Background Screening:

AUGUST 2021

Trends in the U.S. and AbroadSponsored by:www.hr.com | 877-472-6648

CONTENTS

23

Executive Summary

4

Background Screening is Popular Worldwide, Nearly Universal
Among Employers with Locations in the U.S.

5

Improving the Quality of Hires and Protecting Company Reputation areMore Important Than Ever

6

Organizations With U.S. Locations are More Likely to Screen
in Most Workforce Categories

7

Conducting a Background Check After a Conditional Offer is More
Common in the U.S.

8

Fingerprint-based Background Checks are Not the Gold Standard

9

Criminal Background Checks are More Popular in the U.S.

11

Criminal Background Screening is the Most Common Recurring Type of Check

12

The Scope of Background Screening is Expected to Increase Outside of theU.S.; Social Media is the New Frontier

13International Screening Capabilities are Vital

14

Most Organizations Do Not Intend to Switch Background Screening Partners
This Year

16

Multiple Types of Organizations Use Background Checks

Background Screening: Trends in the U.S. and Abroadwww.hr.com | 877-472-6648 | copyright © HR.com 2021

Executive Summary
With more remote workers now than ever, professional backgroundchecks are even more important to safeguard today’s increasinglyglobalized workforce.
The Professional Background Screening Association (PBSA)
completes an annual survey of human resources professionals
to identify trends in the expansion of screening in the global
labor market. This report examines background screening trends
worldwide and compares the differences between organizations withlocations in the U.S. and those with no U.S. locations.

protection
verification

vulnerable populations
job historyhire

policy3verification

Background Screening: Trends in the U.S. and Abroad

safetywww.hr.com | 877-472-6648 | copyright © HR.com 2021

Background Screening is Popular
Worldwide, Nearly Universal Among
Employers with Locations in the U.S.
Background screening is widely utilized across the globe, with 93% of
all organizations reporting they conducting some type of backgroundscreening. Moreover, the research shows that while backgroundscreening is nearly universal among organizations with at least
one location in the U.S. (95%), it is slightly less common amongorganizations with no U.S. locations (79%). Further, 76% of organizations
worldwide have a documented screening policy.

Survey Question: Does your organization conduct any type of employment background screening?
Percent responding yes, some or all locations

U.S. locations

No U.S. locations

Average

95%

79%

93%

Survey Question: Does your organization have a documented background screening policy?
Percent responding yes

4

U.S. locations

No U.S. locations

Average

77%

63%

76%

Background Screening: Trends in the U.S. and Abroadwww.hr.com | 877-472-6648 | copyright © HR.com 2021

Improving the Quality of Hires andProtecting Company Reputation are
More Important Than Ever
For the first time in this survey’s five-year history, protecting company
reputation edged out legal and regulatory requirements for one of the top
three reasons organizations conduct background screening.
Fifty-one percent of employers with U.S. locations state that improving
quality of hires is one of their top three motivations for backgroundscreening, up one percentage point from last year. For companies with
no U.S. locations, it is the top reason (61%).
Background screening is increasingly being seen as a tool to make sureorganizations have the right workforce and a strong reputation in themarketplace.
In 2021, the top three reasons for conducting background checks are to:●● protect employees and customers (76%)●● improve the quality of hires (52%)●● protect company reputation (41%)

Survey Statement: Select the three most important reasons as to why your organization conducts
background screening.
80
70
60

77%
56%

51%

61%

53%
40%

50
40
30
20
1005

Protecting employees,customers, etc.

Improve quality of hires
U.S. location(s)Background Screening: Trends in the U.S. and Abroad

Protect company reputation

No U.S. location(s)www.hr.com | 877-472-6648 | copyright © HR.com 2021

Organizations With U.S. Locations
are More Likely to Screen in Most
Workforce Categories
Organizations with at least one U.S. location are more likely to screen
in most workforce categories than those with no U.S. locations. An
exception to this general trend is with respect to the contingent/contract
workers and vendor representatives categories, where organizations withno U.S. locations screen at a higher rate than those with U.S. locations.

Survey Question: For which of the following types of personnel does your organization conduct
background screenings?
Organizations with U.S. locations
10091%

88%

All such individuals

Some of these individuals

80
60

48%
38%

40
20
08%
Full-time employees

13%7%Part-time employees

7%

Contingent/contract workers

Volunteer/unpaid workers

10%

7%

Vendor representatives

Survey Question: For which of the following types of personnel does your organization conduct
background screenings?
Organizations with no U.S. locations
79%

80
70
60
50
4030
20
1006

All such individuals

Some of these individuals

61%
49%

18%

Full-time employees

23%Part-time employees

22%

29%

36%
24%

Contingent/contract workers Volunteer/unpaid workers

Background Screening: Trends in the U.S. and Abroad

19%

Vendor representatives

www.hr.com | 877-472-6648 | copyright © HR.com 2021

Conducting a Background Check Aftera Conditional Offer is More Common inthe U.S.
It has become commonplace for organizations in the U.S. to wait toconduct background checks until after a conditional offer, with a majority(73%) of organizations with U.S. locations reporting that is when they
typically conduct screenings. Outside of the U.S., however, it is morecommon to conduct a background check after a job interview, but before
a job offer.

Survey Question: At what point during the hiring/onboarding process does your organization
typically conduct background screening?
8074%

70
U.S. location(s)

60
50
40
30

42%
30%
16%

16%

203%

100

No U.S. location(s)After a conditional
job offer

After a job interview, but
before a job offer

After completion of a job
application, but before a job
interview

11%
3%
Varies by job level

Note: This data does not include those who responded “Other” or “Don’t know.”

7Background Screening: Trends in the U.S. and Abroadwww.hr.com | 877-472-6648 | copyright © HR.com 2021

Fingerprint-based Background Checks
are Not the Gold Standard
There has long been a false misnomer in the U.S. that fingerprint-based
background checks are the "gold standard." However, fingerprintbased background checks have significant limitations and are
not recommended as a single source for a background check for
employment, volunteer or tenant screening purposes. The 2021 PBSA
survey indicates that criminal background checks are the most common
type of background check (93%), and far more employers rely on national
criminal databases and statewide, county, regional and/or local sources
than fingerprinting.

Survey Question: Which of the following items are included inyour criminal records background screening?
10089%

84%

80

All candidates
Some candidates

60

40

19%
20

0

87%
Statewide/County/Regional/Local Source

Background Screening: Trends in the U.S. and Abroad

8%

National
Criminal Database

13%

Fingerprint-based
criminal searches

www.hr.com | 877-472-6648 | copyright © HR.com 2021

Criminal Background Checks are More
Popular in the U.S.
Worldwide, a majority of organizations conduct both criminal and noncriminal background checks. However, criminal background checks
are more common among companies with U.S. locations, while noncriminal background checks are slightly more common among thosewith no U.S. locations.

Types of Background Checks
100

80

94%75%75%79%

60

40

200

Criminal Background Checks
U.S. location(s)Non-Criminal Background Checks
No U.S. location(s)Note: this data is extracted from two different questions, “Does your organization conduct a criminalrecords check in your background screenings?” and “Does your organization include checks otherthan criminal history in background screening (e.g., reference checks, employment checks)?”

9Background Screening: Trends in the U.S. and Abroadwww.hr.com | 877-472-6648 | copyright © HR.com 2021

When examining what elements are included in a background check,organizations with no U.S. locations are more likely than organization
with U.S locations to conduct education verifications, employmentverifications, social media, and credit/financial background screenings.
For organizations with U.S. locations, driving records, drug and alcohol
testing and sex offender registry searches are more common.

Survey Question: Which of these elements are included within your background screening?
81%

Identity check

87%
72%

Employment verification

88%
68%

Sex offender registry

40%
65%

Drug and alcohol testing

41%
64%

Education verification

87%
60%

Professional license verification

72%
75%

Motor vehicle/driving records

58%
51%

Credit/financial

72%
20%

Social media

67%

020

U.S. location(s)10Background Screening: Trends in the U.S. and Abroad

406080100

No U.S. location(s)www.hr.com | 877-472-6648 | copyright © HR.com 2021

Criminal Background Screening is theMost Common Recurring Type of Check
Among the 19% of organizations that conduct background checks at times
in addition to the initial hiring/onboarding process worldwide, criminal
background screening is the most common type of recurring backgroundcheck (67%). However organizations with no U.S. locations more commonly
conduct recurring credit and social media checks compared to those with
U.S. locations, that place a higher premium on recurring drug testing.

Survey Question: What check(s) do you conduct on an ongoing basis?

807072%
67%

U.S. location(s)No U.S. location(s)

58%

60
5045%

45%

4035%

3032%

35%

35%

24%
17%

2014%

16%
8%

10011

Criminal

Motor vehichle/driving record

Drug testing

License monitoring

Background Screening: Trends in the U.S. and Abroad

Healthcare
sanctionsCreditSocial media

www.hr.com | 877-472-6648 | copyright © HR.com 2021

The Scope of Background Screening
is Expected to Increase Outside of theU.S.; Social Media is the New Frontier
When asked which areas of background screening organizations wereconsidering expanding upon or starting to use, social media was the top
selection worldwide. Further, organizations with no U.S. locations had
significantly higher numbers across the board than those with locationsin the U.S.

Survey Question: Which of the following are you considering expansion of or starting to use?
14%

Social media

36%
9%

Employment verification

34%
8%

Sex offender registry18%
7%

Education verification

27%
6%

Professional license verification

21%
6%

Drug and alcohol testing

20%
6%

Motor vehicle/driving records

14%
4%

Credit/financial

13%
4%

SSN trace/identity check23%051015

U.S. location(s)12Background Screening: Trends in the U.S. and Abroad

2025303540

No U.S. location(s)www.hr.com | 877-472-6648 | copyright © HR.com 2021

International Screening Capabilities
are Vital
The 2021 PBSA survey found that 72% of respondents, regardless oflocation, think it is important for companies to have access to global/
international screening capabilities. Further, 33% report that they expect
to hire more candidates that live or have lived in countries outside theorganization’s location in the next five years.

Survey Question: Do you expect that over the next five years
your organization will hire more candidates who live, or have
lived, outside of your organization’s current locations?

Percent
responding yes

33%

Survey Question: In today’s marketplace, how important is it
for companies to have access to global/international screening
capabilities?

Percent responding
somewhat or very
important

13

Background Screening: Trends in the U.S. and Abroad72%

www.hr.com | 877-472-6648 | copyright © HR.com 2021

Most Organizations Do Not Intend toSwitch Background Screening PartnersThis Year
A majority of respondents (81%) report that they have not switchedbackground screening providers over the last 12 months nor will theylook to do so in 2021.

Survey Question: Have you switched backgroundscreening providers over the last 12 months or will you
look to do so in 2021?

10%

Don’t
know

9%

Yes

81%
No

14

Background Screening: Trends in the U.S. and Abroadwww.hr.com | 877-472-6648 | copyright © HR.com 2021

When considering which background screening provider to use for theirscreening needs, respondents say the most important areas are quality
and accuracy, speed, and cost.

Survey Question: Which is most important to you when
considering which background screening provider to use
for your screening needs? (select up to three)10083%

8058%

6054%
43%

4015%

200152%
Quality andaccuracy

Speed

Background Screening: Trends in the U.S. and Abroad

Cost

Customer
service

Integratedwith ourATS/HRIS
systemPeer
adoptionandfeedback

www.hr.com | 877-472-6648 | copyright © HR.com 2021

Multiple Types of Organizations Use
Background Checks
This survey included organizations of all types and sizes. Forty-two
percent of respondents are from companies with fewer than 100
employees, and 32% have 100-499 employees. Fifty-six percent ofentities represented are privately held, and 19% are non-profit.

Size of Organizations
50

42%

40

32%

30

20

9%

100

Fewer than 100
employees

100-499
employees

500-999
employees

11%

1,000-4,999
employees

Types of Organizations
50

56%
40

19%
30

20

9%

10016

Privateorganizations

Non-profit
organizations

Background Screening: Trends in the U.S. and Abroad

Publicly heldorganizations

8%

Governmentorganizations

www.hr.com | 877-472-6648 | copyright © HR.com 2021

About PBSA
Founded as a non-profit trade association in 2003, the Professional
Background Screening Association (PBSA) was established to represent
the interest of companies offering employment and tenant backgroundscreening services. PBSA currently represents over 650 member companies
engaged in employment and tenant background screening around theworld. PBSA is the trusted global authority for the screening profession. In
pursuit of their mission to advance excellence in the screening profession,
PBSA promotes and advocates for ethical business practices and fosters
awareness of privacy rights and consumer protection issues. For more
information on background screening, visit our website at www.thepbsa.org

About HR.com and the HR Research InstituteThe HR Research Institute helps you keep your finger on the pulse of HR! Poweredby HR.com, the world’s largest community of Human Resources professionals,
the HR Research Institute benchmarks best practices and tracks trends in humanresources to help more than 1.92 million HR professionals (that many people can’t
be wrong!). Companies are backing up their strategic decisions with informed andinsightful HR.com research references!
Over the past few years, the HR Research Institute has produced over 100 leadingedge primary research and state of the industry research reports, along withcorresponding infographics, based on surveys of thousands of HR professionals.
Each research report highlights current HR trends, benchmarks and industry bestpractices. HR Research Institute reports and infographics are available online,
and always free. Visit hr.com/researchinstitute to maximize your HR potential.
#hrresearchinstitute17

Background Screening: Trends in the U.S. and Abroadwww.hr.com | 877-472-6648 | copyright © HR.com 2021