A majority of employers (88%) who responded to HireRight’s 2014 Annual Employment Screening Benchmarking Report indicated that they only review their background screening policies and procedures occasionally, leaving only a small percentage of respondents who conduct reviews more frequently than once per year.
Since negligent hiring and retention claims are recognized in almost every state and have an average payout of more than $1 million dollars, it is important for companies to maintain up-to-date, written policies in order to minimize the risk of litigation.
In addition to limiting legal risk, reviewing and improving screening policies regularly can help a company remain compliant with the requirements of the Fair Credit Reporting Act (FCRA) and other federal, state and local regulations.
However—in spite of this need for regular procedural improvement—almost half of the Benchmark Report respondents (46%) indicated that they had made no changes to their policies for over a year.
What Updates are Organizations Making to their Employment Screening Policies?
Many of these employment screening policy changes were likely in response to recent legal rulings or legislation.
Other background screening policies modified in 2013 concerned social media, credit checks, and medical marijuana.
According to HireRight’s survey results, a slightly larger number of employers plan to make procedural improvements this year than made changes in 2013—while 40% still have no program changes planned.
The top background screening improvements planned for 2014 include the following:
- General employment screening policies/procedures (32%)
- Candidate experience (28%)
- Employment/education verification (18%)
- Drug and/or alcohol testing (16%)
- Integrating screening/talent management (15%)
- Employment eligibility (I-9) (14%)
- Non-employee screening (10%)
Since the regulatory landscape changes frequently, it is important for your organization to periodically review its background screening policies for legal and compliance-related reasons.
If you need assistance when deciding on which programs to change and/or what improvements to make, working with a leading background screening provider can help.
Free Report: HireRight 2014 Employment Screening Benchmarking Report
Discover tips for developing strategic objectives, related policies, and practical management of employment screening programs by downloading:
HireRight Employment Screening Benchmarking Report