Mid-Year Conference 2011

The total count of attendees at this mid-year conference was 342, up 16% from 294 last year and up from the attendance of 249 in 2009. A very nice turnout.

The conference kicked off on Sunday night with the opening ceremony followed by the exhibit floor open to all. 45 exhibitors supported NAPBS this year, up significantly from 32 last year.

One of the highlights last year was the introduction of the first CRAs to become NAPBS accredited and this year the count of accredited companies is already up to 20 (click here to see the names). From what I hear, the accreditation process is very time consuming and very thorough, so I congratulate all the companies who can say they have completed the accreditation process. The good news is that at least one company has introduced a service to help you through this process http://www.crazoom.com/. If you have not looked into what it takes to become accredited, go onto the NAPBS website and it will have everything you need to get the process started.

In one general session, they showed the entire financial status of NAPBS. Interesting to note that as a non-profit, NAPBS is required to go through a regular Audit. In 2009, the auditors advised they were unable to give NABPS a rating of “sustainable”. NAPBS was losing money and had insufficient reserves. The advice was that NAPBS should have at least one year’s operating budget in the bank. The board went to work to cut expenses, look for new means of non-dues revenue and streamlined the conference expenses. As a result, NAPBS is now cash flow positive and will be setting aside money to have the reserves necessary to sustain the association and pass future audits. In addition it is critical to have funds in reserve so we can do whatever is necessary to make the EEOC understand that employers shouldn’t be prohibited from their right to do background checks and make hiring decisions based on that information and the bad that can happen without screening.

Kudos to the board of directors for the hundreds of hours they put into keeping our association valid, vibrant and functional.

NAPBS will soon be offering a certification in FCRA for the individual. This is another step in professionalism akin to the current criminal provider exam. NAPBS is attempting to have this certified for CEUs so, while it is scheduled to be available to take the exam on 11/1, you may want to wait until it is approved for CEUs if you need them.

The feature speaker, Ron Rosenberg addressed the marketing and sales issue. Some key points:
--Marketing is not an expense; done right, it’s an investment with a high rate of return.
--Our professions may be different from one another, but we are all in the marketing and customer service business.
--You cannot market the same way to all your customers. One size selling technique does not fit all.
--“Feature puke”: there is such a thing as giving away too much information. If your clients know everything about you before they speak to you, why should they engage you at all?

The conference also featured a “Meet your Regulator” with EEOC commissioner Victoria Lipnic. She explained how the EEOC operates, and how the five-member commission discusses and compromises on subpoenas, litigation and briefs that come before them. A supporter of our industry, she stated emphatically that it is not enough for a company to have a background checking policy that conforms to the law; it must practice that policy to make sure it really works. She also discussed programs and issues coming up in the near future, including the Prisoner Re-Entry Program, revising the use of conviction records, and the use of credit and criminal background checks as screening tools vis-à-vis the disparate impact issue. She urged attendees to educate themselves and their clients not only about the FCRA, but also about the EEOC guidelines. She strongly recommended NAPBS commission a study to support our position.

Industry Trends
--Business is up for most CRAs. While the unemployment rate is not falling, there is still turnover and we are needed. Two significant CRAs told me they are going to finish 2011 as their “best year ever”. Several others report sales up over 35%. They also report that the larger CRAs are still not taking proper care of their customers to keep them.

--We reported last year “There are rumors (many confirmed) circulating that some of the “big boys” are for sale.” Well, we didn’t see that come true. On the other hand, we know from our M&A services that there is definitely activity in this area, with valuations holding up fine. Stay tuned. Some of the recent deals include Sterling Info systems buying Tandem Select and ReferencePro being acquired. In addition, we are very busy right now in our M&A activity, so more are coming.

People Stuff
--Phil Smith is now at CARCO
--Maureen Plotke is with ClearStar
--Sean Hawser is now with SJV
--Bert French is now with Baxter
--Mark Moore sold to, and is now with, FirstPoint
--Janice Taylor is back at the helm as President of Background Screening and Security Solutions.

Dean Carras did a fantastic job again as chair of the Conference Committee in pulling off a super meeting. Thanks Dean and the entire committee.

Monday night saw Innovative Enterprises bring in a great band that played and played and played. You couldn’t hear yourself talk, but everyone had a great time. Thanks to Innovative and to all the exhibitors who sponsored all the functions.

Tuesday night was a dinner with fire dancers and hula-hula. Another very nice affair. This was followed by many hours of “business conversation” from the Raglan Road Irish Pub to several watering holes in the hotel. And special recognition to the “shorter, smarter, nicer version.”

Overall, I thought this was a good conference with great educational seminars, meaningful conversations during the trade show and an overall positive vibe from the attendees regarding our industry and its future.

FYI, in 2012, there will be no fall conference. In 2013, the plan is for the Annual Conference to be in the fall and the spring conference will be in conjunction with a fly-in in Washington, DC. Given the importance of getting the legislature and the government departments in DC to understand our industry better, by having the conference in DC, we can invite more inside-the-beltway folks (read: EEOC) to be on panels, to speak, or to just attend the conference.