February 19th, 2016 | Sterling

Must-Know Background Screening Trends for UK Employers

One of the most significant ways to minimise the risk of making a bad hire is to conduct a background screening check on potential employees. However, our Background Check Trends & Best Practices Report reveals that almost 40% of UK companies are failing to perform checks, despite the fact that most organisations are planning to recruit more employees in the next year.

With hiring guru Bradford Smart estimating the cost of a ‘mis-hire’ to be between four and 15 times the annual salary, hiring firms simply can’t afford to ignore this crucial part of the recruiting process.

In our webinar earlier this year, I shared key results and insights on best practices, and explain where opportunities lie to improve the quality of your screening program. Here, we take a look at some of the highlights we covered.

Background screening – what, why and who?

When it comes to identifying what companies are screening for, 66% of firms are more likely to conduct pre-hire screening to verify a candidate’s employment history. This is followed by right to work (62%), and criminal record checks (58%). Only 30% conduct credit/financial checks, and just 7% did so to verify an applicant’s public safety records.

Whether it’s a candidate lying on a CV or concealing their immigration status, it’s vital to screen for all kinds of fraud, so that you know exactly who you may be employing, you don’t risk financial or reputational damage, and you stay on the right side of the law. It is an employer’s responsibility to check whether a potential employee has the right to work in the UK – if you don’t obtain this evidence, you could be liable to pay a penalty of up to £20,000.

Whilst only a small minority of organisations are currently checking public safety records, this is something that could increase in the near future, amid rising concerns over terrorism, security and workplace violence.

Next, let’s look at why companies perform employment background checks. Compliance takes the top spot, with 67% of firms citing this, followed by improving the quality of hires, company reputation and enhanced workplace safety and security.

In terms of who companies screen, the vast majority perform checks on executives, directors and managers. However, only half screen contract workers or hourly-wage employees and just over a quarter screen volunteers, yet these individuals may still interact with customers or vulnerable groups so it’s essential you conduct checks on all those you plan to employ.

The challenges of background screening…

Our survey reveals that time and cost are the two most significant challenges that organizations currently face when performing checks.

Employers may opt to use in-house resources to screen in the belief that it will save money, but in reality this may not be true and is arguably not the best long-term strategy. Thanks to the technology, processes and experience of third party screening experts, HR teams will not only notice a faster onboarding process for the candidate, they will be able to free up their resources for other pressing activity. In addition it could cost hiring firms a whole lot more if they make a bad hire by either not screening at all or by not carrying out the process properly. Outsourcing employee background checks will save you time, increase the accuracy and efficiency of screening, and ensure you stay compliant.

Some firms at risk of failing to keep up with compliance

Worryingly, the survey revealed that 15% of organizations fail to stay informed about changing compliance regulation, which can be a risky move, resulting in significant penalties. In the report, 27% of companies relied on their background screening provider to keep up-to-date with compliance, which is one of the best ways to stay current with constantly changing regulations.

Ensuring compliance is the responsibility of the employer and with the support of a reputable background screening provider hiring firms can benefit from their expertise when it comes to implementing a robust and compliant program. Plus, they can assist in navigating an increasingly complex legal landscape by providing helpful tools and resources.

Growth in global pre-hire screening is likely

With increasing globalisation, there will likely be a rise in global pre-hire background checks in the future, however fewer than half of firms are currently performing these checks. According to our research, 88% of companies employ workers with international experience, yet only 45% conduct global background checks on them.

This may be due to the significant challenges that global background screening presents to employers. It is an extremely complex area, with policies, laws and processes varying widely from country to country.

Using a third-party provider can help steer employers through this complex area – just over a third of organizations used an outside provider for global screening, while others used documentation and telephone calls to screen global applicants.

To learn more about the importance of employment background screening, please watch our on-demand webinar.

This publication is for informational purposes only and nothing contained in it should be construed as legal advice. We expressly disclaim any warranty or responsibility for damages arising out this information. We encourage you to consult with legal counsel regarding your specific needs. We do not undertake any duty to update previously posted materials.