Making Employee Onboarding a Win-Win

While it’s imperative that you recruit the best candidates for positions within your company, screening, interviewing, and offering the job are only the start in terms of building a quality team. The onboarding process, which takes up to a year, assures that the new hire becomes a contributing member of the team and adapts to the work culture in the briefest, most efficient way, thus increasing their chances of acclimating to the new environment and feeling productive sooner.

The difference between orientation and onboarding is that orientation is a stage of onboarding, where new employees learn about the company and what’s expected of them in terms of their job responsibilities and reviewing the employee handbook. Orientation refers to paperwork and other routine tasks that must be completed.

Onboarding, on the other hand, is designed to build engagement from the initial contact until the employee becomes established within the organization. Onboarding acclimates the new employee to becoming a contributing member of the staff in the briefest time possible, while engaging the employee in enhancing their productivity and improving the company’s opportunity to retain that employee. Plus, depending on the company’s size, industry, and organizational culture, it may adapt or modify the onboarding process to best meet the new hire’s needs.

Why is Onboarding Important?

It’s critical to set the right tone starting on the first day of employment in order to engage the new hire in making a long-term investment. A solid onboarding process plays a significant role. It can help to capture the employee’s commitment within the first six months and avoid up to a 20% turnover during the first 45 days, which is costly to an organization. Direct replacement costs can be as high as 50%–60% of a departing employee’s annual salary, with the total costs associated with turnover ranging from 90%–200% of the employee’s salary.

Before and After Hiring

There are organizations that break up the onboarding process into pre- and post-employment. For example, prior to joining the company, a portal can be set up for the new employee. This helps acclimate them to the organization by way of learning its history and culture, reading articles, watching company videos, and completing necessary paperwork. It also includes social onboarding: helping the new hire acclimate to the team, social dynamics, and technical onboarding, all which address learning the new job. This affords them the opportunity to wind down responsibilities from their previous job and easily transition into the new position.

Investing in the New Hire

As mentioned earlier, the ongoing process of onboarding is an investment in the new hire becoming a productive team member as quickly as possible and learning the specific role they will play in achieving team or company goals. The rewards make it worth the investment, because onboarding equips new employees with the knowledge and skills they need to succeed at their job. They also need to learn what the company plans to provide in terms of management support, access to resources, or performance reviews.

It’s a Mutual Responsibility

Human resources or organizational development (HR/OD) professionals, instructional designers, trainers, managers, and the new employee all have a responsibility when it comes to onboarding:

  • HR generally sends the offer letter and makes sure that the new hire completes the necessary paperwork.
  • Depending on the size of the organization, HR or OD professionals create and deliver the general orientation session. Other organizations might have instructional designers and trainers handle this.
  • The employee’s direct manager will be responsible for going over the employee’s training plan: a plan that outlines what the new hire is expected to complete over a stated period of time. Each training plan pertains to a single company or learning environment and can be designed to meet one or more high-level learning objectives.
  • Managers should routinely check with their new employees and be available to answer questions and help them acclimate to the position, making sure their onboarding assignments have been completed.
  • In turn, it’s the new employee’s responsibility to ask questions, complete benefits paperwork, create necessary new user profiles, and complete all onboarding tasks and training assignments in a timely manner.

As stated earlier, hidden costs of replacing an employee, in terms of turnover, can be as much as 150% of the employee’s annual salary. This encompasses fees paid to recruiters, the cost of interviewing, and the dollars invested in training the new employee. These costs often show up in lower productivity and diminished morale among the remaining employees who are expected to do more and identify the special knowledge or experience the departing employee knew.
To better assure the new hire’s success:

  • Prepare a detailed outline of what’s expected in terms of their responsibilities to the company. If possible, share these expectations with the candidate during the interviewing process to establish clear communication and avoid any misunderstanding.
  • Make sure the new hire’s work area is set up and ready upon their arrival on the first day. Give the new hire their phone extension, make sure their computer is operational, and double-check that the workspace makes them feel welcome and is clutter free. If that workspace previously served as storage, make sure there are no hints of its previous role. The IT, Finance, and Customer Service departments may play a role in the onboarding process by setting up the new employee’s computer, their financial records, or being ready to train the new employee on customer service protocol.
  • Notify the employees within the department at least one day in advance by email or memo that the new employee will be joining the team. It’s imperative that the new hire be properly greeted by his or her fellow employees on the first day. This helps them feel welcome and avoids any embarrassment.
  • If time permits, invite the entire team to join the new hire for lunch on the first day. This fosters establishing socialization and gives the new employee an opportunity to more quickly feel comfortable with his or her new co-workers. Be sure to continue that good will for the first week or two by having members of the team take turns accompanying the new hire to lunch as a way to help him or her become more comfortable with the new environment.
  • Select a peer who will be working with the new hire and ask him or her to help orient and acclimate the new employee once onboard. Select a current employee who’s a good role model and has a positive attitude about the assignment they’ve been given.
  • To help make the first days of a new employee’s transition easier, ask current employees to share their experiences when they first joined the company. Was there anything they would have appreciated initially that would have made them feel more welcome? This feedback can be very valuable and doesn’t require the manager second guessing what a new hire would need at the outset.
  • Early on, it’s important for supervisors and managers to be part of the onboarding process. This helps set the right tone and conveys to the new hire that they’re respected, valued, and appreciated; it offers encouragement and helps to establish a solid rapport. This can significantly deter any dissatisfaction down the line with the immediate manager or supervisor. After a reasonable time, managers should routinely offer support and encouragement, review the employee’s progress, and provide feedback.

Onboarding sets the tone for the relationship between engaged employees and the company’s success in terms of profitability, safety, turnover, absenteeism, product quality, and customer satisfaction. Successful onboarding can boost employee engagement and morale. This includes the company’s commitment to professional growth or management acknowledging the employee’s skills and talent.

When Onboarding Programs Fall Short

Onboarding programs typically fail due to insufficient planning, time, and resources, according to the Association for Planning and Development. Other not-so-obvious reasons can make a difference between a successful and unsuccessful outcome, including:

  • Failure to match what’s perceived in the onboarding process and reality
  • Lack of employee engagement with the onboarding program
  • No compelling business case for the onboarding program
  • The employee misfits with the company
  • Ignoring diverse needs, metrics, and accountability
  • Having a “do-it-yourself” mentality, where no one assumes responsibility or ownership for onboarding
  • Programs that only focus on employee benefits
  • Managers’ unavailability, lack of involvement, and lack of guidance
  • Information overload at a fast pace
  • Misconstruing onboarding as a checklist or carving out time to complete orientation paperwork
  • Skipping defining and discussing company expectations, and delaying explanations about how the employee will contribute to the business
  • Assuming new employees will understand how their roles fit within the organization without providing detailed information
  • Taking for granted that unwritten rules are self-evident
  • Believing there’s no need for a full agenda of activities and events that the employee is expected to meet, including being introduced to key people
  • Waiting to explain how performance will be evaluated only at review times
  • Expecting employees to perform their role in the department/company without enough time for them to develop a basic level of role mastery

A benefit to onboarding is that it affords work teams the opportunity to reinvent themselves and break down barriers. It can provide a valuable opportunity to see the organization through the new hire’s eyes and learn/benefit from their perspective.

Successfully onboarding a new employee requires clear, consistent communication throughout the process. Research shows that new employees’ value clear, consistent communication from their new organization. Knowing when and where to show up on the first day, what to expect upon arrival, knowing whom they will be working with, and what their role will consist of, are important components of a good onboarding experience. Welcome aboard!

Maximizing Your Human Capital Management

Human Capital Management (HCM) transforms the traditional administrative functions of human resources (HR) departments (recruiting, training, payroll, compensation, and performance management) into opportunities to drive engagement, productivity, and business value.

It’s an organization’s comprehensive set of practices used to hire, orient, train, and retain employees (as an intangible asset) through strategic and tactical practices, processes, and applications to maximize business value, which should be focused on organizational need to provide specific competencies.

Strategic and tactical competencies may include:

Administrative Support

  • Personnel, benefits, payroll, and rules and procedures administration
  • Employee self-service portal
  • Employee information management
  • Employee service center

Strategic and Tactical Support

  • Organization visualization
  • Workforce planning and contingent workforce management
  • Recruitment and hiring
  • Onboarding
  • Compensation planning
  • Competency, performance, and time and expense management
  • Workflow
  • Education and training
  • Reporting and analytics

 

Why Value HCM?
Employees spend considerable time each day contributing to the success of your organization. They can make or break the organization. Therefore, it’s essential to acquire and retain high-performing employees.

Human resource professionals are responsible for creating and implementing ways to hire, orient, train, motivate, and engage employees. HCM plays a key role in helping your organization’s human resources department increase the overall productivity and happiness of employees. And, when employees are happy and feel productive, they work harder and care more about the success of the organization.

What Are Some Challenges HCM Can Pose?

Organizations struggling with poor performance management, non-strategic workforce planning, weak usage of workforce analytics, mismanagement of organizational change, and the high cost of failing to solve challenges need to be driven by an overall purpose—fusing together strategic and tactical approaches.0

HCM needs to ensure that your organization is best prepared to anticipate challenges and quickly adapt to them.

While HR professionals may agree that strong workforce analytics are important to an organization, some fall short by not using meaningful metrics, such as Quality of Movement and Quality of Attrition. Workforce analytics involve identifying the current and anticipated future supply of labor and skills; recognizing what you need now and into the future in terms of labor, skills, and naming competencies (demand analysis); then identifying gaps between current and future supply and demand.

Mismanaging organizational change is another shortcoming. It’s more important for HR to be proactive, rather than reactive, to avoid falling behind or failing to keep pace with sudden changes. Poorly handled change management causes employees’ frustration, discomfort, disengagement, and a hasty search to reconnect with other, more meaningful frameworks in their lives. A fast-growing company can ill-afford the halting and even paralyzing effects of poorly-managed change.

Change management incorporates the organizational tools that can be utilized to help individuals make successful personal transitions, resulting in the adoption and realization of change. It’s the process, tools, and techniques used to manage the people side of change to achieve required business outcomes. It is the systematic management of employee engagement and adoption when the organization changes—in other words, how the work will be done.

There’s a high cost to unsolved challenges. By failing to identify them early, HCM is prone to gaps between its current leadership and human capital capabilities, and the leadership and capabilities required to reach future organizational goals.

Weak change management has its ramifications. Today, more revenue than ever is spent on organizational change. With such high stakes, organizations cannot afford to fail. Enormous investments are made each year related to large scale, complex business and health care changes, such as Enterprise Resource Implementations (ERP) to new patient care models, mergers, and acquisitions. Sadly, though, the statistics around unsuccessful implementation remain high. Approximately 70% of business and health care initiatives still fall short of achieving what has been promised on time and to spec.

Such failed implementation occurs for reasons such as organizations not applying the same business-discipline when managing the human elements of change as they prepare the timeline, budget, and technical objectives of a project. Put another way, weak or poor change management exists. To get the business results and return-on-investment you identified as your goal, remain diligent with the process, rigor, and discipline that surrounds the people side of implementing change.

Weak Change Management—the Pitfalls

  • Implementing change requires sponsorship. It’s the most critical success factor to ensure a fast, successful launch of any type of business change. It’s important to not only attempt change, but to actually carry it out; otherwise, change is destined for failure.
  • Don’t let activity seduce you. Activity (referred to as busywork) doesn’t always mean that things are on track. Change management is not about keeping busy; it’s about the discipline of focusing on the right actions at the right time.
  • Change Management needs to seamlessly blend with Project Management at the start of the project.
  • Change doesn’t occur in a vacuum. It should be implemented in a climate that’s based on what’s currently going on, in conjunction with perceptions of past experiences.
  • Don’t confuse a communications plan with an implementation plan. An implementation plan clearly identifies the responsible groups that will be completing the major tasks for each recommendation; whereas, a communication plan exclusively addresses communication expectations among various stakeholders.
  • Tools and checklists aren’t the be all-end all. Principles need to drive/guide change, not simply complete checklists and templates.

Be Aware of Failure…Learn From It!

  • When an organization implements a weak change management process, money in the form of both short- and long-term direct and indirect costs to the organization are affected. When the business’s objectives haven’t been achieved, the short-term, direct costs are somewhat obvious. Wasted resources include money, time, and people. And, long-term, direct costs, while more subtle, encompass low morale, lack of confidence in leadership and resistance to change. Based on these factors, the next round of changes is less likely to launch.

How to Use Change Management to Win

  • How can the problem be fixed? Employ a structured change management model that’s not a lock-step protocol (lose adherence to and emulation of another’s actions). The goal of change management shouldn’t be “to do” a process. Instead, it’s to have core principles guide you on what you should be doing, given the day-to-day realities and challenges of the project. There’s no time to do things that fail to drive you toward system optimization.
  • Leaders must equally understand how change is implemented and to what gets implemented.
  • People need to be enrolled in the change that’s being implemented. When the people side is mismanaged through poor change management, it becomes a costly decision. Is that decision worth taking the chance?

Using HCM Software
HCM software refers to applications an organization can use to track, manage, and maintain its workforce. It’s very effective at integrating an organization’s HCM applications into one user-friendly platform and the software may be installed locally or through an online subscription service.

HCM software can help with:

  • Recruiting/tracking applicants
  • Onboarding forms
  • Employee profiles, performance reviews, history
  • Integrating with payroll, tax processing, and benefits administration systems
  • Employee self-service
  • Events dashboard
  • Report writing
  • Access 24/7 from anywhere
  • Secure data encryption

Implementing cloud-based HCM software saves time. Benefits include:

  • Easy updates and added new features.
  • Fewer internal technology and server resources.
  • Maintenance even when organizational hardware changes.
  • Reduced human errors that can occur when inputting data into multiple HR systems.

HCM software functions are generally organized as follows:

  • Core HR, includes payroll, benefits administration, onboarding, compliance management, and maintenance of employee data.
  • Talent management—the collective term for recruiting, developing, and retaining employees. Talent management suites consist of distinct, yet integrated modules for recruitment, performance management, compensation management, learning, and succession planning.
  • Workforce management—set of functions to deploy employees with the necessary skills for particular regions, departments, or projects. Includes time- and attendance-management, workforce planning, labor scheduling, and budgeting.
  • Service delivery, such as HR help desks, intranet portals, employee self-service, and manager self-service.

HCM suites also typically have technologies that cut across functional areas, notably analytics, social media, collaboration, and employee engagement. Many also allow mobile access to HR data and applications, especially self-service features.

In terms of technology, HCM and human resource management system (HRMS) software features are blending, blurring the function of each. The terms may soon become interchangeable; many software vendors tend to confuse or intermingle them.

Incorporate both cloud computing, databases, and other elements to handle workforce management, and include most elements found in a standard HRIS system.

HCM systems include:

  • HRIS capabilities and features
  • Employee performance and goal tracking
  • Onboarding
  • Analytics
  • Position control and salary planning
  • Access to company databases, policies and procedures, documentation, and data
  • Global capabilities, including multi-lingual, multi-currency, and country-specific formatting

And, HRMS products include:

  • Features and capabilities offered in both HRIS and HCM systems
  • Time and labor management (TLM)

HCM continues to transform HR, as technology-driven business models take center stage. Automating repetitive HR tasks and technologies, such as artificial intelligence (AI) and machine learning (ML), will allow HR professionals to expend less time addressing routine employee questions and more time engaging with employees and candidates.
Ultimately, whether you’re looking to outsource your entire payroll and HR function, handoff some components, such as tax filing and COBRA administration, or prefer to do it all in-house, ASAP Payroll Service has a solution for you.

Taking on Union Workers?

Collective Bargaining

A controversial Supreme Court ruling was issued in late June 2018 stating government employees who elect to opt out of joining a labor union aren’t obligated to help fund collective bargaining.

This means that government workers aren’t required to finance union activity; forcing them to do so violates the First Amendment, as it requires payments to unions that negotiate with the government and forces workers to endorse political messages that could disagree with their beliefs. In contrast is the belief that government employees who choose not to join a union are entitled to refunds of their dues spent on political activities, such as promotional advertising that supports a political candidate.

What’s Involved with Hiring Union Workers?

Before taking on a project that uses union employees, research the union’s requirements. The local union’s business manager can assist you with:

  • What are the effective dates for payment and dues?
  • How and when will union workers get paid?
  • Are there any rate changes within the union?

Tracking union payroll can keep contractors up at night. Meticulous records need to be kept. Errors, such as incomplete reporting, late payments, and delayed distribution of paychecks, can result in expensive fines, lost contracts, or being removed from a union. The outcome can seriously strain HR and payroll departments when it comes to deductions that have to be tracked on union workers.

Depending on the union, either online submission or check deposits are required. Keep track of payment dates made to the union and your union workers. If you miss a deadline, you can be charged for each hour a union employee’s paycheck is past due.

And follow the same protocol when working outside your local union’s jurisdiction, as you could be responsible for a different set of wage, fringe, and deduction requirements and rates.
HR departments not familiar with union regulations may be surprised to learn how this affects members who work in certain areas of a business. For example, unions need to closely track workers’ time to make sure their employees don’t work more hours than contracted or their hours worked align with their schedules.
When processing union workers’ payroll, also keep in mind that union deductions are handled differently from non-union employees. A predetermined portion of each union worker’s paycheck needs to be set aside for union dues. If your business employs union and non-union workers, this can be challenging to track.
ASAP Payroll Service can simplify union payroll processing, despite it varying, based on each job and contractor. While there’s no universal answer that streamlines the process, you can reduce stress related to reporting by accurately tracking and recording, or by investing in a construction-specific payroll system (for example, ASAP Payroll Service) that will do it for you. ASAP has software that automates deductions related to union, open, and agency shop agreements between employers and organized labor unions, so that proper deductions are always handled on time and in full. Tracking time and attendance or mobile punching functionality can simplify the process, so workers don’t have to clock in from outside a building or geographic area designated by the employer.

Union, Agency, and Open Shops

As mentioned earlier, there are union, agency, and open shops. Closed shops aren’t included here, because they’re prohibited according to national law (the Taft-Hartley Act). In a union shop, it’s not mandatory for employees to join a union as a condition of being hired; however, they’re required to join within a specified amount of time, generally after 30 days. Technically, though, employers aren’t allowed to fire employees who refuse to join the union, provided those employees pay union fees and dues.

In an agency shop, employees must pay union fees and dues; however, they’re not required to participate as members. And, with an open shop, employees don’t have to join a union or pay dues and fees. Generally, open shops are found in right-to-work states where laws prohibit both union and agency shop agreements.

When dealing with these different kinds of shops, remember that, if your payroll solution automates calculations, this reduces human-error and saves you from getting bogged down with manual processing and correcting errors. ASAP Payroll Service’s time and attendance software can track union employees’ hours worked, vacation time taken, and can gather said data for purposes of creating quick and accurate reports. Each is tracked through Evolution Advanced HR, one of the top HCM systems on the market.

Processing Payroll
ASAP can help you process payroll across collective-bargaining union contracts and maintain accurate week-to-week payroll. We track different pay rates, shift differentials, deductions, and overtime rules. If you’re looking for a more audit-proof, scalable solution to process payroll across collective-bargaining employees, we can also help.
ASAP customizes differential rules; if the employer chooses to offer shift differential pay (extra compensation for employees who work less preferred shifts, such as evening or night), rather than make manual adjustments to employees’ paychecks each pay period, union employers can benefit from ASAP Payroll Service’s technology that records and runs shift differential rules and automatically makes adjustments to pay statements. Because shift differential rules and rates can vary among different bargaining units, our software can customize and run these rules according to each bargaining unit.

Tracking Collective Bargaining Agreements
Accrued time off, sick pay, and other employer-specific types of leave may require different rules based on collective bargaining agreements. Variations in the maximum time an employee earns, based on the union contract, might also need to be addressed. For example, maximum time, tenure changes, waiting periods, and how often the time needs to be processed. ASAP Payroll Service can monitor these through its payroll or time-keeping software. In addition, enhanced tenure changes can be tracked. We also offer mobile tracking through an app that can “geo tag” employees’ locations.
Akin to shift differentials, an employer can customize accrual calculation profiles that can then be applied separately to each collective-bargaining group. And, in terms of audits or grievances, employers with automated accrual systems can rapidly validate or amend accrual calculation disputes.
ASAP Payroll Service also uses one of the top payroll products on the market, Evolution Advanced HR. It’s a dynamic payroll, HR, and tax management system developed by payroll and HR service bureau veterans for the Human Capital Management (HCM) industry. It’s designed to reduce payroll errors. Check out the Human Capital Management page on our website: asappayroll.com.

Why Background Checks?

You’ve found a job candidate whom you think is perfect for the position you’re filling. However, hiring employees is a risky proposition. You might be bringing aboard underqualified candidates who could damage your brand’s reputation, or risk liabilities that you assume for that individual’s behavior once they’re on your payroll. Conducting employee background checks can help to minimize these risks, because they can uncover inaccuracies on candidates’ resumes, identify a history of bad behavior, or spotlight candidates who could put your company at risk for legal violations, such as disclosing a candidate’s criminal record, education, employment history, civil records, references, and more.

The benefits of conducting background checks include:

  • Increased confidence in hiring high-caliber candidates.
  • Seeing reduced employee turnover (along with related expenses).
  • Limiting exposure to claims of negligent hiring practices.

A background check is often a final step before hiring to help ensure you’re making a sound decision and protecting you (the employer) from these kinds of potential risks. For many employers, it’s a reliable way to verify claims job seekers make during the hiring process.

Human resources managers want to ensure job candidates are telling the truth about their past. Also, federal and state laws require background checks be conducted for certain jobs. And, background checks help ensure that applicants can do what they claim through employment and education verification and confirm they’re not wanted by the international authorities.

Overall, background checks help protect your company, your employees, and your clients.

Types of Background Checks
Common types of background checks include checking for criminal records, work-status validation, and reviews of social media accounts. You may also ask the candidate to take a drug test, a physical evaluation, or inquire about additional financial information (such as bankruptcies).

Criminal History Check

Arrests show on background checks, depending on the state. Some state laws prohibit employers from asking a candidate about arrest records or using them to make employment-related decisions. However, because arrests are not proof of guilt, they’re unreliable and can be considered unfair when used as a barrier to employment.

Nationwide, 35 states and over 150 cities and counties have adopted what is widely known as “ban the box” laws so that employers consider a job candidate’s qualifications first on an application—without the stigma of the candidate having a conviction or arrest record.

You’ll also need to determine how thorough a background check you want conducted. Fingerprint background checks are an option; however, traditional background checks that confirm names, birthdates, and Social Security numbers, are equally as thorough.

Social Media Screenings

Social media background checks are another option. They can reveal additional information about a potential candidate, such as how they represent themselves online. A social media background check would involve reviewing a candidate’s social media profiles, and it could help to determine whether the candidate would be a good cultural fit within your organization. However, keep in mind that social media only presents one aspect of a candidate’s background and should be seen as offering some valuable insights.

Be Aware of Discrimination
Sometimes it’s within an employer’s legal limits not to hire or to fire a candidate or current employee, because of information found in their background. However, it’s illegal when the employer has different background requirements, depending on the candidate’s race, national origin, color, sex, religion, disability, genetic information (including family medical history), or age (40 or older). For example, an employer who rejects applicants of one ethnicity who have criminal records, but not other applicants with the same criminal history, irrespective of whether or not the information was disclosed in a background report.
Even if the employer treated the candidate equally, as everyone else, using background information can still be considered illegal discrimination. For example, employers should avoid using policies or practices that exclude people with certain criminal records if the policy or practice significantly disadvantages individuals of a particular race, national origin, or other protected characteristic, and doesn’t accurately predict who will be a responsible, reliable, or safe employee. Legally speaking, the policy or practice has what’s considered a “disparate impact,” which refers to practices in employment, etc., that adversely affect one group of people of a protected characteristic more than another, even though rules applied by employers are formally neutral and are not “job related and consistent with business necessity,” irrespective of whether or not the information was in a background report.

FRCA and EEOC

As the employer, become familiar with the laws and guidelines that dictate what you can do with the information you obtain from a background check. This is where you’ll want to rely on the Fair Credit Reporting Act (FCRA), enacted in 1971, to ensure that consumer reporting agencies exercise their grave responsibilities with fairness, impartiality, and a respect for the consumer’s right to privacy. This act protects the subject of a report by putting limits on what consumer reporting agencies can reveal. You’ll also want to refer to the Equal Employment Opportunity Commission (EEOC) (eeoc.gov), which states that it is unlawful for employers to implement a screening policy that disproportionately affects minorities, unless there’s a valid business reason to have that policy in place.

Then, too, it’s important that you also clearly communicate to the job candidate what a background investigation involves. Compliance with FCRA regulations requires you gain the consent of the candidate to run an employment background check. The candidate needs to know which screens will be run when being presented with and signing a clear, concise form giving authorization to the potential employer to run the background check. For example, the candidate could have a similar name or other identifying information as that of another individual. This poses a problem for the candidate. Then, too, the credit reporting bureaus could have erroneously reported the candidate’s status. The candidate’s identity could have been stolen and used by another. If information is amiss, the potential employer is required to send a pre-adverse action notification to the candidate informing him or her of the findings.

The job candidate has rights, too. The FCRA states that the candidate will have the opportunity to dispute any inaccurate information found on their records. First, as a hiring manager, you need to assure the candidate that the job offer will not be rescinded immediately, based on background findings. However, if the candidate can’t explain such findings, you, as the employer, can proceed with your decision not to hire. But before taking this action, it’s wise to seek legal counsel to protect against any exposure to litigation or violations of state or federal law.

Finally, be sure to dispose of findings and records related to the background search. According to the Fair and Accurate Credit Transactions Act (FACTA), as the employer, you are required to properly dispose of the findings of background reports and records to guard against unauthorized access to or use of the information.