3 Reasons Why Background Screening and Employment Verifications Are Strategic Investments for Employers
Because of her vast, unique experience in the talent acquisition market, we asked Madeline Laurano, co-founder of Aptitude Research Partners, to provide her expert insight on why background screening and employment verifications are among the most strategic investments employers can make.
Opinions of contributors are their own.
Authors: Madeline Laurano and Karen Redetzki
Invest in Strategic Solutions that Help Deliver Quality Hires, Efficiently
The talent acquisition technology market moves quickly, and it’s hard to keep up. The only thing that seems certain is that there are many unknowns. The past year has been characterized by new trends, new providers, and new investments. While this is an exciting time to be in talent acquisition, it is hard to make sense of this change and at the same time, look to the future. Companies tend to focus so much on what is innovative and “new”, and they lose sight of what is valuable and effective.
Recruiters have a major problem – today’s companies need simpler solutions in talent acquisition. They need an easier way to attract, recruit, and hire talent. If a technology provider is not solving that problem, they do not have a viable solution. Background screening and employment verifications help companies solve this challenge by providing solutions that can improve quality hires as well as efficiency. According to a 2017 survey conducted by Research Now, improving quality of hire and delivering a more efficient hiring process were rated as top priorities among talent acquisition leaders. And according to Aptitude Research Partners’ 2018 Hire, Engage, Retain study, one in two companies are increasing their investment in screening this year to help address this problem.
When Considering Background Screening
Employers have choices in which types of background screening to conduct on job candidates and new hires, with the goals of reducing compliance risk and improving quality of hire, efficiently. According to Aptitude Research Partners’ 2016 Hire, Engage, and Retain study, employers chose to conduct criminal background checks and employment verifications as the most frequent screening activities:
When Verifying Employment
Verifying candidates’ past and current employment helps employers answer whether they’re qualified for a job or not, as it provides the companies worked at, providing insight into whether they’re knowledgeable about the industry; tenure, indicating the depth of experience; and title, to provide what role and level they’re qualified for.
Important tips about verifying employment:
- Verify employment as early as when the candidate’s application is received, to help ensure employers don’t waste valuable resources on assessing and interviewing unqualified candidates.
- When verifying, employers should not count on self-reported employment information as the single source of truth. In other words, fact-check what you may find when reviewing a candidate’s online social profile and job application with a reliable, accurate source. It’s important to compare self-reported employment data with verified employment data to ensure that there is no title or tenure inflation listed or other inaccuracies that could result in a poor quality hire.
Below are three reasons why background screening and employment verifications are among the most strategic investments that employer can make.
The Business Impact
Background screening and employment verifications provide companies with more science and less bias. It helps them make better and more objective decisions around candidates. It also gives business leaders the confidence that the individuals joining the company are more likely to stay and contribute to organizational objectives. According to Aptitude Research Partners’ 2016 Hire, Engage, and Retain study, companies that do not screen applicants are three times as likely to lose employees for jobs of equal pay.
Quality of Hire
Companies in Aptitude’s 2018 research identified background screening as having the number one impact on quality of hire. Similarly, 64% of employers who responded to Research Now’s 2017 survey believe the benefits of verifying employment history could improve quality of hire. Bottom line, background screening and employment verifications can help organizations improve the quality of hire by providing another layer of objectivity needed to make better decisions and retain talent. When an organization can eliminate applicants that do not fit the position or role in the process, they can focus on the individuals that are more likely to contribute to organizational performance and growth. Organizations that are taking a more strategic approach to background screening – deeply probing into relevant information on candidates and relying on more than single errors to reject candidates – identify quality hires. Companies that invest in screening are three times more likely to track the quality of hire.
By using a trusted screening provider, companies can improve the candidate experience by giving candidates a realistic timeframe on when and how screening will occur. Candidates’ confidence improves when employers are using providers with accurate and reliable data. In turn, this verified data gives employers the confidence in the hiring decisions made.
Over 93% of Top Performing Companies (those with 80% of employees achieving performance goals and 90% retention of high-potential hires) invest in purposeful background screening programs or plan to invest in screening (Aptitude Research Partners’ Hire, Engage, Retain study). These companies are thinking more strategically about their investment and the role it plays in improving the quality of hire, the candidate experience, and business outcomes. Are you one of them?
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