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We all hope that when we hire someone they will turn out to be productive and honest, but the real world of business teaches us differently. You must have procedures and paperwork in place for those times when a good hire turns into bad news. As your business grows, you can protect yourself (and your employees) with these processes and policies.

The Application

Does your company use an attorney-approved application? Resumes are not always complete or even true. Attorney-approved applications require the applicant to sign a document stating that everything contained on their application is true and accurate. Further, if there are falsehoods, employment can be terminated immediately with the proper evidence.

A.) Include language conveying company policy for revealing felony and misdemeanor convictions and pending cases.

B.) Include a release for references and other background checks.

C.) If your state is an “At Will” State it is always recommended to have the At Will explanation in your application statement be sure that each applicant signs off on it.

In reviewing applications, what are some obvious red flags?

• Applicant signature at the end?

• Applicant chooses not to allow previous employers to be contacted.

• Applicant leaves criminal questions blank.

• Applicant fails to explain why he or she left past employment.

• Applicant does not explain employment gaps or the reason for leaving the previous job is questionable.

• Excessive cross-outs and changes.

• Applicant fails to give complete information.

The Interview

When conducting the interview, don’t be afraid to ask some tough questions and monitor applicant response. Some examples include:

• Suppose your supervisor asked you to get information that you know is confidential and he/she should not be trying to access. What would you do?

• We require background checks on everyone we offer a position with our company. Do you have any concerns with that?

• We’re going to be contacting your past employers for references.

• Ask questions about any unexplained employment gaps.

Checking References

Does your company check references? If the answer is no, start now.

Any sound hiring procedure includes checking applicant references. Many times this part of the hiring process is de-emphasized or forgotten altogether. Make it a distinct step in your hiring sequence. Be sure to ask for at least 2 professional and 2 personal references. Family members don’t count.

Many states are on the employer’s side and have loosened regulations regarding references. In many cases you can learn more about a prospect’s past than the typical, “Start date and end date” response. Consult an employment attorney in your state to find out what you can and cannot ask of a fellow employer as well as what you may or may not disclose to other employers.

Background Check

Background Checking can be outsourced, but you must disclose this information to the applicant on the application and during the interview before conducting a check. Keep in mind not every position needs to be screened at the same level (or at all) depending on your industry or position. Be sure to have a policy in place for this process.

Employment Policies

Do you have documented policies and procedures that show zero tolerance for Company theft, dishonesty, and misconduct?

Some important policies to have in place are your specific positions on:

• Confidential Information and Company Property

• Theft

• Use of Third Party Confidential Information

• Work Ethics Policy

• Whistle-blower Policy – offer an award for employees that identify co-worker’s engaging in illegal or dishonest conduct while on the clock.

In a perfect world, every employee turns out to be as great as they look on paper. In the real world, smart e-commerce operators protect themselves. If you have the above policies implemented, you’re in good shape! If you don’t, then adding these processes should be at the top of your “must-do” list.

All posts by Ed Stanchak | E-Mail the author