Kroll's Annual Background Screening "Hit Ratio" Report Reveals Importance of Employment
Background Screening as U.S. Job Market Becomes More Competitive and Global
NASHVILLE, Tenn., April 22, 2008 - Employment screening criminal record convictions
continue their upward trend – from 8.5% in 2005 to 9.1% in 2006 and 9.5% in 2007,
according to the annual Hit Ratio Report, released by the Background Screening division
of Kroll, the world’s leading risk consulting firm.
Construction, automotive and retail industry segments had the highest criminal record
hit ratios, while education had the lowest.
Michael Rosen, president of Kroll's Background Screening division, stated, “Background
screening is as important as ever, as evidenced by the trifecta effect of 1) the
U.S. job market becoming more competitive for positions, 2) a need to fill positions
as quickly as possible, and 3) an increasing trend in criminal hit ratios.”
Companies are looking to overseas job markets, which makes pre-employment screening
more complex. “It is now common for a job applicant to have been raised in Japan,
educated in the UK and now seeking employment in the U.S.,” Mr. Rosen says.
As a result, employers are carefully vetting candidates for entry level, senior
management, and positions in between,” he said. “Employers are recognizing that
screening job candidates at all levels is more complex and vital to the well-being
of the organization,” Mr. Rosen added.
Other findings include:
- Industry trends originally revealed in the 2006 Hit Ratio Report continue to gain
ground:
- Food services criminal red flags grew from 12.1% to 13.4%;
- Manufacturing criminal red flags grew from 11.6% in 2006 to 12.6% in 2007;
Employers are conducting more thorough, multi-jurisdictional background checks on
the individuals they hire; and
Employers are screening a greater population of their staff, as well as temporary
employees, vendors, and consultants.
Mr. Rosen added, “With data security and identity theft top of mind these days,
it is especially important to conduct thorough background checks on employees with
access to sensitive personal data.” For example, Kroll’s Fraud Solution’s practice
assisted two employers after organizational data breaches were caused by employees
who had not undergone background checks.
- Two employees at an auto dealership made copies of credit applications and sold
them to various drug rings. The dealership discovered the event when law enforcement
seized a methamphetamine lab and found hundreds of applications along with new driver’s
licenses for those whose identities had been stolen. Kroll’s subsequent investigation
revealed that both employees had prior criminal records and drug charges.
- An accounting firm unknowingly hired an employee who had a criminal record overseas.
The employee set up expense accounts for fictitious employees and used their identities
to charge more than $250,000 worth of goods and services over a two-year period.
Organizations are increasingly seeking a single source background screening provider.
More organizations turn to Kroll for our broad capabilities, which include domestic
and international background checks, executive-level screening, drug screening,
and physical exams. Employers also call Kroll for Form I-9 process solutions.
About the 2007 Hit Ratio Report
The complete Hit Ratio Report, which is available on Kroll's website under "Insights
& Reports", provides key statistics for the seven most common employment screening
criteria, plus detailed analyses of industry-specific hit ratios for 13 industries.
The 2007 Hit Ratio Report is derived from a sample of Kroll’s Background Screening
clients across a variety of industries and company sizes.
Visit 2007 Hit Ratio Report and Industry Analysis
to view the full report.
About Kroll
Kroll, the world's leading risk consulting company, performs a wide range of investigative,
intelligence, financial, security and technology services through offices in more
than 65 cities in over 25 countries. Kroll is a subsidiary of
Marsh & McLennan Companies, Inc. (NYSE: MMC), the global professional services
firm.
About Kroll’s Background Screening division
The Background Screening division of Kroll serves organizations worldwide with comprehensive
screening solutions 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, investment placement, and
institutional admissions. For more information, visit Kroll's
Background Screening page.
Kroll provides identity theft solutions associated with the loss of sensitive personal
information and related identity protection and restoration issues facing organizations
and individuals. Kroll’s Fraud Solutions clients have included Fortune 500 companies,
non-profit organizations, and government entities dealing with healthcare, financial
services, insurance, consumer service, and any activity involving the collection
and use of personal information. Kroll’s Fraud Solutions team presently serves over
10,000 businesses and millions of individual consumers. For more information, visit
Kroll's Fraud Solutions
website.