Seven Trends in Background Screening That will Impact Talent Acquisition and Hiring

Based on our continuing observations and research of the background screening industry we see several issues emerging that will impact how Human Resource Managers go about the business of selecting and utilizing background screening firms. Background screening has progressed to the point that is now an integral part of the employment selection process. The discussion has moved from the need to justify why a background check should be conducted to how to make them more effective, efficient and value added focused. In addition, we see the focus moving away from background screening being just being a methodology to weed out the ëbad guys,í to one that plays an essential role in identifying the most qualified candidate. As this transformation continues the value of prescreening in the selection process will continue to climb.

The following are the top trends that we see emerging at this time:

1. The quality movement is starting to emerge as a differentiator in the background screening industry as more firms recognize the intrinsic value to their internal process improvement and market appeal. In an industry where a mistake can cost a person a job which can cause a domino effect on their life and well being. It is crucial that the screening process is done right the first time.

Having a certified quality process in place is likely to follow the pattern that technology and databases have traveled. In the not to distant future HR Managers are likely to consider having a certified quality process in place ëa givení to seriously be considered as a service provider. This will emerge as a standard criteria in Request for Proposals.

2. Expect the technology infusion that revolutionized background screening in the US and made it possible to conduct broader based and quicker screenings to rapidly expand in the international marketplace. This is the next frontier of opportunity for technology. More and more countries will see automated data bases introduced by private firms that provide quick access to information. While the pace of this automation will hasten juxtaposed on it will be many countries that will continue to have manual or limited systems as political and debates on data protection particularly those relating to transmission of data across country lines will rage on.

3. With the continued economic pressures and already tough job prospects for previously convicted persons expect more focus on expungement laws to give these individuals a better chance at gaining meaningful employment. There is also likely to be more political pressure exerted to address this growing issue given that we have record levels of people in prison.

Recent research from Carnegie-Mellon indicated that after 5 years of not re-offending previously incarcerated individuals pose no more risk than any other employee. This is an area that warrants much more research before conclusive decisions can be drawn regarding the relevant time periods that released prisoners are as ësafeí as non offenders in the workplace. Despite the conclusions drawn from this study, employers are not likely to jump on this bandwagon, especially during these times where there are an abundance of qualified applicants for almost every job. The politicians and the business community are on a collision course on this one.

4. With record levels of unemployment, mass layoffs and the foreclosure crisis continuing people looking for jobs are going to get more and more desperate. This will lead to many people losing their morale compass which will likely result in an increase in the use of fake credentials, degrees, references and exaggeration of work experiences. Industry reports of misrepresentation of information range from 40ó60% of applicants misstating information on their resume. With more than 3,000 diploma mills worldwide cranking out fake degrees, references and credentials organization need to remain more diligent than ever in checking applicants information. To get additional insight on this issue see ëSmoke, Mirrors and Resumesí white paper by EmployeeScreenIQ University at http://www.employeescreeniq.com/DiplomaMills.pdf
Despite pressures to reduce expenses HR Managers will need to remain ever diligent in checking backgrounds and references or run the risk of hiring unqualified candidates and people who are focused on depleting company resource thru fraud, identity theft, etc.

5. With the continuing threat of identity theft, employee fraud and theft more firms will move to implement infinity screening (also referred to as re-occurring and post hire screening) as a way of combating this problem. In addition, as noted in the above trend, fake credentials are readily available so employers will have a continuing need to verify the legitimacy of degrees and credentials earned by current employees.

6. In the book ëBackground Screening & Investigations: Managing Hiring Risk from the HR and Security Perspectiveí David Peck is quoted as stating ìthe tide is turning [for reference checking] . . .as executives reassess the time, cost, and risk involved in evaluating candidates.î He further stated ìHR Executives are, once again, emphasizing old fashioned reference checks, which when done well, are highly valuable piece of the hiring puzzle.î

Although David had traditional reference checks in mind, his point is proving to be prophetic as a new day is dawning with online technology driven reference tools emerging that allow references to provide competency based behavioral feedback on applicants that produce high quality feedback on candidates that is predictive of job performance. See SHRMís 2009 HR Trend Book article on ëAutomated Reference Checking Puts Onus on Candidatesí for more coverage on this emerging technology.

7. Another issue referenced in the book ëBackground Screening & Investigations: Managing Hiring Risk from the HR and Security Perspectiveí was that we would see increasing number of legal challenges to the growing practice of using credit checks in the hiring process and that the this issue would ëgrow legs.í

More states will join Washington State, Connecticut and Hawaiiís lead in passing laws that regulate use of credit checks in the hiring decision. Also Congressman Steve Cohen (TN-09) has authored a federal bill aimed at helping those with poor credit histories improve their job opportunities by prohibiting the use of credit checks in the hiring process.

Studies indicating that credit worthiness is not a factor in predicting performance nor the risk of inappropriate behavior further fuels this discussion.

W. Barry Nixon, SPHR, is co-author of ëBackground Screening Investigations: Managing Hiring Risk from HR and Security Perspectives,í publisher of The Employment Screening Journal (the first and only magazine focused specifically on employment screening processes, practices and resources) and the widely popular online newsletter for the background screening industry, The Background Buzz. He is also the creator of www.PreemploymentDirectory.com which has become the leading directory for businesses to quickly and easily find a background screening firm. Barry can be reached at wbnixon@preemploymentdirectory.com.