NAPBS

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NAPBS
National Association of Professional Background
Screenerswww.napbs.com Click on presentation
to advance to the next slide
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What is Background Screening?
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Why Companies Screen

• Avoid violence in the workplace
• 10 of job applicants have a criminal record
• Get the right person for the job
• 40 of resumes contain material lies or omissions
  about education, past employment, or
  qualifications
• Reduce costs associated with bad hiring
• Lawsuits, theft, fraud, embezzlement
• Turnover, bad publicity, lost customers

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Typical Screens

• Basic Employment Screens
• SSN Verification Trace
• Criminal Records Search
• Driving Records
• Employment Verification
• Drug Test
• Expanded Employment
• Civil Records Search
• Education Verification
• Reference Check

• Special Employment
• International Criminal
• Bankruptcy Records
• Professional License
• OIG, Nurse Abuse, etc.
• Credit History
• Basic Tenant Screens
• SSN Verification Trace
• Criminal Records
• Credit History

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The Process

• Subject signs an FCRA release form, authorizing
  screening
• Employer provides release form and subject data
  to screening agency
• Screening Agency conducts investigation according
  to federal, state, local laws
• Results provided to Employer, usually within 72
  hours
• Employer shares results with subject, as required
  by law

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The Advantages of Screening

• Discourage applicants with something to hide or a
  reason to falsify credentials

• Eliminate uncertainty in the hiring process by
  basing decisions on hard information
• Demonstrate Due Diligence in the hiring process,
  promoting safety in the workplace
• Encourage open communication and honesty on the
  part of the Applicant
• Excellent return on a small investment

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What is NAPBS?
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Who We Are

• An association of 300 companies engaged in
  pre-employment and tenant screening
• Regular members
• Pre-employment Screening Agencies
• Tenant Screening Agencies
• Affiliate members
• Professional Service Providers (e.g. insurance,
  legal, consulting)
• Human Resource Professionals
• Associate members
• Public Record Retrievers
• Technology and Data Providers

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Why We Exist

• Establish and promote ethical business standards
  and practices
• Promote compliance with the Fair Credit Reporting
  Act (FCRA)
• Foster awareness of issues related to consumer
  protection and privacy rights
• Advocate industry needs to local, state, and
  federal lawmakers
• Provide an education forum for members

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How We Operate

• Board of Directors
• Elected annually
• Active Committees
• Ethics and Accreditation
• Government Relations
• Public Awareness and Communication
• Others Finance, Membership, Provider, Resource
  Library
• Membership Requirements
• Commitment to abide by NAPBS code of ethics

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The History of Background Screening
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Humble Beginnings

• The 1980s . . .
• Forward thinking Human Resource departments use
  Private Investigators to check on applicants
• No organized network of public record retrievers
• Long turn-around times, expensive research
• The early 1990s . . .
• Negligent Hiring lawsuits begin to impact the
  bottom line of major corporations
• Pre-employment screening becomes a specialty, and
  dedicated agencies begin to grow

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A Decade of Growth
NAPBS founded with 200 members 2003
FCRA becomes main law governing the industry 1997
Workplace violence dominates the headlines 1999
9/11 increases public awareness CA-1786
enacted 2001
Public Record Retriever Network organized 1995
1998 The Internet begins to impact the industry
2002 NAPBS proposed by leaders at industry
conference
1996 Half of all HR professionals use screening
to some extent
2000 Resume fraud becomes a major news story
1994 Driver's Privacy Protection Act becomes law

• More and more employers awaken to the high cost
  of not screening applicants
• Dedicated Pre-employment screening agencies
  replace traditional Private Investigators as the
  main supplier
• NAPBS emerges based on desire to address common
  needs within the industry

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Today

• SHRM survey reports that 80 of HR professionals
  use pre-employment screening
• Total Industry Revenue 4 Billion
• Public Record Retrievers (2,000)
• Small and Mid-size screening firms (1,000)
• Large screening firms, some public (50)
• Software and Data providers (30)
• NAPBS
• Serves a rapidly expanding industry that fills
  critical needs in a security conscious economy
• Continually improving standards and best practices

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The Legal Environment
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FCRA Fair Credit Reporting Act

• The Gold Standard for protection of consumer
  rights
• Applicant must expressly authorize screen
• Applicant must be given notice before any
  negative information is used against them
• Screening agency must investigate applicant
  claims that report is inaccurate or incomplete
• Report may only be used for a permissible purpose
  (e.g. Employment or Tenant screen)
• Numerous state laws augment the FCRA

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Privacy and Identity Theft

• Screening may uncover cases of identity theft,
  providing a benefit to the applicant
• Screens are restricted to relevant data about the
  applicants public life
• Strict precautions are taken to protect the
  confidentiality of all reports
• Protection of privacy and adherence to law is
  central to NAPBS Code of Conduct

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Screening and the EEOC

• Screening agency works to help employers use data
  correctly, in accordance with Equal Employment
  Opportunity Laws
• Information used to determine eligibility for
  employment must be job related
• A criminal record cannot be used to automatically
  disqualify an applicant, unless there is a
  business justification

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The Future of the Industry
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Trends in Screening

• Growing public awareness and acceptance due to
  terrorism concerns
• Expanding role of background screening-- tenants,
  contractors, team coaches, etc.
• More comprehensive screenings, requiring more
  thorough research
• Screening processes integrating with other Human
  Resource systems
• Even greater emphasis on legal compliance

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NAPBS Charter for the Future

• Help employers improve hiring standards in
  accordance with evolving state and federal law  
• Help maintain the balance between the right to a
  safe workplace and the right to individual
  privacy
• Help employers avoid legal exposure for negligent
  hiring and decrease violence in the workplace
• Augment the homeland security effort, by acting
  as a highly regulated private sector version of
  law enforcement
• Help to improve the productivity of American
  business by enabling better hiring decisions and
  lowering the costs of employee turnover.