A new year brings with it a lot of change, and background screening trends are no different. A company’s success depends on the ability to modify approach and understand newer forces in play when it comes to employment screening and background checks. 2019 will force companies to tailor their background screening policies to the current market and the current legal landscape.
We decided to take a look into our crystal ball and see what 2019 holds for the background screening industry. Based on our expertise and what we’ve heard in the industry, here are some market trends to keep a pulse on as your business plans for their background screenings in 2019.
The Top 3 Background Screening Trends for 2019
Trend #1: Legal compliance will become more complex and increasingly important
Every year there are new subtle differences employers need to anticipate within the Fair Credit Reporting Act and the Equal Employment Opportunity Commission. For example, new Ban the Box legislation at the local level and the use and access of criminal history reports seem to be changing by the day. Employers have to adjust to the new Salary History Bans, meaning employers can’t use any previous salary information to set compensation – even if the applicant discloses it themselves.
As far as the Ban the Box Laws, it’s more than anticipated many of these laws will be amended to expand their reach. Several states did in 2018 as they work to expand what employers must comply in regards to asking potential employees about their criminal history. Most of the laws begin with government employees, then they expand to include government contractors. Eventually, it is anticipated these laws would apply to all hires.
Employers will simply have to adjust to these ever-changing screening laws. The only way for businesses to remain compliant is to enlist an expert in the industry to help guide you through the ever-changing legal landscape.
Trend #2: The job market will continue to be candidate-friendly, making background screening steps more important than ever
Unemployment rates are low, and candidates are feeling confident in their negotiating power for their rights. Getting previous offenders back into the workplace requires a higher degree of effort than ever before, and ensuring your business gives all candidates a fair chance at employment while producing strong background checks and criminal record reports will become increasingly critical to your company’s wellbeing.
Regardless of local laws, all organizations must still stay within the confines of Equal Employment Opportunity Commission guidelines regarding the use of criminal history checks and other potentially detrimental information discovered through a background screening. This is especially important when performing background screenings on minors. For this reason, all companies should routinely consult with legal counsel that specialize in employment law. In addition, many companies choose to delegate their background screening needs to professional screening firms. This encourages a legal and streamlined process for your business.
Trend #3: The growing “Gig Economy” will make rolling background checks more common
As new business models develop and evolve, we will see background screening technology adapt to serve on-demand services and sharing economy platform models. The number of nontraditional employment is growing, this according to the Bureau of Labor Statistics — meaning freelancers, temp workers or independent contractors. The business and financial software company Intuit estimated last May, when the BLS survey was conducted, that the gig economy accounted for 34 percent of the American workforce, and that this number would increase to 43 percent by the end of the decade.
What many companies don’t realize is they potentially face the same liability exposure from their contingent workforce as from their own employees. Keep all employees, including contingent workers, going through regular screenings. And insist on adding contract verbiage for any contingent workers be subject to employment screens before appearing for work. At the end of the day, pre-employment screening packages should be the same, whether the employees hired are full-time, part-time, contract or are hired by an outside contractor.
There are many changing regulations and technological trends in 2019 that will impact the employment background screening industry. We will continue to keep you updated on the latest topics affecting the industry and can’t wait to share them with you here on the Barada Blog.
If you’re looking for a new partner to help with your background screenings in 2019, talk to one of our experts. We provide screening solutions for employers every day. Schedule a time to have a conversation about your specific screening challenges and walk through potential solutions Barada can provide.