January 22, 2010 Background Checking: General Background Checks

Background Checking | ©SHRM 2010 General Background Checks 2

Background Checking | ©SHRM 2010 Please indicate which of the following policies and procedures your organization has in place for conducting reference, credit and/or criminal background checks on job candidates A notification to candidates that any false or intentionally misleading information provided in the application process is grounds for retracting job offer 95%92% A policy that no criminal background checks are conducted without signed consent from the candidate91%-- A policy that only designated personnel will have access to reference, credit and/or criminal background check information89%-- A written policy for employees to follow regarding conducting reference background checks79%38% Standardized questions for the person conducting the reference background check on behalf of the organization78%81% A written policy for employees to follow regarding conducting criminal background checks78%-- A policy that no references are obtained without signed consent from the candidate74%72% A policy that no credit background checks are conducted without signed consent from the candidate71%-- Training those responsible for checking references to look out for discrepancies or “red flags,” and to ensure compliance with applicable requirements 70%52% A policy to maintain reference, credit and/or criminal background check information in a file separate from employees’ personnel file 66%-- A requirement that all attempts to verify professional references be documented, no matter what the outcome61%73% A written policy for employees to follow regarding conducting credit background checks53%-- A policy that no job candidate is offered a position unless professional references have been contacted52%48% A policy to coordinate reference, credit and/or criminal background check with legal department and/or legal counsel47%-- 3 Note: n = Respondents who answered “not sure” were excluded from the analysis. “--” means that option was not available in 2004.

Background Checking | ©SHRM 2010 Please indicate which of the following policies and procedures your organization has in place for conducting reference, credit and/or criminal background checks on job candidates. A written policy for employees to follow regarding conducting criminal background checks: Large (82%) > Medium (69%) 4 Note: Comparison by organizations’ staff size and region represent those who answered “yes.” Small = 1-99 employees Medium = employees Large = 500 or more employees Comparison by Organizational Staff Size A policy that no references are obtained without signed consent from the candidate: Southern region (84%) > Midwest (66%) Comparison by Organization's Region

Background Checking | ©SHRM 2010 Which background checking or verification does your organization partially or completely outsource? 5 Note: n= “N/A” responses were excluded from this analysis.

Background Checking | ©SHRM 2010 When applicable, does your organization’s background check on potential employees include BOTH domestic (U.S. only) and international reference, credit and/or criminal background checks? 6 Note: n= “N/A” and “Not sure” responses were excluded from this analysis.

Background Checking | ©SHRM 2010 When applicable, does your organization’s background check on potential employees include BOTH domestic (U.S. only) and international reference, credit and/or criminal background checks? Background checks include both domestic and international background checks Comparison by Organization Staff Size Comparison by Organization Sector Reference background checksLarge (57%) > Medium (40%) Nonprofit (67%) > Privately owned for-profit (42%) Credit background checksLarge (40%) > Medium (19%)-- Criminal background checksLarge (49%) > Medium (31%)-- 7 Note: n= “N/A” and “Not sure” responses were excluded from this analysis. “--” indicates that there were no significant differences in this category. Small = 1-99 employees Medium = employees Large = 500 or more employees

Background Checking | ©SHRM 2010 Has the number of reference, credit and/or criminal background checks your organization conducts on job applicants increased, decreased or remained the same as a result of the economic downturn? 8 Note: n= “N/A” responses were excluded from this analysis.

Background Checking | ©SHRM 2010 Demographics: Organization Industry Industry Health care, social assistance (e.g., nursing homes, EAP providers)18% Services—professional, scientific, technical, legal, engineering12% Manufacturing—other11% Educational services/education8% Government/public administration—federal, state/local, tribal5% Financial services (e.g., banking)5% Transportation, warehousing (e.g., distribution)5% Insurance5% Retail/wholesale trade4% Construction, mining, oil and gas3% Other services (e.g., nonprofit, church/religious organizations)3% High-tech3% 9 Note: n=312. Percentages may not total 100% due to rounding.

Background Checking | ©SHRM 2010 Demographics: Organization Industry (continued) Industry Telecommunications3% Utilities3% Services—accommodation, food and drinking places2% Publishing, broadcasting, other media2% Arts, entertainment, recreation2% Consulting1% Manufacturing—auto/auto-related1% Real estate, rental, leasing1% Association—professional/trade1% Pharmaceutical1% Other1% 10 Note: n=312. Percentages may not total 100% due to rounding.

Background Checking | ©SHRM 2010 Demographics: Organization Sector 11 Note: n = 319. Percentages may not total 100% due to rounding

Background Checking | ©SHRM 2010 Demographics: Organization Staff Size 12 Note: n = 312. Percentages may not total 100% due to rounding

Background Checking | ©SHRM 2010 Demographics: Organization Region 13 Note: n = 312. Percentages may not total 100% due to rounding

Background Checking | ©SHRM 2010 Demographics: Organization Operations Location 14 Note: n = 315. Percentages may not total 100% due to rounding

Background Checking | ©SHRM 2010 Background Checking Response rate = 19% Sample comprised of 433 randomly selected HR professionals from SHRM’s membership Margin of error is +/- 5 Survey fielded November 18 – December 4, Methodology