Fifty-three percent of employers say they do not use background checks during the hiring process, which is a jump from 40 percent in 2010 and 39 percent in 2004, according to new research by the Society for Human Resource Management.
"Human resources professionals are looking more closely at the job-relatedness of these practices," says Mark Schmit, SHRM's vice president of research. "As a result, fewer employers are using background checks, and checks are often done for specific jobs or to comply with the law."
According to the research, respondents use criminal background checks to reduce legal liability for negligent hiring at 52 percent and to ensure a safe work environment for employees at 49 percent. Respondents using credit check report the reasons being to cut or prevent theft at 45 percent and to reduce liability for negligent hiring at 22 percent.
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During the hiring process, 94 percent of respondents conduct criminal background checks following a job offer or a job interview, and 91 percent of respondents use credit checks after a job offer or job interview.
Negative credit information typically is not a hiring barrier as 80 percent of respondents say they have hired a job candidate with a poor credit report. In fact, previous work experience, a good fit with the job and organization, and specific skills are cited as the most important hiring factors, respondents say.
Another 64 percent of respondents give job candidates the chance to explain their credit checks prior to hiring decisions, and most respondents say they focused on credit histories ranging between two and seven years. Only 6 percent of respondents report that all years of credit history are equally important, which dropped from 17 percent in 2010.
Among the 34 percent of respondents that conduct credit checks on certain job candidates, 87 percent say they do so for positions responsible for finances while 42 percent say they are used for senior executive positions.
The research also shows that 69 percent of respondents conduct criminal checks on all job candidates, but 18 percent of respondents only conduct them on specific candidates, particularly for positions with fiduciary responsibilities and those with the ability to attain highly confidential employee information. Background checks for job candidates working with children, the elderly and the disabled are more likely than for positions for which state law requires background checks or for job candidates who have security responsibilities, as well.
When it comes to criminal background checks, 96 percent of respondents say a convicted violent felony, and 74 percent say a convicted nonviolent felony would prevent them from making an offer; however, 58 percent of respondents give job candidates the chance to explain the results of their criminal background checks before a hiring decision is determined.
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