11th Annual HireRight Benchmark Survey Reveals 73% of Organizations Plan to Grow Workforce in 2018
Survey identifies negligent hiring as the top compliance concern among respondents and shows decrease in the hiring of contingent workers
IRVINE, Calif., April 5, 2018 – HireRight, a leading provider of global employment background checks, drug testing, education verification, and electronic Form I-9 and E-Verify solutions, today announced findings from its 11th Annual HireRight Employment Screening Benchmark Survey. HireRight’s report is the largest and most extensive of its kind, exploring key issues and trends relating to the screening industry, such as hiring challenges, “ban-the-box” legislation and marijuana legalization. This year, HireRight collected survey results from nearly 6,000 human resources, recruiting, security, and management professionals.
The hiring landscape is constantly evolving as the workforce becomes more diverse and technology provides more tools for recruiting and managing employees. For example, in 2017, nearly a quarter of respondents said 40% or more of their workforce was comprised of non-employees; this year, only 16% of respondents said that non-employees constitute 40% or more of their workforce. This change suggests that employers are beginning to convert their contingent workers into full-time employees.
The benchmark survey also revealed several key trends, including:
Finding and retaining qualified talent was cited as the top challenge by a majority of employers. The top four areas for business investment remain unchanged from 2017:
59% plan to invest in finding qualified candidates
58% plan to invest in keeping good employees
49% plan to invest in making the HR process more efficient
41% plan to invest in developing leaders
Regulations affecting candidate screening are becoming increasingly prevalent, raising compliance concerns for HR professionals. The following areas are top of mind for respondents in 2018:
Negligent hiring at 42%
Equal Employment Opportunity Commission (EEOC) at 40%
Fair Credit Reporting Act (FCRA) at 24%
Medical marijuana at 22%
Ban-the-box legislation at 20%
Immigrations and Customs Enforcement (ICE) at 20%
Negligent retention at 16%
As new legislation is implemented, organizations continue to grapple with policies regarding marijuana use.
Six years ago, 79% of respondents said they did not have a policy, nor did they have plans to create a policy, addressing medical use of marijuana. Today, 67% of respondents do have a medical marijuana policy.
22% of organizations cite medical marijuana use as one of their biggest compliance challenges.
Looking beyond domestic regulation, the majority of organizations (61%) are not fully prepared to comply with the European Union’s General Data Protection Regulation (GDPR), which strictly governs how personal data is collected, used, protected and retained and applies to all companies, regardless of size and location, which collect personal information of EU residents. Additionally, only 37% of companies know what they need to do to comply with GDPR when it becomes effective.
“2017 has proven to be a challenging year for organizations, with new laws and regulations emerging and impacting the screening process,” said Jurgen Leijdekker, chief executive officer at HireRight. “In today’s environment, it is more important than ever for human resources departments to work closely with their legal and compliance teams to ensure they understand how these emerging laws will impact them. Employees are a company’s most valuable asset, and with that value can come great risk. A thorough background screening program and an educated and well-trained human resources department are key steps in mitigating that risk.”
To explore more key findings and trends, including best practices in background screening and drug testing, visit: https://www.hireright.com/resources/view/2018-employment-screening-benchmark-report
The HireRight 2018 Employment Screening Benchmark Report is based on a survey of nearly 6,000 human resources, recruiting, security, and management professionals. The report provides a view of the current hiring landscape, indicates market trends and identifies common gaps in employers’ screening and hiring processes.
HireRight delivers global employment background checks, drug testing, education verification, and electronic Form I-9 and E-Verify solutions through an innovative platform to help companies hire the right candidates, so they can grow successfully, and efficiently—no matter their size or where they operate. HireRight offers extensive screening solutions that can be tailored to the unique needs of the organization, giving employers additional peace of mind about their people and vetting processes. HireRight’s platform can be integrated with existing HR platforms, making it easy to use and giving candidates the best possible experience.
HireRight is headquartered in Irvine, CA, with offices across the globe. Learn more at www.HireRight.com.
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.
Release Date: April 5, 2018