America's background check services industry is rising, with $4.3 billion in revenue recorded in 2022. It is expected to grow more as many businesses hire people inside and outside the US.
Why would someone do a background check in the first place? Whether for hiring or personal purposes, these services protect your business and yourself from theft, loss, or damage.
In this article, you'll explore the latest background check statistics and trends. Read on!
- 96% of US employers conduct a criminal background check.
- 22% of gun owners in America purchased their guns without getting a background check.
- 18% of people perform a background check on their date.
- 70% of employers perform a social media screening before hiring.
- 74% of employers background check applicants' driving records.
- Background checks cost employers an average of $30 to $50 per employee.
- Nearly 40% of employees who committed fraud have been calling out HR-related red flags.
- 1 in 6 people has used fake job reference services when applying.
How Common Is a Background Check?
In America, 96% of employers conduct background screening for applicants. It's to avoid hiring thieves, sex offenders, and criminals who could put the organization at risk.
When a third-party background check company performs the check, employers must get written consent from the applicant. More intriguing background check statistics and trends are in the upcoming sections.
Background Check Statistics
There are many reasons why people undergo background checks. It might be for an employer who screens applications, a gun store, or a safety-minded person.
Below are the reasons why background checking is essential:
1. 96% of employers in the US conduct a criminal background check.
In 2019, most employers checked applicants' criminal histories using county criminal records and national databases.
The applicant will receive the result of the background check if there is a finding of:
- Felony convictions
- Misdemeanor convictions
- Arrests and warrants
- Court records
- Sex offenses
- Incarceration records
Certain states, like California, Texas, and New York, have limitations on criminal records. As per the Fair Credit Reporting Act, criminal background check reports are not allowed to contain offenses older than seven years.
2. 22% of gun owners in America purchased their guns without getting a background check.
(Gillfords Law Center)
Every year, millions of Americans acquire firearms without having their backgrounds checked. Enforcing background checks when acquiring a gun is more crucial than ever.
It keeps dangerous weapons out of the hands of violent or reckless people. This keeps everyone safer and reduces the chances of gun accidents happening.
3. 18% of people perform a background check on their date.
(Thriving Center of Psychology)
Nearly 1 out of 5 people admit to doing a background check on their love interest rather than relying on what Google and social media can give them.
Running a background check on someone is the fastest way to get to know them. It also gives you a sense of security if you meet someone you do not know.
Background Check Trend Statistics
Employers in the US have long been convinced to do background checks. 89% of organizations do it to sustain and protect their operations, employees, and consumers.
The following statistics will show how employees will be background checked in 2023:
4. 70% of employers perform a social media screening before hiring.
Employers are going beyond the traditional background checking of candidates. 3 out of 10 employers have someone check candidates' social media posts, shared posts, and relevant information.
If you're job-hunting, check your social media and delete inappropriate or questionable content.
5. 74% of employers background check applicants' driving records.
Employers think that driving records are one of the many ways to judge a person's character. Small companies only check a candidate's motor vehicle driving records when the job requires actual driving skills.
However, large businesses incorporate this data into background checks, even if it's not part of the job.
6. Background checks cost employers an average of $30 to $50 per employee.
Background checks average $30 to $50 per employee, depending on where you get them done. However, if a large company requests an extensive background check, it will cost about $100 per employee.
Getting help from a third-party company to perform background checks might be costly, but it will save the company more time.
Background Check and Employee Theft Statistics
In America, employee theft is widespread. Over 33% of all business bankruptcies result from theft, costing businesses $50,000 annually.
Employers in America are doing their best to screen and perform background checks to avoid this dilemma. According to these statistics, background checks prevent employee theft:
7. Nearly 40% of employees who committed fraud have been calling out HR-related red flags.
Employees who committed fraud received a call from HR before or after being caught stealing from the company. The standard HR red flags are negative performance evaluations and fear of job loss.
Employees may not have the motivation to commit such theft when applying for a job, but they can plan it later while working for the company.
8. 1 in 6 people has used fake job reference services when applying.
16.9% of those who paid for job reference services, which average $145 per reference, included false employers and paid actors.
This is why in-depth background checking is essential when hiring an applicant. Scams and fraud are evolving, which could put the organization at risk.
The Bottom Line
Employee theft can happen in any size firm. Doing a background check on employees is essential, and it should be done regularly.
A background check protects the company, its personnel, and its resources. There are several ways of performing it, which the employer or a third party can do.