The true cost of pre-employment checks, for employers and employees

Time Magazine says six weeksMonster says twelve. Either way, timing can be costly for both parties involved.

 

It’s a challenge for employers, who want to bring in new hires as quickly and affordably as possible, and for candidates, who may be facing their own financial and time pressures.

 

One reason for this extended period is time spent performing background screening checks, which can take up to six weeks to process.

 

Businesses’ appetite for agility dictates that time-to-hire should be shorter than ever before. But with recruitment budgets constantly being squeezed and a high number of checks required for some positions, this can prove difficult. For businesses, compliance and reputation are also at risk. For candidates, time is just one cost, with the security of their data also brought into question.

 

We spoke with Olga Saliba and Rehman Zafar from Verimuchme – who offer a centralised, private, secure identity management framework for businesses – to explore background checks in more detail.

 

Background checks cost businesses more than budget alone. For employers, there are three key non-financial challenges caused by pre-employment tests.

 

 

While some checks (like adverse financial checks and identity checks) can be completed instantly, others take longer.  

 

As an industry standard, referencing can take 10–15 days; basic criminal record checks can take 14–21 days; standard criminal record checks can take up to four weeks, and enhanced criminal record checks can take up to six weeks to process. This will vary depending on whether the checks are conducted in-house or by a supplier.

 

In larger organisations, these checks are often mandatory even when an employee is changing roles within the company. These processes are old, bloated and ineffectual, particularly as the majority of pre-screening information can be reused.

 

Bringing the screening process online and operating through one party only can cut the time needed for checks – not least by removing the need to chase multiple partners.

 

 

The General Data Protection Regulation (GDPR) comes into force in May 2018, requiring compliance by all businesses handling EU citizens’ personal data. The cost of non-compliance is huge, reaching up to 4% of turnover or €20m – whichever is higher.

 

 

Businesses conducting pre-employment screening checks possess large amounts of personal data, all of which must be handled and stored per GDPR demands. Individuals must give consent for businesses to use and store their personal information for specific purposes. While it remains to be seen whether certain checks will be forbidden by GDPR unless consent is offered, businesses should have a central, secure system for new employees’ data, with adaptable access rights for staff who need to use the information.

 

Outside of GDPR, right-to-work rules also carry heavy civil penalties for businesses that employ illegal workers and that fail to conduct right-to-work checks. Failure to comply with these regulations costs organisations £50m annually, with a maximum civil penalty of £20k per illegal worker for the culprit businesses. Checks must be secure, accurate and compliant.

 

 

Candidates are also affected by employers’ data practices. How are their personal details used? How is this information shared between recruitment agencies, employers and third parties? When applying for multiple roles, candidate data will be requested multiple times by different agencies and employers, and candidates are often given no control or assurance about how their personal information is kept safe.

 

This should change with the implementation of GDPR. Employers should remember that IT professionals – especially those in cyber-security – are particularly conscious of their data rights and need for data security. A confused, opaque background checking process can cost a business its reputation, while a streamlined process that offers transparency to candidates can enhance it – in turn improving candidates’ views on the reliability of their target organisation.

 

We operate in an industry where employee demand outstrips supply. Skilled recruits can take their pick of roles that are offered to them. This said, even the most engaged contractor could be put off by too much red tape.

 

For employees, there are two key areas for concern around pre-employment checks.

 

 

Time-to-hire generally lasts 10–12 weeks – a key frustration for everyone involved. Imagine the frustration of a contractor that has to go through the process every six months.

 

The average time to conduct pre-employment checks increases onboarding times, particularly in cybersecurity roles where enhanced CRB checks can take six weeks or more to be processed.

 

Do businesses risk losing their star talent to competitors, as a result? An online checking system can speed up the process – an advantage to all involved.

 

 

Some pre-employment checks require an excessive amount of personal information, with candidates required to share not just their name and contact details, but birth certificates, bank details, passport information, utility bills and more.

 

It’s an identity thief’s paradise, and recent high-profile data breaches mean those applying for IT roles are particularly concerned about informational security.

 

 

The big danger for candidates here is unsecured data. How and where is their information stored, and for how long? Who has access? We’ve heard tales of recruitment companies storing sensitive verification documents in Outlook, meaning huge numbers of candidates could be sharing their bank details and more with multiple strangers.

 

The solution? GDPR will undoubtedly reduce some of these data protection issues. Working with a third party that upholds rigorous standards and conducts all checks in one place can also help.

 

 

 

For recruiters and candidates alike, the cost of pre-employment checks is high – and it’s by no means purely financial. However, a failure to conduct such checks can be higher still. Businesses must therefore find a happy medium between commercial agility and keeping their candidates happy and reassured.

 

identifi global has partnered with Verimuchme, who offer a centralised, private-by-design and secure identity management framework. Contact us on 01908 886 048 to find out more.