Tuesday, April 26, 2005

ADP hiring index for Background Checks

I'm very curious if ADP's background check press release that the number of checks has tripled since 1997 is a realistic number. While I'm sure that as talent management has taken over the industry, the number of checks has increased in order (not to verify skills) to ensure the proper talent is aquired, I'm not sure the number has actually tripled.

ADP acquired their background check organization in 2001 or 2002. With that, I'm thinking that ADP's sales engine significantly contributed to the growth of THEIR background check numbers - not total background checks in the industry. Just wondering as I'm always reporting on statistics, and some of them doen't make sense.

Here's some stats from the press release:

Reference Verifications: 50 percent of employment, education and/or credential reference checks revealed a difference of information between what the applicant provided and the source reported. This finding represents a two percent decrease compared to the 2004 Hiring Index. In performing the reference verification checks, seven percent of the information differences were received with negative remarks from the source in regard to the applicant. In comparison to last year, this is a one percent decrease.

Criminal Records: Five percent of records checked for a criminal record in the last seven years revealed the existence of one. This finding is consistent with the 2004 and 2003 Hiring Indexes.

Driving Records: 29 percent had one or more violations or convictions on their driving record, a two percent decrease from last year. In addition, two percent had one or more drug or alcohol violations on their driving record in the last seven years.

Workers' Compensation Claims: Among checks conducted to see if the applicant had a previous workers' compensation claim, eight percent showed the existence of one. A two percent decrease compared to checks of this type performed in 2003.

Credit Records: 45 percent of credit records checked showed a judgment, lien or bankruptcy, or that they had been reported to a collection agency. This finding represents a one percent increase compared to the previous year.