Tag: employment screening

In today’s evolving labor market, the employment screening landscape is undergoing a significant transformation. The traditional methods of verifying income and employment are being reimagined to keep pace with economic shifts, digital expectations, and the growing complexity of workforce dynamics. As organizations contend with an influx of applications, resume discrepancies, and evolving workforce structures, the demand for accurate, secure, and efficient verifications has never been more pressing.  A Workforce in Transition  The current employment environment is marked by a distinct shift toward lower-wage industries, which now account for nearly 88% of job growth in 2024. White-collar job creation, in contrast, has declined. Industries such as retail, staffing, food services, education, and healthcare are driving employment gains, while sectors like technology and professional services experience stagnation or contraction. (Experian, 2024)  Geographically, unemployment remains concentrated in regions impacted by remote work trends and industry-specific slowdowns. These changes in job distribution and employment types underscore the need for more adaptive and inclusive verification processes that can accommodate a broader spectrum of worker experiences—from traditional W-2 employees to gig economy participants.  The Verification Bottleneck  At the core of employment screening lies a critical step: verification. While often overlooked, verification has a profound impact on hiring outcomes, onboarding timelines, and organizational risk. The risks of poor verification—from hiring the wrong candidate to facing compliance pitfalls—are high. Resume inconsistencies are increasingly common, making robust verification processes essential to mitigate liability and protect organizational integrity.  Recruiters are also grappling with scale. Many employers report receiving thousands of applications, often from automated tools, creating noise and reducing the signal necessary to identify truly qualified candidates. In high-volume hiring environments, the absence of efficient screening tools can quickly lead to operational inefficiencies and hiring errors.  Modernizing Research Verifications  The industry is at an inflection point. Legacy methods of verification—manual phone calls, faxed documents, and mailed records—are no longer viable at scale. As a result, the sector has shifted toward instant digital verifications sourced directly from employers and payroll providers. These methods, supplemented by consumer-permissioned workflows, offer a scalable and more accurate alternative.  However, not all employees can be verified through instant or consumer-permissioned methods, especially those in small businesses or with multiple jobs. This is where research verifications, long considered a fallback option, are being reengineered.  Today, a digital-first approach is transforming research verifications into a strategic asset. This evolution includes multi-channel support: call centers for live interactions, online smart forms for asynchronous data entry, and conversational AI that guides users through the process intuitively. Such flexibility ensures that verifications are accessible, efficient, and reflective of how people communicate in the digital age.  Consumer Engagement as a Verification Tool  A key innovation in the verification space is the rise of consumer-permissioned access. These workflows empower individuals to authorize access to their payroll or earnings data directly—often through secure, embedded interfaces or mobile prompts. This not only broadens the verification net to include gig workers and contractors but also strengthens data integrity by retrieving information from the source.  Interestingly, many hourly and gig workers are already familiar with this kind of access, given their reliance on apps for earnings and scheduling. As comfort with these tools grows, so too does the potential for consumer-permissioned verifications to become a mainstream standard.  Nevertheless, it's important to acknowledge that not every candidate is willing or able to engage with digital verification methods. That’s why the ongoing development of research verifications remains critical. Ensuring that all candidates—regardless of role, industry, or digital fluency—can be verified effectively is essential to creating an equitable hiring process.  Toward a Holistic Verification Ecosystem  Looking ahead, the employment screening industry is poised to adopt a more comprehensive approach. Income and employment verifications are no longer standalone processes—they are part of a broader ecosystem that includes identity verification, fraud prevention, and compliance validation. Integrating these components through automation and modern digital infrastructure enhances both security and decision-making.  Organizations now play dual roles in this ecosystem: as both verifiers (providing information about current and former employees) and consumers (seeking data for new hires). This dual perspective fosters greater alignment around the need for transparency, efficiency, and data integrity.  The vision for the future is clear. Verification processes must be fast, flexible, and fair—capable of handling the complexity of today’s labor market without compromising on accuracy or candidate experience. By reimagining research verifications through the lens of innovation and inclusivity, the industry is not only solving present-day problems but also laying the groundwork for a more agile and resilient workforce infrastructure.   Explore the Future of Employment Screening  Want to dive deeper into the trends and innovations shaping modern employment verification? Watch the full webinar, Reimagining Research Verifications for Employment Screening, featuring industry experts from Experian. 👉 Watch the webinar now  Troy Huff, Director of Product Management, Experian Employer Services, Reimagining Research Verifications for Employment Screening webinar, 2024. According to Hoff, in 2024, nearly 88% of new job growth occurred in lower-wage industries, highlighting a significant shift in workforce composition post-COVID.         

Today’s fast-paced, digital-first hiring environment calls for a more comprehensive approach to pre-employment screening. With growing pressure on employers and HR teams to make swift, accurate, and secure hiring decisions, having access to the tools and data to enhance efficiency and security is more important than ever. By evolving beyond traditional screening methods, background screeners can better meet these needs and deliver added value to their clients.  Fraud remains a significant challenge. In fact, fraud scams resulted in a staggering $485.6 billion in losses in 20231 — and hiring teams aren’t exempt from these risks. Fraudulent resumes, synthetic identities, and the risk of non-compliance with evolving regulations create a challenging landscape for pre-employment verifications. What if there was a way to make smarter, faster, and more secure hiring decisions? This article explores how background screeners can optimize pre-employment verification processes, reduce fraud risks, and ensure compliance — all while delivering a positive candidate experience. What is pre-employment screening? Employers conduct pre-employment screenings to thoroughly evaluate job candidates and make informed hiring decisions. It’s designed to verify key details about candidates, such as their identity, employment history, and references among others to assess their suitability for a role and ensure compliance with industry regulations. Enhancing traditional screening processes For decades, pre-employment background checks have been a cornerstone of the hiring process. While effective, many traditional methods face challenges in keeping up with the evolving demands of modern hiring. Delays in hiring: Background checks can oftentimes rely on manual processes, which could extend timelines leading to delays of days or even weeks. This not only slows down hiring cycles but can make it harder for employers to compete for top talent in a tight labor market. Errors and inaccuracies: Human errors, incomplete data, and inconsistencies across systems can lead to missed insights or red flags. Fraudulent activity: As hiring becomes increasingly digital, identity theft and synthetic identities present growing challenges to verifying candidate-provided data.  Regulatory challenges: With regulations like the Equal Employment Opportunity Commission (EEOC) and Fair Credit Reporting Act (FCRA), companies must navigate complex compliance requirements to avoid legal and financial repercussions. 1 in 3 HR professionals report losing top candidates due to slow pre-employment screening processes.2 These challenges highlight the opportunity to build on existing screening practices with tools that enhance speed, provide actionable insights and prevent fraud. Adapting to the evolving fraud landscape Employment fraud is becoming increasingly sophisticated, fueled by trends like the rise of remote work and digital applications. In fact, the employment sector accounted for 45% of all false document submissions in 2023, making it the most targeted industry for fraud.3 From fake references and degrees to synthetic identities created using stolen personal information, the risks are higher than ever. Synthetic identity fraud: This form of fraud — where fake identities are created by combining real and fabricated data — makes up more than 80% of all new account fraud.4 Fake credentials: Many candidates falsify qualifications or work histories to enhance their chances of securing a role. Compliance risks: Failure to verify candidate information accurately can result in legal penalties, brand reputation damage, or internal security breaches. Modernizing pre-employment screening The good news? Experian offers advanced solutions that complement existing screening processes, empowering background screeners to deliver more efficient, secure and reliable results for their clients looking to higher faster, and with greater confidence.  Gain a more holistic view of a candidate’s risk profile: Experian’s nationwide database contains files on more than 245 million credit-active consumers, providing the most current, accurate, and comprehensive information available in the industry. Conduct real-time identity verification: Leverage a range of identity verification solutions to authenticate and verify a candidate’s identity by accessing a breadth set of non-credit and credit data sources to create a robust social footprint that defines each consumer as unique individuals. Integrate advanced fraud detection: Powered by purpose-built analytics and machine learning algorithms, Experian’s fraud detection tools can detect synthetic identities, inconsistencies, and other red flags while ensuring a seamless candidate experience. Enhance compliance efforts: Experian’s solutions are designed to help businesses navigate complex compliance requirements with ease. Fraud prevention playbook in preemployment Uncover essential strategies for fraud prevention and identity verification in employment screening. Download now The pre-employment screening landscape is evolving, and staying ahead requires tools that enhance the efficiency and effectiveness of your processes. Experian’s advanced solutions are designed to complement your existing screening services, helping you reduce fraud risks, maintain compliant, and deliver data-driven insights that empower smarter hiring decisions. Get started today Ready to transform your pre-employment verification process with fraud mitigation and identity verification solutions? Explore our innovative solutions today. Learn more 1 Nasdaq finds scams led to $486 billion in losses in 2023, 2024. 2 Research reveals Candidates’ Frustrations with Hiring Process, 2024. 3 Employment Identity Fraud: Do You Know Who You’re Hiring, 2024. 4 Report: Synthetic identity fraud is growing, 2024.