Extended Workforce Screening Myths: What Contracting Organizations Need to Know
There are many myths around how businesses believe they can, and should, manage risk in screening their extended workforce. Here we call out common extended workforce screening myths, what blind spots they create, and practical steps to help close those gaps.
The extended workforce is an essential and growing part of many modern businesses, yet often it can be treated as an afterthought when it comes to background screening. Contractors, consultants, freelancers, and temporary staff frequently perform the same sensitive tasks as permanent employees, access critical systems, or interact with customers, yet organizations with extended workforces often don’t apply the same level of background screening and oversight to these workers, potentially creating an unnecessary security gap.
In fact, there are many myths about how businesses believe they can and should manage risk in their extended workforces, which hinge on the misconception that extended workers contingent workers should be treated differently from permanent staff when it comes to background screening.
In this blog, we examine some extended workforce screening myths, showing how they could create blind spots in screening and ongoing risk management, and provide some practical steps to help companies close these gaps in their screening practices.
Myth: Extended Workers Don’t Need Screening to the Same Standard as Permanent Staff
While contingent workers may not be on a company’s payroll, they may still have access to internal systems, proprietary data, and sensitive customer information. This makes their impact on the business just as significant as that of permanent employees and, importantly, means they could pose the same risks when it comes to data breaches, intellectual property theft, reputational harm, and physical security.
Moreover, whilst negligent hiring in the UK isn't a standalone cause of legal action in the same way as in some other jurisdictions like the US, employers can still be held liable if their failure to properly vet, supervise, or manage any employee, including contingent workers, leads to harm.
In fact, the risks associated with non-employee workers can be even greater. These individuals may have less allegiance to a company, especially when they may be engaged for short-term projects or through third-party vendors. Also, contracting organizations may have less visibility of their day-to-day activities, particularly if they operate remotely or outside line management structures. This lack of transparency can create fertile ground for bad actors who may view contracting as a backdoor into an organization; one that bypasses the scrutiny applied to permanent hires. For these reasons, background screening extended workers is best practice. Businesses that fail to apply consistent vetting standards across their entire workforce could expose themselves to unnecessary and avoidable risk.
Myth: Staffing Agencies Can Handle the Background Screening of Extended Workforces
HireRight’s 2025 Benchmark Report revealed that more than half (54%) of organizations that ensure contingent workers are background screened before working with them, let their staffing agencies use their own background screening provider to do so. Outsourcing the key background screening decisions and responsibilities for extended workforces to suppliers can be a risky strategy which could undermine organizational security.
Even when suppliers claim to perform background checks, employers may not know what standards are being applied, how consistently they’re enforced, or whether they align with the organization’s own risk tolerance.
Additionally, suppliers may vary widely in their practices. Checks could range from an identity and criminal record check to credential verifications, credit checks, and social media searches applied unevenly across regions and suppliers. One supplier might look back seven years for criminal offenses, while another stops at three; one may verify every past employer, another only the most recent. Employers who can’t see into their suppliers’ processes have no way of knowing which set of practices is in place, or whether any gaps exist. Those gaps could be costly. Even minor variations, like inconsistent look-back periods, could let critical warning signs slip through, undermining efforts to mitigate insider risk.
Even more troubling is that many employers may not audit or verify whether their suppliers are conducting any background screening at all.
The consequences of inconsistent or absent screening can be significant. A single bad hire in a contract role could lead to data breaches, workplace misconduct, or compliance violations.
In today’s regulatory and security-conscious environment, it is prudent for employers to retain oversight of the key elements of background screening for their extended workforce. This can include defining a minimum background screening standard and policy across similar role types for their extended workforce, centralizing audit access, and requiring that all staffing agencies use the same background screening provider to help drive consistency, not only in screening standards, but also in process, which can help deliver efficiencies for organizations’ onboarding teams.
Myth: Screening UK Extended Workforces Isn’t Required By Law
The belief that employers in the UK and Europe only need to conduct background screening when explicitly required by regulations and that no such regulations apply to extended or contingent workforces is inaccurate and out of step with evolving compliance expectations. Regulators across different sectors are tightening expectations around fitness, propriety, and security for all individuals with access to sensitive roles, irrespective of their employment status.
For example, the Financial Conduct Authority (FCA) is currently consulting on proposals to extend its Conduct Rules and Fit and Proper Test to cover serious non-financial misconduct such as bullying, harassment, discrimination and fraud, by any in-scope staff member, including contractors. Under consideration is that firms would be required to assess the fitness and propriety of every individual performing regulated functions, effectively leading to background screening for all workers, including contingent workers, in financial services firms. Also, the FCA’s outsourcing regulations create strong regulatory incentive for firms to background screen key individuals at suppliers.
Beyond financial services, other sectors such as technology and pharmaceuticals are subject to stringent compliance frameworks that often necessitate background screening. In pharma, for example, Good Manufacturing Practice (GMP) guidelines and MHRA regulations require firms to ensure that individuals involved in manufacturing and quality assurance are qualified and trustworthy; criteria that background checks help validate. In technology, especially in roles involving data privacy, cybersecurity, or critical infrastructure, screening contingent workers is essential to meet ISO standards and GDPR obligations around data access and protection.
Finally, even sector-agnostic legislation such as the recently introduced UK Failure to Prevent Fraud offence (1 September 2025), guides applicable organizations' attention to pre-employment and on-going vetting checks as a fraud prevention measure that can reduce the opportunities for fraud for both permanent staff and contractors/outsourced workers.
Myth: Screening U.S. Extended Workforces Isn’t Required By Law (U.S. only)
The notion that contingent workers are exempt from U.S. laws which require background checks isn’t accurate. Specific industry sectors impose mandatory screening for all employees regardless of employment status: healthcare providers under federal and state patient-safety statutes; transportation firms under Department of Transportation rules for driver qualification; and financial services firms under SEC, FINRA, and Bank Secrecy Act requirements. These regimes make no distinction between permanent staff and contingent labor when determining who must be vetted.
Further, an organization’s duty of care can extend to anyone it places in a position of responsibility, on its premises or projects. Contingent workers, though not directly on a company payroll, can still expose firms to claims if they cause harm. Even if a contingent worker is hired through a third party, like a staffing agency, courts may still hold the engaging company liable, depending on the circumstances.
Even in the absence of a requirement for extended workers to undergo background screening, prudent firms extend background check requirements across their entire workforce. Screening can help protect against reputational damage, financial loss, and operational disruption, and it often aligns with industry best practices. Treating your extended workforce differently from direct hires can be a false economy; any perceived savings on one-off projects disappear the moment a preventable damaging incident triggers litigation or damages an organization’s reputation.
Myth: Screening UK Extended Workforces Isn’t Required By Law (UK only)
The belief that employers in the UK and Europe only need to conduct background screening when explicitly required by regulations and that no such regulations apply to extended or contingent workforces is inaccurate and out of step with evolving compliance expectations. Regulators across different sectors are tightening expectations around fitness, propriety, and security for all individuals with access to sensitive roles, irrespective of their employment status.
For example, the Financial Conduct Authority (FCA) is currently consulting on proposals to extend its Conduct Rules and Fit and Proper Test to cover serious non-financial misconduct such as bullying, harassment, discrimination and fraud, by any in-scope staff member, including contractors. Under consideration is that firms would be required to assess the fitness and propriety of every individual performing regulated functions, effectively leading to background screening for all workers, including contingent workers, in financial services firms. Also, the FCA’s outsourcing regulations create strong regulatory incentive for firms to background screen key individuals at suppliers.
Beyond financial services, other sectors such as technology and pharmaceuticals are subject to stringent compliance frameworks that often necessitate background screening. In pharma, for example, Good Manufacturing Practice (GMP) guidelines and MHRA regulations require firms to ensure that individuals involved in manufacturing and quality assurance are qualified and trustworthy; criteria that background checks help validate. In technology, especially in roles involving data privacy, cybersecurity, or critical infrastructure, screening contingent workers is essential to meet ISO standards and GDPR obligations around data access and protection.
Finally, even sector-agnostic legislation such as the recently introduced UK Failure to Prevent Fraud offence (1 September 2025), guides applicable organizations' attention to pre-employment and on-going vetting checks as a fraud prevention measure that can reduce the opportunities for fraud for both permanent staff and contractors/outsourced workers.
Myth: Background Screening Extended Workforces Is Too Slow
The belief that background screening can slow down the onboarding of extended workers to such an extent that it becomes impractical is a myth that doesn’t always hold up under scrutiny. In reality, modern screening solutions are often fast and scalable. Employers no longer need to choose between speed, security and accuracy. With the right screening partner and process, background checks can, depending on the checks and regions, be completed in hours or days, not weeks, without compromising compliance or the candidate experience.
Extended workforce hiring often demands agility, but that doesn’t mean cutting corners. Skipping background checks can expose organizations to significant risks: data breaches, reputational damage, and even legal liability. Ensuring background screening is done to your standards helps ensure that temporary workers, contractors, and gig talent meet the same standards of trust and safety as permanent employees. In fact, many companies find that streamlined screening processes actually improve hiring efficiency by reducing issues like fraud and turnover.
Moreover, background screening can be seamlessly integrated into onboarding workflows, minimizing delays and manual effort. Digital identity verification, AI-powered social media checks, and online candidate screening workflows can help employers to vet their candidates quickly. Far from being a bottleneck, screening can be a strategic enabler of fast, confident hiring. When done right, it can help protect the business, reassure clients, and build a more resilient extended workforce.
Myth: Background Screening Extended Workforces Is Too Expensive
First, the idea that background screening extended workforces is an unnecessary cost overlooks the hidden expenses of not vetting this segment of an organization’s workforce. When a contingent worker slips through with undisclosed, job-relevant criminal history or falsified credentials, the fallout, data breaches, theft, regulatory fines, or damaged client relationships, can cost exponentially more than any screening costs. Background checks are not an added luxury but a foundational risk management tool that protects both finances and reputation.
Second, organizations using extended workers don’t have to foot the bill for the suppliers’ background screening. Consider shifting the financial responsibility for background checks onto staffing suppliers. That translates into lower turnover, faster onboarding, and fewer performance issues, delivering operational savings and faster project delivery timelines.
Also consider leveraging the company’s existing screening provider to drive even greater value. If already using a provider for permanent hires, extend that partnership for contingent staffing suppliers. Pooling permanent and contingent volumes may give you negotiating power to agree a favorable rate for all suppliers. Not only does this mean that suppliers pay for the background screening at favorable rates to them, but this also streamlines administration through a single portal, helping to enforce uniform screening standards. Also, through the single portal organizations can get full visibility into the services included in suppliers’ background checks on individuals who will be placed into their company.
Myth: Background Screening Global Extended Workforces Isn’t Possible
It is now both possible and increasingly straightforward to standardize global contingent workforce screening. This is largely due to the availability of global screening platforms and a growing alignment of background screening infrastructure worldwide. The key is to adopt a screening ecosystem that balances a consistent core protocol for example, identity verification, criminal record checks, and employment and education verifications, which is then localized to each country’s legal and cultural nuances. This approach applies the same rigorous standards everywhere, while respecting employment and data privacy laws, language differences, and regional risk factors.
Centralizing screening under a single screening provider removes the friction of managing multiple disparate processes. These providers’ platforms offer configurable workflows that allow you to define the universal steps every engagement must follow and make it easy to layer a core set of baseline checks with additional ones, such as credit, civil litigation, and professional licence verification, based on the role and the applicable location.
Building a global screening program may not require reinventing the wheel for each location. You could start by mapping countries into tiers, e.g., low, medium, or high complexity, based on regulatory overhead and risk profiles of the roles being sourced in those countries. For low-complexity regions, you could apply a standard regime of checks. For medium and high complexity, you could layer on additional local screenings, as appropriate based on the role. This tiered architecture can make scaling much simpler, helping your business to deliver a uniform candidate experience and helping to ensure compliance in every market.
Beyond process and technology, success hinges on governance. Many companies establish a central screening council that includes legal, HR, and risk representatives from their key geographies. This council would then meet periodically to review incidents, update screening criteria where applicable, and ensure the policy evolves in line with any new or updated regulations. With clear leadership, shared metrics, and a unified vendor strategy, global contingent screening can be turned into a competitive advantage.
Summary: Extended Workforce Background Screening
Extended workforces, including contractors, freelancers, and consultants, often have the same access and can create the same risks as permanent staff. Inconsistent or outsourced screening policies and practices could expose organizations to data breaches, legal liability, reputational harm, or other business risks.
Yet, closing that gap could be far more straightforward than is commonly thought. By taking a handful of practical steps, organisations can design and deploy a robust background screening strategy and process for their extended workforce. This can help enable employers to scale consistent standards across their hiring footprint, retain visibility and control over those standards, and preserve candidate experience; all without adding significant cost or time to the sourcing of this often-vital segment of a company’s workforce.
Find out on our Extended Workforce Screening Solution webpage how HireRight can help you implement a screening program for your extended workforce that’s globally consistent, cost effective and fast.
Release Date: November 17, 2025
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.