Kroll Releases Annual Background Screening "Hit Ratio" Report
Report reveals upward trend in percentage of job candidates with "red flags"

NEW YORK – May 22, 2007 – Employers are seeing an increasing number of "red flags" in job candidate background checks, according to a new 2006 report from Kroll, the world’s leading risk consulting company.

Kroll's annual Hit Ratio Report and Industry Analysis, released by the firm's Background Screening division, reveals another year-over-year increase in criminal record hits (from 8.5% to 9.1%) and discrepancies in past employment verifications (from 36.5% to 49.4%) and education verifications (from 14.1% to 21.6%).

The complete report, available on Kroll's website under "Insights & Reports", provides hit ratios for the eight most common employment screening criteria, plus detailed analyses of industry-specific hit ratios for 16 industries.

Barry Nadell, a senior vice president of Kroll's Background Screening division and author of the report, attributes the upward trend to four key factors:

• Today's Background Checks "Dig Deeper" to Include More Complete Data – "Not only are employers making it mandatory that potential employees pass a drug test and undergo a criminal background check before getting hired, they're digging deeper than ever before," says Nadell. He advises employers to choose a screening provider that builds a reliable address history based on Social Security number, rather than relying on an applicant-provided residence history. This information leads to a more complete multi-jurisdictional criminal records search.
• Companies Are Screening All Employees, Not Just Managers – "Clients that used to only require background checks for managers are now realizing that hiring risks exist at all levels of an organization," says Nadell. Companies are also increasingly screening temporary employees, vendors and consultants, all of whom could also pose a threat to their business.
• Smaller Companies Are Recognizing the Importance of Screening – "Hiring risk exists regardless of the size of your organization," says Nadell. Large, complex companies – and those in regulated industries – have traditionally been more concerned about employee screening. Today, small and mid-sized organizations are also making background screening a standard part of their hiring processes.
• Screening Methodology Is Growing More Sophisticated – "We are consistently looking for new and better ways to serve our clients," says Nadell. "What are the potential liabilities in an applicant’s background? How can we find them?" As the scope of services offered by background screening providers like Kroll is rapidly expanding, providers often discover previously unseen adverse information. For example, Kroll can verify education and employment histories in numerous different countries, uncovering discrepancies that applicants once believed could not be accurately searched.

"Overall, the increases we have seen over the past few years point to employers' heightened awareness of the importance a thorough background check plays in the hiring process," says Nadell. "The very nature of the background screening industry is changing, as larger numbers of organizations flock to providers to reduce risk and ensure they are bringing the best possible employees on board."

Go to http://www.kroll.com/about/library/hit_ratio to view the full 2006 Hit Ratio Report and Industry Analysis.

About the 2006 Hit Ratio Report and Industry Analysis
The 2006 Hit Ratio Report and Industry Analysis was developed by InfoLink Screening Services, which was acquired by Kroll in March 2006 and is being integrated into the firm's existing Background Screening division. InfoLink, under the leadership of founder Barry Nadell, has released the Hit Ratio Report and Industry Analysis annually since 2002.

About Kroll
Kroll, the world's leading risk consulting company, provides a wide range of investigative, intelligence, financial, security and technology services through offices in more than 65 cities in over 25 countries. The Background Screening division of Kroll provides organizations worldwide with comprehensive screening services that help them make empowered decisions and mitigate risks through industry-leading expertise and cutting-edge technology. The accurate, compliant, and timely information that Kroll supplies helps its clients make informed choices in critical areas such as employment, vendor selection, identity theft prevention and assistance, investment placement, and institutional admissions. Kroll is a subsidiary of Marsh & McLennan Companies, Inc. (NYSE: MMC), the global professional services firm. For more information, visit http://kroll.com/services/screening/

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