While HR technology is helping to verify candidate information, many questions remain about AI’s current and future role.
Debbie Bora
Employee background checks remain an important part of the hiring process. 46% of organizations Risk management is reported to be the most important factor. Cost also remains a high priority, with 67% agreeing, as does speed (48%). But the world of work is constantly changing, and so must the background check landscape.
“There's a lot going on in the background screening space with technology,” says Brian Chapman, CEO of MBI Worldwide Background Checks and Drug Screening. Various HR technologies play a big role in the recruiting and onboarding process, and when they come together to create a positive experience, they'll improve candidate retention throughout the process.
Technology can also have a positive impact on turnaround times. Nearly half of those surveyed by First Advantage said 2024 Annual Trends Report With speed cited as a top priority, HR departments are turning to technology to aid in the process.
“Previously, slow hiring processes forced organizations to scramble to fill positions, which can be a huge issue for the hospitality and retail industries,” explains Kristen Faris, SVP of Customer Success, Solutions and Partnerships at Checkr. “By embracing technology and investing in technology with an easy-to-use interface and automating the process, both hiring teams and candidates can access insights into the current status and completion date of each background check.” This accessibility not only helps HR departments stay ahead of seasonal hiring demands, but it also provides a better candidate experience with more accurate information and faster communication about hiring periods.
Even the crucial background check step could be positively impacted. “There's been increasing pressure from HR departments to speed up turnaround times for consumer reports,” Chapman notes. “The longer a report takes, the more likely an applicant is to leave for another employer. Some of these turnaround issues are being addressed by improved technology on the background checker's side.”
The main benefits of background checks include cost (67%), speed (48%) and risk management (46%).
Some of today's technology can help vet applications to improve candidate matching and stay up to date with ever-changing regulations and compliance. “Screening software can quickly process applications to identify suitable candidates based on set criteria such as experience, skills, and availability,” says Faris. “Automating the background screening process also takes into account complex state and county regulations and laws to ensure organizations are in compliance with necessary requirements.”
While artificial intelligence is making inroads into many HR processes, it's still in its infancy in background checks. Kevin Heath, CEO of CNet Technologies, said using AI at this point raises a lot of questions. “How much can we trust AI? Will it miss something it should find? And if it does, what risk do we put ourselves at?” he asks.
already Many state and local laws Governing the use of AI in the recruiting process. When it comes to background checks, HR leaders report concerns that AI will not interpret data correctly or draw incorrect conclusions about candidates. There are challenges to be addressed. Only time will tell, but Heath believes that once potential issues are ironed out, AI has the potential to reduce costs and perform advanced compliance functions.
AI can help parse and categorize data, as it often comes from a variety of sources. “AI can automatically categorize and organize candidate data,” Faris says.
She gives an example of where AI can be a major time-saver: As companies expand their talent pool and hire across the U.S., different states may have different criminal laws for the same charge. Checkr used AI to categorize charges and found that only 0.3% of the charge data returned required manual intervention. Faris says AI helps organize charge data into categories, and when combined with automation technology, HR leaders can potentially automate decisions about which cases are relevant and which aren't for a particular role. This process reduces the time needed to vet candidates.
Chapman believes other processes also require more due diligence to better understand the power of AI and background checks. Currently, applications are tested, audited and retested, and AI technology could drastically reduce processing times, allowing manual tasks to be performed more quickly and efficiently, he said. But for now, HR needs to pay attention.
“Compliance is the biggest risk in using AI,” Chapman says. “AI must be taught how to perform within industry compliance frameworks, which are very broad and complex. AI will not be truly adopted unless this risk is eliminated for organizations.”
