IRVINE, Calif., Apr. 12, 2016 – HireRight, a leading provider of global background verifications and drug and health testing, today announced findings from its 2016 HireRight Employment Screening Benchmark Report. The survey revealed a positive hiring outlook, with 77 percent of organizations expecting to grow their workforce within the next year. Workers are increasingly mobile and finding top talent in a competitive job market has become a more complex undertaking. When screening this diverse workforce, 88 percent uncovered a misrepresentation on a resume and 84 percent reported that verifying new hires previous employment history and education credentials uncovered issues that would not have been found otherwise.
“As businesses invest in expanding their employee base, increasingly looking to non-traditional employees to do so, it is more important than ever that they institute a thorough screening process to bring in the most qualified candidates,” said Mary O’Loughlin, vice president of global customer experience, HireRight. “Providing a positive candidate experience during this process has lasting implications for employee engagement, retention and, ultimately, a company’s brand.”
Finding Talent in an Increasingly Complex Pool of Applicants
The workforce is changing, and background check practices are changing with it. Employers are continuing the trend of hiring contingent, contract and temporary workers to fill their open positions, with 81 percent of respondents screening this “extended workforce” – almost double those that screened this segment five years ago (48%).
Additionally, 19 percent of respondents said they screened candidates with a non-U.S. backgrounds, up from 15 percent in 2015. Of the 19 percent that do screen candidates with non-U.S. backgrounds, 70 percent have or plan to put a global screening policy in place. This is an indication of a highly mobile workforce, as more employers are screening candidates who have lived, worked, or studied abroad.
Medical marijuana laws are also forcing employers to rethink their screening practices, with 23 states and the District of Columbia allowing for the use of medical marijuana, and four states allowing recreational use. Yet, only 5 percent of respondents reported having a policy for medical marijuana use. The number of those who do not accommodate nor have a plan to in the next year dropped from 53 percent in 2015 to 39 percent in 2016, signaling more employers may be considering this in the next year.
Top Screening Challenges and Investments
The survey revealed the majority of employers are finding it difficult to keep up with hiring needs, as 53 percent reported finding, retaining and developing talent was their top business challenge. To manage these talent challenges, businesses are planning to invest in:
• Finding qualified job candidates (65%)
• Keeping good employees/employee turnover (55%)
• Making HR processes more efficient (43%)
• Developing leaders within the organization (37%)
• Improving the candidate experience (34%)
In an increasingly competitive talent market, employers must balance moving candidates through the recruitment process quickly and delivering a positive experience while still thoroughly vetting and screening candidates, which can take time. Respondents identified these among the top screening challenges:
• Reducing time-to-hire (43%)
• Verifying information (32%)
• Improving overall screening efficiency (30%)
• Getting quality information (24%)
• Ensuring a positive candidate experience (20%)
Common Screening Practices and Benefits
While finding the best candidate in a large pool of applicants can be a daunting task, 52 percent of respondents cited better quality of hires as the leading benefit of screening, with more consistent safety and security at 49 percent and improved regulatory compliance at 40 percent. The most popular types of background checks include:
• Criminal and other public record searches (89%)
• Identity (SSN validation, etc.) (77%)
• Previous employment (64%)
• Driving records (55%)
• Education (50%).
The full report can be found at www.hireright.com/benchmarking.
HireRight produced the Benchmark Report based on surveys of almost 3,500 human resources, recruiting, security, and management professionals to provide a view of the current hiring landscape, indicate market trends, and identify common gaps in employers’ screening and hiring processes.
HireRight delivers global background checks, drug testing and employment verification services 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 a comprehensive screening solution that can be tailored to the unique needs of the organization, giving enterprises peace of mind about their people and 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. www.HireRight.com.