employment screening industry is constantly evolving in response to corporate needs. In 2013, we are seeing some trends emerge that will impact how background checks are ordered and how background checks will significantly impact the hiring process.

 1. Dynamic Adjusted Pricing: For many years, background screening companies – large and small – have encouraged their clients to include a county criminal search in their background screening package. As part of this process, many background screening companies have been giving their clients access to “unlimited county criminal records” and charging them a premium. Industry research shows that a majority of people have lived in just two counties during the past 10 years so paying a premium for access to “unlimited” county criminal records is becoming a thing of the past. Modern background screening companies are now using Dynamic Adjusted Pricing, which is a new-technology feature that recognizes how many counties the applicant has lived in and charges the client accordingly. This means if the applicant lived in just one county, the client will be charged for a single county criminal record. If the applicant lived in two counties, then a two-county search will be executed and the client will pay for a criminal search in both counties. Only if the applicant has lived in three or more counties would the client be charged for “unlimited counties.” This new-technology feature is being implemented in response to companies that are paying closer attention to price as one of their key value propositions.

 2. Total Customization: Another trend that has been emerging is an increased demand by users for complete customization. Being able to add features to the background screening system upon request – to simplify the ordering process, save time and even save money – is becoming even more prevalent and background screening companies that cannot accommodate these requests are at a competitive disadvantage. Companies with a proprietary background screening system (not a system owned and operated by a third party) will be better equipped to meet these evolving demands.

 3. Self Background Checks: A third trend that we are starting to see is more applicants accessing their own background checks before submitting resumes or interviewing for jobs.

 Many recruiters find this service extremely useful because their candidates can clear up bad information and correct cases of mistaken identity before interviewing for a job. Being able to send a “clean” candidate to an employer creates a competitive advantage for recruiters by ensuring they don’t waste precious time and resources sending candidates with disqualifying or seriously confusing information on their background check, only to have that candidate turned away.

 For many applicants, this service is about cleaning up any bad information on their report so they can remain competitive for any position. Others use this service so they can prove claims on their resume and demonstrate their honest character, as well as saving employers money and expedititing the hiring process.

 Regardless of rationale or motivation, this is a trend that will likley continue and may change how companies use background screening in their hiring process.

 As new trends like these emerge, the background screening industry will respond and service quality will continue to improve. We look forward to see what will come next in 2014.

 For more information on Employment Screening, please contact us:

866.773.5486  http://www.precisehire.com/  Precise Hire Employment Screening was founded by a top management team with expertise in Human Resources, Staffing, General Administration, Employment Screening, Telecommunication and Internet industries.

Our staff is highly experienced and knowledgeable. Precise Hire has over 25 years of combined experience in the Employment Screening, Human Resource and Internet businesses.

Therefore, our services provide the due diligence and security your company will need to ensure success for your employment screening needs.

Turnaround Time:  We provide accurate information quickly. Many searches yield instant results! With our state-of-the-art systems and network of nationwide researchers, most criminal searches are complete same day to 36 hours.

Convenience:  You have access to your employment screening account online, anytime, anywhere. Results can be delivered online, via email or fax.

Custom Tailored Solutions:  We can integrate directly into your HRIS/Applicant Tracking/Recruiting software. We can customize our system to meet your needs. We have designed delivery systems for Fortune 500 companies which link corporate offices to field operations allowing for information sharing. Our professionals can help you decide on the appropriate searches to run for your employees.

Monthly Invoicing:  You will receive an itemized statement monthly for easy record keeping. Payment is due on net 30-day terms. Here we can really flex our desire to make our customers happy.
Do you need a custom invoicing option? Do you need invoices subtotaled by branch or location? We can accommodate your needs here and get the invoice out of your hands.

Affordable Employment Screening:  There are no hidden charges, monthly fees or set up fees. There is no software to install or licensing fees. Precise Hire’s pricing is competitive, due to our nationwide network and volume pricing.