June 1st, 2023 | Joy Henry, Head of Technology and Business Services, Sterling
Protecting Clients and Maintaining Credibility: Important Elements of Background Checks for Staffing Agencies
According to the American Staffing Agency, there are around three million temporary and contract employees working for US staffing companies during an average week. That means staffing companies are hiring more than 16 million temporary or contract employees in an average year.
Staffing agencies play a critical role in connecting job seekers with employers. In doing so, staffing agencies must ensure that candidates are qualified for the job and are trustworthy employees. Background checks help staffing agencies ensure that candidates meet the end client’s standards.
Recently, as the economy and job market shift into increased uncertainty, staffing agencies must adapt to these changing hiring and economic trends.
How can staffing agencies leverage background checks to optimize their hiring process, cut down costs, and increase efficiencies in order to prepare for an economic recovery? We explore the key components that staffing companies should look for while assessing a background check provider:
Recently, the staffing industry is seeing a shortage of skilled labor, which is leading to competition for qualified talent. Staffing agencies are competing to attract candidates who meet their client’s specifications. Any delays in the hiring process can result in the loss of a strong candidate. In fact, 90% of Sterling’s Staffing Leadership Council, which consists of leaders in the staffing space, rank “speed and/or quick turnaround” as the most important element in background screening. Having a screening provider who can streamline and optimize your hiring process can help you hire better talent more quickly for your end client.
2. Cost Efficiencies
In an industry that hires in high volumes, it is important to optimize your hiring program by balancing spend with performance, turnaround times, and risk profiles. Working with a screening provider who has niche staffing industry expertise can help optimize your program to be cost-efficient, while still meeting all your hiring goals.
3. Ability to Hire at Scale
By integrating their HR tech stack with technology-enabled background screening fulfillment, the staffing industry can benefit from simplified, more efficient background checks. The use of advanced technology in screening allows staffing agencies to easily screen candidates, regardless of volume. As a result, having a tech-enabled screening process allows you to hire a large volume of candidates faster.
4. Reporting and Analytics tools
As you optimize your hiring program, it is important to leverage analytics and data to identify both areas of strength and areas for improvement. Sterling’s Analytics Hub offers self-service analytics dashboards that provide near real-time data about your program. The visualizations are interactive, providing both a high-level view of your program and the ability to drill down to the order level. These tools can help you make a more efficient screening program.
Background checks are an essential tool for staffing agencies to help ensure that candidates are qualified, reliable, and trustworthy. Background checks protect clients from liability, maintain the reputation of staffing agencies, and improve safety in the workplace. While there are legal, cost, and time considerations involved in conducting background checks, staffing agencies can balance these different considerations with the right background check partner and still be able to prioritize the safety and well-being of all employees and clients by making background checks a standard part of their screening process.
Sterling is not a law firm. This publication is for informational purposes only and nothing contained in it should be construed as legal advice. We expressly disclaim any warranty or responsibility for damages arising out this information. We encourage you to consult with legal counsel regarding your specific needs. We do not undertake any duty to update previously posted materials.