New Standards: How Screening Data Is Evolving Hiring Process

Leveraging data to create new talent acquisition standards

The labor shortage playing out across the country is turning HR and talent teams inside out as they look to find new ways to improve their hiring and retention practices. Finding that “new normal” is probably months away, but one thing is clear - data has become a critical part of the process. 
 

Pre-hire and background screening are on the rise, with 90% of employers already conducting some kind of pre-employment background screening according to a 2020 PBSA and HR Research Institute Survey. The data, insights and verifications they provide are shaping up new standards that help talent acquisition teams sort through nearly 70 million people changing jobs or being hired annually.

Knowing More So You Can Source More

Increasing candidate pool is critical for many sectors, and early screening data can offer worthwhile opportunities to help identify new or trending sources for talent. One of the top data categories used in basic background screening is criminal checks. But rather than using criminal background data as a disqualifier, many employers are using that screening data to establish fair chance hiring practices that open up a potentially untapped talent pool of formerly incarcerated individuals. 

According to Brian Matthews at Appriss Insights, “Research shows that formerly incarcerated individuals behave as well, or even better, than their co-workers without a criminal record. In fact, a survey of managers found that 82% believe that the quality of hire for workers with criminal records is about the same or higher, while 67% of HR professionals felt the same.”

A Faster Track to a Better Candidate Pool

With the pre-pandemic average cost-per-hire at $4,425—up 48 percent over the past eight years according to SHRM—and more hiring incentives being reported every day, ensuring candidates are qualified and the right fit for the role is increasingly important. The scramble to get someone, anyone, into a role should not override the basic tenet of getting the right person into the right role. 

Background screeners and organizations with robust pre-employment screening programs know that the first step—quickly sorting through and verifying and validating candidate-provided information—is critical to creating a viable candidate pool and nurturing candidates through the process. 

Three out of every four pre-hire screens include validation of identity as well as confirmation of job history and education. Data service providers that can provide multiple data sets are seeing an increase in utilization by background screeners and pre-hire assessment programs. 

Joe Muchnick, Senior Vice President at Equifax Workforce Solutions echoed this sentiment, saying, “We’ve seen increased demand for a more holistic view of the candidate and additional candidate data, yet  66% of employers report that the length of time to get results is the biggest challenge in the background screening process.”

Predict and Prepare for Candidates with More “Staying Power” 

While data plays an important role in aligning qualifications with the job, it also can help hiring managers predict and/or prepare for retention. Analyzing data patterns by industry or even by clients using commercial verification solutions can help employers refine their background screens and pre-hire assessments with an eye towards retention. 

For example, a regional grocery chain that began performing pre-employment verifications to look for any omissions or multiple premature separations was able to improve their average retention to 210 days, well over the industry standard of 60-90 days (Equifax 2019 client study). 

In addition, a (pre-pandemic) Equifax study of pre-employment data for a large national restaurant chain found that nearly one-quarter of their new hires were concurrently holding another job. That is significantly above the January 2020 national average of 5.1 percent, as tracked by the Bureau of Labor Statistics, and given the upheaval in workforces across the country, this number could now be even higher. 

This is the kind of information that can help hiring managers guide conversations around scheduling and sensitivity needs with candidates in the hopes of better accommodating candidates and ultimately increasing retention.

HR teams can see that pre-employment verification has more use than just validating information. In fact, analysis and insights from pre-employment verification data can help define and recognize hiring and separation patterns, adding value to critical HR KPIs, like retention. 

As organizations look to embrace people-first strategies, background screening data enables actionable insights that help improve talent pipelines and hiring decisions. Leveraging data to provide a more holistic candidate view is essential to successful planning and hiring, ensuring greater career success and driving retention, all while helping decrease manual processes and strain on resources. 

Jen Hunter is Senior Director of Product Development at Equifax Workforce Solutions. Visit workforce.equifax.com Connect Jen Hunter