September 5th, 2018 | Sterling

Benefits of Outsourcing Background Checks to a Third-Party Provider

Background screening can be complicated. There is no way around that. But, these checks are becoming increasingly important for UK organisations. Based on the findings in Sterling’s Background Checks 2018: UK Trends and Best Practices Report, 78% of companies conduct some sort of pre-employment background checks. Of those currently performing employment screening, 78% indicated they would perform background screening in the next year, while 80% said they plan to carry out checks in the next two to three years.

There are many challenges that a business can face when it comes to background screening. The Trends and Best Practices Report found that the biggest background check challenges facing companies comes down to time, cost, accuracy and staffing. While a robust screening process can take time, outsourcing part or all of it could speed up time-to-hire, enabling the HR department to focus on the core functions of the department and reduce the burden on resources. The cost will no doubt be a factor regardless of whether screening is done in-house, via a third-party or a combination of the two.

Outsourcing Background Checks

As the battle for high-performing talent increases, employers can no longer afford to have anything less than a consistent, personalized and seamless experience for their candidates. That is why more businesses are partnering with background check providers to assist in their employment screening needs. Our survey found that 52% anticipate outsourcing to a third-party in the next year. Businesses are more likely to use in-house resources to screen for Right to Work, reference interviews and education credentials, while they are inclined to use a paid third-party for criminal records, credit/financial history and public safety verification, which is consistent with our 2016 data. Notably, 57% of companies screened in-house for employment verification, compared to 72% in 2016. This would suggest that more businesses are outsourcing employment verifications because it can be less time consuming and deliver more consistent results.

It’s important to identify which checks are relevant to your organisation and if you would be better off outsourcing to a third-party. Outsourcing can save valuable time and money, enhance efficiency and help to ensure you stay compliant across a global workforce. Whether you choose to screen in-house or use a third-party, a documented screening policy is recommended.

Benefits of Outsourcing Background Checks

There are many benefits of working with a third-party screening provider including enhanced efficiency, automated processes, objective reporting and working with a team who has the experience of supporting a variety of clients and organsational sizes. Third-party screening providers, such as Sterling, will help guide companies through the ever-changing compliance landscape and provide ways to create a positive and seamless candidate experience. The benefits of outsourcing will continue to overcome most reservations and help to correct the background screening challenges that companies face.

Considerations for Choosing a Third-Party Screening Partner

When choosing to work with a third-party provider to create and implement a background screening programme, there are many things to consider:

• Comprehensive Toolkit: A background screening platform should be able to adapt to the needs of a company. For example, as a business expands there usually is a need for more employees. A larger workforce may require more background screening solutions such as credit enquiries, education and credential verifications, social media checks and more.
• Global Screening: A background screening provider must be able to provide international background checks as necessary and have expertise in local employment, data and privacy laws in key markets such as the EU, US, China, India and
• History of Trust: Background screening has become a primary risk mitigation tool for companies big and small. Having a partner that you trust can help an organisation reduce the chances of a bad hire.
• Robust Compliance Team: As data and privacy laws change in the UK, a background screening provider should go beyond compliance basics and offer proactive solutions to improve their client’s background screening program as their business evolves.

From the simplicity of the platform to the experience a company gives its candidates, it is important to think through all the features and functionality that is needed in a background screening platform before a final decision is made. We created a guide for businesses giving tips for “How to Choose a Background Screening Provider” to keep an organisation on track when deciding to outsource their background screening program.

Find out more survey results and information on background screening trends by downloading a copy of “Background Checks 2018: UK Trends & Best Practices Report”.

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.