background screening trends & best practices report 2017-2018 · 2017 sterling talent solutions...

A Sterling Talent Solutions Research Report

Background Screening Trends & Best Practices Report 2017-2018

3 Letter From Our CEO

4 Survey Demographics & Methodology

5 Methodology

6 Executive Summary

8 60% of Companies Expect Their Hiring

Forecast to Increase

10 89% of Companies Conduct Employment

Background Checks

11 45% Conduct Employment Background

Checks to Protect Clients/Customers

13 Do Companies Value Background Checks?

14 93% of Organizations Use a Criminal Record

Search to Evaluate Prospective Employees

16 Top Priorities For Companies

18 Top Challenges for 2017-2018

19 48% of Companies Ask on the Application if

Candidates Have Been Convicted of a Crime

21 Criminal Convictions & Disqualifications

22 How Do Organizations Respond When Candidates

Don’t Divulge Past Convictions?

23 Individualized Assessments on Candidates

with Convictions

24 Pre-Adverse & Adverse Action

25 Resume Discrepancies

26 Background Screening & the Candidate Experience

27 Candidate Experience: Are Candidates Informed?

29 Social Media Screening

30 Global Screening

31 Recreational Marijuana

32 Contingent Workforce

33 Executive Level Hiring

34 Trends in 2018 and Beyond

35 Share the Data

Contents

Letter From Our CEOHello –

As the CEO of Sterling Talent Solutions, I often make decisions impacting our entire organization. From acquiring and merging companies to setting our strategic direction, every decision has the potential to have a significant effect on our global organization. While our path to becoming a world leader in background screening is neither easy nor straightforward, there is one thing that makes it within reach—our data.

Throughout my career, I’ve always relied on data to assist in making decisions. It’s precise, effective and when considered correctly, invaluable in the decision-making process. It creates a solid foundation that informs problem solving and builds an aggressive strategy for rapid growth.

This year, I’m honored to share with you the results of our 2017-2018 employment background screening trends survey. This data can help as you look for ways to benchmark and improve your current employment background screening and onboarding program. Where applicable, we noted trends as compared to the data from our last report in 2015. We surveyed more than 500 U.S.-based employers regarding their use of employment background checks. This survey provides a statistically significant snapshot of the U.S. employment landscape and will provide you with key insights on:

How employers currently utilize their background checks

Practices concerning compliance, ban-the-box, drug testing and

social media screening

How emerging technology is impacting

the candidate experience

Emerging trends in employment

background screening

I hope you will find this report useful, and I wish you tremendous success in your background screening and onboarding initiatives.

Sincerely,

Clare Hart,

CEO, Sterling Talent Solutions

© 2017 Sterling Talent Solutions Background Screening Trends & Best Practices Report 2017-2018 | 4

Survey Demographics & Methodology

507Number of respondents

Feb. 1–Mar. 3, 2017 Survey dates

33 Industries The greatest number of responses came from the following industries: consulting, education, healthcare, manufacturing, not-for-profit, staffing and technology.

16+17+34+18+15+A16%

17%

34%

18%

15%

Upper Management

Director

Manager

Individual Contributor

Other

Current Job Title/Position

Are you a Sterling Talent Solutions client?

5%

33+29+11+11+7+4+5+A29%

1-99

100-499

500-999

1,000-3,999

4,000-9,999

10,000-19,999

20,000 or more

Organization Size

11%

11%

7%

4%

33%12+8+37+10+8+25+A10%

25% 12%12+8+37+10+8+25+A37%

25%

Under $500,000

$500,000 – Under $1 million

$1 million – Under $50 million

$50 million – Under $1 billion

$1 billion or more

Don’t know

Annual Revenue

12%

8%

10%

8%

0-99

100-499

500-999

1,000 – 4,999

5,000+

57+24+8+5+6+A57%

24%

8%

Number of Background Checks You Run Annually?

5% 6%

Answered “YES”

Answered “NO”22%

78%

5 | sterlingtalentsolutions.com | 800.899.2272

Survey Results

500+Respondents

±4%margin of error

at 95%confidence level

MethodologySurvey results are based on the responses of:

Managers Business Owners Executives Other Key Stakeholders

Respondents were invited to participate through an email invitation and a banner on our homepage.

Our First Question: Does your organization conduct employment background checks?

This determined whether or not respondents were eligible for the survey. Of the 604 respondents, 548 answered “yes” to this question. However, 97 of those 604 total did not answer any additional questions within the survey and were removed from the results. Therefore, the total universe analyzed for the survey is 507 respondents.

The margin of error for this study is ±4% at the 95% confidence level.


Executive Summary

Most employers expect to hire more employees in 2017

60% of employers expect hiring to increase. Compared to our 2015 data, which found that 69% of organizations expected hiring to increase, hiring expectations are slightly lower this year by 9%. This implies that the competition for talent is still high. Only 4% of employers expect a decrease (compared to 3% in 2015), while 25% expect their hiring to be flat.

Top priorities for companies: reducing time-to-hire

2018 is about getting new hires in the door quickly and efficiently with quality information for informed hiring decisions. Nearly half of employers (45%) identify their biggest challenge as reducing time-to-hire. Not far behind is improving screening process efficiency (41%) and improving the quality of information (36%).

The biggest challenge for employers: information

The most significant challenge companies face is ensuring they have all of the information needed to make an informed hiring decision (38%). Complying with the ever-changing screening laws (25%) and improving time to hire (18%), rank as the second and third largest challenges, respectively. Similarly, we saw a 25% increase from 2015 to 2017 in respondents selecting their top priority in background screening as improving the quality of the information.


Technology is increasingly important to the candidate experience

Our survey data shows gaps between where companies want to be and where they are when it comes to technology. For example, 51% of companies surveyed believe that the ability for a candidate to complete a background check on a mobile device would improve the candidate experience. Yet, only 30% of companies have a screening provider that offers this functionality.

Only one-third (34%) of employers indicate that they perform social media checks on prospective employees

As it stands, a majority of companies are not currently performing social media screening. Of the companies that are conducting social media checks, 95% of them are done internally and 5% are outsourced to a third party.

Companies find immense value in background screening

According to our respondents, 80% said that background checks uncover issues/information that wouldn’t have been found otherwise. This continues to address employers biggest challenge in 2017-2018—needing more information to make an informed hiring decision.

Key Findings

51%feel doing a background check on a mobile device improves candidate experience

45%say their biggest challenge is reducing time-to-hire

95%of social media checks are done internally

38%face challenges ensuring they have all the information needed for a hiring decision

© 2017 Sterling Talent Solutions Background Screening Trends & Best Practice Report 2017 | 8

60% of Companies Expect Their Hiring Forecast to Increase in 2017Better understanding the demographics of our respondents as it pertains to their hiring trends.

We asked for more detailed comments about what is driving hiring forecast—here are some of our most common responses:

Reason companies expect hiring to increase

▪ New business and/or business growth

▪ Turnover of current employees

▪ A shifting of company priorities

▪ An increased need for specialized employees

▪ Backfilling positions from retirees

▪ Political concerns (i.e. immigration laws, political uncertainty, etc.)

60%

25%

11%

Expect hiring to increase in 2017

Expect hiring to be flat in 2017

Don’t know what their hiring forecast looks like in 2017

4% Expect hiring to decrease in 2017


Reasons companies expect hiring to decrease

▪ Decreased revenues

▪ Lower revenues than expected

▪ Low employee turnover

▪ Political concerns (i.e. immigration laws, political uncertainty, etc.)

Reason companies expect hiring to be flat

▪ Budget decreases

▪ Not able to offer competitive pay rates in a highly competitive field

▪ Not adding new positions

▪ Specific industry concerns (i.e. weather, international business, funding, procedural challenges, etc.)

Reasons companies don’t know if hiring will change

▪ Too many uncertainties in the industry

▪ Unable to account for seasonal variances

▪ Internal restructuring

Compared to data from our 2015 survey, which stated that 69% of organizations expected hiring to increase, the projected hiring forecast has dropped 9%. Based on the feedback, we believe that lower revenues than expected and the uncertainties in the current political climate have caused some organizations to take a more conservative approach (as compared to 2015) when it comes to hiring. However, on the whole, the number of companies that “expect hiring to increase” is still 146% higher than companies who expect a decrease in hiring. From new business growth replacing retirees with millennials, the hiring forecast for 2017-2018 looks solid. We expect this trend to carry into 2018 and beyond.

The construction business is booming in our markets. There aren’t enough qualified people to fill the positions.

We may be hiring more this year to replace the large number of retirees.

Perform background checks

Do not perform background checks


89% of Companies Conduct Employment Background ChecksFrom top news stories to changing jobs, employment background screening is a common theme.

While we required our responders to answer “yes” on performing employment background checks to move forward into the rest of the survey, we discovered that 11% of the companies we surveyed do not perform employment background checks

11+89+A11%

Take an in-depth look at your company and determine the value you’d receive from implementing an employment background screening program. From identifying the best candidates to maintaining compliance, it’s good to get a plan in place to understand the reasons screening matters to your organization.

89%


45% Conduct Employment Background Checks to Protect Clients/CustomersWhen it comes to screening your candidates, there are a variety of reasons employers want to conduct an employment background check. From employment verifications to drug screening to professional license confirmation, employers require different checks for different reasons.

What is the primary reason you believe employment background checks are important to your organization? (Select one)

Top 2 reasonsemployers conduct employment background checks are:

#1

#2

To protect clients and customers

To enhance workplace safety

To protect clients/customers

To enhance workplace safety

To identify the best candidates

It’s mandated by law

It’s required by our corporate office

To protect my employees

To prevent theft45+15+14+9+8+7+2+A2%

45%

15%

14%

9%

8%7%

Remember to share with your candidates how important it is for your organization to protect not only your customers, but also your employees. This increase in transparency should help to show your employees you value their safety and continue to help build your employer brand and recruiting efforts.


For nearly half of all respondents, the primary reason they believe employment background checks are important to their organizations is to protect their clients/customers. Interestingly, only a handful of organizations are conducting employment background checks to enhance workplace safety (15%) and to protect their employees primarily (7%).

Yet, 78% of Americans expect to feel safe at their workplace, and 81% believe that feeling safe is a right – not merely a privilege, showing a discrepancy between how employers are using background checks and how Americans feel about background checks, according to our “Employment Background Check: Survey of American Citizens” report.1

78% 81%

of Americans expect to feel safe in their workplace

believe that feeling safe is a right not a privilege

15% 7%

conduct employment background checks to enhance workplace safety

conduct employment background checks to protect their employees

http://info.sterlingtalentsolutions.com/l/34062/2016-06-17/6ms9m7?_ga=1.38059754.837311659.1493391364


Do Companies Value Background Checks?According to our survey, approximately eight out of ten respondents said that background checks uncover issues/information that wouldn’t have been found otherwise.

Do background checks ever uncover issues/information which you wouldn’t have found?

Overall, employers are finding employment background checks worth their time. As the demand for more information about candidates continues to rise, employers are finding strong value in the content of the results they receive.

80+12+8+A80%

8%

11%

Eight out of ten respondents said background checks uncover issues/information that wouldn’t have been found otherwise

Answered “Yes”

Answered “No”

Answered “I don’t know”


93% of Organizations Use a Criminal Record Search to Evaluate Prospective EmployeesWhich employment screening/hiring tools do you use to evaluate prospective employees?

93%

64%

55%

50%

46%

44%

35%

28%

23%

Criminal Record Search

Verification of Employment

Form I-9/E-Verify

Verification of Education

Motor Vehicle Records

Substance Abuse Screening

Professional License Verification

Credit History Reports

Social Media/Web Search

https://www.shrm.org/resourcesandtools/hr-topics/talent-acquisition/pages/immigration-fines-going-up.aspx


Top 3 checks

#1

#2

#3

criminal record searches

employment verification

form I-9/E-Verify

Motor vehicle records (46% compared to 47% in 2015) and credit/financial history reports (28% compared to 25% in 2015) stayed fairly consistent with a small movement. We also noticed a decrease in substance abuse testing with only 44% of employers opting to screen (compared to 51% in 2015), which may be influenced by the constantly changing laws around the legalization of marijuana.

Motor vehicle records

1%

Credit/ financial history

3%

Substance abuse testing

7%

Work as a team to determine which searches are relevant for your organization. Ask yourself the following questions:

▪ Are there any legal requirements you need to incorporate to remain compliant with federal and/or state regulations?

▪ Do you perform the same checks for everyone in your organization or does it vary based on the position or level of the candidate?

▪ How much risk are you willing to assume for not conducting a certain type of check?


Top Priorities For CompaniesRunning a company is no easy task, and requires top candidates in the right positions.

What are the main areas in which you would like to improve your background screening program?

Reducing the time-to-hire came in as the top priority (increased 16% compared to 2015). Driven by a tightening job market, employers want to get candidates onboard as quickly as possible so that they don’t lose them to another company. This is especially true in retail, hospitality, manufacturing and other high-turnover industries.

45% Reduce time-to-hire

41% Improve screening process efficiency

36% Improve quality information

28% Managing screening costs

26% Candidate experience

26% Meeting regulatory requirements

19% None

4% Other (please specify)


Companies are also more concerned with managing their screening costs in 2017 (responses for this concern are up 14% from 2015). Many departments have a fixed budget that is constantly being stretched by increasing hiring numbers.

The highest jump was around improving the quality of information, which concerned 36% of respondents, compared to just 11% in 2015. Companies expect the most accurate, up-to-date and thorough information before making their hiring decisions to protect their clients, fellow employees and brand reputation.

In 2018 and beyond, we expect both the candidate experience and the quality of information to continue to be an increasing priority.

For candidates who selected “other” as their option, top priorities included:

▪ Stronger technological integrations into their Applicant Tracking System

▪ More data when records are found

▪ Reducing the redundancy of data entry on background checks

For a faster background check, we recommend the following tips:

Select the right provider – Focus on a finding a provider able to meet your specific needs

Opt for Online – Utilize your provider’s online candidate collection process as often as possible

Make a list, check it twice –Take a few moments to ensure that you or the candidates have included the necessary information, such as social security number, date of birth and full legal name to avoid any additional delays.

Key Findings

45%reducing time-to-hire

41%improve screening process efficiency

36%improve quality of information

28%managing screening costs


Top Challenges For 2017The biggest challenge to our respondents (38%) is ensuring they have all the information needed to make an informed hiring decision.

What is the most important background screening challenge your company will face in 2017?

We asked our respondents to elaborate on their answers regarding their biggest challenges. Here’s a sample of the some of their responses:

▪ Adverse action regulations

▪ Applicants are being offered jobs on the spot with competitors

▪ Sometimes the information at hand may not fully represent the candidate—making it more difficult to find and hire the right employee for the job and organization

We predict that information, compliance and turnaround time will continue to be crucial to companies in the future.

Ensuring that we are getting all of the information we need to make an informed hiring decision

Complying with the ever-changing screening laws

Improving time-to-hire

Reducing our annual spend on background screening

Modifying our screening criteria to better reflect the job responsibilities of our employees

Proving to management that our background screening program returns value to the organization

Improving the candidate experience

38%

25%

18%

6%

5%

4%

4%


48% of Companies Ask on the Application if Candidates Have Been Convicted of a Crime Nearly half of respondents continue to ask candidates whether they have been convicted of a crime on the job application. The next highest answer (28% of respondents) do not ask candidates about prior criminal history. We asked respondents to provide more details and discovered:

▪ We only ask in states where the question is allowed prior to an employment offer.

▪ We leave a voluntary explanation space on the application.

▪ We ask if they have been convicted of or have pleaded guilty to a specific list of offenses that could disqualify them from working with us. This list is determined by the entities that issue our licenses to operate.

▪ We have to be very careful what we ask due to ban-the-box laws.

Do you ask candidates if they have been convicted of a crime?

80%

48+28+10+7+7+A48%

Yes, on the application

No, we do not ask candidates about prior criminal history

Yes, after an offer is made

Yes, during the interview

Other. Please explain28%

10%

7%7%

Many companies have decided to delay the criminal history question to as late in the hiring process as possible. Employers can expect to see more jurisdictions adopt ban-the-box in 2017, 2018 and beyond.


48% of companies reported that their job application included questions about a candidate’s prior criminal history, a substantial decrease compared to 76% in 2015. This is showing a trend that more and more companies are adopting policies to comply with ban-the-box legislation (either because it is mandated by law or companies are being proactive as it spreads throughout the United States). Interestingly, 28% of organizations do not ask candidates about prior criminal history.

Ban-the-box laws refer to the box on an employment application asking whether or not the candidate has been convicted of a crime. It’s a controversial topic, but many states and municipalities are continuing to enact these laws to provide equal opportunity and fairness to candidates.

Here’s how respondents felt about ban-the-box laws:

Delay the inevitable information an employer will learn anyway

Fair to candidates

Unreasonable to employers

Confusing for employers based on differing requirements

Reasonable for employers

Not sure

Unfair to candidates

36%

29%

24% 22%

22%

17%

5%

Before asking a candidate if they have been convicted of a crime, make sure you’re aware of your city, county and state ban-the-box laws. Among other things, these laws determine if companies are allowed to ask questions related to a candidate’s criminal history prior to a conditional offer. Consult with your legal counsel for ban-the-box updates as new cities and states are adding new laws that are always changing.


Criminal Convictions & DisqualificationsWithout question, you will have a candidate with a criminal conviction at some point. We asked respondents to estimate the percentage of candidates they disqualify from employment as a result of those convictions.

Obviously, employers aren’t disqualifying large numbers of job candidates simply because of criminal convictions. Employers continue to consider other factors such as the severity of the crimes, whether the crimes are related to the jobs being sought, the amount of time since the conviction and whether the candidate is a repeat offender. In fact, the EEOC recommends that employers use all of these criteria when making hiring decisions.

59+16+7+4+14+A59%

16%

7%

0–5%

6–10%

1–15%

16–20%

>20%

4%

14%

When you’re determining whether or not to hire a candidate based on a criminal conviction, make sure to have a policy and process in place to remain consistent and fairly evaluate all candidates. Look at the specific requirements of the role and determine whether or not the conviction is relevant to the job at hand. As always, make sure you’re following all laws to avoid discrimination.

Make sure to have a process in place to remain consistent and fair to all candidates.


How Do Organizations Respond When Candidates Don’t Divulge Past Convictions?In an effort to better understand how companies respond when a candidate doesn’t divulge a past conviction, we asked how a company would respond if it was later revealed on a background check:

57+33+10+A57%33%

Give the candidate an opportunity to explain the conviction

Reject the candidate due to falsifying their application

Ignore the omission and evaluate the conviction to determine employment eligibility

10%

33% 67%

of organizations would directly reject the candidate

would proceed with the candidate evaluation path in some way


Individualized Assessments on Candidates with ConvictionsWhen a conviction comes up, not all companies respond the same way.

In fact, we found that a majority of companies (57%) will perform an individualized assessment as recommended in the 2012 Equal Employment Opportunity Commission (EEOC) guidance on the use of criminal background checks to get more details regarding the circumstances of the record, while 18% of companies do not perform an individualized assessment.

25% of companies do not know whether or not they perform an individualized assessment.

Key Findings

57%will perform an individualized assessment

18% of companies do not perform individualized assessments

25% of companies do not know whether or not they perform an individualized assessment

In order to comply with EEOC guidance, employers are encouraged to develop an individualized assessment process which evaluates the important factors surrounding a conviction including, but not limited to the type/severity of a crime, how long ago it occurred, the relationship of the crime to the job held or sought, whether the person is a repeat offender, and other factors, and allow a candidate to provide you with mitigating factors for why that record should not be considered. Consult with your legal counsel concerning compliance with EEOC guidance on the use of criminal history, and the specific factors to consider in the individualized assessment process.


Pre-Adverse & Adverse ActionWhen you make the decision not to hire a candidate based on what’s found in their employment background report, you are required by law to initiate the two-step adverse action process.

Our research found that only 50% of companies send out both pre-adverse and adverse action notices to their candidates when they decide not to hire based on the outcome of a background check. And while this is up 21% from 2015, employers that do not follow this two-step process are exposing themselves to the risk of lengthy and costly legal action.

Pre-adverse and adverse action notification is complex. We have resources to help you get it right, considering factors such as giving the candidate adequate time to respond and dispute, and also calculating how much time to wait between notices. You can access our Adverse Action Checklist to guide you by clicking here. We recommend consulting with your legal counsel to construct the adverse action program that works best for your organization.

50+29+16+5+A50%

29%

Send both pre-adverse and adverse action notices

Do not send either notice

Only send an adverse action notice

Only send a pre-adverse action notice

16%

5%

https://assets.sterlingtalentsolutions.com/Sterling%20Backcheck/PDFs/Your-Adverse-Action-Checklist.pdf


Resume DiscrepanciesIt can be easy for a candidate to overlook a mistake on their resume. From dates of employment to their job title, there are times when a candidate can easily forget to update information and/or intentionally fabricate experience. We surveyed employers to ask what types of resume discrepancies would cause them not to hire a candidate.

Top three discrepancies causing an employer to not hire a candidate

The two reasons least likely to impact the hiring decision would be a discrepancy about a college major (18%) or salary (22%). It’s telling to note the top two reasons deal with ensuring candidates have the right credentials to perform their job.

Professional license

Degree/diploma earned

Reason for leaving

Dates of employment

Job title

Salary

College major

Top 3 discrepancies

61%Professional license

60% Degree/diploma earned

58%reason for leaving

61%

58% 47%

30%

22%

18%

60%

Remind candidates to closely review their resume for common discrepancies before submitting to your HR department.


Background Screening & the Candidate ExperienceAs the competition for high-performing talent continues to increase, employers can no longer afford to have anything less than a consistent, simple and personalized experience for their candidates. Your platform should guide you through all of your background screening and onboarding needs. Companies are looking to technology to elevate and differentiate the candidate experience.

Which tech would improve the candidate

experience?

Do you offer this tech now?

Ability for candidate to complete a background check via mobile device

51% 30%

Compliance forms customized to candidate’s state of residence

34% 37%

Integration of background screening with our applicant tracking system

42% 39%

Digital consent forms with eSignatures 49% 44%

Real-time status updates 53% 40%

Select a background screening platform that meets all of your needs to empower your HR Team and provide a seamless, consistent candidate experience. You can download our latest eBook highlighting everything you need to know before buying a new platform by clicking here.

http://info.sterlingtalentsolutions.com/Platform-Website


Candidate Experience: Are Candidates Informed?The application, interview and background screening process vary at every company. Some organizations go out of their way to make it simple and transparent for the candidate, while other companies have complex processes in place, which can make the entire process unclear and challenging for the candidate.

When it comes to educating candidates about the background screening process, we found that:

A majority of companies (69%) are explaining the process to their candidates which will help to speed up the process and improve communication with candidates. Fewer than half (45%) update their candidates when a delay occurs, perhaps reinforcing technology gaps that exist. With more than 66% of candidates sharing negative experiences with their inner circles (according to The 2016 North American Talent Board North American Candidate Experience Research Report), you want to make sure you’re doing things right.3

Key Findings

69%are explaining the background screening process to candidates

45% less than half update candidates when a delay occurs

66%and more of candidates share negative experiences with their inner circles

Explain their background screening program and what information they are looking for

Contact their candidates to clarify any inconsistencies

Update their candidates when there is a delay

Share what information might be of concern to us and why

69%

45%

43%

63%

http://www.thetalentboard.org/wp-content/uploads/2017/03/2016_Talent_Board_NAM_CandE_Research_Report_FINAL_170202.pdf


We asked for more details and here’s a sample of some of the comments we received:

▪ We try to do our best to go above and beyond to protect ourselves

▪ We do not follow a stringent background screening process in our company

▪ The recruiters pretty much tell the candidate they will have a background screening run on them. They assume everything else is communicated and understand applicants sign releases for the screenings

▪ We explain that all candidates must go through a background check and have them sign an authorization form with an explanation

▪ We would like to give candidates the opportunity to explain the discrepancy and validate or invalidate our concerns

Remember the candidate experience continues right up until the first day. Make sure you’re creating a warm and welcoming environment with a computer and email ready to go. You can get all of the tips you need by downloading “Your Complete Guide to Onboarding From Decision to Day One,” by clicking here.

http://info.sterlingbackcheck.com/l/34062/2016-06-16/6mlt1t


Social Media Screening66% of respondents noted that they do not (formally or informally) conduct social media/web searches of candidates as a condition of employment. Of those that do, we asked how the searches were conducted:

More social media screening is being conducted in-house.

In 2015, 63% of companies identified social media screening was conducted in-house (while 8% used a combination of a third-party vendor and in-house). In 2017, 95% of social media/web searches are being conducted internally.

57+21+17+5+A57%

21%

17% Conducted by the HR team

Informally conducted by someone other than the above

Conducted by the hiring manager

Conducted by a third-party vendor

5%

Key Findings

95% of social media/web searches are being conducted in-house

Compared to 2015 when...

63%of companies conduct social media screening in-house in 2015

8% used a combination of a third-party vendor and in-house in 2015

When it comes to social media screening, compliance is critical. Often, candidates will put information online containing information that cannot be used to make a hiring decision, such as age, gender or religion. Work with your legal counsel to outline a social media screening policy to help establish a process in your background screening policy.


Global ScreeningWith 196 countries, plus countless jurisdictions to monitor, global screening is critical yet complex for employers. From where candidates have lived to where they studied, employers want to know where to search, the type of information they need to search for and the required compliance laws in each country.

We asked our respondents if they currently conduct any type of global background screening and found:

Although 50% of companies do not have a global screening program, we encourage you to review your program in more depth to keep pace with the ever-changing nature of global hiring.

Global screening is a mystery to many employers. We encourage you to think about all of the suppliers, vendors and foreign-born workers you use who reside outside of the United States. Data protection and privacy laws are different in each country. Conducting a thorough check will provide peace of mind to your organization and give you more insight into the backgrounds of the people and organizations with whom your company chooses to engage.

Yes, on U.S.-based employees who reside or have lived overseas

Yes, on individuals who work in our overseas offices

No, but plan to add global searches to my background screening program

No, I have no plans to add global screening to my background screening program

I don’t know

50%

16%

10% 8%

16% 22%


Recreational MarijuanaWith the decriminalization of marijuana in over 28 states, this has become a hot-button issue for employers and employees alike. The laws are constantly changing and it’s causing confusion for companies with offices in various locations across the United States.

We asked our respondents what they would do if recreational marijuana use were to become legal at the federal level in the United States. The top answer revealed that 34% of organizations would continue their drug testing program. 16% of organizations would remove marijuana from the testing panel and 5% would ignore positive drug tests for marijuana. This data continues to show that companies are rethinking their drug testing programs as laws begin to change and recreational marijuana becomes legal.

Discontinue our drug testing program

Remove marijuana from the testing panel

Ignore positive drug tests for marijuana

Continue our drug testing program

We don’t have a drug testing program

Not sure

20%

16% 23%

34%

1%

5%

Key Findings

34%of organizations would continue their drug testing program

16% of organizations would remove marijuana from the testing panel

5% would ignore positive drug tests for marijuana

We recommend that you have a comprehensive drug testing policy in place for your organization detailing what is acceptable and what is unacceptable. This makes it clear for all employees where your organization stands and the proper protocol for all possible situations.


Contingent WorkforceThe contingent workforce is on the rise. One study found that “nearly 54 million Americans participated in some form of independent work in 2015.”4

Our survey found that when organizations use the services of contingent workers nearly one-third (30%) require them to utilize the services of their background screening provider, while 18% don’t require them to conduct background checks at all.

We also found that 22% require them to conduct a background check but doesn’t specify screening criteria, while 42% require them to conduct a background check based on specific screening criteria.

The data shows that perhaps, because they are contingent, companies are not viewing them in the same light as they would a full-time employee – as they are changing the types of checks they run and if they will even run a check in the first place.

As the contingent workforce continues to grow, companies should identify the access contracted workers have to data, offices, employees, customers, etc. and develop a screening program that mitigates the potential risks.

https://smallbiztrends.com/2016/07/20-surprising-stats-freelance-economy.html


Executive Level HiringWhen the stakes are high, some companies turn to an executive investigation before hiring their next employee. From a new CEO or board member to a potential acquisition, you don’t want any surprises uncovered by shareholders, the media or the Securities and Exchange Commission.

Our survey revealed 57% of respondents conduct the same background check they would for other employees, while 41% conduct a deeper dive, executive level background check. Surprisingly, 2% do not conduct a background check for executive level officers at all.

Key Findings

57% conduct the same background check they would for other employees

41% conduct a deeper dive, executive level background check

2% do not conduct a background check for executive level officers at allWhen it comes to hiring executives, think of the ways in which

they might impact your organization differently from your every day hires. Will they be speaking in the public often? Will they be handling billions in assets? This might change how in-depth you’d prefer to go on their background check. Consider using a specialized executive investigations firm to get a clear picture of executive level candidates before you hire.

57+41+2+A57%41%

Conducts the same background check it would for other employees

Conducts a deeper dive, executive level background check

Doesn’t conduct a background check

2%


Trends in 2018 and Beyond

Global screening programs will evolve

Although 50% of the companies we screened do not have a global screening program currently set up, technology is making it easier than ever for people to come together from all over the world. As technology continues to break down these barriers, we expect global screening programs to continue to rise.

Companies will seek more information on candidates

The importance of data continues to transcend into the hiring process. Companies want to ensure that they are getting all of the information they need to make an informed hiring decision.

Contingent workforce numbers will increase

With more than 54 million Americans partaking in some form of contingent work in 20154, the contingent workforce is impacting employers everywhere. Companies will continue to view these workers as part of the extended team.

As we’ve designed this survey, we strategically asked respondents about driving industry trends as we head into 2018 and beyond.

Here are our top predictions as we go into 2018:

Candidate experience will be a top priority

With 26% of companies prioritizing a candidate’s experience, we believe companies will begin to seek out a strong technology stack that highlights a user-friendly, professional and positive candidate experience. The candidate experience will make or break it for the applicant.

Companies will invest in onboarding programs

Companies are now able to connect an applicant’s onboarding experience to retention, and subsequently, revenue. Positive onboarding experience typically leads to employee retention. We expect this trend to become more important than ever in 2018.

Social media screening will continue to rise

We’ve noticed a trend where social media searches are continuing to rise. Companies are continuing to search applicant’s profiles to uncover everything from professional recommendations to inappropriate photographs or language. We also predict more companies will begin to use a third-party vendor to help enable compliance.


Share the Data

60% 45% 89% 93%

of companies expect hiring to increase in 2017

of organizations would like to reduce their time-to-hire

of organizations conduct background checks

of companies use a criminal record search to evaluate prospective employers

45% 80% 64% 57%

of companies conduct employment background checks to protect clients/customers

of background checks uncover information companies wouldn’t have found otherwise

of companies conduct employment background checks to verify a candidate’s employment

57% of organizations conduct the same background checks on all employees including executives

Did any of these results surprise you? Please feel free to share them with your professional or social networks to help spread the word.

http://twitter.com/intent/tweet?text=60%25%20of%20companies%20expect%20hiring%20to%20increase%20in%202017.%20@sterlingts_%20https://ter.li/br2017

http://twitter.com/intent/tweet?text=45%25%20of%20organizations%20would%20like%20to%20reduce%20their%20time-to-hire.%20@sterlingts_%20https://ter.li/br2017

http://twitter.com/intent/tweet?text=89%25%20of%20organizations%20conduct%20background%20checks.%20@sterlingts_%20https://ter.li/br2017

http://twitter.com/intent/tweet?text=93%25%20of%20companies%20use%20a%20criminal%20record%20search%20to%20evaluate%20prospective%20employers.%20@sterlingts_%20https://ter.li/br2017

http://twitter.com/intent/tweet?text=45%25%20of%20companies%20conduct%20employment%20background%20checks%20to%20protect%20clients/customers.%20@sterlingts_%20https://ter.li/br2017

http://twitter.com/intent/tweet?text=64%25%20of%20companies%20conduct%20employment%20background%20checks%20to%20verify%20a%20candidate�s%20employment.%20@sterlingts_%20https://ter.li/br2017

http://twitter.com/intent/tweet?text=57%25%20of%20organizations%20conduct%20the%20same%20background%20checks%20on%20all%20employees%20including%20executives.%20@sterlingts_%20https://ter.li/br2017

http://twitter.com/intent/tweet?text=80%25%20of%20background%20checks%20uncover%20information%20companies%20wouldn't%20have%20found%20otherwise.%20@sterlingts_%20https://ter.li/br2017


Share the Data

Criminal record searches are the most common employment screening tool

36% of companies believe ban-the-box laws delay inevitable information an employer will learn anyway

48% of respondents ask candidates if they have been convicted of a felony on the application

Approximately 34% of organizations conduct social media/web searches on candidates

18% of companies don’t require background checks for their contingent workforce

A professional license discrepancy is the top reason why companies wouldn’t hire a candidate

The top improvement employers would like to make to their screening program is reducing time to hire

Information needed to make an informed hiring decision is the top screening challenge companies face

Did any of these results surprise you? Please feel free to share them with your professional or social networks to help spread the word.

http://twitter.com/intent/tweet?text=Criminal%20record%20searches%20are%20the%20most%20common%20employment%20screening%20tool.%20@sterlingts_%20https://ter.li/br2017

http://twitter.com/intent/tweet?text=36%25%20of%20companies%20believe%20ban-the-box%20laws%20delay%20inevitable%20information%20an%20employer%20will%20learn%20anyway.%20@sterlingts_ https://ter.li/br2017

http://twitter.com/intent/tweet?text=48%25%20of%20respondents%20ask%20candidates%20if%20they%20have%20been%20convicted%20of%20a%20felony%20on%20the%20application.%20@sterlingts_%20https://ter.li/br2017

http://twitter.com/intent/tweet?text=Approximately%2034%25%20of%20organizations%20conduct%20social%20media/web%20searches%20on%20candidates.%20@sterlingts_%20https://ter.li/br2017

http://twitter.com/intent/tweet?text=18%25%20of%20companies%20don't%20require%20background%20checks%20for%20their%20contingent%20workforce.%20@sterlingts_%20https://ter.li/br2017

http://twitter.com/intent/tweet?text=The%20top%20improvement%20employers%20would%20like%20to%20make%20to%20their%20screening%20program%20is%20reducing%20time%20to%20hire.%20@sterlingts_%20https://ter.li/br2017

http://twitter.com/intent/tweet?text=Information%20needed%20to%20make%20an%20informed%20hiring%20decision%20is%20the%20top%20screening%20challenge%20companies%20face.%20@sterlingts_%20https://ter.li/br2017

http://twitter.com/intent/tweet?text=A%20professional%20license%20discrepancy%20is%20the%20top%20reason%20why%20companies%20wouldn't%20hire%20a%20candidate.%20@sterlingts_%20https://ter.li/br2017

Thank you for taking the time to read our 2017-2018 Background Screening Trends & Best Practices Report.We hope you found this information to be insightful and valuable as you begin or refine your current background screening program.

If you’d like more information, we encourage you to contact us here or give us a call at 800-899-2272. We look forward to hearing from you.

Sincerely,

Your Friends at Sterling Talent Solutions

Sources

1 http://info.sterlingtalentsolutions.com/l/34062/2016-06-17/6ms9m7?_ga=1.38059754.837311659.1493391364

2 https://www.shrm.org/resourcesandtools/hr-topics/talent-acquisition/pages/immigration-fines-going-up.aspx

3 http://www.thetalentboard.org/wp-content/uploads/2017/03/2016_Talent_Board_NAM_CandE_Research_Report_FINAL_170202.pdf

4 https://smallbiztrends.com/2016/07/20-surprising-stats-freelance-economy.html

https://www.sterlingtalentsolutions.com/about/contact-us/

© 2017 Sterling Talent Solutions1103-US

About Us Sterling Talent Solutions provides hiring peace of mind by delivering a simpler, smarter background screening and onboarding experience for employers worldwide. Our comprehensive suite of cloud-based background screening and onboarding solutions deliver accurate, reliable results and tools to maintain compliance throughout the hiring cycle.

With 20 offices in nine countries and growing, our team of more than 4,000 employees proudly serves over 25,000 customers around the world, including 25% of the Fortune 100. Sterling is accredited by the National Association of Professional Background Screeners (NAPBS), a distinction earned by fewer than 10% of all background screening companies. Visit www.sterlingtalentsolutions.com.

Sterling Talent Solutions is a service mark of Sterling Infosystems.

The information contained in this document should not be relied or acted upon without first seeking the advice of a competent legal adviser. Sterling Talent Solutions shall not be liable for any damages resulting from any use of the information contained in this document.

Want More? In addition to this report, Sterling regularly publishes cutting-edge research and insight on the latest trends in human resources, talent management and hire processing.

For more information, contact us at:

sterlingtalentsolutions.com 800.899.2272

http://www.sterlingtalentsolutions.ca

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background screening trends & best practices report 2017-2018 · 2017 sterling talent solutions...

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