IRVINE, Calif.--(BUSINESS WIRE)--While a majority of companies expect dramatic increases in hiring in 2015, a talent shortage is on the horizon, according to the 2015 HireRight Employment Screening Benchmark Report. Released today, the survey indicates 76 percent of respondents predict they will increase their workforce size, with 55 percent planning significant growth of three percent or more. In addition, the majority of respondents (51%) said “finding and retaining talent” was their top business challenge – a challenge representing the number one concern for businesses of all sizes, based on survey responses. In line with this, respondents emphasized that finding qualified candidates (62%) and keeping good employees (44%) were the top two talent management challenges.
“This year’s report demonstrates a level of optimism not seen in many years and reinforces the heightened need to improve candidate experience and employee engagement,” said Rachel Trindade, vice president of marketing, HireRight. “With the convergence of decreasing unemployment; the aging of our skilled workforce; changing expectations of younger workers; and more direct employment opportunities through the peer-to-peer economy – taking actions to ensure a positive candidate experience and to keep current employees engaged will be key to successful talent management.”
The survey points to the importance of candidate experience and employee engagement as key factors impacting the talent crunch, as they are critical for successful recruiting and retention efforts. As reflected by survey respondents, some of the 2015 key initiatives planned by employers include:
- Developing effective employee training programs (43%)
- Improving the candidate experience (38%)
- Developing leaders within the organization (37%)
- Creating a positive corporate culture (36%)
- Maximizing employee engagement (35%)
As companies prepare for growth, key talent management goals include finding top talent, meeting changing compliance requirements, and minimizing the high-cost risk of bad hires. A majority of employers (56%) reported that background checks help provide a better quality of hire. Respondents indicated that background checks are a critical step to prevent bad hires, as:
- 86% reported finding lies or misrepresentations on resumes or job applications
- 72% reported that screening uncovered issues they wouldn’t have found otherwise
In addition, the report revealed some risks many employers may be taking, potentially opening themselves up to significant security and legal exposures, including:
- Not Verifying Credentials: With the high numbers of candidates discovered to have misrepresented information on a resume, it’s critical that companies confirm education and employment backgrounds, yet 50 percent do not check education and 32 percent do not check previous employment.
- Being a One and Done: Re-screening employees on an ongoing basis post-hire can be an important step as changes in an employee’s record can leave an organization vulnerable to risks that may include negligent retention claims. However, more than half of organizations (54%) do not conduct re-screening of current employees.
- Neglecting Drug Testing: Worker drug use is a major factor for workplace accidents, loss of productivity, increased absenteeism, and escalating costs for health benefits and insurance. Pre-hire and ongoing drug testing can help ensure a safer and more secure workplace and reduce costs, but only 66 percent of companies conduct any kind of drug testing.
- Not Thinking Globally: Whether a company has international offices or employees who have lived, worked, or been educated outside of the U.S., it’s important for these employers to consider conducting global screening to verify the individual’s history and qualifications. Only 15 percent of respondents conduct global screening; so the vast majority of companies are running a risk of hiring an employee who could have a concerning international record.
- Ignoring the Extended Workforce: Contractors, temps, consultants, volunteers, and vendor employees may have the same access to your facilities, employees, customers, and data as do your permanent employees, yet many companies neglect to screen their extended workforce to similar standards, if at all.
- Imprudent Social Media Screening: In today’s environment of publicly available information, a growing number of respondents are using social media for screening (36%), risking the chance that they could unwittingly uncover protected information that could leave them open to discrimination claims. For companies that use social media in their screening process, it’s important that they develop, in consultation with their legal counsel, effective policies and procedures designed to protect their candidates’ and employees’ privacy.
HireRight produced the Benchmark Report based on surveys of more than 3,000 human resources, recruiting, security, and management professionals to provide a view of the current hiring landscape, indicate market trends, and identify common gaps in employers’ screening and hiring processes. The full report can be downloaded at www.hireright.com/benchmarking.
HireRight is a leading provider of on-demand employment background checks, drug and health screening, and electronic Form I-9 and E-Verify solutions that help employers automate, manage and control background screening and related programs. Many companies, including more than one-third of the Fortune 500, trust HireRight because the company delivers customer-focused solutions that provide greater efficiency and faster results. HireRight also provides pre-integrated background screening services through applicant tracking systems from top providers such as Oracle, Taleo, Kenexa, SAP, PeopleAdmin, HealthcareSource, HRsmart, and SilkRoad. For more information, visit the company’s web site at www.hireright.com.
HireRight is a registered trademark of HireRight, Inc.