Business

Future of background checks – Trends and innovations in 2023

With an increasing focus on safety and security, employers want to hire employees they trust. Technology has already impacted how background checks are conducted, and this transformation will accelerate in the coming years. Automation and artificial intelligence will become more widespread, allowing background checks to be completed faster and more accurately. For example, some services are using machine learning algorithms to scan legal documents and records to uncover any red flags. It reduces reliance on manual review and cuts down the time it takes to finalize reports.

Integration with recruiting systems 

There will be greater integration between background check services and applicant tracking systems or HR software. Streamlining these workflows reduces duplicate data entry and manual follow-ups. It creates a more seamless experience for both recruiters and candidates. Some solutions are already allowing background check requests and reports to be accessed directly within the hiring platform itself. Going into 2023, this embedded experience will become a baseline expectation.

Strategic partnerships

More strategic partnerships will emerge between background check providers, assessment companies, drug testing services, and other HR vendors. These technology integrations and channel partnerships give employers a more holistic view of each job applicant. Large background check firms will continue to acquire startups that build complementary skill testing and behavioral analytics capabilities. Smaller niche providers may also join forces with established players to expand their reach.

International checks 

Many companies are now sourcing talent globally, so performing international background checks will become more commonplace. Providers that retrieve primary source records from many countries will have an edge in the market. Employers will expect overseas criminal record searches, address history tracing, and education/employment verifications as part of a comprehensive review. It instills consistency in screening criteria across domestic and international candidates.

Access to new data sources

Innovations around data collection will enable the best background check providers to unearth insights from previously inaccessible sources. For instance, some firms are partnering with share economy companies to scan information connected to a candidate’s user profile or transaction history. New positions around public data analytics are also being created to harness unstructured web data. Furthermore, the usage of verifiable credential technology and decentralized records through blockchain could allow candidates to own and share their validated backgrounds.

Continued focus on compliance

With regulators closely monitoring the background screening sector, providers will keep investing heavily in compliance and data security. Most legitimate services adhere to guidelines around dispute resolution and adverse action notification. Many also pursue stringent privacy frameworks to ensure the confidential handling of applicant data. In 2023, regulators will issue additional guidance around the usage of artificial intelligence, which the industry will need to adopt. The rules may be tighter around the handling of international data transfers.

Focus on quality over speed

While automation will allow background checks to be executed faster, providers will need to avoid compromising quality. Future systems should incorporate checks and balances to promote accountable reporting. For instance, key automated decisions could require secondary human review. Some firms are also employing data scientists and forensic specialists to inspect algorithmic systems for accuracy and fairness. Prioritizing compliance, auditability, and transparency will be vital even in an increasingly digital background screening process.

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