Using an Outdated Version of the Form I-9: The current version is dated 08/07/09. Montserrat suggests that you regularly check the USCIS web site for the most current form (see link below).

Failing to Fully Complete the Form: Often employers don’t complete the entire Form I-9. Montserrat suggests you have a blank Form I-9 with the sections highlight that must be completed.

Not Using Section 3: Section 3 can save time and paperwork when used properly to update certain information about an employee such as a name change. In addition, section 3 can be used to reverify a person’s status if, for example, the employee’s work authorization is about to expire and you must reverify his or her work authorization.

Photocopying Only Part of a Document: If you make photocopies of documents, make sure you photocopy both sides of the document—not just the front side.

“Over-Documentation” in Section 2: The individual may present either an acceptable List A document OR a List B and List C document. It is not acceptable to request a List A, B and C document.

Related Resources:

1. Government Links, Form I-9, Employment Eligibility Verification (Official Document)
2. Form I-9 and E-Verify Employment Eligibility Verification Products

Many applicants fake, “improve,” and lie on their Resumes. They provide fake references, fake employers, fake & worthless degrees and exaggerated educational claims. In additon, many present fraudulent documents such as Pay Stubs, Diplomas, Green Cards, SS Cards, and Letters of Recommendation.

Fake ID’s such as Driver’s Licenses, SS Cards, and Green Cards are easy to obtain in any US city.

Our email in-boxes overflow with offers from Diploma Mills churning out phony and “life experience” degrees. Beyond the co-conspirator spouses, relatives, and friends involved, web based businesses also sell fake Resumes, false Employment Verifications, fake Professional References, phony Reference Letters, and fake Diplomas. Software to create bogus documents of all types is offered on the net, including: Pay Stubs, W-2s, and 1099s.

For statistics about the problems uncovered by employment background checks, see Background Check Statistics.

What Can An Employer Do? The Best Practice is to conduct a thorough and comprehensive employment background check.

The core of a quality background check is the basic background check:

1. Social Security Number Scan
2. County Criminal Record Check
3. Employment Verification
4. Education Verification (especially for professional and management positions).

Then, based on the specific situation, other valuable checks may include:

1. Credit Check
2. License Verification
3. Motor Vehicle Report
4. Sex Offender Registry Check
5. Workers’ Compensation History
6. International Searches 

For a more thorough discussion of what goes into a thorough employment background check, see Comprehensive Background Check: The Best Background Check.

We recommend that you background all your staff, including: executives, full-time employees, part-time employees, temps, contractors, and volunteers.

This restriction is placed on background check reports because:

1. Many sources of the information we use to create our reports specifically restrict us to only provide information to an “end user.”
2. Anyone passing on our reports for any “consideration” would become a CRA (Consumer Reporting Agency) under the law and would be expected to comply with all the legal requirements placed on a CRA.

The most common methods consultants use when working with us and their clients are:

1. Most consultants recommend that their clients set up accounts directly with us. Some consultants give their clients our forms and help them establish accounts with us as part of a consulting assignment (such as a project to Create Hiring Policies and Procedures). Some consultants simply refer their clients to us. We then help the client using our Background Check Start-Up Kit.
2. Some consultants become members of their client staff involved in the hiring process. The client becomes a customer of A Matter of Fact and the consultant participates as staff in reviewing applicants and their background check reports.
3. A few consultants use their accounts with A Matter of Fact to order background checks directly from us for their clients. However, these consultants do not pass on our background check reports to their clients, but only inform their clients if the applicant passed or failed the background check.

Key Points:

1. Our clients are not authorized to pass our reports on to anyone else.
2. Most consultants recommend that their clients work directly with A Matter of Fact for their employment background check needs.
3. See a partial directory of the many consultants who regularly refer their clients to us at Consultants Who Advocate Employment Background Checks.

Information Required to Understand Employment Background Check ROI

1. Various studies have concluded that the cost of a bad hire is between 100% and 500% of an employee’s annual salary. This is easy to understand when one considers the costs of a bad hire: the direct and indirect cost of recruiting and hiring; the direct and indirect training cost; the wasted wages and benefits. The management, administrative and legal costs of a bad hire can also be staggering. Plus, consider the direct and indirect cost of damage to or loss of funds, materials, equipment, work environment, customer goodwill, and employer reputation.
2. 25% to 30% of thorough background checks uncover issues that an employer needs to review before proceeding with hiring.
3. 1/3 to 1/2 of the applicants with problem background checks are not hired, presumably because of the likelihood that they would be bad hires. This means that between 8.3% (1/3 of 25%) to 15% (1/2 of 30%) of applicants are not hired due to problems discovered in a thorough background check.
4. A quality thorough background check typically costs $150 to $300 each, depending on the position and the applicant’s history.

A Sample Background Check ROI Calculation

Assumptions:

1. A salary of $50,000/year.
2. The cost of a bad hire is 100% of annual salary (from a range of 100% to 500%). The typical cost of a bad hire would be $50,000 for this position.
3. 10% of final applicants are not hired because of problems discovered in background checks (from a range of 8% to 15%).
4. $250 is the cost of a thorough background check (from a range of $150 to $300).

The Calculation:

Cost avoidance for each thorough background check =
Salary * Typical cost of a bad hire (% of annual salary)
* % Applicants not hired
or
$50,000 * 100% * 10% = $5,000

 ROI = Costs avoided / Cost of thorough Background Check
or
$5,000 / $250 = 2,000%

Conclusion:

Therefore, for this position, the employer would expect, on average to avoid $5,000 (10% of $50,000) of bad hire costs with each $250 thorough background check. That is a whopping 2,000% ROI!

Summary:

Day in and day out, employers conducting quality thorough background checks realize tremendous returns on their background check investment. For information on how to build a thorough and comprehensive background check, see Comprehensive Background Checks.

Related Resources:

1. The Growing Trend to Thorough Background Checks
2. Comprehensive Background Check: The Best Background Check
3. How to Conduct a Background Check 
4. Background Check Statistics

Non-Government Research Tools such a SSN Scan (Credit Header Check) and various SSN Validation Tools are usually used in the background check or pre-hire due diligence process.

Official Government Employment Eligibility Verification Tools such as E-Verify and Social Security Number Verification Service (SSNVS) are usually used after an employee has been hired to meet government requirements to verify that employee names and Social Security numbers match Social Security Administration (SSA) records.

For more information about verifying Social Security Numbers before and after a hire see How to Verify a Social Security Number.

Additional Resources:
* E-Verify Employment Eligibility Verification and Form I-9
* Social Security Number Scan

The sample background check policy can be viewed at Employment Background Check Sample Policy.