Nearly two-thirds of UK companies may be operating with outdated background screening practices, as revealed by our recent poll of HR leaders conducted during our webinar on October 16, 2024.
In the session, titled “Hiring Wins for HR Leaders: How to Protect Your Business from Risk Without Scaring Off Top Talent,” Doug Beavis, Certn’s Sales & Commercial Director for EMEA, participated in an expert panel alongside Melissa Green, Global Head of Background Screening and Audit for Randstad Sourceright. The discussion was hosted and moderated by Edward Craig of People Management Insight, which serves as the research hub and community extension of the Chartered Institute of Personnel and Development (CIPD). With over 160,000 members, CIPD is the recognised professional body for HR and people management in the UK and globally, with offices in Asia Pacific, Ireland, and the Middle East and North Africa.
Comprehensive background screening is one way HR leaders can mitigate risks and maintain compliance. But are background checks accurate? Are they fair to the candidate? And are they speedy enough to not deter top candidates during the hiring process? These are some of the questions our expert panel answers.
Doug brings more than 20 years of extensive experience in background screening, having been employed by notable organisations such as Experian and the Nationwide Accreditation Bureau. He has been with Certn (formerly Credence Background Screening) for 14 years. Melissa, possessing over 25 years in the recruitment industry — including 15 years on the agency side — advocates for the integration of background screening as a seamless extension of the recruitment process. Over the past six months, she has worked closely with Certn to screen global candidates, emphasising the critical need to balance risk mitigation with an exceptional candidate experience, as it is essential to acknowledge that risk can never be entirely eliminated.
Click here to view the webinar on demand
Mitigating Risks with Background Screening
Background screening has become significantly more accessible over the years. Two decades ago, when Doug and Mel entered the industry, referencing was typically conducted in-house, and many companies were unaware of the option to outsource this function.
Today, digital processes have streamlined the background check process considerably. The need for physical consent forms sent via fax has diminished, and results for basic criminal record checks are now returned in an impressive 0.7 days, a notable improvement from the two-week turnaround previously experienced through manual processes.
Moreover, the UK screening industry has undergone rapid advancements in the past 18 months, including the introduction of digital IDs, digital right-to-work checks, and the capability to verify employment history through HMRC records, payroll data, and open banking. This evolution represents a significant leap forward, achieving more progress in a year and a half than was made in the previous two decades. However, these advancements also bring a heightened level of responsibility, particularly in light of GDPR regulations that emphasise data protection. While adapting to these changes can be challenging, they are crucial for safeguarding the interests of all parties involved.
Best Practices for Developing a Background Screening Policy
Experts in the field recognise there are more grey areas in background screening than many may initially anticipate.
While there are established industry standards to adhere to, whether they be governmental or security-related, many scenarios involve nuanced considerations. Additionally, it’s essential to acknowledge the human element. Behind each application are real individuals — people with children, mortgages, and aspiring professionals. In light of this, we strongly advise organisations define and standardise their acceptable risk levels as part of a background screening policy. By doing so, when a specific situation arises, an escalation protocol is already in place to address it effectively. Certn is well-equipped to assist with this process.
Individuals with a criminal history should not be automatically disqualified from employment; however, it is imperative to establish a fair and industry-compliant decision making framework. Certain roles, particularly those involving work with children or vulnerable adults in healthcare settings, necessitate enhanced criminal record checks to ensure that individuals who may pose a risk of physical harm are not permitted to work in schools or hospitals.
In cases where industry mandates do not dictate candidate eligibility, collaborating with line managers is essential to navigate grey areas. This collaboration can help assess whether appropriate support can be provided to the candidate or if it is necessary to discontinue the hiring process.
Later in this article, we outline the best practices for vendor evaluation as advised by Doug and Mel. However, it is equally important to establish robust internal processes, regardless of who conducts the checks. Below is our team’s guidance for developing an effective background screening policy:
- Define Clear Objectives: Establish the primary goals of your background screening policy, such as ensuring compliance with legal and regulatory requirements, protecting sensitive information, and enhancing workplace safety. Clarity in objectives will guide the development of your screening procedures.
- Tailor Screening to Role and Seniority: Customise your background checks based on the specific role and seniority of the candidate. Higher-risk positions, particularly in regulated industries such as finance or healthcare, may require more extensive checks, including credit history and professional qualifications, to ensure the candidate meets industry standards.
- Ensure Compliance with Legal Regulations: Familiarize yourself with the legal requirements for background checks in the UK, including data protection laws under GDPR. Ensure that your policy adheres to these regulations, which protect candidate privacy and outline how personal data should be handled.
- Communicate Transparency and Fairness: Clearly communicate your background screening policy to all candidates, detailing what checks will be conducted and why. This transparency helps to build trust and ensures that candidates are aware of their rights, including the right to contest inaccurate information. In the UK, the candidate has the right to know what information has been gathered in the process of screening and presented in the final report.
- Regularly Review and Update Policies: Given the evolving regulatory landscape and advancements in technology, it is crucial to review and update your background screening policy regularly. Stay informed about changes in the law, best practices, and new screening technologies to ensure your process remains relevant and effective.
Lack of Regular Review
Our recent poll of HR leaders, conducted during our webinar, revealed that 57% of companies (comprising responses from both “Only when major legal changes occur” and “We do not regularly update our process”) may be operating with outdated practices. This indicates a potential risk in the compliance and effectiveness of their background screening processes.
Many organisations tend to regard background screening as a “necessary evil” and may forego essential requirements, such as reference checks, to alleviate administrative burdens. However, it is vital to recognize that these requirements serve to protect the organisation.
As reiterated throughout the webinar, the “keys to the castle” are now digital, making the safeguarding of intellectual property imperative. Granting access to your IT systems without thorough vetting can expose your organisation to significant risks.
Clients who have never implemented screening may be uncertain about how to proceed. Nevertheless, a reputable screening vendor can draw upon their experience with multiple clients within the same vertical market to offer valuable insights on best practices and compliance regulations. For further assistance, a member of our regional team would be happy to provide additional support.
Automation in Background Screening
Which parts of the background check process can be safely automated, and where does it make sense to use a more manual approach?
Talent professionals often find themselves in a dilemma: how do we conduct comprehensive checks without prolonging the hiring process and potentially losing out on top talent?
58% of respondents cite “balancing thoroughness with speed in the hiring process” as their biggest challenge, this indicates that most organisations struggle to conduct comprehensive background checks while also maintaining an efficient hiring timeline.
Striking this balance is a constant challenge. At Certn, we are continually refining our processes to ensure that they are both efficient and effective. In some cases, this involves the use of automation.
The effectiveness of background screening largely hinges on the accuracy of the data sources and where in the process subjective assessment or human sensitivity is required. Automation is not advisable when relying on unreliable data sources or when decisions are made on the results of the background screening.
In the UK, data sources are generally highly accurate, albeit not infallible. The country benefits from established consumer credit information providers such as Experian, Equifax, and TransUnion, which facilitate easy access to credit data similar to that used by banks and building societies. The Disclosure and Barring Service (DBS) system exemplifies this, with APIs that enable swift, automated checks — basic DBS checks currently have a turnaround time of no more than seven days. Companies House serves as another reliable data source, offering accurate company information, a level of data integrity that is less prevalent in some parts of Europe.
Despite the advantages of automated systems, human intervention remains essential for data validation and situations where uncertainty arises. For instance, when hiring an individual from South Africa, verifying their credit history or educational credentials may necessitate direct contact with educational institutions to confirm legitimacy. The risk of fraudulent degrees and reference mills is a genuine concern, and identifying these often requires seasoned judgment and expertise.
The fact that 33% of companies survey only update their screening strategy after major legal changes reflects a reactive rather than proactive approach. This could lead to gaps in compliance and increased risk exposure during interim periods. Collaborating with a reputable screening company can be beneficial, as they are adept at recognising the signs of false information.
Considerations for International Background Screening
International background checks may demand even greater human involvement to ensure accuracy and compliance with local regulations. Outside the UK, many background screening markets are relatively underdeveloped. For instance, there are very few screening companies in France, Italy, or Greece, with only one noteworthy provider in Germany. Obtaining accurate data in regions such as Europe, Asia, and the Middle East frequently necessitates direct communication with referees and an understanding of local nuances — skills that benefit from the multilingual capabilities of the team. In-house management of such tasks can be challenging, as many checks require native speakers to collect and accurately verify information.
While automation has seen substantial advancements in recent months, again, particularly concerning digital ID and digital right-to-work checks, many processes, especially those outside the UK, still require human oversight. This is especially true for subjective assessments, such as resolving discrepancies between a candidate’s CV and the findings from background screening.
As mentioned above in our discussion of developing a background screening policy, a human element is also helpful in managing sensitive conversations. AI tools may lack the nuance required to handle delicate topics, such as explaining a name change following a difficult divorce, with the necessary empathy. Without human interaction, candidates may feel misunderstood or may withdraw from the process, as they struggle to articulate their circumstances. A fully automated system risks exacerbating this issue, potentially leading to increased instances of ghosting and incomplete applications.
Rise of Remote Work and Emerging Fraud Risks
The landscape of background checks has undergone significant transformations, influenced by the COVID-19 pandemic and the rise of remote work. However, these changes have roots in the digital revolution that has reshaped workplaces over the past two decades.
Despite these evolutions, the fundamental reasons for conducting background checks remain consistent. Employers use background checks to verify candidates’ identities, qualifications, and to assess potential risks to the organisation. This due diligence is crucial in maintaining a secure and trustworthy work environment. However, 22% of organizations highlighted “ensuring compliance with legal and data privacy regulations” as a significant challenge. This insight emphasizes the importance of staying updated on regulatory changes and implementing robust compliance protocols, especially as data privacy laws evolve.
In the UK, the most prevalent types of background checks include basic right-to-work checks, employment references, education verifications, and criminal record checks, categorised as basic, standard, or enhanced. Depending on the role, additional checks may also be pertinent, such as directorship checks, sanctions screening, and adverse media assessments.
The potential risks associated with hiring decisions extend beyond mere compliance; they can have lasting implications for an organisation’s reputation. A pressing concern for organisations is fraud prevention because a single hiring misstep, such as bringing on an individual with a concealed criminal history or misrepresented qualifications, can lead to significant repercussions, including legal liability and reputational damage.
As Mel highlighted during the webinar, today’s workforce is increasingly fluid, encompassing a mix of permanent, contingent, in-person, and remote roles. This trend towards online interviews and remote work has heightened the need for thorough background screenings that specifically target fraud detection.
From a global hiring perspective, Mel also noted a rising risk of recruitment and identity fraud. While UK employers benefit from stringent statutory requirements governing identity verification, it remains imperative for HR professionals to thoroughly understand the individuals they are bringing on board.
Companies that don’t regularly update their background screening process (27% of poll respondents) may struggle with hiring quality and candidate fit, as they may not be leveraging the most current tools and practices available in the industry.
Our speakers emphasised the critical role of background checks in mitigating risk, ensuring compliance, and safeguarding your organisation’s reputation. However, navigating the complexities of background checks while maintaining a positive candidate experience poses a challenge as well.
Key questions arise:
- Are background checks accurate?
- Are they fair to candidates?
- Can they be completed swiftly enough to avoid deterring top talent during the hiring process?
Background Checks and Candidate Experience
As recent discussions highlight, the prevalence of recruitment and identity fraud necessitates that organisations exercise due diligence when onboarding new employees. While the UK is fortunate to have strong statutory requirements governing identity checks, the responsibility remains on employers to ensure that they are hiring individuals who align with their organisational values and pose no risk to the business.
Effective communication is a cornerstone of a positive candidate experience, particularly in the context of background screening. For candidates, the hiring process can often be daunting and overwhelming, especially when it involves providing sensitive information for background checks. Therefore, clear, consistent, and transparent communication is essential at every stage of the hiring process to ensure candidates feel informed, respected, and engaged.
From the outset, communication should establish a welcoming tone. During the initial stages of recruitment, it is vital to articulate the steps involved in the hiring process, including background checks. Candidates should be informed about what to expect, including the types of checks that will be conducted and why they are necessary. This transparency builds trust and prepares candidates for the process ahead.
Clear Explanations of Background Checks
When it comes to background checks, candidates may not have extensive experience with this aspect of the hiring process, as many individuals only encounter it a few times in their careers. Thus, it is crucial to walk them through each step of the background check process.
Clearly explain the following:
- What checks are being conducted: Let candidates know if they will undergo criminal record checks, employment verification, or credit checks. Providing context helps them understand the relevance of these checks to the position.
- Their rights: Candidates should be informed of their rights regarding data protection and privacy, as well as their right to dispute any information that may arise from the background check. Ensuring they know they have a voice in the process can alleviate anxiety and enhance their overall experience.
- Expected timelines: Candidates should be made aware of how long the background check process typically takes and when they can expect to receive updates. Keeping candidates in the loop prevents uncertainty and helps manage their expectations.
As the recruitment landscape continues to evolve, ensuring that candidates feel informed and respected throughout the background screening process will not only enhance their experience but also mitigate the risk of candidate ghosting—a growing concern in today’s job market.
Choosing the Right Background Check Vendor
“At our organisation, the biggest challenge we face when conducting background checks is navigating the complex landscape of compliance with legal and data privacy regulations, while also maintaining necessary thoroughness in our hiring processes.”
According to Doug and Mel, here are the essential questions HR professionals should consider when evaluating background check vendors:
- Turnaround Time: If a vendor’s turnaround time appears too good to be true, it likely is. While speed and accuracy are both critical, they must be balanced. Be cautious of claims that suggest results can be generated significantly faster than the industry standard for similar checks, as this may raise red flags. If a vendor guarantees completion within a day, inquire about their methods for ensuring the checks are both accurate and compliant.
- Candidate Experience: Your background screening vendor serves as one of the first touchpoints for new hires, making it crucial to select a vendor that prioritises candidate treatment. Inquire about their definition of good customer service, not only for you as the client but also for the employers they verify with and, most importantly, for the candidates themselves. Positive interactions during the screening process are vital for minimising “candidate ghosting” (where candidates withdraw without notice possibly due to a lengthy hiring process).
- Industry Experience: Ask about the vendor’s experience within your specific industry. A competent screening partner should collaborate with you to create a tailored best practices screening strategy. If they are unable to do so or fail to provide informed recommendations, it may indicate a lack of relevant expertise.
- PBSA Accreditation: Consider whether the vendor holds accreditation from the Professional Background Screening Association (PBSA). This global organisation promotes high ethical and performance standards in the background screening industry.
- Integration Capabilities: It is essential to select a provider that can integrate seamlessly with your existing systems and adapt to your organisation’s specific requirements. Be transparent about your organisation’s complexities, as this will help the vendor tailor their services to your unique circumstances.
- Vendor Due Diligence: Doug’s top recommendation from the session is to conduct a background check on your background check vendor. Request to speak with a customer reference to gain insights into their experiences. Switching vendors can be a significant undertaking, often involving a complex implementation process. However, finding the right partner who works closely with you can make all the difference.
Industry-Leading UK Background Screening
As nearly two-thirds of UK companies may be relying on outdated background screening practices, it is imperative for HR leaders to re-evaluate and modernise their approaches to mitigate risks and protect their organisations.
Ultimately, background screening is not merely a regulatory checkbox. It is a strategic component of the hiring process that plays a critical role in safeguarding the integrity of an organisation. By prioritising thoroughness, embracing technological advancements, and maintaining ethical standards, companies can navigate the complexities of background checks while building a strong, reliable workforce.
If you are ready to take the next step in enhancing your background screening processes, we encourage you to reach out to our team at Certn. Let us assist you in navigating the complexities of background checks to safeguard your company’s reputation while attracting and retaining top talent.
