Preliminary Results to 2005 Employers' Practices in Background Screening Survey

PreemploymentDirectory.com announced the preliminary results from its 2005 Employers' Practices in Background Screening Survey. The survey of employers nationwide was conducted in 2005 to identify best practices in background screening in the US. It is an in-depth exploration of the full realm of background checks on applicants including the types of checks conducted, the content contained in background screening policies and the key selection factors in choosing an outsourced background screening firm. The survey is the first such study of this rapidly growing industry.

The data obtained is based on 273 responses and presents a unique insight into the background screening practices of employers nationwide. The survey questions were developed by an Advisory Committee specifically formed for the purpose of creating the survey, composed of a variety of Human Resource, Employment, Background Screening, Security and Management professionals. It was emailed to a cross section of members of the Society for Human Resource Management (SHRM), ASIS International, Association of Threat Assessment Professionals (ATAP) as well as members of several online HR communities.

Key Findings:

- 80% of those surveyed conduct background checks on applicants. However, only 58% conduct them on current employees.

- Less than 50% conduct background checks on applicants from other countries; a surprising result given the increasing focus on globalization and terrorism concerns.

- 85% of those surveyed conduct background screenings for all open positions. The most prevalent types of background checks being criminal records, previous work history and references.

- 90% of respondents stated that they are using Authorization & Disclosure forms. While a high percentage, this potentially means that 10% of responding firms are apparently operating outside of established Fair Credit Reporting Act procedures.

- 67% of those surveyed outsource their background screening to an external service provider. Of those that do outsource, 66% were either 'Extremely' or 'Very satisfied' with the level of service provided. In addition, 25% were 'moderately satisfied'. These findings support indicators that the professional background screening industry is experiencing rapid growth.

- 83% of respondents indicated that Human Resources was primarily responsible for overseeing background screening, while11% indicated that Security held this responsibility.

"We live in turbulent times. Due to increasing pressure placed on employers by such issues as identity theft, fraud, workplace violence, theft, sabotage, negligent hiring and terrorism, the number of firms that provide outsourced background screening services has grown to well over 2,000 and expands daily," commented W. Barry Nixon, SPHR, President, PreemploymentDirectory.com. "The industry is well overdue for a national study on this issue and I hope the survey results help in providing some useful insight," Nixon added.

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