Background Verification Statistics Things To Know
Here are some important things to know regarding background verification statistics, based on data available up to my knowledge cutoff in September 2021. Note that these statistics might have changed in the period between then and your current date in 2023:
1. Frequency of Background Checks: According to surveys, nearly all employers (96%) conduct at least one type of background screening. This underscores the importance of background checks in the hiring process.
2. Discrepancy Rate: It’s reported that around 10% to 30% of background checks uncover some kind of discrepancy, whether it be discrepancies in employment history, educational qualifications, criminal records, or something else.
3. Reasons for Background Checks: Around 86% of companies conduct background checks to protect employees, customers, and others. Meanwhile, 52% use it to improve the quality of hires, 44% to comply with applicable law, and 42% to prevent or reduce theft and embezzlement.
4. Criminal Records: About 93% of employers conduct criminal record checks. Of job applicants, it’s estimated that nearly 10% have a criminal history.
5. Employment History & Education Verification: Over 80% of employers verify an applicant’s previous employment history. Similarly, about 75% verify an applicant’s education background. This highlights the importance of honesty in these areas on job applications and resumes.
6. Drug Testing: Approximately 60% of employers conduct drug tests as part of their background checks.
7. Impact of Background Checks on Hiring Decisions: Around 72% of employers say that background check information has led them to not hire a candidate.
8. Adverse Action Process: The Fair Credit Reporting Act (FCRA) requires employers to follow an adverse action process if they intend to deny employment based on the findings of a background check. However, a significant number of companies struggle to comply with FCRA regulations, often due to a lack of understanding or resources.
9. Candidates With Criminal Records: About two-thirds of HR professionals say they are willing to hire applicants with criminal records, largely depending on the nature of the crime and how it might impact job performance.
10. Resume Fraud: It’s estimated that as many as 85% of job applicants lie on their resumes, with about half lying about their education specifically. Background checks can help to catch these discrepancies.
It’s important to stay updated on background verification practices and laws as they change over time. Some states and cities, for example, have “Ban the Box” laws that regulate when during the hiring process an employer can ask about a candidate’s criminal history.