News & Resources

Dangers of cutting costs on background screenings

Jul 30, 2011 Matt Roesly

Companies all over the country are finding ways to cut costs, and the same goes for background screenings of employees, the Employment Screening Resources reports. Some employers and individuals are using mobile phone applications to conduct background screenings. For some, it seems like a great way to save money, however there is some skepticism toward using this method. “Employers and volunteer agencies with tight budgets who are trying to find competent employees and volunteers have read about low-cost background screening applications available for smartphones and instant online background checks,” Lester Rosen, CEO of Employment Screening Resources, said. “But can these services help them effectively screen applicants with accurate information?” These applications are not regulated by the Fair Credit Reporting Act, so the validity of the information provided by mobile programs is questionable. Instances of inaccurate and outdated information have been cited with some of these programs, the news source reports. While cutting costs may be in a company's interest, the protection of the business and clients should be their utmost concern. The U.S. Small Business Administration suggests consulting a lawyer before engaging in any type of background check, as the laws vary from stay to state.