Security, Human Resources, Background Checks and the Law: ROI - PowerPoint PPT Presentation

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Security, Human Resources, Background Checks and the Law: ROI

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Security, Human Resources, Background Checks and the Law: ROI ASIS International 2000 46th Annual Seminar & Exhibits 9/11/00 - Orlando, FL M. K. Poquette – PowerPoint PPT presentation

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Title: Security, Human Resources, Background Checks and the Law: ROI


1
Security, Human Resources, Background Checks
and the Law ROI
  • ASIS International 2000
  • 46th Annual Seminar Exhibits
  • 9/11/00 - Orlando, FL
  • M. K. Poquette

2
Security Products

3
Security Products
Worldwide Security Spending 1998 512
Million 2003 2.24 Billion Source
International Data Corp
4
  • PREMISE 1
  • Security ROI is compromised unless measures
    include background checks.

5
CCTV Security Guards Locks Power Supplies
Transmission Systems Vaults Computer
Software Bar Coding Pagers Fences/Gates/Guard
Booths Voice Evacuation Systems X-Ray
Alarms Iris Recognition Intelligent Key
Systems Metal Detectors Intrusion Detection
Fire Protection Equipment Bio-metric Access
Buried Sensors Night Vision Equipment
In-fared Cameras Two Way Radios
Bullet-Resistant Barriers Digital Recorders
Video Signal Equipment
6
CCTV Security Guards Locks Power Supplies
Transmission Systems Vaults Computer
Software Bar Coding Pagers Fences/Gates/Guard
Booths Voice Evacuation Systems X-Ray
Alarms Iris Recognition Intelligent Key
Systems Metal Detectors Intrusion Detection
Fire Protection Equipment Biometric Access
Buried Sensors Night Vision Equipment Infared
Cameras Two Way Radios Bullet-Resistant
Barriers Digital Recorders Video Signal
Equipment
Background Checks
7
Human Resources, Background Checks and the
Law ROI
  • Security,

8
Human Resources, Background Checks and the
Law ROI
  • Security,

9
  • PREMISE 2
  • Security ROI is compromised unless measures
    include background checks.
  • Security expertise needed in background check
    program

10
Human Resources
Security
Back-ground Checks
The Law
11
Human Resources
Security
Back-ground Checks
The Law
12
Human Resources
Security
Back-ground Checks
The Law
13
Objectives
  • Protection
  • Employees and Clients
  • Assets
  • Liability

14
Direct Cost
  • NEGLIGENT HIRING
  • . . . more than half the awards in recent
  • security negligence cases have exceeded
  • 100,000.
  • HR Magazine, 6/00
  • Looking for Chinks In the Armor.

15
Direct Cost
  • THEFT . . . The stores had become a haven for
    ex-felons and thieves.
  • . . . Almost all of the thieves
    were
  • gaining employment at a xxxxx
  • store for one premeditated reason
  • -- to steal.
  • Security Management Magazine, 11/99
  • Stop Insiders from Eating Profits.

16
Direct Cost
  • COMPUTER CRIME
  • Average Cost Per Hacker Incident
  • Outside Hacker 56 Thousand
  • Inside Hacker 2.7 Million
  • Security Management Magazine, 12/99
  • Inside the Mind of the Insider.

17
Direct Cost
  • NEGLIGENT HIRING
  • . . . awards average about 500,000 in
  • cases where an individual is assaulted at a
  • place of business.
  • HR Magazine, 6/00
  • Looking for Chinks In the Armor.

18
Objectives
  • Protection
  • Employees and Clients
  • Assets
  • Liability
  • Add Value

19
Screening
  • One of the most significant missed opportunities
    in security departments is related to the
    screening of applicants for employment.
  • Security Management Magazine, 12/99
  • How Can Security Get Inside the Door?

20
Screening
  • . . . the most probable and most significant
    loss prevention tool in the future will be the
    use of better employee-selection techniques.
  • Security Management Magazine, 4/00
  • An Inventory of Whats in Store.

21
Indirect Cost
  • SELECTION, TRAINING, START-UP
  • 50 - 150 of annual salary

22
Screening

lt100
lt50
lt10
23
Recommendations
  • PROACTIVE INVOLVEMENT
  • Utilize security expertise
  • Design/implement screening program
  • Participate in vendor selection
  • Obtain legal approval
  • Audit processes and on-going results.

24
Recommendations
  • COMPREHENSIVE
  • All Staff
  • Employees, including executives
  • Temporary Staff
  • Contractors

25
Security Expertise
  • Pragmatic view
  • Knowledge of criminal record system
  • Enterprise-wide security view
  • Part of executive management
  • Minimize Legal Department objections
  • Position background checks as critical security
    component

26
  • PREMISE 3
  • Security ROI is compromised unless measures
    include background checks.
  • Security expertise needed in background check
    program
  • Program must be legally compliant and defensible.

27
Implementation
  • OBTAINING AND USING SCREENING INFORMATION
  • Equal Employment Opportunity Laws
  • Fair Credit Reporting Act (FCRA)
  • (Federal State versions may apply.)

28
FCRA
  • 04/25/71 - Fair Credit Reporting Act
  • 09/30/97 - Consumer Credit Reporting
  • Reform Act of 1996
  • 11/02/98 - Consumer Reporting
  • Employment Clarification
  • Act of 1998

29
FCRA
  • CCRRA of 1996
  • FCRA governs all background checks done for
    employment purposes by a third party for which
    third party is paid.
  • Applies whether or not credit is included in
    background check.
  • State law may add more requirements.

30
FCRA
  • KEY DEFINITIONS
  • Background checks
  • Consumer Report (CR) or
  • Investigative Consumer Report (ICR).
  • Background-checking provider Consumer Reporting
    Agency (CRA)
  • Employment purposes
  • Employment, retention, or promotion

31
FCRA
  • KEY DEFINITIONS
  • Adverse Action
  • Not hiring, retaining or promoting applicant
    based in whole or part on information in
    background check.
  • Excluded Information
  • Any adverse item of information, other than
    criminal convictions, older than 7 years
  • Some exceptions apply.

32
Screening Process
  • CERTIFICATION
  • Employer signs User Certification with CRA
  • CRA provides employer with
  • Notice to Users of Consumer Reports
    Obligations of Users Under the FCRA.
  • Note One-time steps.

33
Screening Process
  • CERTIFICATION
  • Employer agrees in User Certification to
  • Use information only for employment purposes
  • Use information only in legal ways
  • Make disclose to applicant and obtain
    authorization
  • Follow adverse action procedures
  • Note Exact language not specified.

34
Screening Process
  • INTERNAL PROCEDURES
  • Standardize checks by position
  • Applicable to position
  • Use and impact of key identifiers
  • (Date of birth and other names used)
  • Define action based on information green,
    yellow, red criteria.

35
Screening Process
  • INTERNAL PROCEDURES
  • Use of contingency offers
  • Applicants continuation, suspension, or
    termination in employment process.
  • Adverse action process, time lines.
  • Effect of adverse information.

36
Screening Process
  • WITH APPLICANT
  • Make Clear and conspicuous disclosure in a
    document that consists solely of the
    disclosure.
  • Obtain signed authorization from applicant.
  • 10/21/97 FTC Opinion Disclosure and
    authorization may be combined.
  • Obtain applicants key identifiers. (SSN, DOB,
    other names used)

37
Screening Process
  • TO CRA
  • Provide applicant information to CRA
  • Employment Application
  • Authorization
  • Key Identifiers
  • Possession by CRA not legally required, but
    practical considerations apply.

38
Screening Process
  • WORKING WITH RESULTS
  • Apply pre-determined criteria and procedures
  • (Green, yellow, red light)

39
Screening Process
  • ADVERSE ACTION
  • Notify applicant before taking action
  • Provide time to dispute and correct
  • Provide copy of report and A Summary of Your
    Rights under the Fair Credit Reporting Act
  • Provide adverse action notification
  • Obtain applicants key identifiers. (SSN, DOB,
    other names used)

40
Screening Process
  • INTERNAL INVESTIGATIONS
  • FTC opinion
  • Authorization required
  • Hearings in process
  • Authorization effective throughout employment

41
Screening Process
  • ROLE OF THIRD PARTY
  • Provides background information.
  • Meets or exceeds service commitments.
  • Provides expertise.
  • Is legally compliant.
  • Applies technology to improve product and
    process.

42
Technology
  • BACKGROUND CHECKING
  • Information
  • Accuracy
  • Convenience
  • Cost-effectiveness.

43
Technology
  • MANAGEMENT DATA
  • Audit trail of all work
  • Management reports
  • Applicants screened
  • Checks conducted
  • Hit ratios
  • Turnaround time
  • Dollars invested

44
Audit
  • INTERNAL AND EXTERNAL
  • Checks ordered by position
  • Start date versus background screen date
  • Use of adverse action procedures
  • Compare vendor data to company data

45
Security
  • HR Magazine, June 2000.
  • Agenda Security
  • . . . balance costs
  • and risks . . .
  • HR Magazine, June 2000. Agenda Security

46
Human Resources
Security
ROI
Back-ground Checks
The Law
47
  • QUESTIONS?
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