March 2013 Edition

The Importance of Adverse Action

Adverse Action notifications are just one of the many requirements imposed upon employers who use consumer reports. This includes background checks for employment purposes. If you, as an employer, receive information from a consumer report that will negatively impact an employment decision, the applicant must be notified immediately of that information. The ideal process is that a Pre-Adverse Action notification should be sent out, along with a copy of their report and A Summary of Your Rights Under the FCRA.

An Adverse Action notification follows at a minimum of 5 business days. Compliance with these federal regulations is not only required but can protect your company from costly litigation down the road. Let MBI help your company meet the requirements of the FCRA. Contact us today with any questions you may have and we will be more than happy to assist you.

Andrea Allen
MBI Worldwide



Inside This Issue:

Human Resource Articles of Interest:

Background Screening Articles:

Quote of the Month

"If you don't like something, change it. If you can't change it, change your attitude"

Maya Angelou

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The Most Radical Workplace in the World

Ricardo Semler, founder of Semco believes "To survive in modern times, a company must have an organizational structure that accepts change as its basic premise, lets tribal customs thrive, and fosters a power that is derived from respect, not rules. In other words, the successful companies will be the ones that put quality of life first. Do this and the rest - quality of product, productivity of workers, profits for all - will follow. "

Now imagine a place where you work on your own schedule, did performance reviews for your boss, negotiate your salary every 6 months, could be fired by your peers and are encouraged to work in a different place each day so your boss couldn't find you. Sounds impossible? Well one incredible company in Brazil has made this model work for over 40 years. Wait there is more, they also support unions, provide mini-retirements, dating services for employees and 23% pre-tax profit sharing!

Semco is a maker of industrial machinery with roots in building equipment for the naval industry. They have now diversified into education, consulting, real estate and other areas. There are over 3000 Semco employees. Key to their success however is their participative management style,

You must be asking, but do they make money? From 1994 to 2003 Semco increased revenue from $35 M to $212 M, and grew at nearly 40% annually with NO public investment.

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Text Box:  How to Measure Whether You're Hiring Good People

HR should be every company's 'killer app.' What could possibly be more important than who gets hired…" - Jack Welch, ex-CEO of GE. More CEOs and their respective CFOs need to agree with way of thinking. The companies that do follow this mantra seem to prosper (GE, Google, Facebook, Mayo Clinic, Starbucks, and others that invest in hiring and developing talent.) Quality hires impact a company's ability to execute its mission, reach its milestones, be profitable and ultimately increase shareholder value.

Quality of hire is an index, an aggregation of relevant metrics. The first challenge is to define the metrics. The most difficult challenge after definition is getting buy-in and agreement with your HR partners, finance, and then the executive team. This is a collaborative effort to move from quality of hire 1.0 (efficiency metrics) to quality-of-hire metrics 2.0 (effectiveness metrics tied to the success of the company)

Your quality-of-hire metrics should help guide your overall talent acquisition strategy and tell the story of HR effectiveness at pre-hire and post-hire levels. There are two dimensions of quality of hire: Recruitment-focused quality measures and post-hire contribution/performance quality measure/index. These effectiveness metrics are distinct and should be treated as such. They are analogous to pre- and post-hire metrics.

In one study ( listed here, about quality of hire) of major Fortune 500s, only 33% of those companies had a quality-of-hire metric.

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Text Box:  These 5 Trends Are Shaping the Future of Pre-hire Assessments

2013 is going to present the start of a major tipping point in the way people find jobs and are evaluated for jobs, and a blend of technology and assessment content will play a big role in these ongoing changes. This opinion is not founded on trends within the pre-hire assessment industry, but rather on the bigger picture of emerging trends in Internet technology: Social Connectivity; Collective Intelligence; Gamification; Credentialing; and Entrepreneurial Culture. The ability of data to drive useful connections with others who share the same interests and the ability to share information across relationships is rapidly gaining teeth. It is now possible to use personal preferences, connections, and interests to provide meaningful insights into almost everything. In terms of hiring, connectivity continues to make sourcing (and job searching) easier. The emerging Internet has introduced many sites and businesses who offer the ability to collect input from multiple persons, aggregate the data, and report on it such that one overall opinion creates an accurate representation of the views of many. When combined with increases in connectivity, we gain the ability to collect insight about a person, product, or service that may not be exactly in line with what is outwardly represented.

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Text Box:  New Workforce, New Tools

Background screening is a critical component of any talent acquisition strategy. Without a standard and efficient approach to compiling and authenticating candidate information, organizations will lose their best talent and become vulnerable to risk and compliance issues. Yet, according to Aberdeen's talent acquisition research, only 4% of organizations cited background screening as the top talent acquisition priority in 2012. In today's highly competitive market, HR leaders need to think more strategically about background screening-particularly around their technology investments. Many organizations are only investing in screening at specific job levels, while others fail to invest in credible providers that provide accurate information on candidates. With a new set of regulations and an increasing number of dubious providers offering inaccurate information on potential candidates, organizations can no longer afford a haphazard approach to screening. The top criteria used to select a provider include accuracy, turn-around time, compliance and customer service. Additional criteria that organizations should consider include globalization, social media, a positive candidate experience, and total talent acquisition.

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Professional Licenses

Did you know that MBI verifies professional licenses? We can verify if an applicant has a license and that the license is in good standing with a state or board. We perform this service on a variety of professional licenses for nurses, doctors, pharmacists, health care professionals, etc. Ordering this service may reveal any disciplinary actions taken and can verify renewal and expiration dates. Contact MBI Worldwide today for additional information.

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Disclaimer Statement: All information presented is for information purposes only and is not intended to provide professional or legal advice regarding actions to take in any situation. Advertisements are presented for information and marketing purposes only and MBI Worldwide makes no representations for any products or services that are promoted and accepts no responsibility for any actions or consequences taken without the guidance of a licensed attorney or professional consultant.

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