Background Screening Trends in U.S.
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Key Takeaways
- More employers than ever are using background screening, and they’re using more complex and comprehensive screening. At the same time, screening is under more scrutiny from governments and regulators.
- Recent and emerging trends in U.S. background screening include:
- Restricted use of criminal records.
- Expanded social media screening.
- Continuous background checking.
- Use of and regulation of AI.
- The most successful CRAs will be those that understand industry trends and that find ways to differentiate themselves from their competition.
Background Screening Industry Trends
There are several background screening trends that have become important and will continue to grow.
Rethinking Criminal Records
At one time, most employers wouldn’t hire a person with a felony in the past. That’s changing, not only because of changed laws, but also because employers’ attitudes have changed. An arrest or conviction doesn’t necessarily mean that the candidate would create a risk as an employer. With so many employers who need to hire, those with a hard-and-fast policy may be missing out.
Furthermore, many states have restricted the ways in which an employer may consider a criminal record in a hiring decision. Many have “ban to box” laws, whereby employers may not ask about arrests or convictions on an initial application. Some states don’t allow a criminal background check until a conditional offer of employment has been extended. They may restrict whether the offer can be rescinded if a criminal record is discovered. Other states have actually expunged older criminal records.
Social Media Screening
These days, people often reveal more about themselves on social media than they do on applications and in interviews. Employers have taken note, and checking a candidate’s profiles and posts is becoming a common practice. Employers will often refuse to hire applicants who create posts of illegal activity (particularly drug use), racist or sexist commentary, threats of violence, stalking or sexually explicit material. Social media may also reveal that a candidate has lied about qualifications, has denigrated previous employers and coworkers, has revealed proprietary information or has poor communication skills.
Social media activity can also persuade an employer to hire if the posts are creative, professional, compelling and demonstrate good communication skills and a wide variety of interests. Social media screening is a delicate task, and the screener needs to be aware of privacy issues and bias issues. Employers are wise to leave this task to professional CRAs.
Continuous Background Checking
The potential risk to a company doesn’t end when a candidate is vetted and hired. Employees can engage in criminal activity or do other things that create a concern at any time during their tenure. Ongoing background monitoring mitigates this risk.
Social media activity is an obvious candidate for continuous checking. If an employee is revealing confidential information, bad-mouthing the company, making inappropriate posts or doing anything that might bring disrepute to the employer, the company can learn about it and take action.
Court access monitoring is another service CRAs are offering. Given a list of employees, an access monitoring solution watches available data streams for arrests and other criminal activity. The employer can be notified when an employee runs afoul of the law.
Most Common Background Screenings
Almost all employers screen for criminal background to the extent that the law permits. This may also include a check of sex offender registries. Another common reason for screening is to confirm that the candidate has told the truth on their resume or application. This might include checking previous employment, education, professional licenses and even validating the candidate’s identity.
A significant number of employers screen for illegal drug use. Some will request a credit check. Some might also look at motor vehicles and driving records.
What's On The Horizon for the Background Screening Industry?
The pace of change in the industry shows no signs of letting up. Here are a few emerging trends that employers and CRAs can look for.
More Background Screening Despite Greater Constraints
Bad hires are costly to employers, and companies are demanding more and better background screening to avoid them. Even though state and local laws are becoming increasingly complex and placing new restrictions on what employers and CRAs can do, good background screening is still the best way for employers to avoid making hires that they’ll come to regret. Unscrupulous employees can steal from the company, reveal trade secrets, disrupt the workforce and bring an employer into disrepute. More and more, employers will demand that CRAs have the expertise to provide thorough checks that comply with the law.
Increased AI Use and AI Regulation
Artificial intelligence is supplementing human decision-making in the screening process. AI algorithms can find prospects, rank prospects and make hiring recommendations. AI brings efficiency, but it also brings risk. Algorithms that are designed by humans can have human biases.
States and municipalities are already introducing regulations to ensure that AI is fair. In New York City, for example, algorithms must now be tested to determine whether they discriminate against minorities or other protected groups. Some jurisdictions require that candidates are informed and give their consent before AI may be used in screening. Expect laws to evolve as the impact of AI is better understood.
New CRA Business Models
When most CRAs offer similar screening services, they have difficulty differentiating from the competition, and employers tend to start looking only for the lowest price. Many CRAs are recognizing this and are considering changes in their business models.
For example, some CRAs are offering screening on a subscription basis rather than charging by the search. They might offer almost unlimited screenings for a monthly fee. Others are packaging screening services with other hiring processes such as onboarding and psychological screening. Essentially, they’re positioning themselves as consultants that do more than just background checks.
Still other CRAs are becoming more deliberate in choosing industries to target such as technology and health care. Some are specializing in a few industries while others are choosing to diversify. Many are following market trends to determine which industries have the best promise of growth.
Bottom Line
This is a time of increased opportunity in background screening but also a time that demands more of CRAs that expect to thrive. Those that take orders and conduct business as usual are at risk of being left behind. CRAs that keep abreast of social media, the use of AI and the continuing demands and complexities of background checking will have a competitive advantage.
Successful CRAs need a wholesale screening partner they can rely on. Eagle Eye Screening Solutions operates nationwide and understands the latest changes in local regulations as well as emerging trends in the screening business. CRAs can trust us for
compliant, thorough and accurate wholesale background checks.
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