Homeowners associations are using background checks

Background checks aren’t just for the government, employers and landlords any more. Now homeowners associations are getting into the background check act. The Clarion-Ledger from Clarion, Mississippi reports the following.

A new development in Jackson requires criminal background checks for its potential residents. And a set of tony subdivisions building country French- and European-style homes in Rankin County has banned registered sex offenders in its protective covenants.

Homeowners Association is a general term that’s used for a variety of associations that manage common interest developments. The association has the authority to enforce the covenants, conditions, and restrictions and to manage the common amenities of the development.

Many homeowners associations have required background checks on renters for quite some time. What’s new is the increasing use of background checks for people who want to buy property in the development.

There’s good news and danger here. The good news is that more and more people are understanding that, in a world where everyone is mobile, you need some way to make sure that you’re protected from people who might want to do you harm. The good news, also, is that there are tools available to help you.

The danger is that the information you get on a background check is only worth something if you apply judgment to it. Many members of homeowner association boards may not understand that background check information is a starting point for analysis and not the final word.

I’m betting that if we see a big upsurge in homeowner association use […]

By |September 29th, 2007|Categories: Background checks, Tenant screening|

It can happen to anyone

Just when you were thinking that big, sophisticated, organizations have so many resources that they don’t have background check problems, you catch sight of an article in the Washington Post with the title: “Clinton Campaign Cites Flawed Background Check.” Here’s the core of the article.

A spokesman for Sen. Hillary Rodham Clinton’s presidential campaign yesterday blamed a faulty background check for the campaign’s failure to raise any questions about Norman Hsu, a previously unknown businessman who suddenly became one of its biggest fundraisers.

Though a commonly used public record search shows that Hsu had multiple business lawsuits filed against him dating to 1985, filed for bankruptcy in 1990, and was a defendant in two 1991 California court matters listed as possible criminal cases, the campaign said its computer checks used insufficient search terms that did not include the two middle names Hsu used in the California case. “In all of these searches, the campaign used the name Norman Hsu, which, like the search results of other committees and campaigns, did not turn up disqualifying information,” Clinton spokesman Howard Wolfson explained.

For Senator Clinton’s campaign, this is a political issue. For you and me it’s the inspiration to check our own background check system.

Check to make sure that you’re doing enough. If you’re just doing a pre-employment credit check, should you be doing a criminal background check as well?

Check to make sure you do it when you should. Results that reach you too late to help you make a decision are almost […]

By |September 27th, 2007|Categories: Background checks, Criminal checks|

Thoughts from a pro

Sam Paris is a professional background checker who contracts out to large companies. There’s an article about him and his views of reference checking today in Mass High Tech. You’ll need a subscription to read the story that’s titled “Lie Detection.” If you don’t have a subscription, here are some of the interesting and helpful points.

How many applicants do you think misrepresent their education or employment history? Paris says it’s about 30 percent and that many of them go to great lengths to do so. Lesson: make sure you dig deep enough.

Paris also tracks trends in the background checking industry. He says that the number of companies hiring background checkers has risen dramatically. The article tell us that, “Fifteen years ago, he said, 85 percent of the Fortune 500 companies he surveyed conducted drug tests but less than 60 percent did background checks. These days, he said, 85 percent to 90 percent run a background check.”

Among the reasons for that increase is the cost of a bad hire. First, there’s dollars. It may take six months for it to become obvious that a person was a bad choice, but you pay that person for the whole time, plus you have to hire a replacement. And there’s the cost in morale. While they’re there, a bad hire can destroy morale and drag down the productivity of others.

Paris suggests that you use background and pre-employment credit checks. He also suggests using online resources including the social networking sites and alumni […]

By |September 21st, 2007|Categories: Background checks, Employment screening|

Hiring advice

Texas business columnist Dave Beck just wrote a piece for the San Antonio Express-News headlined: “Watch for ‘red flags’ when hiring.” Here’s the lead.

The rewards of smart hires are generally well-known. Longer retention, reduced turnover, increased employee satisfaction and morale, and decreased human resources costs are a few of the more obvious benefits. Less obvious is how to secure the right people. In fact, finding that right fit for your business sometimes seems more difficult than ever. To improve your hiring processes, you should learn to recognize the proverbial ‘red flags.’ By knowing the warning signs, both before the interview and during time spent with the applicant, you can single out the top contenders more efficiently and with greater success.

Like most hiring experts, Beck recommends a reference check and a background check. But he also shares some advice that I haven’t seen in other places. Here is some of it.

Beck suggests asking a candidate if he or she can describe the most important function of their current position. If they can’t, they may not understand what’s expected of them or where they fit into the company.

One of his most interesting recommendations is something Beck got from police psychologist John Nicoletti. When a candidate uses the word “just,” take it as a signal to find out more. “Just” is a verbal way for the candidate to minimize something like a behavior, performance issues, or a significant incident.

He suggests being wary if a candidate can’t quantify or specifically describe his […]

By |September 20th, 2007|Categories: Employment screening|

Hiring today

Tara Muck wrote a fine article for the Northwest Arkansas Morning News about the changing nature of the job search. The title is “Who Are You?” Here’s a clip.

Background checks are becoming a staple of the hiring process conducted by companies big and small. The importance boils down to risk management — stopping a potential problem before it starts.

This is the sort of article that job seekers will be reading, so it makes sense for you to read it as well. Here are a few highlights.

Muck points out that

Depending on the job and the company, background checks could include criminal, credit history, references, resumes and degrees. If there’s something someone is trying to hide, it’s likely to be found if the potential employer wants to find it.

Think of that as a checklist. Which ones are you doing? Which should you be doing?

The article describes how several types of businesses hire and what they look for. Beyond what we’ve already mentioned, there are drug tests and physical requirements for some jobs. What about you? Are your standards up to date?

The article doesn’t say much about Internet checking, such as using Google or social networking sites like MySpace and Facebook. But you should have those tools in your hiring toolbox as well.

The process of hiring and reference and background checks has changed a lot in the last few years. This is a good time to review your hiring process and the way you evaluate applicants.

By |September 19th, 2007|Categories: Background checks, Employment screening|

Accidental felons

If you watch this space and read the news, you might think that everyone is ramping up their use of background checks in hiring. You’d be wrong. An example of someone who’s resisting the trend is Steve Mangan, general manager of Indiana Memorial Union Dining Services at Indiana University.

In a story titled, “Hiring practices might ‘burn’ IMU Dining Services,” the Indiana Daily Student (IDS) tells us that Dining Services is one of the few university departments that doesn’t do background checks on everyone. Mangan and his supervisors do background checks when the law or university policies mandate it. That means they check the criminal history of anyone who handles money, takes inventory or serves in a supervisory role.

Mangan isn’t worried about hiring a convicted felon or two. According to the paper, “he has done just that on multiple occasions – both knowingly and unknowingly.”

For me that’s really scary. Hiring decisions should be made on the basis of qualifications and fitness. You may choose to hire someone with a criminal past, but that should be a conscious decision after weighing all factors.

Another thing that’s scary is that Dining Services isn’t doing background checks because of the cost. I would ask: “Compared to what?”

Saving money on background checks is great, right up to the time an employee lifts money from the till or attacks someone else. It seems like a cost saving right up till the moment you get sued.

Personally, I’d want to err on the side of caution. What […]

By |September 18th, 2007|Categories: Criminal checks, Employment screening|
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