Background Screening - Balancing Regional Strategies with Local Practices in APAC
From new data and privacy regulations to the rise of AI technology, companies need to navigate this new terrain with their background screening programs.
In today's fiercely competitive job market, hiring the right talent at the right time for the right role is crucial. But what is more important than speed is accuracy. In this context, talent acquisition leaders are under increasing pressure to streamline background screening processes while maintaining thoroughness. However, amidst these demands, the evolving background screening landscape introduces a host of complexities and regulatory updates—and navigating these challenges demands a nuanced approach.
To better understand and steer the current context, HireRight, in partnership with People Matters, organized an executive roundtable on the theme “Balancing Regional Strategies with Local Practices” at the Pan Pacific, Singapore, on April 4th, where leaders from various industries reflected on the opportunities and challenges that companies lay ahead of them.
Changing Background Screening Practices
Opening the discussion with a keynote session, Ko Hui Yen, SVP and Managing Director of APAC and India at HireRight, spoke about the trends forcing a reassessment of the current business environment.
“With workplaces evolving rapidly, including the rise of hybrid work models, employees seek more autonomy in how and where they work,” she noted. “Technological advancements like generative AI are further influencing these changes, while regulations worldwide are adapting to ensure transparency and fairness for all stakeholders.”
Regulatory changes, such as Singapore's tightened verification of education qualifications mandated by the country’s Ministry of Manpower, demonstrate the evolving landscape across the APAC region. Despite growing awareness, many still equate background screening with basic reference and education checks. However, comprehensive screening is essential for mitigating business risks, particularly in identifying fake credentials.
“Our 2023 Global Benchmark Report revealed widespread employment and education discrepancies in APAC, posing significant business risks. Challenges in implementing robust screening processes include cultural norms, data privacy laws, and inconsistent access to data sources, all of which vary across the diverse markets in the region,” she said.
“For instance, Australia's stringent data privacy laws emphasize transparency and candidate comfort in the screening process, while in India, manual processes and a lack of technological maturity present unique challenges. Our local teams are equipped to navigate these complexities, providing both global expertise and tailored insights to ensure compliance with regional requirements,” she added.
Evolving Regulatory Landscape
Delving deeper into the regulatory shifts, Caroline Smith, VP, Deputy General Counsel at HireRight highlighted noteworthy compliance updates – covering privacy and data across the Asia Pacific region.
“Over the past 15 months, the privacy space has witnessed significant developments—from the introduction of new legislation to the evolution of existing laws and the emergence of proposals for substantial reforms. In 2023 alone, we observed a flurry of activity,” she noted.
Countries like Indonesia, Thailand, and Vietnam saw the implementation of consolidated privacy laws, streamlining previously disparate regulations. Notably, India's long-awaited Personal Data Protection Act finally came into effect, marking a milestone in privacy legislation. Updates and enhancements to existing laws were also prevalent, with Singapore and Taiwan revising their frameworks, imposing stricter penalties for privacy breaches.
Conversely, South Korea proposed relaxing data processing thresholds, potentially expanding opportunities in the background screening industry. Additionally, Malaysia provided guidelines for compliance with its Data Protection Act, aiding businesses in navigating privacy principles and data subject rights.
China remained a focal point for privacy discussions, particularly concerning data transfers and cross-border operations. The Cyberspace Administration of China introduced standard contract measures for exporting personal information, accompanied by a rigorous accreditation process. Recent updates add further nuance to the evolving landscape, signaling ongoing shifts in regulatory dynamics.: As companies navigate these updates and considerations, it's crucial to stay proactive and adaptable in ensuring compliance and data protection in an ever-changing regulatory environment.
Enhancing candidates’ experience with compliance
During the roundtable discussions, one theme that all participants focused on was the candidate experience. All participants agreed that this was of critical importance and that the typical areas they would want to see in any background screening program include easy-to-use forms, clear instructions for completion, tools to troubleshoot issues, 24/7 helplines, and a quick process. However, one area that participants had not considered so much was how working with a partner that adopts a privacy-by-design philosophy – where human resource teams can partner with screening providers that build privacy concepts into the design of their systems and processes – is crucial to gaining the confidence of candidates.
It can also streamline processes faster and fosters transparency, ensuring candidates understand the purpose and implications of data processing. Tailoring screening policies to address regional nuances and hiring risks is essential, supported by intelligent technology that facilitates informed decision-making and safeguards candidate rights. It is also critical in helping the hiring team navigate compliance complexities in HR and background screening programs which demands a nuanced approach, balancing consistency with local requirements.
Looking to the future: Artificial Intelligence
The evolving landscape of AI regulations presents both opportunities and challenges. Various jurisdictions adopt diverse approaches, from prescriptive frameworks to self-regulation. Global cooperation is advocated to establish common standards. Noteworthy efforts include international frameworks like the ASEAN AI Governance Framework and draft legislation in Vietnam, India, and China. As organizations leverage AI tools for efficiency and accuracy, staying abreast of evolving regulations is imperative to ensure compliance across regions and mitigate risks associated with tool acceptance.
Four TA Leader Priorities
Leaders from different industries shared perspectives on background screening and best practices they’ve adopted to support an effective screening program.
Leaders need a systematic background screening process – one that ensures there is consistent candidate experience, with integrated communication and timelines that can boost candidate experience.
Reducing the number of candidate touchpoints and improving transparency in the screening process can help remove confusion for candidates, especially when multiple individuals reach out to candidates for various aspects.
Ensuring compliance remains a top concern for many leaders. While they strive to keep up with evolving regulations, staying compliant can be complex, especially when dealing with diverse customer requirements. Addressing discrepancies and enhancing cost efficiency are ongoing priorities.
Optimizing candidate identification processes is essential, given the competitive landscape. Streamlining SOPs and seeking guidance from customers helps ensure alignment with industry standards. However, achieving consistency across different contexts remains a challenge.
As the background screening landscape in the APAC region continues to evolve, it's evident that companies face a multitude of screening challenges, from navigating complex regulatory frameworks to ensuring the accuracy and efficiency of screening processes. From the insights shared by industry leaders, it's clear that addressing these challenges requires a strategic blend of transparency, efficiency, and customization.
By adopting a philosophy which prioritizes candidate experience, organizations can navigate compliance complexities while safeguarding candidate rights and fostering transparency throughout the screening process. Moreover, leveraging intelligent technology and strategic partnerships can streamline operations, enhance candidate experience, and ensure alignment with industry standards.
See what some of HireRight’s customers had to say about the event in this short video from the event, below:
To discuss your company's background screening needs, and how these may be changing due to the evolving screening landscape, get in touch with HireRight here.
Release Date: May 23, 2024
HireRight
HireRight is a leading provider of on-demand employment background checks, drug and health screening, and electronic Form I-9 and E-Verify solutions that help employers automate, manage and control background screening and related programs.