Conducting a comprehensive backgound investigation on every applicant for employment -- and often, continuing background investigations on current employees who work in sensitive or "confidential" positions -- is a common practice in many industries that deal in money and proprietary customer data. In banking, this is often the exception to this practice, rather than the rule.

I try to have my clients agree to create a standardized list of things that all applicants will submit to or complete before being hired. Creating this list helps you to insure that you actually get all of the information you require -- and it may prevent a discrimination action.

I'll share my proposed list in the next couple of weeks with BankersOnline.com's participants. But first, please share your answers to these questions:
1. Does your institution conduct background investigations on every prospective employee -- even "temps"?
2. Does your institution conduct continuing background investigations on existing employees -- particularly those in "confidential" positions (e.g., security, audit, human resources, executive, consultants, etc.)?
3. What do you require applicants to provide for you -- or what things do you investigate?

Thanks -- in advance -- for your help!

------------------
Dana Turner
Security Education Systems
danaturner@bankersonline.com
830-535-6500 (new)

[This message has been edited by Dana Turner (edited 02-06-2001).]

As a general rule:
1. Does your institution conduct background investigations on every prospective employee -- even "temps"?
Not temps and usually a credit report and possibly telephone verifications to references.

2. Does your institution conduct continuing background investigations on existing employees -- particularly those in "confidential" positions (e.g., security, audit, human resources, executive, consultants, etc.)?
Not unless there is an extenuating circumstance.

3. What do you require applicants to provide for you -- or what things do you investigate?
There is an authorization for a credit bureau in the application process. It is rare to go deeper than that unless perhaps it is an executive position.

------------------
Andy Zavoina
Opinions stated are not necessarily that of my employer.

My answers are almost identical to Andy's:

1. We pull a credit report on all prospective employees prior to making an offer. Temps are not included.

2. We only investigate current employees if we have a concern about something.

3. Our employment applications give us permission to pull a credit report and to do other investigative work.

Andy & Kathy:

Thanks for getting this thread off to a good start! Regarding your answers:
1. How do you find out if a current employee has acquired a criminal record for non-bank crimes that would bar him/her from bond if you found out?
2. Do your waivers concerning RTFP give you only the "initial" opportunity to conduct a background investigation -- or do you use the phrase, "initial and continuing"?
3. Do your applications for employment ask the question, "Have you ever been convicted of a felony?" or "Have you ever been convicted of any theft crime, and breach of fiduciary duty or any crime of violence in any state?"

I look forward to your responses -- and anyone else can jump in at any time . . .

------------------
Dana Turner
Security Education Systems
danaturner@bankersonline.com
830-535-6500

[This message has been edited by Dana Turner (edited 02-06-2001).]

Turnover is to high to cost justify, based on past experience, any detailed background and criminal records investigation. Whenever we have had employee theft, no prior record has ever come up. Not a great answer, but a practical one.

Yes initial and continuing authority on the FCRA question and I thought the convicted of a crime question was pretty standard.

------------------
Andy Zavoina
Opinions stated are not necessarily that of my employer.

We are beginning to do crimminal background checks on all serious prospects before an offer is made. We will also do a credit report. We have not done any investigations on current employees.

Our bank requires a resume and references from job applicants. References are checked. Driving records are checked on couriers. If an employee applies for credit a credit report is pulled, as it would be for any credit applicant. There is talk of pulling credit reports on all new applicants. We have just begun to expand into more heavily populated areas. In the past we had branches only in very small towns where nobody had the luxury of keeping secrets. My worry is whether or not our policies are keeping up with our growth.