Background Checks on Employees and Rescreening

Performing a background check on prospective employees before hiring them is a standard part of the hiring process for many companies. HR leaders need to be aware of any potential issues regarding a new employee’s criminal history, work history, and other aspects of their background that could affect their ability to do their job because companies have a legal obligation to do everything they can to create a safe workplace.

However, once a person is hired, how much attention does your company pay to your employees’ lives outside of work? There’s one gap that many employers are missing when it comes to their background screening policy and the frequency of background checks: rescreening or post-hire background checks, often referred to as workforce monitoring, is increasingly becoming an essential component of effective risk management. This process ensures that your workforce remains compliant, trustworthy, and aligned with company values over time.

While initial background checks provide a snapshot of a candidate’s history, rescreening employees regularly can help protect your business from emerging risks and keep pace with an evolving landscape of security, safety, and compliance. Let’s explore why rescreening employees is crucial and how it can benefit your organisation.

The Changing Landscape of Employee Risk

The nature of risks in the workplace is continuously evolving. Employees who were once a perfect fit for your organisation might not be the same months or years down the line. A 2019 report from the Australian Institute of Criminology revealed that 2.5% of Australian businesses experienced some form of internal fraud or misconduct. When you factor in factors like changing personal circumstances, financial pressures, or shifting societal norms, the need for ongoing vigilance becomes clear.

Additionally, the rise of remote work and increasingly flexible working arrangements has changed the dynamics of workplace monitoring. In today’s digital-first environment, employees can have access to sensitive data and systems from anywhere, creating new challenges for businesses.

The Risks of Not ReScreening Employees

By not rescreening employees, HR leaders risk overlooking important changes in their team’s background, such as:

1. Criminal Activity: An employee may have been hired without a criminal history, but over time, they may become involved in criminal activities that could endanger your organisation.
2. Financial Stress: Employees who have financial difficulties may be tempted to engage in unethical behaviour or commit fraud. Regular rescreening can help detect any financial red flags, such as bankruptcy or recent financial crimes, that may indicate a higher risk of unethical behaviour.
3. Violations of Company Policy: Rescreening can ensure that employees continue to meet the qualifications and professional standards required by your company. If an employee has been convicted of a serious offence or faces new legal issues that affect their ability to perform their role, it may be critical for HR to take timely action.
4. Failure to Meet Compliance Standards: Many industries have strict compliance and regulatory requirements. Rescreening employees in these environments, at the intervals specified by specific legislation or professional bodies, ensures that your workforce remains compliant with industry regulations, which is particularly important in sectors such as finance, healthcare, and childcare.

The Benefits of ReScreening Employees

1. Enhanced Workplace Security and Trust: Rescreening helps maintain a secure working environment. Employees with newly uncovered criminal convictions, financial issues, or other disqualifying factors may pose a risk to the company or its clients. Ensuring employees meet ongoing background requirements fosters a culture of trust and transparency, contributing to a safer work environment.
2. Improved Risk Management: Re-screening employees can serve as a proactive tool for risk management, especially in industries that handle sensitive information or work with vulnerable groups. Regular checks help prevent potential risks from escalating into larger problems by identifying red flags before they cause significant harm.
3. Reduced Legal and Financial Exposure: Failure to conduct rescreening could expose your company to legal and financial risks. If an employee’s criminal background or financial situation evolves in a way that presents a threat to the business, failing to address it could result in costly consequences, including reputational damage, legal action, or fines. By proactively monitoring employee backgrounds, you can minimise your exposure to these risks.
4. Better Compliance with Industry Regulations: Many industries require organisations to conduct regular checks on their employees to meet compliance standards. For example, in sectors such as finance or healthcare, regulators often require ongoing verification of professional certifications or criminal background checks to ensure the workforce is fit to handle sensitive tasks. Rescreening ensures you stay ahead of these regulations and avoid costly penalties.

How to Implement Effective Employee Rescreening

To successfully implement a re-screening program for your workforce, consider the following steps:

1. Make Sure You Have a Checking Policy in Place: Establish a formal rescreening policy for your organisation. Specify the frequency of checks (e.g., annually, biennially) and the types of checks to be performed (e.g., criminal history, financial checks, or employment verification).
2. Use Technology to Streamline the Process: With advancements in AI and automated background check tools, rescreening can be done quickly and efficiently. Online platforms can help reduce the administrative burden by automating the process and providing real-time updates on changes to an employee’s background.
3. Ensure Transparency and Communication: Inform your employees about the process and the importance of maintaining a clear and updated record. Transparency helps build trust and ensures employees are not caught off guard by the process.
4. Evaluate Risks and Mitigate Them: Once rescreening results are available, carefully evaluate the information and assess the risks posed by any new findings. If an issue arises, work with legal and compliance teams to determine the appropriate course of action, ensuring you follow the necessary steps to protect your organisation.
5. Respect Privacy Laws: Always ensure compliance with privacy and data protection regulations such as the Privacy Act 1988, which governs how employee information is collected, stored, and used. Obtain written consent from employees before conducting any checks, and ensure sensitive data is securely managed.

Next Steps for Background Checks on Employees and Rescreening

Rescreening employees is no longer a “nice-to-have” in today’s dynamic business environment — it’s a necessity. As risks continue to evolve in the workplace, especially with the rise of remote work and shifting societal dynamics, HR leaders must prioritise ongoing background checks to protect their organisation. By implementing effective re-screening policies, you can manage risk, enhance security, and maintain compliance with industry regulations, all while fostering a transparent and trustworthy workplace.

The key takeaway is this: regular employee re-screening is an investment in both the safety of your business and the wellbeing of your workforce. It helps ensure that your team remains qualified, trustworthy, and compliant with ever-changing regulations. Now, more than ever, ongoing background checks are essential to keeping your workplace safe, secure, and successful.