Background Screening For A Global Workforce

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1 Background Screening For A Global Workforce A Sterling Talent Solutions White Paper Best practices for screening job candidates in foreign countries and those who have lived, studied or worked across the border or internationally.

2 A Global Workforce With an increasingly diverse and mobile population, we now have a truly global workforce. Organizations regularly seek out and employ workers in other countries as well as hire candidates who have lived, studied or worked internationally, which includes the United States. For many businesses, hiring workers with international experience is a distinct competitive advantage, diversifying the workplace and filling any skills gaps. Hiring workers with international experience can provide a distinct competitive advantage but it also comes with risks. A Dangerous Blind Spot It s not just foreign workers or contractors hired in other countries who can put an organization at risk. If a candidate has lived, studied or worked outside Canada, they too need to undergo an international background check. 3 out of 5 organizations employ local individuals with international experience Only 18% conduct global background checks on candidates who lived, studied or worked internationally With the advantages of multinational operations and hiring workers with international experience also comes an increase in the risks associated with candidate recruiting. International Background Checks Now A Necessity An organization s reputation, brand equity and bottom line can be adversely impacted if the organization does not exercise enough due diligence before hiring individuals who are later responsible for corruption, fraud and other crimes as well as unsavoury activities like harassment, all of which could lead to negative media and lowered brand perception. Due to the myriad of local and foreign laws and practices, the process of screening foreign workers or those with international experience is certainly complex. But that doesn t make it any less essential. Privacy Laws Vary Greatly Throughout The World Worse, under Canadian and foreign laws, a business could be liable for the actions of its employees Sterling Talent Solutions sterlingtalentsolutions.ca

3 Implementing A Global Background Screening Program When building and implementing a global background screening program, an organization must take into account all applicable laws to determine which types of pre-employment background checks to carry out on job candidates. Tailoring a background screening program for foreign workers and candidates with international experience does not mean creating 196+ different programs. Instead, organizations should seek to establish and understand their base business requirements, as well as how various national laws apply to their background screening programs. 5 Key Considerations Responsibility Before launching a global screening program, ensure it complies with all local legal requirements and limitations. Consult with legal counsel to determine which laws apply, and how. Requirements Fully understand any/all business requirements for background checks and turnaround times. This will help in selecting checks that are the right fit for the organization. Relevancy Ensure that background checks are relevant to the organization s industry and sector as well as the individual candidate s potential roles and responsibilities. Results Only use relevant background check results. Hiring decisions made on negative results, unless directly relevant, could be in breach of human rights or employment laws. Respect Negative hiring decisions must take into account the candidate s rights under local laws. Candidates may have the right to view or contest the results of a check Sterling Talent Solutions sterlingtalentsolutions.ca

4 The Biggest Challenge To Employers: Turnaround Times Sterling Talent Solutions 2015 benchmark survey found that 51% of employers believe background checks take too long. Slow turnaround times can negatively impact an organization s time-to-hire as well as the overall candidate experience Business Days Or Less Turnaround Times In Canada & U.S. 9 Business Days Or More International Turnaround Times Unfortunately, due to the complexity of international background checks, turnaround times for these results are much longer as long as several months, depending on the country than for local checks. Organizations must take this into consideration when developing their recruiting processes for foreign workers or candidates with international experience. As many of these checks are done through each country s local government agencies, it is unlikely that these timelines will shorten any time soon. Different Tactics For High-Impact Roles The goal for most international background screening programs is to standardize and streamline the process as much as possible. However, some roles require more flexibility and finesse when screening candidates, as they ll have a bigger influence on the organization s performance. Examples include the C-suite and members of the Board of Directors, and middle-tier roles would also require interaction with foreign officials. Having pre-employment private investigations, which are far more in-depth than online background checks, conducted is often the most appropriate for these kinds of high impact positions, as candidates often have extensive international experience. These investigations should be highly-tailored for the organization and position and carried out by professional, credentialed investigators. Some of the red flags that in-depth investigations commonly uncover include: Falsified Résumés Conflicts of Interest A Litigious Past Insider Trading Criminal Records Workplace Harassment or Violence Debt, Liens or Judgments Negative Media Exposure Improper Licensing Embezzlement, Misappropriation of Funds Bribes or Kick-backs Chronic Short-Term Employment While not appropriate for most positions, pre-employment investigations should remain part of an organization s recruiting toolkit for use when hiring any candidate who would have direct affect on an organization s financial results or industry performance. Don t Overlook Partners Or Vendors It s not just who you hire, it s also who you work with that could put your organization at risk. For example, you could hire a foreign vendor that is listed on a government sanctions list or you could use a Web contractor that has misused sensitive customer information. Potential vendors and contractors should be included in your international background screening program and checks should be carried out regardless of the vendor s current or past relationship with the organization Sterling Talent Solutions sterlingtalentsolutions.ca

5 Best Practices For International Background Checks The actual overseas background screening process involves carrying out various different types of checks based on several factors: Type of hire (entry, mid-career, professional, executive) Regulated status of the position Level of risk the position poses to the organization Past countries of residence These parameters should be clearly set in an organization s screening policy, which should incorporate all applicable laws and business requirements, as they will determine which types of background checks are to be employed for each position. Type Of Background Check Purpose Appropriate For: Identity Verification To confirm the candidate is who they say they are All candidates Address Verification To confirm candidate s current residency All candidates Education Verification To confirm claimed academic credentials All candidates Employment Verification To confirm a candidate s claimed work history All candidates Reference Checks To confirm a candidate s professional reputation All candidates Credit Bureau Check Professional Credential Verification Criminal Records Check Compliance & Sanctions Lists Adverse Media Conflict Of Interest Check Partner/Vendor Screening Executive Investigation To evaluate a candidate s sense of responsibility and financial track record To confirm a candidate has claimed credentials and they re in good standing To determine if a candidate engaged in illegal activities in countries where they have lived, studied or worked To determine if a candidate has been sanctioned or subject to an enforcement action by relevant regulatory authorities, is on a terrorist watch list, or may be a politically exposed person To locate any news articles or social media activity that contain derogatory information concerning the candidate To evaluate if candidate may be involved in multiple interests To determine if a potential vendor or contractor is legitimate and in good standing To determine if a candidate has concerning history or relationships that may put the organization at risk For positions with significant financial responsibility For regulated positions and/or those that require a particular professional credential All candidates All candidates, especially those with international experience For high impact positions where the candidate would publicly represent the organization All candidates For foreign companies or contractors not directly employed by the organization; there should be no exceptions granted to known partners For high impact positions Sterling Talent Solutions sterlingtalentsolutions.ca

6 An organization s background screening provider should report any discrepancies or potentially derogatory information uncovered from these background checks IMPORTANT: It is critical that no background check of any kind be initiated before written authorization from candidate is obtained. This should generally happen when an organization is ready to make a verbal or written job offer to a candidate. Most Commonly Used International Background Checks 71% Crimnal Record 14% Credit/ Financial 66% Verification 17% Motor Vehicle 41% Identity and Authentication 29% Drug and Health Proper Use of Background Check Results 7% 5% Social Media After an organization tailors its global background screening program to accommodate local laws and regulations, it must ensure it uses the results of the background checks in compliance with Canada s privacy, human rights, employment and other applicable laws. Other Use only relevant results in a hiring decision Just because a check is legally permissible in a particular country does not mean that all the results can be used when making a hiring decision in Canada. For example, unless a candidate has applied for a job where driving is integral to the role, an employer should not reject the candidate on the basis of a driving offense revealed in a criminal record check. Doing so may violate local laws, as the information may have no bearing on the candidate's ability to perform the role. Involve the candidate before making a negative hiring decision Many organizations fail to relay the results of a background check to the candidate and instead proceed with a negative recruitment decision without his or her input. This may result in your organization violating consumer reporting or privacy law, as candidates have the right to see the results of a background check and dispute their accuracy and completeness. To avoid the risk of non-compliance, organizations must ensure the candidate has the opportunity to dispute adverse results. Conclusion For any Canadian organization that has operations in another country or hires employees with international experience including in the U.S. implementing a thorough global background screening process is essential for reducing risk and for making the best hiring decisions. Because of the complexities of foreign laws, much thought and legal review should be given to an organization s screening policy and practices. Most importantly, the recruiting and onboarding process needs to take into account the lengthened turnaround times for completing international background checks and include positionspecific checks and investigations where appropriate based on the candidate s history and the job role requirements. Working with an established screening provider that has a global footprint and deep international expertise can help to standardize and streamline an organization s global background screening program Sterling Talent Solutions sterlingtalentsolutions.ca

7 About Us Sterling Talent Solutions provides hiring peace of mind by delivering a simpler, smarter background screening experience for employers worldwide. Our comprehensive suite of background screening solutions deliver accurate, reliable results and tools to maintain compliance throughout the hiring cycle. With 18 offices in nine countries, our team of more than 3,500 employees proudly serves over 50,000 customers around the world, including 25% of the Fortune 100. Sterling is accredited by the National Association of Professional Background Screeners (NAPBS), a distinction earned by fewer than 10% of all background screening companies. Visit Want More? In addition to this report, Sterling regularly publishes cutting-edge research and insight on the latest trends in human resources, talent management and hire processing. For more information, contact us at: sterlingtalentsolutions.ca Sterling Talent Solutions 2011-CA-EN V1 The information contained in this document should not be relied or acted upon without first seeking the advice of a competent legal adviser. Sterling Talent Solutions shall not be liable for any damages resulting from any use of the information contained in this document.