Best practices for background checks in the financial services industry
tmillerHR
1 Post
I work at a bank and we are in the process of reviewing our background check procedure. Currently, the final candidate is subject to a credit check, criminal checks, and bondability. Does anyone have any best practices or suggestions?
At this point we have gotten feedback from managers wishing they could start the checks on the top few candidates, versus the #1 candidate. We feel this would be a violation of privacy for the candidates who do not make the final cut.
Another issue we are currently pondering is in regards to adverse action. What is a best practice regarding the amount of time to wait before offering the position to another candidate?
Comments
. . . . Currently, the final candidate is subject to a credit check, criminal checks, and bondability. Does anyone have any best practices or suggestions?
At this point we have gotten feedback from managers wishing they could start the checks on the top few candidates, versus the #1 candidate. We feel this would be a violation of privacy for the candidates who do not make the final cut.[/quote]
All of our candidates are subject too a full investigatory background. We have all candidates sign the appropriate release forms in the second phase of the hiring process. Any and all records or discoveries are held in strict confidence. FCRA rules are observed if the electronic credit check or criminal background becomes the reason that an offer is withheld. A candidate that makes an informed decision to sign the appropriate release forms to enter the process is not having their privacy violated.
[quote]Another issue we are currently pondering is in regards to adverse action. What is a best practice regarding the amount of time to wait before offering the position to another candidate?[/quote]
It has not been within my experience that a measure of adverse impact is involved with any length of wait time. Adverse impact issues would have been resolved before and during the administration of your process.
On the other hand if you are asking if there is a type of "proximal time" compliant tied into the time you withdrew an offer, say to a protected class, and made an offer to someone outside of a protected class I would say this. If a candidate has a perceived compliant that he/she was not hired due to their protected status they will use the quickness with which you replaced them as a part of their compliant. However if you have documented knowledge, skills and abilities associated with being able to validate your hiring process the whole issue of discrimination can be successfully defeated.
If you have the concern that you stated one thing you could do is an audit of your hiring system and instruments. What you discover will help you to fix the weaknesses you may find and equally it may foster more confidence in your system.