3 Background Check Adjustments to Consider

During a time of soaring inflation and after a spate of pandemic-driven layoffs and furloughs, you’d think workers would be clamoring for jobs. But, they’re not.

In fact, today’s employers are battling a “quitter’s market,” with nearly 4 million workers resigning every month during 2021, and the trend shows no signs of slowing, according to data from the Society for Human Resource Management (SHRM).

Here, we’ll explore today’s unprecedented worker shortage and how making a few smart changes to your background check strategy can support more candidate-sensitive experiences that help you grow your workforce in a tight labor market.

Record-setting resignations, for relatable reasons.

If nearly 4 million workers quitting every month sounds like a lot, that’s because it is—it’s a new record. According to SHRM, it’s the highest monthly average on record, and double the lowest monthly average of 1.75 million monthly “quits” during 2019.

As for why they’re resigning, a recent McKinsey article suggests three reasons. First, they’re quitting because they can. They’re well aware that it’s an “employee’s market” and they know their value. Second, they’re upset at how quickly employers laid off workers as a first resort (versus exploring other cost-saving measures) and how those who remained were expected to work harder to bridge the gap.

And last, they’re worn out. Those who worked throughout the COVID-19 pandemic often worked longer hours under extraordinary conditions. At the same time, they were managing untold stress and anxiety on the home front, as virtual learning and caregiving for sick and homebound loved ones took its toll.

How does this impact background checks?

The current labor shortage may lead some employers to question the relevance of their background check strategy. After all, if you’re desperately trying to entice frustrated workers back into the workplace, are background checks creating unnecessary hiring friction? The short answer: no.

As employers look to hire and onboard millions of new workers in coming months, it’s no time to let your foot off the gas in terms of employment screening.

In a sea of unknown candidates, many of whom have been unemployed for months at this point, how else can you intelligently hire the right workers who will start producing sooner and best fit within your unique business culture and work environment? What’s more, background checks help you validate their identity, ensure they’re capable of performing the job and identify red flags that can put your organization at risk.

Smart background check adjustments for a tight labor market.

Instead of throttling your background checks, rethink your strategy and look for smart adjustments you can make to facilitate more accommodating candidate and employee experiences. Here are three ideas to get you started.

1. Explore new candidate populations by updating your criminal record policy. According to McKinsey, there’s an estimated 23 million untapped, “latent” workers who aren’t actively engaged in the workforce today. Some of these people include potentially great employees who have a criminal history. Knowing this, consider revising your criminal background check policy so you can securely hire from this untapped candidate population.

Case in point. In 2020, the FDIC relaxed its screening guidelines by narrowing the scope of crimes that would prohibit employment, therefore making it easier for banks to hire employees with minor criminal records. The tactic dovetails with the nationwide movement toward “second chance” or “fair chance” hiring, which helps expand employment opportunities for candidates with criminal convictions.

To be clear, do not skip the criminal background check; instead, try these adjustments.

• Move the criminal background check to the end of the hiring process. This helps level the playing field and reduce subconscious biases by enabling you to get to know candidates before learning about their criminal history, versus the other way around.
• Reconsider your minimum hiring requirements. For instance, consider allowing minor offenses, such as misdemeanors and other less-serious infractions, based on job specificity, your industry requirements and the unique risk threshold of your business.
• If your screening process is automated, update your criminal record scoring matrix to include fewer criminal record exclusions—based on a careful review of your risk tolerance—so you can score more candidates as “eligible.” Lean on your background check partner for help with this.

NOTE: Many jurisdictions now have “ban the box” laws that restrict the use criminal background checks in hiring and specify exactly when and where to perform a criminal check in the hiring process. Always consult with your legal counsel when making changes to your criminal record policy.

3. Speed up hiring and onboarding. A faster hiring process boosts your chances of winning top talent before they’re tempted by competing offers from other employers. The single best way to speed it up is by integrating background checks into your hiring system, be it an HRIS, ATS or other HR technology. Here’s why.
   • It’s easier on your candidates. When they begin the application process, today’s candidates expect the ease and simplicity of a single online interface. A background check technology integration dramatically minimizes their effort level (fewer forms, less data entry), speeds up the application process and gives them instant visibility into the hiring and screening process, which keeps them involved and engaged.
   • It streamlines your internal processes. Integrations automate much of the background check process, including clunky steps like scheduling drug tests and acquiring candidate authorizations, which boosts compliance and helps you say “you’re hired” faster.
4. Confidently offer a “remote work” option. Industry projections suggest 25 percent of all North American professional jobs will be remote by the end of 2022, with that number increasing into 2023, according to a Forbes article. Simply put, remote work is a big differentiator, if not an all-out requirement, for many workers.

However, remote workers operate largely unsupervised, except for digital engagement via email, messaging platforms and video calls. Before allowing employees to work from home, you need insight into their character, work ethic and their ability to work independently. Two important background checks can help.

• Reference checks—both personal and professional checks—can reveal a candidate’s past performance, behaviors and characteristics so you can better determine if they’re suitable for a remote work environment.
• Pre-hire drug testing can uncover substance abuse issues that could easily go unchecked in a remote work setting and negatively impact employee performance, productivity and workplace morale.

If it’s feasible for your business, seriously think about offering a remote work option. And if you do, incorporate these checks into your remote worker screening packages so you can extend that option with confidence.

At the end of the day, your goal is to stand out as a preferred employer in today’s tight labor market. By mindfully adjusting your background check process, you’ll discover new ways to attract, identify and hire the best employees. At S2Verify, we’re nimble, experienced and always exploring the next generation of background checks. Get in touch today to discuss the many ways we can help you advance your business.