Pre-Employment Screening: What Are Your Choices?
Patricia D. McGowan - Occupational Health & Safety Magazine - Stevens Publishing - November, 1999
Why do screening? I can give you three fundamental reasons:
  • Limit your corporate liability.
  • Improve the quality of your hires.
  • Reduce your hiring costs.

Companies today have a variety of choices in the selection of a pre-employment screening process for their organization. An effective program that is implemented in a professional manner, utilizing a consistent approach, will provide the company with the best opportunity of hiring the best employees. On the opposite end of the spectrum, inappropriate hiring decisions can expose a company to a myriad of potential problems, both legal and operational.


More than half of all resumes contain false or exaggerated information, studies indicate.

Companies often spend thousands of dollars to advertise, recruit ,and hire the best applicants, yet they apply only limited amounts to screen the final candidates. The recruitment and selection process is lengthy and involved. The added burden of ferreting out individuals who deliberately mislead interviewers adds to an already difficult task, yet patterns of past performance and working relationships often are a strong indicator of future behavior and should not be overlooked.

Numerous studies by both government and civilian agencies indicate more than 50 percent of all resumes contain false or exaggerated information --information that, if it were known, would have led in many situations to decisions not to hire.

A recent nationwide survey conducted by the Research Division of BEST/World Associates found this breakdown of activities related to pre-employment background investigations among 428 companies, each with more than 1,000 employees:

  • More than 64 percent chose to use an outside service.
  • Seventeen percent use their current in-house recruiters.
  • Fewer than 1 percent have their own investigative unit.
  • Only 18 percent are not currently using pre-employment screening.

Companies should consider the following three primary options when making a corporate-wide decision.

Outside Vendors

Numerous professional applicant-screening firms are available to provide pre-employment background investigations on job applicants. These investigative companies offer many advantages over in-house screening, and a number of them have established nationwide reputations. They can often customize a screening package at your request to fit your company's needs.

Costs range significantly, depending upon the depth of the investigation. The product received typically is a basic report that assists in satisfying a company's legal liabilities and exposure. Because they have well-established systems, these companies can obtain information quickly and return a completed report promptly.


Patterns of past performance and working relationships often are a strong indicator of future behavior.

These firms have a clear understanding of the legal rights of applicants and employers. They document and substantiate all of their findings. Several companies now allow you secured access to your report information through the Internet or e-mail, speeding information to you that once was only available through hard copy or facsimile.

To properly implement an outside vendor option, your company typically would require an administrative individual to coordinate the transmission and retrieval of information. This provides a single point of contact for your vendor.

Human Resource Recruiters

There are corporations that have effectively utilized human resource recruiters to perform the background screening. While most corporations will argue a recruiter's expertise lies in matching the selected applicant with the appropriate position, there has been concern about time restraints and the potential for a conflict-of-interest argument.

Recruiters need to become familiar with the investigative tools available, as well as obtain training on the interpretation of data received. There have been several amendments to the Fair Credit Reporting Act in recent years, and human resources should be aware of these changes and how they affect company policies and procedures.

For this work, a recruiter's schedule must allow for the pre-employment screening investigation, which includes phone calls, letter writing, follow-up, verbal reporting, and report preparation for a standardized system throughout the company. Prior to start-up, a system would have to be developed utilizing the various resources of information for education, employment, criminal records, etc. Development of a pre-employment screening manual would be advisable.

In-House Investigative Units

Some corporations have opted to establish their own background investigation team. While start-up costs represent a considerable initial investment, the primary advantages are control and cost containment. A company can structure the investigations based on its needs, instead of relying on a pre-packaged product provided by outside vendors.

Employers should develop this unit as an investigative function requiring the full-time attention of professional investigators and supervisors. Staff legal advice should be available for questionable areas concerning criminal record histories and negative information. A company's technology department should assist in setting up available systems to access credit information, criminal record violations, and motor vehicle information through on-site technology.

Each investigator should be familiar with and able to respond to questions concerning applicable federal, state, and local laws. Again, the development of a pre-employment screening manual is advisable.


Committing to perform pre-employment screening of potential hires has reduced some companies' liability insurance premiums.

Additional Issues

Once an option has been selected, specific training issues should be addressed. Ongoing training and investment in experienced personnel will be instrumental in determining the program's success, regardless of which option is pursued. You will need to establish a uniform system of collecting, maintaining, accessing, evaluating, using, and disclosing the information to appropriate personnel. The confidentiality of all information that is gathered must be preserved and protected.

More and more corporations have implemented a process to handle their background investigations in an effort to control their costly litigation and retraining costs. Several companies say they reduced their liability insurance premiums when they committed to performing pre-employment screening of potential hires. Whatever the rationale for using pre-employment screening, each human resources/security department should make executives aware of the current regulations, amendments, and laws affecting their new hires.



Patricia D. McGowan is the Vice President/General Manager of PreScreen America Inc, headquartered in Arlington, Texas. PreScreen America Inc. (http://www.prescreenamerica.com/) provides pre-employment background investigation service for corporations nationwide.

Copyright 1998, 1999 Stevens Publishing Corporation 5151 Beltline Rd. 10th Floor Dallas, Texas 75240