What SMMEs Can Learn From HireRight's 2023 Benchmark Report

Some challenges remain the same from the startup to the small business and the growing enterprise. No matter how much you grow, there will always be a few processes that require frequent attention. For example, two aspects are how you use background checks for employment and, ultimately, how you recruit new applicants. You'll always need the most appropriate staff to protect your business from those who aren't suitable to be a part of your team. For SMMEs, what are the most important lessons to learn in this space?

With the publication of HireRight's 2023 Global Benchmark Report on recruitment and screening, those lessons are plainly visible in the data. Compiled by speaking to and surveying thousands of businesses worldwide, the new Benchmark Report provides important insights into current trends and procedures. Here are many valuable takeaways for SMMEs looking to stay ahead of the curve and improve hiring procedures that you shouldn't miss.

According to the data this year:

Background Check Usage is Still on the Rise

Around the world and in America, more companies continue embracing the value of using an employee background check. Research shows that in every region, adoption rates for background checks ticked up over the last year to a four-year high. This is true not just for criminal background checks but also for other types of employment verification. 

According to the same research, two-fifths of those conducting background checks frequently discovered convictions that applicants did not discuss. The message here is clear: background checks are a must-have part of the hiring process, and more companies continue to embrace that fact. For SMMEs, now is the time to embrace better screening.

Businesses Still Require Speedy Screening

As companies continue to invest in better screening services, they want to select partners with the right capabilities to meet their needs. According to the report, the number one attribute most companies looked for in a partner was speed. Reducing "time to hire" metrics is a priority across many industries, and screening candidates can sometimes create a bottleneck in the recruitment process.

SMMEs shouldn't neglect this lesson: speed does matter here. Otherwise, suitable candidates could wait weeks to clear a background check. Working with a provider with the skill and capability to deliver reliable reports rapidly is an important step.

Drug Screening Remains Important and Popular Despite New Restrictions

According to HireRight, about 61% of surveyed companies in the United States continue to use drug screening during their hiring process. It is interesting to note that the testing rate remains so robust despite a challenging (and often changing) regulatory environment. For some SMMEs, drug testing might seem unnecessary or added expense. However, evidence shows that many employers still see the value of preserving a drug-free workplace.

That's not to say that changing rules haven’t had an impact. Of companies that don't test, 26% said that it was due to the decriminalization of marijuana. However, it's important to note that drug tests can reveal the usage of far more dangerous drugs. If anything, marijuana decriminalization could make it easier for employers to interpret drug tests and the impact of their results on a hiring decision.

Tracking Systems and Screening Provide Streamlined Solutions

Building automation into the hiring process will take center stage in the coming years, and even small companies can benefit. Part of this automation trend comes in the form of Applicant Tracking Systems (ATS). An ATS streamlines many hiring steps by centralizing everything in a digital platform. Over the last year, usage in the USA has increased from 42% to 49% of surveyed companies. Half of those say they've integrated their screening provider into their ATS.

In other words, many companies have sought ways to automate obtaining background checks. This includes key compliance steps. The result: a stronger, safer process that causes fewer problems for your organization. It's a technology worth investigating.

Social Media Screening Ticks Up Slightly But Remains Risky

Should your small business use social media to look for information about your applicants? It's a risky business because of an uncertain regulatory environment. In some states, it's already illegal; in many other states, it exists in a grey area. Adoption remains sluggish in the US, though HireRight recorded an uptick over the last year. From 2022 to 2023, the usage of social media screening increased from 6% of respondents to 10%. Globally, most other regions also do not rely on intense social screening.

In North America, 26% of businesses said they didn't screen social media due to legal concerns, such as the potential for making decisions based on protected class categories. SMMEs should consider focusing more on criminal screening and resumé verification for now rather than digging deep into social media postings. 

Many Discrepancies Appear in Employment and Education Verification

Speaking of resume verification efforts, where should you focus your time and energy? According to this year's report, employers often uncover lies about candidates’ educational and employment backgrounds. Education discrepancies increased from 16% to 21% over the last year, while employment discrepancies held relatively steady at 32% of respondents. 

Some candidates will go to any length to secure a job, including lying during the hiring process. These statistics reveal the continued importance SMMEs should place on non-criminal record screening solutions. Criminal background checks remain important, but you must also put effort into detecting falsehoods in other areas.

Vendor and Contractor Screening Continues to Lag

SMMEs often rely on third parties to extend and augment their capabilities. This might include independent contractors or outside vendors. According to HireRight, screening for temporary workers has spiked dramatically over the last year, rising from 59% to 75% of businesses. That helps to close a crucial loophole in the hiring process. 

However, the same data indicates that less than half of respondents extend the same diligence to independent contractors. At a time when many SMMEs use contractors for important tasks, this is a key vulnerability that shouldn't go unaddressed. Using the same screening techniques for contractors that you do for employees is essential. Otherwise, you could leave the door open for an unpleasant surprise regarding discrimination later.

Creating Hiring and Screening Processes Ready for the Future

Recent years have had no shortage of disruptive events and paradigm shifts in how businesses work. Employment practices and applicant expectations have undergone big changes. For SMMEs, navigating this space can sometimes seem intimidating or almost impossible —especially with employment law changing so frequently. However, a measured strategy and the right screening partner can still provide the framework you need to achieve successful outcomes.

Whether it's securing faster, more detailed background checks for employment or updating your drug screening policy to align with shifting values, this year's Benchmark Report offers many valuable lessons. Now is a good time to take a step back, examine your existing approach to recruitment and screening, and ask: what can we do better? There's no better time than the present to start planning for the future of your business.