We usually think about evolution as a process that takes place over centuries or millennia, but technology evolution is a different animal altogether. In less than half a century, innovation has accelerated exponentially — and so has the potential for companies to integrate technology into critical business processes. During a recent Sterling Live event, social media manager Katelyn Brower sat down with Harris Bornstein, Sterling’s Vice President of Strategic Alliances & Channel Partners, to talk about how our own partner ecosystem has evolved into a global network over the past 45 years and the myriad advantages of background screening integrations in the hiring workflow.

Changing Standards for Background Checks

Harris points out just how significant tech adoption has become for HR departments and staffing firms. Having started at Sterling in 1999, he recalls the predominantly manual workflow, supplemented by the reigning technologies of the time — phones and fax machines. A decade later, desktop computers and email dominated. Sterling saw the technology shifts as opportunities to re-imagine and enhance candidate screening within the hiring workflow.

Harris notes, “Ten years ago integrations were simply about reducing the data entry it took to request the background check.” Efficiency is still a priority, but as the HR tech stack has grown, integrations are enabling organisations to optimize the entire employment lifecycle.

In 2020, technology enablement became an even bigger priority out of necessity. Research by Oxford Economics and the Society for Human Resources Management (SHRM) shows the trend will continue. The Top 3 areas of investment include:

• 34% in remote collaboration tools
• 25% in automation tools like self-service portals
• 25% in recruiting and on-boarding programs

Today, the Alliance team manages an ecosystem of more than 50 integration partners. Rather than a straightforward data transfer to fulfill orders, Sterling facilitates more efficient hiring processes that cater to different industries and workflows — including varying compliance expectations — while enhancing candidate experiences.

Consider the high-volume hiring needs of retail, e-commerce, and contract/gig work. For those types of organisations, Harris points out, it’s about getting candidates processed, then moving from Offer to Day One — fast. Those needs are quite different from healthcare, financial services, or tech industries, for example, where more thorough background screening and ID verification requirements are common.

How Our Broad Partner Ecosystem Helps Right-Size Hiring Processes

Whether an organisation needs to process job applicants by the hundred or the handful, technology integrations can create a more efficient, streamlined process that improves productivity within HR teams and staffing firms and delivers better experiences for candidates. In fact, Harris notes that our own customer retention rates are higher for those that have implemented integrations than non-integrated customers, suggesting that the experience boost isn’t limited to job applicants.

Our own experience with integrations emphasizes the flexibility that comes from collaborating with a wide range of partners. Depending on needs, integrations can also support:

• Self-service options to reduce implementation time and allow clients to activate their integration from within the HR platform quickly and easily
• Dynamic updates within the ATS platform give a more detailed candidate status
• A simplified and streamlined adverse action workflow

An applicant tracking (ATS)/HCM (Human Capital Management) system with the right integrations can fast track everything from recruiting and screening candidates to offer and on-boarding. Perhaps that’s one reason that at least 66% of large organisations use an ATS. Harris also points out, “Global screening, in and of itself, is becoming much more prevalent, so it’s important for organisations to be working with a screening partner who can not only service their global hiring programs but can do so via similar integrations for a unified hiring process across all of its business units.”

Data privacy laws, hiring regulations and paperwork requirements for completing background checks can differ by country, so working with an experienced partner paves the way for a more seamless integration experience. Harris points to global capabilities available through Sterling’s platform, as well as unique services available for the US and APAC region.

Streamlined Hiring Workflows Yield Long-Term Value

As companies grow, there’s a tremendous value in streamlining the entire talent management process from recruitment to onboarding — all in one place. Greater efficiency and effectiveness in recruiting doesn’t just pay off in a faster hiring process. According to SHRM, companies with high-maturity talent acquisition teams and processes see 18% higher revenue and 30% greater profitability than low-maturity talent functions. Research also shows that 75% of hiring leaders also focus on improving candidate experiences versus only 17% of less mature teams.

Ultimately, Sterling RISQ prioritizes these partnerships because working together generates opportunities to wow our customers and meet our People First commitment. Technology implementations help our clients make fast, well-informed decisions with confidence. Screening that supports safe hiring. Candidate experiences that are intuitive and convenient. Partnerships that yield value for everyone involved.

In wrapping up the integrations discussion, Harris notes, “2020 was the furthest thing possible from business as usual. We worked closer than ever with our partners, and we somehow came away having had our best year ever in terms of our partner engagements.” It’s a testament to just how much the right technologies can help organisations navigate unprecedented challenges and thrive.

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By Alla Schay, general manager of the Industrials, Government & Education group of Sterling

tumsasedgars / iStock / Getty Images Plus

Company culture is a significant driver of success, and a strong culture attracts and retains top employees, fostering teamwork and trust. Conversely, a toxic culture can thwart any company. Patrick Whitesell, executive chairman of Endeavor, an entertainment and media agency, stated, “You can have all the right strategies in the world; if you don’t have the right culture, you’re dead.”

Social media has evolved rapidly over the last 10 years and has become a fundamental way that people engage with one another. Posts and their underlying meaning—including both what is intended and how it can be perceived—can make a powerful statement for all the world to see. What is said on social media does not exist in a vacuum, and what is posted from personal accounts says a lot about a person and can have a legitimate effect on the perceptions of an organization with which that person is associated.

Avoiding Toxic People in Company Culture

Before the widespread adoption of social media, a person dragging down a company’s culture was typically noticeable in what was heard within the walls of the company. Perhaps it was consistently negative comments about the company or other employees around the water cooler, an off-color joke, or use of an insensitive phrase. In all likelihood, there was no way to predict this behavior before an individual was hired. When an incident occurred, irreparable damage may already have been done, and frequently, negative behaviors went undetected or a formal complaint was never made for fear of causing trouble or retribution.

Today, an ongoing record of tweets and posts can leave an indelible record that can define a person’s reputation—in both positive and negative ways. This can help organizations spot people that may not be a good fit for their cultures.

The background screening industry continues to evolve to help employers build strong cultures and create safe workplaces. Candidates are no longer simply checked when they come in the door, but may be rescreened at certain intervals or have records continuously monitored to identify relevant changes that may need to be addressed. When it comes to social media, 7 in 10 employers (70%) use social networking sites to research job candidates during the hiring process. With more than half of the world’s population on social media, it’s no surprise that we’ve seen instances of personal posting having professional ramifications.

As part of communicating a variety of expectations, companies are required to notify both applicants and employees when they are subject to being either screened or monitored as a condition of employment. This may include criminal records, motor vehicle records, or social media, just to name a few. The collective decisions made by an employee population on meeting the expectations that have been set are a key driver to culture.

Images from Washington

Actions at the U.S. Capitol on January 6, 2021, will be remembered not only for what took place, but for the way they were broadcast to the world. While some of the images and footage widely seen were captured by traditional news outlets, a lot of the story was told—in near real time—by video captured on cell phones and posted to social media.

In response, House Armed Services Personnel Subcommittee Chairwoman Jackie Speier expressed a desire for the Defense Department to start looking at social media posts as part of the security clearance process. According to Military.com, Secretary of Defense Lloyd Austin appears prepared to take a much more aggressive approach to monitoring troops’ social media following reports that some service members and veterans took part in the deadly riot at the U.S. Capitol.

Changes in military employment policy may impact government contractors and then possibly other businesses. In a short time, there have already been widespread impacts in the HR space, putting into question the factors that determine someone’s credibility to obtain or maintain employment.

Impacts to Businesses

Soon after January 6, many company executives and HR professionals began to ask themselves, “Do I know how my employees are behaving online and the potential negative consequences they can create?” Flagging behavior that violates company policies or is not aligned with established company values is now more important than it has ever been.

Social media screening done in advance of employment—or in conjunction with monitoring during employment—can provide specific proof of behavior that violates company policies or overall expectations rooted in a company code of conduct. Ben Mones, CEO and founder of Fama Technologies, the world’s largest social media screening company and a leader in applying artificial intelligence to background screening services, stated, “Companies are not seeking to use social media screening to understand their candidates’ political affiliations. The concern I hear every day is the need to know if applicants or employees are promoting extremist ideologies that might put a person in danger, or in some cases, promoting the dismantling of the federal and state government here in the U.S.”

Screening the Right Way

According to a recent Harris Poll on behalf of CareerBuilder, nearly half of employers check up on current employees on social media. Just over one-third have reprimanded or fired an employee based on content found online. However, a homegrown solution such as an internal HR team directly executing social media searches presents risk for common pitfalls. These include failing to be thorough, inadvertently violating anti-discrimination laws (obtaining personal information that should not be considered as part of a hiring decision), and inefficient use of staff time with this manual process.

With an unbiased and thorough report being reviewed as part of a well-defined social media screening program, inconstancies with company policies or overall expectations can be investigated. Actions set by the company can range from coaching to progressive discipline depending on the severity of findings. To protect the rights of employees and prevent other negative consequences, it is recommended that this new social media screening imperative be handled through a robust, proven FCRA-compliant screening program. The ability to challenge results through pre-adverse action is also crucial for compliance.

Automating the process with a third party and establishing risk criteria helps companies get the data needed to aid in their hiring and ongoing monitoring decisions. Social media isn’t going anywhere, and companies must now adapt in order to maintain the strength of their corporate cultures and to protect their brands.

Alla Schay is the general manager of the Industrials, Government & Education group of Sterling, a leading provider of background and identity services. She previously served as Sterling’s client services and account management leader, chief operating officer, and chief human resources officer. Alla is an operations management professional with experience in business process transformation, Six Sigma analysis, and software and CRM implementation.

This article first appear on: HRDailyAdvisor

I’m pleased to announce that Sterling RISQ has been listed as one of the global verification agencies on the Ministry of Manpower (MOM) website.

MOM rely on the research and findings by their accredited global verification agencies to assess the eligibility of foreigners for work passes. Ensuring that foreigner qualifications are authentic and issued by accredited institutions is a fundamental tenet in this assessment.

We are extremely proud of our listing and are delighted to be recognised as a provider of complete and accurate qualification verifications. We are committed to helping all our clients hire faster and safely, assuring you that your candidates do have the qualifications they report to have.

To obtain the highest quality education verification, please get in touch with your Client Success Partner or email us at info@sterlingrisq.com.

On 14 May 2021, the Monetary Authority of Singapore (MAS) released a new consultation paper on proposed changes to mandate reference checks in the financial services industry.

This document was an extension of the proposals made in their 2018 Consultation Paper on Revisions to Misconduct Reporting Requirements and Proposals to Mandate Reference Checks for Representatives and builds on the feedback received from that consultation process.

The new consultation paper proposes to extend the mandatory reference check requirements beyond just applying to representatives to now apply to other employees as well.

MAS has invited comments and feedback from financial institutions and other interested parties on this new consultation paper.

Background

Reference checks provided by previous employers are used to verify information disclosed by candidates, and allow for an assessment of the character, integrity and track record of the candidate.

They help to ensure organisations are hiring suitable candidates and also protect against ‘rolling bad apples’. This bad apple theory refers to an individual who has engaged in misconduct at one institution and then moves onto another institution without disclosing earlier misconduct to the new employer/s.

Mandatory reference check requirements for the financial industry have already been introduced in jurisdictions such as the United Kingdom and Malaysia in recent years, and indeed on 3 May this year, the Hong Kong Monetary Authority released their consultation conclusions paper on the Implementation of Mandatory Reference Checking Scheme to Address the “Rolling Bad Apples” Phenomenon. You can download our key findings from their initial consultation paper.

Financial institutions in Singapore have previously been required to implement due diligence on prospective employees of an organisation, according to MAS guidelines which set out the fit and proper criteria applicable to all relevant persons. These regulations were last updated in January 2020.

Why a new MAS consultation paper?

The reasoning behind this consultation paper is due to a number of factors:

• there are employees other than those recognised as representatives whose misconduct has the potential to result in detrimental impact on a financial institution’s prudential soundness, reputation and customer interests
• there are differing standards in practices when conducting and responding to reference checks
• due to the movement of ‘bad apples’ across the financial services industry, it is believed that a collective effort and consensus is required to mitigate risk, and
• It’s important for all institutions to come to an agreement on the format of the reference check and a specified period of time within which the check should be conducted.

What are the proposed changes?

Taking into account the feedback they have received from their initial consultation paper in 2018, the MAS have proposed the following changes.

1. Increasing the scope of financial institutions covered by the requirements. The proposal is to include all banks, finance companies, insurers and more (see part 3 of the consultation paper for the full list of institutions covered).
2. Increasing the scope of reference checks to cover a broader range of employees. The proposal suggests senior managers should be included, defined as those employed in an executive capacity and are principally responsible for day-to-day management (see Annex A of the consultation paper), and also proposes two other options for the type of employees it could cover:
   1. Option 1 – all individuals in risk-taking functions, risk management and control functions, any individuals performing critical system administration, and any individual who can authorise or approve payments (excluding small payments).
   2. Option 2 – all individuals in functions that can directly cause or result in financial risks to the institution or to customers, but excluding certain roles and functions.

MAS also proposes a number of related changes to increase the consistency and to standardise reference check practices across the financial sector.

• Reference checks must cover certain mandatory information relating to the individual’s records in the past five years, based on calendar years not years of employment.
• Reference checks should include the following information: information relating to the individual’s employment history, compliance records relating to the individual’s fitness and propriety, last four balanced scorecard grades, and persistency ratio of insurance policies sold by the individual (if applicable).
• Institutions should provide the mandatory information no later than 21 calendar days from the date of receipt of a reference check request.
• Information provided in response to reference checks should be accurate, objective, clear, balanced and based on verifiable facts. To support this objective and facilitate a fair process, MAS proposes that institutions should provide the individual with the right to view the references prepared.

MAS acknowledges there are some challenges with the proposed reference checks, such as if the individual’s prior employment history was conducted overseas or in non-financial sectors. MAS suggests that reasonable steps should be taken to acquire the relevant information in order to satisfy themselves of the fitness and propriety of the prospective employee.

Due to the possibility of a whole range of employees being hired into roles that would be within the scope of reference check requirements, MAS proposes that financial institutions maintain records pertaining to all employees, except for ancillary service personnel, for a minimum of five years once the reference check requirements come into effect.

And to facilitate the provision of fair and accurate responses to reference check requests, a robust internal investigation and thorough disciplinary processes should be established to provide guidance on the actions that could be taken against employees.

Institutions will be expected to establish policies and procedures governing their investigation and disciplinary process, communicate the policies and procedures to all employees, conduct fair and objective investigations and disciplinary proceedings in a timely manner, and ensure proper documentation of the investigation and proceedings. Employees should also have the opportunity to explain or defend themselves against allegations during this process.

Summary

Financial institutions are already performing reference checks and due diligence for new hires but to varying standards and formats. Institutions have provided feedback that they often receive inadequate responses to checks hence failing to effectively prevent the ‘rolling bad apples’ phenomenon. MAS is proposing to implement mandatory reference check requirements in order to counter these issues and provide guidance to the industry.

MAS proposes to commence mandatory reference checks with a transitional period of six months after the notice/s issued under the relevant legislation is published. They will take into consideration the feedback received from this consultation paper when implementing the reference check requirements.

How Sterling RISQ can help

As the leader in global background checks and identity services, Sterling RISQ is at the forefront of legislation changes to ensure your business can hire fast and with confidence.

With the changes to Singapore’s financial institution’s reference check requirements, our advanced technology and industry-leading turnaround time will allow our clients to meet the mandated deadlines and increased need to perform reference checks on a new scope of employees within the financial services industry.

We are your partners in assisting you to comply with changes to legislation. Our ultimate aim is to assist you to obtain accurate reference checks and hire the right people for your business. Get in touch with us at info@sterlingrisq.com to discuss your needs.