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Staffing News Online

NJSA's Staffing News Online is a monthly e-newsletter that is available to the staffing industry.  The content for Staffing News Online comes directly from our industry partners.  If you are an NJSA industry partner and would like to submit content for Staffing News Online, please email office@njsa.com with your article.

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  • Tuesday, June 21, 2022 8:43 AM | Denise Downing (Administrator)

    Submitted by Haley Marketing

    Summer brings a lot of good things – vacation, beach, pools, etc. But in the recruitment world, all of those fun summer activities lead to fewer people looking at websites and fewer people applying for jobs.

    All is not lost – we have a game plan for you to keep applications flowing during the summer, and also to maintain your presence in front of passive job seekers who aren’t ready to apply right now.

    Be Smart with Your Spend

    Our newest mantra is “spending more is not a recruiting strategy!” If you can’t spend more, then we need to spend smarter. For our clients, the cost per application is up 6 percent in the last two months. How do we overcome that?

    • Look at Your Cost Per Click: If your cost per click (CPC) is increasing, that means fewer people are looking for jobs or you have too much budget for your amount of jobs. You’re overpaying for clicks! Overcome that by reducing your budget or sponsoring MORE jobs.
    • Look at Your Conversion Rate: If your conversion rate (clicks that turn into applies) is decreasing, that means more people are just clicking and not applying – now is the time to evaluate your pay rate, job titles, and job descriptions.

    How do we know it’s important to actively manage the budget? Here’s an example from one of our clients in the Pacific Northwest:

    • May 1-7: 132 applies; $2.33 CPC; $21.56 CPA; 10.8% conversion ($2,846 spent)
    • May 8-14: 183 applies; $1.14 CPC; $11.17 CPA; 10.2% conversion ($2,043 spent)
    • May 15-21: 155 applies; $1.24 CPC; $9.43 CPA; 13.1% conversion ($1,461 spent)

    After the first week of the month, we implemented a new strategy and reduced their CPA by almost 50 percent (49.3% if you really want to know) as we saw their budget was too big for the current candidate pool.

    On top of those job budget metrics, analyze your application format. Is it as short as it needs to be on mobile and desktop? How much information do you really need? We must reduce friction as much as possible for our job candidates.

    Optimize Your Website

    If fewer people are landing on your website (and we saw a 9% decrease since April,) we must convert as many people in the smaller audience that’s make its way to your career site.

    The best area to analyze revolves around your calls to action. When someone lands on your website, is it natural / intuitive for them to navigate to the next page and take the next step in your conversion process? How do the buttons look? Are the links easy to see?

    If we have 20% less website traffic, it becomes even more vital to convert that smaller audience. Take a step back and analyze your website – on mobile and desktop. Ask your friends. Ask your family. Ask trusted colleagues.

    (And if you are really good with Google Analytics – look at your website data to see which pages have a high exit rate, or the percentage of people leaving your website from a page and taking no further action.)

    Leverage the Database!

    If the candidates aren’t coming to you, go to your candidates! No one else in the world has same candidate database that your company features.

    What’s your process for reaching out to those candidates? Are you texting them? Are you emailing them? Are you calling them? Do they follow you on social media?

    Automation can help here by re-engaging candidates in your database who you haven’t heard from in a long time. Create a workflow to find out if they are looking for a job, still interested in your company, or want to be removed. Just reach out and see what happens – they might be waiting for you!

    Go to Social Media

    Speaking of social media, your website traffic might be down and job board traffic might be down, but people will be going to social media more often. They love to post vacation photos, see their friends’ summer activities, and continuously scroll during their free time.

    That’s the perfect opportunity to get your brand and content in front of them. And here’s a hint – it doesn’t have to be professional content. One of our clients has enormous traffic from posting a listing of fireworks displays in the area. It’s not content for the business, but it’s content people want to see.

    Run advertisements or content that people will see. Keep your brand active. The last thing you want to do is stop being top of mind with your audience. If you go away from their timeline, then you won’t be the company they think of when they’re ready to apply for a job.

    Branding

    This final point goes hand in hand with the social media point above. What can you do in the real world and online to stay in front of your audience? Is it sponsoring a baseball / softball league? Is it advertising at a county fair? Wherever your audience is spending time, your brand should be spending time.

    There won’t be a direct value you can get out of that branding. If you believe in awareness, then getting tens of thousands of impressions is valuable. We don’t want people to forget about your company. Branding activities (online or in the real world) keep you top of mind.

    Need Help Driving Candidates and Traffic?

    Haley Marketing’s recruitment experts can help with these tactics, your overall plan, and other key aspects of your current and ongoing needs. Contact us today for a free consultation on your recruitment marketing strategy.


  • Tuesday, May 31, 2022 9:08 AM | Denise Downing (Administrator)

    Submitted by Peapack Private Investment Banking

    Our team is pleased to present its Spring 2022 quarterly human capital solutions industry update from our Senior Advisor, Jim Janesky, who oversees client coverage and leads the vertical.

    Through this industry update, we will share with you our impressions on the market, track the leading macroeconomic indicators, report relevant transactions, public market valuations and highlight current trends. We also encourage you to set up a meet and greet with Jim Janesky and obtain a complimentary evaluation of your business.

    Click here to download the report.

  • Tuesday, May 31, 2022 9:06 AM | Denise Downing (Administrator)

    Submitted by Avionte

    The Future of Staffing is Mobile

    The math is compelling. Talent is scarce and workers have new options for temporary income besides the traditional staffing agency. Gig work, temporary staffing platforms, and traditional staffing may have different business models but they all fish from the same pond for scarce labor. Mobile technology has driven explosive growth for Gig work, and traditional staffing agencies need to leverage the same technology to stay competitive.

    We already use smart phones to manage our finances, purchase travel, track our health, and stay in touch with our 500 best friends. Over 95% of working age Americans own their own mobile phones. Why not use mobile talent platforms to staff a worksite, schedule workers, track hours, and get people paid? Why can’t applying for temporary work be as simple and convenient as ordering a TV from Amazon?

    Imagine what would happen to your staffing business if your biggest competitor deployed a mobile talent platform that allowed candidates to quickly find and self-select for the best temporary work opportunities that fit their skills and schedules. Those candidates wouldn’t have to navigate to a website or wait for a recruiter’s phone call. They could also track their time, review their pay, and even receive same day pay all from the convenience of their phone. If you were the job candidate, why would you even bother with another staffing agency?

    “Utilizing the mobile talent app, we were able to re-engage with talent already existing in our database, reaching 45% more candidates than we were with traditional recruiting methods.”

    Leisa Stallard - Director of Operations, The Reserves Network

    Mobile Talent Platforms are Available Today

    Mobile talent solutions for staffing are not science fiction. They are available today and they are delivering extraordinary business results for the staffing agencies who use them. Imagine cutting your time to fill by a third, tripling the number of candidates who return for a second assignment, or boosting gross margins by 30%.

    If your software vendor hasn’t already rolled out a competitive, credible mobile talent solution, there is a very good chance they won’t. It takes focused leadership, financial strength, and deep expertise to develop and deploy a credible mobile talent application at scale. The staffing industry moves quickly, and many staffing software providers already have obsolete technology.

    Avionté Staffing Software now offers its 24/7 mobile talent platform, powered by WorkN, with a seamless integration into BOLD, the premier integrated end-to-end staffing software solution. Want to learn more? Click here to arrange a demo.


  • Tuesday, May 31, 2022 9:04 AM | Denise Downing (Administrator)

    Submitted by Crimcheck

    Fair Chance Hiring is the practice of treating applicants with a criminal history the same as every other qualified candidate. Fair chance hiring is often synonymous with second chance hiring practices. Simply put, candidates with criminal backgrounds are given a fair chance for job opportunities, or a second chance at entering the workforce.

    What are Fair Chance Hiring Practices?

    Following Green v. Missouri Pacific Railroad (1975), where the plaintiff was disqualified from a job opportunity based on his criminal history, the Court branded three Title VII-complaint factors for employers to review when considering whether to exclude a candidate from the applicant pool based on criminal history. These factors, termed the “Green Factors,” are listed by the Equal Employment Opportunity Commission (EEOC) as:

    • “The nature and gravity of the offense or conduct;
    • The time that has passed since the offense or conduct and/or completion of the sentence; and
    • The nature of the job held or sought.”

    The EEOC makes note of a related fair hiring practice, referred to as an “individualized assessment.” This practice entails the employer notifying the applicant that prior criminal history may exclude the applicant from the opportunity, allowing the applicant to provide additional information in relation to the history, and considering that additional information against the nature of the job.

    In essence, an individual assessment asks the employer to consider all relevant information surrounding the individual’s criminal history and if that history is so related to the job sought, that it would prevent the individual from successfully completing the job responsibilities.

    Like the elements described in an individualized assessment and the Green Factors, Crimcheck has adopted its own fair chance hiring practices to promote a diverse and open workforce. For internal hiring, Crimcheck evaluates an applicant’s criminal history based on, but not limited to, the following:

    • The position the employee holds or will hold;
    • The nature of the offense(s);
    • The time elapsed since the offenses(s) occurred;
    • The conduct of the employee since the offense(s);
    • Evidence of rehabilitation; and
    • Employment history.

    Fair Chance Hiring Laws:

    While it is beneficial to adopt your own internal fair chance practices, in some areas it is required by law. These laws are also known as “Fair Chance” and/or “Ban the Box” laws, referring to the check box often seen on applications questioning a candidate’s criminal history. The National Employment Law Project (NELP) reports “37 states, the District of Columbia, and over 150 cities and counties have adopted a ban-the-box (‘fair chance’) policy.”

    For example, New York City adopted the Fair Chance Act which prohibits employers from inquiring about an applicant’s criminal history until after a job applicant offer has been extended. Recently and in similar fashion, The Fair Chance to Compete for Jobs Act of 2019 went into effect on December 20, 2021, prohibiting most federal agencies and contractors from requesting criminal history before a candidate has been conditionally offered a position. These policies affect public employers, private employers, or both, so it is important to know if you fall under one of these umbrellas.

    What are the Benefits of Adopting Fair Chance Hiring Practices?

    Fair Chance Hiring promotes diversity and inclusion in the workplace. According to the Court Services and Offender Supervision Agency, one in three American adults has a criminal record. Without implementing fair chance practices, companies are effectively excluding one-third of the workforce and missing out on the opportunity to hire qualified and valuable candidates. Whether motivated by law or the chance to diversify the workplace, adopting fair chance hiring practices can open the applicant pool to the more than 70 million Americans that have a criminal record.

    This information is provided for informational purposes only. Crimcheck does not provide legal advice. Reader retains full responsibility for the use of the information contained herein. State law may vary.

    Click here to read the article on Crimcheck's Website

  • Tuesday, May 31, 2022 9:02 AM | Denise Downing (Administrator)

    Submitted by CSG Partners

    Nearly 20% of all US employee stock ownership plans are sponsored by professional services companies. That includes staffing firms and HR consultancies. So what exactly is an ESOP, and why are these benefit strategies so prevalent among staffing industry companies?

    An ESOP is an ERISA-authorized, defined contribution plan that invests in employer securities. You can also look at an employee stock ownership plan as a tax-advantaged leveraged buyout of your own company. In many cases, the primary driver for a leveraged ESOP is liquidity, but there are also tax efficiencies on multiple sides of the transaction. Staffing firms – because of their relatively high payrolls – are entitled to accelerated tax deductions compared to an average company.

    What drives consideration of ESOPs?

    Great businesses often take years, if not decades, to build. Individual legacies are often entwined. With that in mind, a firm’s founders and shareholders may ask themselves, “Do I really want to sell to a third party?”

    A strategic sale or private equity transaction usually signals the end of an era. Business disruptions and employee layoffs are common outcomes. For many companies seeking to maintain their culture and independence – and for shareholders interested in potential upside and a continued role with their firms – the ESOP often is a better solution.

    How do ESOPs compare to buy-sell agreements?

    An employee ownership transaction can be a more tax-efficient tool for acquiring partners’ shares or encouraging a management buyout. In an ESOP sale, a company can borrow money to pay-out a selling shareholder (who can then defer capital gains taxes). The company can then repay that debt using pre-tax dollars.

    Can a firm sell a portion of its equity to an ESOP?

    Yes, and initial sales of minority interest are common in the staffing industry. Firms want to see the impact of employee ownership on business and get a sense of how the management team and staff will respond. If things go well, the company will sell incremental pieces down the line and eventually become 100% employee-owned. So long as 30% of the company is sold to an ESOP trust, the selling shareholders a eligible to take advantage of the aforementioned capital gains tax deferral.

    How are ESOP shares allocated, and are there additional incentive options for participants?

    An ESOP is a non-discriminatory plan. So, generally speaking, every full-time employee, so long as they've been with the company for a year or so, is eligible to participate. Every year, shares move to employees accounts. The number of shares they are allocated is based on their salary as a percentage of the total payroll.

    If you're looking to use an ESOP as a management buyout tool, you may want to incorporate other components – whether it's warrants, stock options, or stock appreciation rights – so that key managers are going to get something above and beyond.

    For additional details, check out this article on how ESOPs work.

    Considering an employee stock ownership plan?

    An ESOP sale, like any M&A transaction, merits careful planning with relevant accounting, legal, and financial advisors. But, when employee ownership makes sense for all relevant stakeholders, it can drive meaningful benefits for companies – especially those in the staffing industry.

    Patrick Trask in a managing director at CSG Partners


  • Tuesday, May 31, 2022 9:00 AM | Denise Downing (Administrator)

    Submitted by Jon Bender, Bender Commercial Collection Law

    Causation Challenges is my term for fee disputes where the employer claims, despite your referral, that someone else caused the hiring.

    In Part 1, we mentioned some common examples and said that, absent an exclusive listing or other contractual provision, New Jersey requires you to be the “procuring cause” of employment in order to earn your fee.

    The problem is that after you’ve provided your service, causation requirements take control of your fee away from you. For example, you can’t control whether a subsequent agency will refer your candidate, or whether the employer will let you arrange the interview. You can’t prevent the employer or candidate from recontacting the other in the future, and you can’t foresee whether they’ll claim to already know each other.

    What you can do is contract around such issues so they don’t deprive you of your fee. Your fee agreement should eschew causation and focus on priority. For example, never say anything like, “you owe us if, as a result of our services … .” Instead, create an exclusive right for candidates you present first. You can also say that accepting your referral supersedes any prior connection between the employer and candidate. In other words, the way to win the causation game is not to play it.

    In my e-book, The National Fee Collection Guide for Staffing & Placement Agencies, I provide some sample language for these suggestions.

    For more information on fee disputes and how to defeat (or avoid) them, see The National Fee Collection Guide for Staffing & Placement Agencies and The Employment Agency’s Guide to Getting Paid (Quickly) in New Jersey. You can find them at www.b2bcollectionlaw.com/services/collections-for-employment-agencies.


    This material is for informational purposes only and should not be construed as legal advice. No person should rely on this information without seeking the advice of an attorney.


  • Tuesday, May 31, 2022 8:59 AM | Denise Downing (Administrator)

    Submitted by TAC Benefits Group

    What is the first thing that enters your mind when you hear the term “health insurance” or “Healthcare”? Whether you are an employer, a CFO, a HR professional, or an employee, the answer across the board is “it’s expensive”. Are you as an employer, a CFO, a HR professional, or an employee happy with that answer? Probably not.

    So how did we get here? More importantly, how do we get control of these costs that are spiraling out of control?

    Let’s start with how we got here.

    In the early days of medical care in the U.S, patients paid the doctors or facilities cash. The initial purpose for “hospital insurance” was for better cash flow for the hospitals. The first Health Insurance plan was established in 1930 in Dallas, TX. The cost was $6 per month and the plan paid $5/day in the hospital. This is known as an indemnity plan.

    In the 1930s doctors only knew how to manage disease but did not have the technology to cure diseases. That began to change in the next decade due to advances in technology which continues to grow exponentially to this day.

    So in short, insurance and technology both have had a substantial impact on health care cost. These rising costs of healthcare began almost immediately. In 1930 Americans spent 2.8 billion on healthcare - $23/person/year in claims, healthcare was 3.5% of the GDP. Fast forward to 2015 when Americans spent 3 trillion, $9,536/person/year, making up 15% of the GDP.

    In the 1970s PPO plans and HMOs were introduced. PPOs would direct patients to a network hospital or physician to reduce the patient’s expense and pay a pre-negotiated fee to the doctor. HMOs paid the doctors a monthly stipend for each patient who was under their care. The pricing of hospital claims has been a shell game ever since. Hospitals have created chargemasters that have no rhyme or reason. A colonoscopy can be $500 in one facility and $6000 in another facility within the same geographical proximity.

    In spite of the introduction of pre-negotiated contracts and HMO contracts with physicians and facilities (PPOs, HMOs, POS, EPO’s) from 1996 to 2011 medical rates rose 190%. On March 23, 2011 the Affordable Care Act became law. The intent of the law was to get more young and healthy individuals who would receive a subsidy to purchase the insurance. The thinking was with younger healthier people enrolled in the health insurance pool the cost of health insurance would stabilize. Not so, since ACA has become law, health care rates continue to rise at a rate of 138% from 2011 to 2021. From 1996 through 2021, health insurance premiums have risen an untenable 328%.

    Where do we go from here?

    Many are waiting for the government to fix the healthcare cost crisis. However, they are a big part of the problem. Hospital lobbies and physician lobbies have worked very hard to keep the government out of their business. Below is just a short list of political contributions from the 2018 election.

    2018

    • American Medical Association = $20,417,000
    • Blue Cross Blue Shield = $23,604,221
    • American Hospital Association = $23,927,842
    • Pharmaceutical Research = $27,989,250

    This is just a few of the industry lobby groups that have a firm grip over our politicians.

    It’s up to the public sector, the broker community, employers, and employees to fix the problem. This group of individuals and businesses must take control of the costs. The way this is done is through transparency of costs and receiving detailed claims data. Transparency will give your employees the tools to find providers with the best outcomes and the best pricing. Data will provide your broker with the information they need to help manage your claims and to negotiate a fair renewal.

    One way to get this information from the insurance companies is to badger your Washington representatives to fight for transparency from the providers and facilities, and to push back against the carrier lobbies to provide employers with data.

    The other way to achieve transparency and data from your health plan is to work with your broker on programs that achieve this goal. 


    TAC Benefits Group

    www.tacbenefitsgroup.com

    (215) 663-8000


  • Tuesday, May 31, 2022 8:57 AM | Denise Downing (Administrator)

    Submitted by Haley Marketing

    A few months ago, Meta announced that changes were coming to the Jobs on Facebook product. If you missed their announcement or want to learn more about the latest updates, you can read our full breakdown here. Historically, this tool has been a free way for staffing and recruiting firms to get more visibility for open job postings and source candidates through social media. As of February 2022, the organic reach of Facebook Jobs posts will be much more limited in the United States and Canada.

    With this latest announcement, you might be wondering if using Facebook Jobs is still worth it and what the best way might be to continue to drive valuable actions. If you’re working to determine next steps for your team, consider the following ideas as ways to derive more value despite this latest development (read the full post for 2 bonus strategies!):

    Optimize Facebook Jobs Posts for the Algorithm

    One of the most significant changes to the Jobs on Facebook product is that Meta is phasing out all third-party API integrations. With an API, jobs pull automatically and seamlessly from a job board or feed to your Facebook page. This also prevents Page admins from having to post Facebook Jobs manually.

    So, while this feature is going away, one positive outcome is the ability to post Facebook Jobs manually again. This gives staffing and recruiting firms greater control over the content and appearance of postings.

    • When creating these manual posts, think about what will convince a potential candidate to stop scrolling through their newsfeed, read your listing, and hit the “Apply” button:

    o Include pay rates and shift schedules.

    o Let the audience know if the position is temporary, temp-to-hire, or direct hire.

    o Answer the candidate’s question, “What’s in it for me?” within the first two sentences of the post. People want to know about benefits, opportunities for growth, flexibility, and how the position will impact their quality of life – not just responsibilities and qualifications. Select a photo that matches the job type. If possible, include your logo, a call to action, or the pay rate on the image.

    When you make these updates, you increase the chances that users who see the posts you are putting the time and effort into posting will take the desired optimized action!

    Define a Facebook Jobs Sharing Strategy

    Another change is the retirement of the Jobs Marketplace on Facebook. This feature was similar to the general Facebook Marketplace, where you can buy secondhand goods, but the Jobs Marketplace was exclusively for job listings.

    In the Marketplace, your jobs were searchable by location, keyword, and job type criteria, much like a job search on sites like Indeed, LinkedIn or ZipRecruiter. Without this feature, your Facebook Jobs posts lose much of their searchability. Users will only be able to see your listings if they go to the Jobs tab on your Facebook Page or in their newsfeed.

    To increase organic reach for your Facebook Jobs posts, try the following:

    • When you create a Facebook Job post, ask your team to like, comment on, and share the post. This initial engagement is like kindling to the fire that is Facebook’s algorithm. The more organic activity they detect, the more likely the algorithm will show the post to more users increases. That generates more reach and therefore creates greater opportunities to collect applications.
    • Share the posts to relevant Facebook Groups. They are eliminating “Jobs” as a group type, but there will inevitably still be Groups dedicated to job hunting and career tips.
    • Extend the reach of your Facebook Jobs posts to users who are likely to be active job seekers and who are already interested in finding new roles.

    Put Paid Ad Spend Behind Your Facebook Jobs Posts

    Sometimes relying on organic reach alone isn’t enough to gather the desired amount of engagement and applications, despite your best efforts. In fact, on Facebook, organic content is only shown to about 5% of users who follow your Page. If you had 5,000 followers, fewer than 250 followers would see any given post. Organic optimization and group sharing alone will only go so far. That’s where pay-per-click advertising becomes the best solution.

    With paid Facebook ads, you set the level of spend you want to put behind each job and can reach thousands of targeted users beyond just those who follow your Page. Keep the following tips in mind when promoting Facebook Jobs postings:

    • Being in the staffing and recruiting industry, you MUST declare the employment special ad category on your ads to vouch that you are not using discriminatory advertising tactics. Without this, your ads may get disapproved and can even cause Facebook to disable the feature on your Page.
    • Avoid hitting the “Boost” button. While that button offers a quick, easy way to promote your posts, it doesn’t give you the control you need for an effective advertising campaign. A better solution is to set up a Facebook Business Manager account, where you can organize campaigns, build out custom audiences, and conduct more in-depth ad performance analysis.

    Need more guidance with implementing these suggestions?

    If you're ready to create a more advanced strategy involving pay-per-click advertising, our digital marketing team is experienced in managing Facebook campaigns and would be happy to help!


  • Thursday, March 31, 2022 9:16 AM | Denise Downing (Administrator)

    Submitted by Jon Bender, Bender Commercial Collection Law

    Imagine your staffing agency has a non-exclusive agreement to fill a position. You refer a candidate and ask to arrange an interview, but the employer never responds. It then hires your candidate but refuses to pay you, saying you didn’t earn your fee.

    Causation Challenges are what I call fee disputes where the employer claims, despite your referral, that someone else caused the hiring. They come in many different fact patterns.

    For example, let’s say the employer claims a subsequent agency also referred your candidate, arranged for an interview and helped the parties negotiate. Even though you referred him first, the employer prevented you from making the arrangements and now says you didn’t earn the fee.

    Or say you refer the candidate and arrange an interview, but the employer doesn’t hire him right away. Instead, it hires him months later, claiming it placed a help-wanted ad and the candidate responded. Therefore, it says, the candidate got the job himself and you didn’t earn the fee.

    Finally, let’s say you refer the candidate, arrange an interview and the employer hires him right away. However, the employer’s owner says he and the candidate already knew each other, so you didn’t really earn a fee.

    Each case will turn on its own facts, but as a general rule, mere introduction, by itself, is not enough to earn your fee. In New Jersey, you must generally be the “procuring cause” of the candidate’s employment, unless your contract says otherwise or you have an exclusive listing. “Procuring cause” means you brought the parties together and caused events (like an interview and negotiations) which directly led to the employment, without a substantial break in the process.

    In Part 2, we’ll discuss strategies for avoiding and defeating Causation Challenges.

    For more information on fee disputes and how to defeat (or avoid) them, see The National Fee Collection Guide for Staffing & Placement Agencies and The Employment Agency’s Guide to Getting Paid (Quickly) in New Jersey. You can find them at www.b2bcollectionlaw.com/services/collections-for-employment-agencies.

    This material is for informational purposes only and should not be construed as legal advice. No person should rely on this information without seeking the advice of an attorney.


  • Thursday, March 31, 2022 9:15 AM | Denise Downing (Administrator)

    Submitted by DataScreening

    Many people and companies don't know the process of how each background check company gets their information. Before I got into this industry, I didn't know and I really didn't care either. HR professionals and employers mostly care about (and really are only informed about) cost, turn-around time, and customer support. Today, information is passed so easily and frequently, no matter if it is false or if it is true. The fact of the matter is that any information that is online must first be entered by a human being. And there are many limitations and laws as to what can be shared in a background check for employment purposes. Algorithms and software can’t correct mishandled data.

    The methods how data is retrieved, stored, and reported can be quite different and can be the difference of your company being in compliance or not. How would you know if the background check company that you are using is following the proper procedures to produce the records that you are getting back?

    Accreditation through the Professional Background Screening Association (PBSA) means you don't necessarily have to worry about that. It means that you are working with a background check company that has passed a rigorous onsite audit that can take over a year to complete; and that is conducted by an independent auditing firm, meticulously going over all of their policies and procedures in 6 critical areas:

    • Information Security
    • Legal & Compliance
    • Client Education
    • Researcher & Data Standards
    • Verification Services
    • Business Practices

    Legal & Compliance, Client Education:

    Many companies don't even know if they are out of compliance when it comes to background checks. That is usually because the background check company that they use isn't knowledgeable about the Fair Credit Reporting Act, doesn't have the technology to offer proper compliance tools, or they simply did not inform the employer of their legal FCRA (Fair Credit Reporting Act) obligations. With an accredited company, you can be assured they will be able to assist with any compliance issues to help you avoid any legal ramifications.

    Business Practices & Accuracy:

    How a background check company obtains information and how it presents it to an employer can be drastically different. A background check company that is accredited means they have gone through a rigorous audit process to ensure their methods will give you the most accurate and up to date records as possible. Relying on database records only, often leads to reviewing outdated and false information that can lead to improper hiring decisions and even legal action for the employer.

    Information Security:

    Part of the accreditation process is a detailed audit of the data security, process and storage methods. A background check company must demonstrate, in writing and in real time, the highest security measures with regards to: system configuration, anti-virus, firewall, and router configuration, encryption and password protection, access control, electronic & paper data retention, storage, and disposal, as well as physical security. This ensures all data and processes are secure and well protected with extreme security standards.


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