Vetting Personnel & Vendors

Source: FDIC

Effective screening of employees and vendors in today’s environment is critical for a safe and secure workplace.  This screening process can be an effective risk-management tool by providing management with a degree of certainty that the information provided by the employee or vendor is accurate, and that they do not possess a criminal background.

Used effectively, employment and vendor background screening process may reduce turnover by verifying that the potential employee and vendor has the requisite skills, certification, license or degree for the work to be performed, deter theft and embezzlement, and prevent litigation.

Management should develop a risk-focused approach to determine when screening is considered appropriate or when the level of screening should be increased, based upon the duties and responsibilities associated with the employee or vendor.   The kind of information to be obtained may include the following:

  • Criminal record
  • Financial history
  • Civil records
  • Credentials
  • Arrest warrants
  • Reference check
  • Department of Motor Vehicle (DMV) record
  • Education verification
  • Education-to-position relevance
  • Substance abuse screening

Costs are associated with developing and implementing an effective screening process.  However, absent an effective screening process, an organization may incur significant expenses from recruiting, hiring and training unqualified individuals based upon their skill sets or backgrounds.