1. Deters claims of discrimination and limits litigation.
      Employers that hire for a multitude of positions really need to take a step back and evaluate what type of searches are appropriate for each job they are trying to fill. By conducting a credit report on the staff accountant as oppose to the delivery driver will explicitly be communicated via the policy to ensure applicants understand why one search was done on them and not another new hire.
    2. Complete transparency across all positions
      Why is the company doing background checks? Who is subjected to such screenings? Who is responsible for managing the background screening program? These questions are common and should be directly answered via the background screening policy leaving no doubt as to the true value and investment the company is making by implementing employment background checks.
    3. Compliance with ban the box, fair chance acts, and salary history bans
      Due to the fluidity of background screening and a plethora of state and federal laws regulating background checks, employers (especially ones that operate in multiple states) should have a “pulse” on any additional compliance issues facing them when conducting background checks. The policy should explain compliance with both the federal Fair Credit Reporting Act, and any state laws pertaining to ban the box (i.e. City of San Francisco, City of New York). Currently over 35 states and 150 cities/counties/municipalities have a form of ban the box or fair chance act initiatives.
    4. Reduced Insurance Rates
      Just like a “good driver” discount that a few auto insurers provide, basically incentivizing the consumer for having a clean driving record, the same can be true for workers comp and/or general liability insurance. When an employer can demonstrate that it conducts compliant and comprehensive searches on key positions (CEO, c-level, board of directors, etc.) than the risk level is reduced therefore yielding better rates from insurance companies.
    5. Always evolving and changing
      Since employment background screening is a very fluid industry with laws and regulations always changing and multiplying, employers need to treat the policy as a “working document” that will never really be complete especially for companies looking to scale in a fairly short period of time. Companies may create new departments or divisions, requiring additional screening, for instance occupational testing or employment physicals.