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Title: “Why Employers Should Not Skip Out On Background Checks”
Guest: Phil Sharkey – The Hire Authority
Interviewer: Jonathan Freedman – MAGE LLC

Click here to read the transcript

Jonathan (0s):
Welcome back to Radio Entrepreneurs. I’m Jonathan Freedman in our next guest up really needs no introduction. Phil Sharkey of The Hire Authority. Always a pleasure to see you on Radio Entrepreneurs.

Phil (10s):
Hey John. So it it’s a pleasure. I’m glad to be with you today. Look forward to a sort of sharing some information, some stats I have for, for you and the other, a business owners out there.

Jonathan (19s):
So a as we’ve talked about off the air and we often talk about it in our segments, we’re in a state of flux, you know, the only thing that’s certain now is change. And with that change, it brings challenges in the employment field to employment marketplace and M you know what? There are obviously the companies that are struggling to get people in the door to work for them. And with that brings a whole host of issues. A so why don’t you tell us what you’re seeing in the market? Absolutely.

Phil (48s):
Jonathan and I do understand a, a, the situation in today’s environment where so many employers having trouble finding people, no one seems to want to work. They can’t fill positions well, from what I’m seeing on the screening side of it, I really urging all my clients, all businesses, small to large, to not stop their due diligence, not stop their best hiring practices, because I’m seeing worse numbers than ever. We usually say 30% term out fraudulent on the background check it’s up closer to 40%. That’s where the entire year a so far just we just crunch to our members. And again, Jonathan, it’s a huge number. When you think about it, this is not me sneaking in grabbing, you know, a few people from your office and just randomly doing it. This is the 40% of the people who sign a, a release and authorization from our aware of background check is going to be conducted until, you know, a 40% are attorney out fraudulent.

Phil (1m 36s):
Re-do between 500, two, a thousand a month in it. And my math hasn’t really good. And, but that’s somewhere a neighborhood 200 or 400 people, again, that know I’ll be doing a background check and say, oh, go ahead, Jonathan. And I go right ahead, Anna. And these numbers are showing

Jonathan (1m 50s):
Up, but that’s a shocking to say the least a, it it’s discouraging a, but thankfully we have people like you to try and vet some of those things out. And I would imagine at that 40% rate, you know, some of them are innocuous enough, but the fact is that, that they are a somehow not being truthful. That’s the big, larger concern, I guess, in some capacity. Cause its usually the tip of the iceberg, right? If they’re willing to lie on the way in the door, what is going to happen once the rent? So you’re speaking

Phil (2m 15s):
From, from my pulpit, they say the least there. And you’re exactly right or not all our horse stories, but to me its a lie. And, and again, we’re not a big brother. I’m not coming down on people in spying and they’re they’re, they’re trash and nothing in that regards. These are the people that our meeting you and say, Hey Johnathan, nice to meet you or putting out there hand. Well, if you are allowed today and saying nice to meet you, I’m Phil Sharkey and I’m lying to you. So always tell our clients or if they’re lying today. And even if it’s a line about a degree or, or some type of employment history or a gap in employment, they’ve already shown you that they will do anything. They have to do a to F to, they will lie. They will not be trustworthy or if a drug screen or they, they, they, they, you know, a hide their urine situation or being a foster.

Phil (2m 56s):
And to me is like, I’m not concerned about the, really the results. It’s the thought processes. And this was a person that is going to be working for you. And what I’m seeing as a small companies can be actually bankrupt are put under a large company. It can be greatly hard. So I know it’s hard to find people today, but the stats I have here for you, our, our really astounding, I know you guys like the stats. So I like to bring it.

Jonathan (3m 18s):
Absolutely. One quick question before wah, you know, it gives you a sort of thee, a prognosticator for a moment. What do you think this is happening? Why do you think we’re seeing a rise in a, in a number of people that our fraudulently displaying themselves? So it’s interesting because, because you would think that a given the employment situation in our employers is being desperate to our people, there’d be less need to worry about or anything. So

Phil (3m 40s):
What do you think you would be seeing the best have the best out there, but what I’m seeing from the results in my office is I think all of us in the COVID situation, it’s just gotten you turn on the news. It’s just a much more volatile society. What it was somewhat questionable before is much more violent people or more violent, more willing to say and do and feel empowered to create their own background and have the best resume ever where you get into the thought process where they just have to be honest. That’s what people don’t understand. It. It’s not the level of qualifications from my office. It’s the honesty and integrity. A, an honest person goes a long way. Obviously our, our, our clients need to be the qualifications for the job, but I just think it’s the situation we’re in coming out of.

Phil (4m 23s):
COVID hopefully people who have been cooped up they’re seems to be more pressure it today. I don’t know rules and practices, raising people. I don’t know what it is, but we’re definitely taking a walk on the darker side. And again, I have a lot of pushback for my friends, even, you know, you’re big brother and all I’m like, no, I’m not. I have a signed release out of the consent of the person. I, I just want them to be honest. I don’t think that’s too much to ask for. You know, when, when you’re about to pay someone in today’s environment, it it’s just not,

Jonathan (4m 49s):
No, you’re, you’re absolutely right. And I love to hear some of the statistics and hear some of the stories and what you’re seeing, because a, I think those, or what’s really eye opening to people what to say, oh, wait a minute. For a relatively small cost, I can avoid a nightmare down the road. It’s true. And then how quickly

Phil (5m 4s):
Just give it to my desk, Jon and I want to leave without the giving you a, the just example at my desk today, just from this month. But the stats we have here from left Tronic and employee recruiter firm, and this was taken just before the COVID, it’s a really slowed down our businesses, but they have the stats have seventy-five percent of employees had stolen from their employer, or at least once employee theft cost you as businesses to 50 billion annually. That’s what a B I thought it would actually be even more, a 59.1% of employees who commit thefts are male. So a a a, I guess we’re representing well, you and I, the, the, the male population M 75%. So I think women who are right there is no doubt about it.

Phil (5m 47s):
A event, just finally, about seventy-five percent of us businesses that are affected by time of theft, which I, I thought it would be higher in. And the big one for me, Jonathon is some violence at work, 2,790 injuries. This was in 2018 by a, a company called injury facts. A con occurred on the workplace with 453 fatalities. And that’s a, that’s a big number is 21,000 people with

Jonathan (6m 11s):
It. But those, our employee on employee assaults of some to be some form, wow.

Phil (6m 18s):
And a interestingly enough to 71% were female and 64% were a aged between 25 to 54. So again, if you’re an employer and you just don’t wanna take the time to screen are, do a background check, or you just want that person. These are the risks you have. I know you’ll get them in the door, but the ramifications could be astronomical. And a I’ll go through really quickly for You, Jonathan is that I don’t wanna use all of our time, but this is from this month, July 15th, this is a hotel chain in Connecticut, a larceny third degree or three years jail, or a probation for three years. It feels like one of those sites showed people just trying the file to the side. Or this is another hotel in Connecticut, conspiracy to commit assault secondary with a dangerous weapon, five years’ jail or a car dealership in Maine theft, by a lawful taking a theft, have a vehicle is probably a good place that they want to work, right?

Jonathan (7m 12s):
A hotel chain, or is it considered a theft? If the keys were there to talk about given them the keys to the candy store.

Phil (7m 21s):
So here’s a, here’s a tougher one and a, a, a Philadelphia hotel, M this is too long to list aggravated assault, felony, possession of instrument of crime, simple assault, reckless endangerment, conspiracy intimidate, a witness Burghley in criminal trespass. So probably not someone you want to checking in when you go on vacation. And

Jonathan (7m 40s):
These are, these are all examples. Phil have a real background checks that revealed things of applicants that typically I would imagine don’t come up in conversation. A many employment application is we’ll. Have you ever been convicted of a felony? Correct. But if they do

Phil (7m 59s):
A little nod, there’s a ban the box, which is taking that criminal question off to Massachusetts application. And then the other states, which makes it very difficult again for employers and here’s our government or our legislature, it and understand the thought behind. And I get a lot of people a up in my grill out regarding the argument have how dare you Czech. But I think these few examples show it to us. That’s why, so you no longer have the falsification of the application that regard, but you still have a crime and employers still do have the right to higher who they deem as best for the job. And if you have a car dealership and you have someone who is stolen cars, if you have a, a hotel chain and you have people who have committed fraud and violence on people, it’s surely is a, a, a big concern.

Jonathan (8m 38s):
Absolutely, absolutely. I mean, I could see, you know, the need to know these types of things and, and, and at least go in with your eyes open. Right? And, and, and I, and I guess in some cases, does it preclude them from ultimately hiring a person if they can talk through the situations, the circumstances, et cetera, or at least to go as said going on with your eyes open it, it’s a

Phil (8m 57s):
Great point, Johnathan. I always tell people the background check has the information and information gives you the power to make the best decisions available, or if you still likes the individual and go back to them so that, can you explain this to me? And sometimes they can give you a credible answers and can explain it other times, they’ll tell you the things you don’t want to hear, or just, it, it is what it is. And also in every situation, most important lessons or anything I should be concerned about. So the person who has the chance to get out in front a possible, or a bad history, ’cause I know that people who get in my face regarding, well, you know, you’re, you’re sneaking into the background or you, you shouldn’t know that information. I think we do note need to know that as a society and the person needs to own who they are, and if they have changed, then show me how you’ve changed and say, that was me back then.

Phil (9m 38s):
That’s not me anymore. And what I see unfortunately, to have the big tune is people will get more defensive and you can see that sort of animal coming from out of them. And it, sometimes these are in the beginning charges, not the end is where I have a drugs. I have someone, a, a attacking my children. I have someone who is drug abuse, end it with a five week old passing away. Now I know these people are going to apply for jobs, but for my clients, I, I would not want to bring that ticking bomb on board is to,

Jonathan (10m 8s):
To oh, great, great. A advice is always, you know, and, and as I said earlier in the segment, it’s a relatively inexpensive and painful process for a, a, an employer to go through with the perspective a employee. And, you know, as you said, given them the information and going into with their eyes open a, into an employment situation. One of the things I always talk to my clients about is a hire slow and fire quickly. And this is part of that process, you know, a pre-made people and meet people and AU it seemed like a great person. Let’s offer them a job. And it’s like, wow, you had a 15 minute meeting. How do you have really no, the person’s character, or do you really know what they stand for? That was

Phil (10m 47s):
Great. That’s great advice. And there really is. And its like, you know, I guess it could turn out by that’s the way we want to run your business. I guess I, I’m not on guest as I’m on the number’s and the stats on the stats. Tell me that 40% of the time, it’s not going to turn out fine.

Jonathan (11m 2s):
Okay. Great stuff is always feel if people wanna reach out to you to talk about your services, talking about how to engage with you and get you a tool to help them in, in making good decisions on the hiring process. What’s the best way for them to reach you

Phil (11m 13s):
Easy Jonathan and ah, on the that’s S H I R a T H The number of here is five or eight to 305 9 0 1. Or you can also email me directly at Pete Sharkey at a higher off dot come in and we’re ready to, to take it on anyone in a, in a system and this process.

Jonathan (11m 30s):
Excellent. Our guest has been Phil Sharkey, president of The Hire Authority. Always a pleasure to have you on re Radio Entrepreneurs. Thanks for your time. Thanks Jonathan. And it will be right back with another segment on Radio Entrepreneurs.

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