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Contractor, Supplier& Vendor ScreeningWhite Paper / Buyers Guide
Table of Contents01Why This Matters to Your Organization02Components of a Comprehensive Contractor Screening Program03Best Practices in Government Regulated Industries04Technology Considerations05Key Questions to Ask06Process for Buyingwww.e-verifile.com
Why This Matters to Your OrganizationWhether your company utilizescontractors, suppliers or vendors,ensuring you have a comprehensivescreening program in place is essentialfor your business. For the purposesof this white paper we will refer toyour company’s contractors, suppliersand vendors as contractors, whendescribing the screening program.Contactor Screening is an importantsecurity element for any business. Yourcontractors have similar levels of accessto various locations and intellectualresources as do your full time employees.It’s important to safeguard your businessfrom the potential threat of unscreenedcontractors.It Matters Because it HelpsProtect Your Company’sAssets and BrandEvery day 10.3 million independentcontractors go to work in the UnitedStates1. The level of oversight necessaryto ensure millions of contractors arequalified is vast. The first step towardsensuring a more secure workplace isimplementing a contractor screeningprogram.If sourcing of these contractors isWhy This Matters to Your Organizationnot comprehensive, a companycan ultimately be faced with severeconsequences. Negligent hiring is aclaim made by an injured party againstan employer stating that the employershould have known elements of anemployee’s background, which couldhave indicated deceitful or unreliablebehavior. Pre-employment backgroundchecks and screenings are someexamples of the way negligence hiringclaims can be prevented.It Matters Because itReduces RiskA potential consequence of negligenthiring is a lawsuit. These can result insurmountable financial consequences, aswell as damage to a company’s businessintegrity.It’s important to take the necessarysteps to not only avoid bad contractors,but negligent hires as well. On average,a negligent hiring lawsuit can cost acompany nearly 1 million. However,negligent hiring cases have hadverdicts costing up to 40 million.Unfortunately, employers have lost morethan 79% of negligent hiring cases2.Today, on average 11% of backgroundwww.e-verifile.com
checks run on individuals come backwith some sort of criminal records (i.e.misdemeanor or felony)3. This means atleast one in ten of your contractors likelyhas some criminal offense on his or herrecord you are not privy to. This could bea minor or significant offense. Either way,it increases risk to your organization.90% of American companies neglect torun contractor screening and criminalchecks on contractors.Security in Action“As a business owner, myemployees and my contractorsare the individuals who keep thecompany going. They’re the ones Iowe many thanks to. I also owe tothem a safe and secure workforce.- Mark Wilson, CEO eVerifileWhy This Matters to Your OrganizationContractor BackgroundCheck ProcedureFor all contractor candidates, yourcompany should require: Criminal Background Check Certificate & License Check Employment Verification Education Verification Reference Verification Drug Test[1] http://www.census.gov/compendia/statab/[2] y-Hiring10-Shocking-HR-Statistics[3] Careerbuilder.com”www.e-verifile.com
Components of a Comprehensive ContractorScreening ProgramAs security in the workplace grows inimportance for companies of all sizes,more emphasis is given to the actualcomponents of the contractor screeningprogram. By instituting a contractorscreening program, you not only protectyour workplace, but you also reducepotential litigation risk, mitigate productand data theft risk, and protect yourbrand image.Primary Components ofa Contractor ScreeningProgramBackground ChecksAs the foundation of a contractorscreening program, background checksare used for assessing a contractor’sbackground. This is the securitycomponent of the contractor screeningprogram. Usually multi-county checksare run for the past seven or ten yearsof residence history on a contractor.Criminal background screening solutionsgive you the information and peaceof mind to protect your organizationfrom financial and security risksassociated with an unsafe workingenvironment. Through criminal recordsources, we are able to locate County,State, and Federal criminal records.Components of a Comprehensive Contractor Screening ProgramWhen a record is located, eVerifileprovides you detailed informationincluding level of the record, how therecord was verified (name, DOB, SSN),case number, offense, disposition, anddisposition date (where applicable).TrainingThis is the safety component of acomprehensive contractor screeningprogram. Training material is typicallyprovided by the client for its contractorsto view and consists of safety awarenesstraining, contractor orientation, andoverview of job assignment and clientrequirements when onsite.HR orientations and corporate andcompliance presentations are key tomaintaining a well-trained contractorbase. Content can include: safetyawareness, new contractor orientation,client and job overview, and compliancerequirements.BadgingThis is the access component ofcontractor screening. A comprehensivecontractor screening program willthen provide credentialed badges tocontractors who pass a backgroundcheck and successfully complete therequired training. The badge indicateswww.e-verifile.com
that the client has approved thecontractor to work on their site. Badgesshould typically be set to expire every 2-3years and then a recertification shouldbe required to renew the badge. Thebadge should have a clear picture of thecontractor and also reflect the authorizedaccess they have when working at yourcompany location.Ongoing MonitoringOngoing monitoring is a securityfeature that checks a national criminaldatabase every month to check existingemployees or contractors to see if thereis a possible hit that has occurred sincepre-hire screening was performed. Theongoing monitoring allows companies toSecurity in ActioneVerifile standard background screeningturnaround time ranges from instantchecks to 24-72 hours. We have customizedprograms based on experience with largecompanies and government contracts. Weconfigure and tailor packages and servicesto your industry’s contractor needs.Components of a Comprehensive Contractor Screening Programcontinuously screen existing contractors.The process for ongoing monitoring issimple:Companies will submit a monthlypayroll file and the contractor screeningcompany will run the list against theNational Criminal Database.If there is a possible hit, the contractorscreening company will validate the hitat the source to ensure it is the correctperson. Then the company is informedand they can decide next steps per theirinternal HR policies. Ongoing criminalmonitoring is done post-hire after theinitial full background check is completed.Finding a Holistic SolutionAs a final note, a comprehensivecontractor screening program shouldhave all applicable parts provided bythe same provider. This will centralizethe screening process with onepreferred partner. This provider acts asa single clearinghouse for processingall background checks for your vendorpersonnel. This provider should offeruniversal contractor employee standardsand online audit tools. Ultimately,selecting a comprehensive contractorscreening company will mitigate liabilityresulting from potential negligent hiringcontractor relationships, and maintain theintegrity of your workforce.www.e-verifile.com
Best Practices in Government RegulatedIndustriesIt is essential to conduct proper screeningof your contractors. Knowing who you’recontracting with is key.An unscreened contractor can amount toa number of risks, including workplaceviolence, theft, fraud and drug abuse.Safety and Security executives shouldnot take a hands-off approach formanaging their contractors. Use bestpractices to thwart workplace criminalactivity.Start with the BasicsA core solution in most backgroundchecks is the criminal record search. Thissearch is important to assure duediligence in efforts related to negligenthiring litigation and workplace safety.This search and the actionable dataassociated with the search, if any, mustcomply with any applicable local, state,federal and international laws.A thorough contractor backgroundscreening should include an extendednationwide multi-county backgroundcheck using 7- year address history,as well a NCDC (The National CriminalDatabase Check) background check.It’s important to be aware of EqualBest Practices in Government Regulated IndustriesEmployment Opportunity Commission(EEOC) and Fair Credit Reporting Act(FCRA) policies and guidelines duringany screening process. The employmentscreening process involves a consumerreport and is therefore required tocomply with the FCRA. Furthermore,the EEOC has strict guidelines relatingto disqualifying candidates solely on acriminal charge.Add on Advanced SearchesIt’s important to get the information youneed on candidates to make informedhiring decisions. Supplementary searchescan be of the utmost importance forvarious jobs and industries.Certificate and License Verification:Confirm your contractor has thenecessary certification.SSN Verifications: Detect the fraudulentuse of social security numbers.Motor Vehicle Reports: Assesses thecandidate’s driving record.Employment and ReferenceVerification: Checks previous employers’records and conducts interviews withpast supervisors or human resourcepersonnel.www.e-verifile.com
U.S Government Watch Searches:Include information about individualslinked to terrorism or terrorist activity.Drug Testing: Can be conducted bothpre-employment and during randomtesting cycles.Sex Offender Verification: Checksnational records, as well as specificstates’ live repositories based on thecandidate’s history.Worker’s Compensation Reports: Maydetermine whether an employee hasabused worker’s compensation in thepast.Make it ConsistentHaving security processes in placeto screen employees and contractorsis key to a comprehensive hiringprogram. Screening contractors prehire ensures you are hiring a qualifiedcandidate. But what happens afterthey’re hired? How will you know ifthey’ve developed a criminal record sincebeing employed? An effective programwill screen contractors during theircontract assignment. Ongoing contractorscreening confirms your candidatesare continuously monitored under yourcriminal background policy throughoutthe course of their employment.Best Practices in Government Regulated IndustriesHave an Appeals ProcessWhen it comes to criminal backgroundscreening, certain information will beflagged. This information may or maynot be relevant to your contractor’s hire.For example, a traffic violation arrestmay not be relevant if your contractoris not required to drive for the job. Dueto such circumstances, it is importantto have an appeals process in place toprovide individuals the right to disputethe accuracy or completeness of thebackground check.A few key items to remember:Don’t deny a contractor based on an joboffer. An arrest record does not provecriminal conduct.Don’t automatically discount anyone whohas a conviction. You should consider theoffense in relation to the job being offeredas well as the length of time since thecrime was committed.Make it IntegratedContractor screening is more than justapproving a qualified candidate. A bestpractice in contractor screening is toimplement an integrated program. Testingand assessments, as well as badging areessential to a secure workforce.www.e-verifile.com
A safety training program can convertyour training videos and printed materialsinto your own online library with testingcapabilities. This will ensure that yourbusiness is in compliance and yourcontractors are well informed.Contractors, like employees, will haveaccess to sensitive areas or information.Once a contractor has met predeterminedrequirements (for example, passing asafety or compliance assessment), he orshe will be issued an ID badge.When your business integrity is on theline, a comprehensive approach tocontractor screening can safeguard yourworkforce and workplace.Security in ActioneVerifile’s eRailSafe program is the government standard for contractorscreening in the railroad industry. We work with railroads to ensure they arecompliant, and reducing risk. eRailSafe is the premier workforce safety andsecurity management program for Class 1 Railroads and the businessesthat serve them.Best Practices in Government Regulated Industrieswww.e-verifile.com
Technology ConsiderationsWhen selecting a contractor screeningprogram, it’s important to understandthe implications of choosing the righttechnology solution.State of the ArtOutdated technology can place a hugeadministration strain on your business.Look for a company whose contractorscreening process includes advancedtechnological solutions, such astechnology that is regularly updated.Outdated technology simply doesn’t runas efficient, and could end up costing youmore time in the process.AutomationA contractor screening technology sourceshould work directly with the applicant tocollect and process their information. Notonly does this streamline processes, italso reduces the likelihood of informationgetting transmitted incorrectly since itis coming from the applicant source.Automation can help businesses increasetheir production rates and productivity,and saves time.Technology ConsiderationsWhen considering a contractor screeningresource, it is important that all dataand responses be accessible from onecentralized system. This system shouldbe safe, secure, and smart. The burdenof administration work (gathering andsubmitting information) should be done inone easy step.Data SourceMost companies source their backgroundcheck data from a single resource. It’simportant to understand that this may notbe the best practice.A company that sources their data frommultiple sources will ultimately provideyou with the most comprehensive andeffective solution. This is very similarto an Expedia-like process. The moreresources available, the more thoroughthe assessment can be.In the end, the applicant should be ableto submit information 24 hours a day.The business should get the informationthey need from a trusted backgroundscreening firm that includes accurate andup-to-date information.www.e-verifile.com
Security in ActionRenovo, eVerifile’s next generation, cloud-based technology platform,streamlines and automates. In addition to pre- and ongoing employmentscreening, eVerifile’s technology also implements hosted training andassessments, and ID badging. A key advantage of our integrated dataprovider model offers workload balancing – greatest amount of capacityas well as ability to scale to any level of hiring. Further, this modelallows the capability to provide optimized blend of data services fromthe leading industry providers – where each is at its best.This solution also allows for redundancy, flexibility, optimal turnaroundtimes, and data accuracy from a variety of global data partners.BE CERTAIN with eVerifileTechnology Considerationswww.e-verifile.com
Key Questions to AskWhen implementing a contractorscreening program, it is important tounderstand the various functionality andsystem requirements. Here are a fewquestions for the screening company thatcan help guide your decision-making. Can I save money if I have thecontractor-screening program andbackground screening for my employeescome from the same provider?Customer Service Where do you source your data? What are the key providers from whichyou source your data? What is the accuracy of the data? How timely are the background checksreturned? What is the timeline andresponsiveness of the organization? Do you have a dedicated accountrepresentative? What is the process for handlingcomplicated cases and/or appeals? How do you communicate and enrollcontractors to the program?IntegrationTechnologyData Source How is the screening programintegrated from contractor to company? What is the link between backgroundscreening, training and badging? Are there protocols in place for securedata transfer? How automated is the process? When was your technology lastupdated?Security in ActioneVerifile is a certified minority-owned business, and the government standard forcontractor screening in the railroad industry. eVerifile sources all backgroundchecks from multiple providers.Data may be a commodity, but securing your company doesn’t have to be. eVerifileoffers industry-leading customer service to better assist with your needs.Key Questions to Askwww.e-verifile.com
Process for BuyingProtecting your organizational assets,customers, workforce, and reputationincludes instituting a comprehensivecontractor screening program. eVerifilemakes it easy to institute such a program.3 Easy Steps for theEnterprise Customer:The Corporate Buyer will need to contacteVerifile to set up a master account.Then, the enterprise sends an email toits vendors with a link to the eVerifilecontractor screening platform.Finally, they have ongoing usage of theplatform to monitor contractors.Security in ActionThere is no charge to the enterprisefor contractor background checks, asthe vendor will incur these fees. Formore comprehensive solutions, such astraining modules, custom programs areavailable as well as a consultation withyour eVerfile expert.For the Vendors EmployingContractors:The vendor receives the link from theenterprise inviting them to the eVerifleplatform.Each time an employee is processed, thevendor will incur the standard applicantcharge based on requirements.Watch a short animation videothat explains the importanceof implementing contractorscreening watch-videoseVerifile is an industry leader of employeeand contractor workforce intelligencesolutions. Our mission is to provideorganizations with technologically advancedrisk assessment tools to screen andcredential a high quality workforce. Ourmission is to help our clients achieve higherlevels of efficiency by leveraging technologyto improve the existing processes of newapplicant screening and employee recordsProcess for Buyingmanagement, while significantly reducinghuman resource operations time. Assecurity continues to be a vital concernfor our nation, eVerifile is honored to havethe opportunity to serve by protecting ourclients from hiring unqualified individualsthrough our employee and contractorbackground screening solutions.www.e-verifile.com
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a Contractor Screening Program Background Checks As the foundation of a contractor screening program, background checks are used for assessing a contractor's background. This is the security component of the contractor screening program. Usually multi-county checks are run for the past seven or ten years of residence history on a contractor.
