First Advantage Background Screening Trends Report: EMEA
January 2011 - June 2014
TRENDS REPORT
INFORMATION YOU NEED. PEOPLE YOU CAN TRUST.
TRENDS REPORT
The changing landscape of verifications screening across Europe, the Middle East and Africa
2
TABLE OF CONTENTS
Dear Readers,
Hello and welcome to our report into
verifications screening in EMEA.
At First Advantage, we have seen how
background screening in EMEA has changed
markedly over the last three years. While
there is no shortage of anecdotal evidence
around these changes, we wanted to
investigate the data to see what it could tell
us. The key findings of that investigation are
summarised here in our first spotlight report
on verifications screening in EMEA.
This report highlights some of the key
findings and trends in verifications for our
region, including volumes of checks and
discrepancy rates over time and across
industries, for education, employment and
professional verifications.
We hope you find this report useful and
insightful. To discuss the results in more
detail or provide feedback for future reports,
please get in touch. Thank you.
Yours sincerely,
Traci Canning
Senior Vice President
& Managing Director, EMEA
3 Introduction
4 Discrepancy Rates
5 Discrepancy Rates by Type of Verification (Education and Academic Qualifications)
6 Discrepancy Rates by Type of Verification (Employment History)
7 Discrepancy Rates by Type of Verification (Professional Qualifications, Licences, and Membership)
8 Discrepancy Rates by Candidate Type (Permanent vs. Contingent Workers)
9 Discrepancy Rates by Candidate Type (Permanent vs. Contingent Workers by Type of Check)
10 Discrepancy Rates by Sector
11 Discrepancy Rates by Sector: Professional Services
12 Discrepancy Rates by Sector: Technology
13 Discrepancy Rates by Sector: Legal
14 Discrepancy Rates by Sector: Staffing and Recruitment
15 Discrepancy Rates by Sector: Financial Services
3BACKGROUND SCREENING TRENDS - EMEA
Key Findings
• Almost a third of verifications uncover discrepancies• Major discrepancies persist• Education history most likely to contain discrepancies• Discrepancy rate highest in professional services sector• Discrepancy rate significantly higher for contingent workers
Hello and welcome to our latest report into the changing landscape of verifications
screening in Europe, the Middle East and Africa.
In the period from January 2011 to December 2013, the volume of checks processed
rose by more than 25% as more employers appreciate the value of screening and
economic optimism has spread.
This growth has been generated by increased demand for both contingent and
permanent worker checks, reflecting a shift in human resource behaviour that
recognises the risks posed by all employees, whether recruited on a permanent or
contract basis.
Most Requested Checks
• Employment history• Identity verification• Credit check• Criminal record check• Education history• Professional qualifications• Other (e.g. adverse media and global watch lists)
Introduction
INTRODUCTION
Increase in volume
of checks processed
between January 2011
and December 2013
+25.1%
4BACKGROUND SCREENING TRENDS - EMEA
DISCREPANCY RATES
Average Discrepancy Rate
The prevalence of discrepancies in candidates’ education, employment and professional
histories indicates that the ‘culture of overstatement’ persists in EMEA.
The rate of major discrepancies – those which raise significant cause for concern – has
remained broadly flat (8.7% on average).
The rate of minor discrepancies – those which are considered less of a concern – has
seen a gradual decline. This reflects a change in behaviour we’ve been witnessing over
recent years, as clients adjust their screening policies to become less sensitive to, for
example, brief periods of unemployment and inaccuracies about a candidate’s former
job title/role. Employers are looking for ways to streamline the hiring process, focusing
on the ‘major’ discrepancies which matter most to their recruitment decisions.
Almost a third of all verifications
uncover discrepancies.
27.2%
Minor: 18.6% | Major: 8.7%
5BACKGROUND SCREENING TRENDS - EMEA
DISCREPANCY RATES BY TYPE OF VERIFICATION
Education and Academic Qualifications
2011 2012 2013 2014(Q1-2)
Overall 33.9% 37.8% 35.1% 32.4%
Minor 21.4% 23.0% 21.9% 19.5%
Major 12.5% 14.8% 13.2% 12.9%
2011 2012 2013 2014(Q1-2)
Education and Academic Qualifications
Of all three verifications, our results show that a candidate’s education history is more
likely to contain discrepancies than any other. Over the three years covered by this
report, more than a third of education checks uncovered a discrepancy, of which nearly
two thirds were considered ‘major’ by our clients.
2012 was the worst year for education discrepancies, with a rate of 37.8%. In 2014 to
date, major discrepancy rates have returned to 2011 levels after peaking in 2012 at
14.8%. The rate of minor discrepancies has fallen overall to 19.5% having also peaked
in 2012 at 23.0%.
40%
30%
20%
10%
0%
21.4% 23.0% 21.9% 19.5%
12.5% 14.8% 13.2% 12.9%
35.2%
Overall: 35.2%Minor: 21.8% | Major: 13.4%
6BACKGROUND SCREENING TRENDS - EMEA
DISCREPANCY RATES BY TYPE OF VERIFICATION
Employment History
2011 2012 2013 2014(Q1-2)
Overall 28.2% 25.8% 23.1% 18.6%
Minor 21.6% 18.3% 16.0% 12.5%
Major 6.6% 7.5% 7.1% 6.1%
One in four verifications uncover discrepancies in a candidates’ employment history.
Major discrepancies have remained steady, peaking at 7.5% in 2012 and averaging at
7.0% overall.
It is here that we see the first strong evidence of recruiters exercising greater tolerance
and adjusting their discrepancy matrices to become less sensitive to, for example, very
short periods of unemployment/inactivity and slight differences in previous job title
and role.
2011 2012 2013 2014(Q1-2)
Employment History
30%
20%
10%
0%
21.6% 18.3% 16.0% 12.5%
6.6% 7.5% 7.1% 6.1% Overall: 25.0%Minor: 18.0% | Major: 7.0%
25.0%
7BACKGROUND SCREENING TRENDS - EMEA
DISCREPANCY RATES BY TYPE OF VERIFICATION
Professional Qualifications, Licences and Memberships
Overall: 23.9%Minor: 13.1% | Major: 10.8%
2011 2012 2013 2014(Q1-2)
Overall 24.4% 25.1% 23.1% 20.5%
Minor 14.1% 13.2% 11.8% 12.8%
Major 10.4% 11.9% 11.3% 7.7%
Professional verifications cover qualifications, licences and memberships not covered
by an education check. The rise of ‘diploma mills’ or ‘accreditation mills’, which offer
sub-standard or bogus degrees in exchange for payment with little or no work involved,
has heightened the need for thorough verification of professional achievements.
Almost a quarter of all professional checks have uncovered discrepancies. Peaking
at 11.9% in 2012, major discrepancies have averaged 10.8% during the period whilst
minor discrepancies peaked at 14.1% in 2011, averaging at 13.1% overall.
2011 2012 2013 2014(Q1-2)
Professional Qualifications, Licences and Memberships
30%
20%
10%
0%
14.1% 13.2% 11.8% 12.8%
10.4% 11.9% 11.3% 7.7%
23.9%
8BACKGROUND SCREENING TRENDS - EMEA
DISCREPANCY RATES BY CANDIDATE TYPE
Demand has increased for screening of all candidate types, but particularly contingent
workers and external staff. The decision to look at risk and risk mitigation in this
population is strongly supported by our data.
Our results from verifications carried out over the last three years show that contingent
worker checks are far more likely to uncover inaccuracies than those of permanent
employees. Remarkably, discrepancies are uncovered in almost half of all education
checks and more than a third of employment checks on contingent workers. Although
lower, permanent worker discrepancy rates are still worryingly high, with more than a
quarter of checks revealing discrepancies.
Permanent workers Contingent workers
Permanent vs. Contingent Workers
27.0% 36.3%
9BACKGROUND SCREENING TRENDS - EMEA
DISCREPANCY RATES BY CANDIDATE TYPE
EducationPermanent 35.1% | Contingent 48.1%
EmploymentPermanent 24.6% | Contingent 35.6%
ProfessionalPermanent 23.9% | Contingent 22%
Permanent vs. Contingent Workers
35.1% 48.1%
35.6%
22.0%
24.6%
23.9%
10BACKGROUND SCREENING TRENDS - EMEA
DISCREPANCY RATES BY SECTOR
ProfessionalServices
Technology LegalStaffing/
recruitmentFinancial Services
Overall 37.9% 37.1% 37.0% 35.6% 23.0%
Minor 27.0% 27.2% 30.1% 29.0% 14.0%
Major 10.9% 9.9% 6.9% 6.6% 9.0%
The chart shows that the professional services sector has experienced the highest
average discrepancy rate at 37.9%, closely followed by technology (37.1%) and legal
(37.0%). The banking and financial services sector experienced a discrepancy rate of
23.0%, reflecting greater regulation and a workforce that’s increasingly familiar with
the screening process. This provides an example to other sectors where screening is
less commonplace – the greater the use of screening, the less likely candidates are to
attempt to conceal or misrepresent information when applying for a new job, which in
turn improves the quality of hire.
For the purposes of this report, we’re highlighting the five sectors with the highest
verification discrepancy rates.
Sector Comparison
Sector Comparison
40%
30%
20%
10%
0%Professional
ServicesTechnology Legal Staffing/
recruitmentFinancial Services
27.0% 27.2% 30.1% 29.0% 14.0%
10.9% 9.9% 6.9% 6.6% 9.0%
11BACKGROUND SCREENING TRENDS - EMEA
DISCREPANCY RATES BY SECTOR
At 37.9%, the overall discrepancy rate for the professional services sector is significantly
above the cross-industry average of 27.2% and the highest of any sector analysed for
this report. Remarkably, more than half (53.8%) of education checks in the professional
services sector reveal discrepancies, as do more than a third of professional checks and
just under a third of employment checks. That said, both major and minor discrepancy
rates have been falling since 2011.
Professional Services
Education | 53.8% Employment | 30.0% Professional | 35.2%
2011 2012 2013 2014(Q1-Q2)
Professional Services 43.4% 36.9% 34.3% 34.8%
Minor 30.6% 26.4% 25.0% 24.3%
Major 12.7% 10.5% 9.4% 10.4%
Professional Services
2011 2012 2013 2014(Q1-Q2)
40%
30%
20%
10%
0%
50%
37.9%
30.6% 26.4% 25.0% 24.3%
12.7% 10.5% 9.4% 10.4%Overall: 37.9%
Minor: 27.0% | Major: 10.9%
12BACKGROUND SCREENING TRENDS - EMEA
DISCREPANCY RATES BY SECTOR
At 37.1%, the technology sector has experienced the second highest discrepancy rate of
any sector analysed for this report. Both major and minor discrepancy rates have risen
during the period.
Almost half (45.1%) of education checks uncovered a discrepancy, whilst the
discrepancy rate of employment checks is the highest of any sector at 35.0% and the
professional check discrepancy rate is well above average at 28.3%.
Technology
2011 2012 2013 2014(Q1-Q2)
Technology 36.2% 37.6% 37.4% 37.3%
Minor 28.0% 26.5% 27.0% 27.8%
Major 8.3% 11.1% 10.3% 9.5%
Education | 45.1% Employment | 35.0% Professional | 28.3%
Technology
2011 2012 2013 2014(Q1-Q2)
40%
30%
20%
10%
0%
50%
28.0% 26.5% 27.0% 27.8%
8.3% 11.1% 10.3% 9.5%
37.1%
Overall: 37.1%Minor: 27.2% | Major: 9.9%
13BACKGROUND SCREENING TRENDS - EMEA
DISCREPANCY RATES BY SECTOR
Marginally lower than the technology sector, the legal sector has experienced a higher
than average discrepancy rate of 37.0%, with higher than average discrepancy rates
for all types of verifications. Overall, the rate of discrepancy has remained broadly flat
– the consequence of a falling minor discrepancy rate and, most worryingly, a rising
major discrepancy rate. At an alarming 55.9%, the legal sector experienced the highest
education discrepancy rate of any sector.
Legal
2011 2012 2013 2014(Q1-Q2)
Legal 37.2% 34.6% 39.0% 39.1%
Minor 31.5% 28.4% 30.6% 29.9%
Major 5.7% 6.2% 8.4% 9.2%
Education | 55.9% Employment | 29.1% Professional | 31.2%
2011 2012 2013 2014(Q1-Q2)
Legal
40%
30%
20%
10%
0%
37.0%31.5% 28.4% 30.6% 29.9%
5.7% 6.2% 8.4% 9.2% Overall: 37.0%Minor: 30.1% | Major: 6.9%
14BACKGROUND SCREENING TRENDS - EMEA
DISCREPANCY RATES BY SECTOR
At 35.7% on average over the period, the staffing and recruitment sector discrepancy
rate has fluctuated since 2011, peaking at 38.3% in 2013.
The minor discrepancy rate has also fluctuated over the period, peaking at 31.4% in
2013. However, of greater concern is the major discrepancy rate, which has risen from
5.0% to 7.8% over the period.
Staffing and Recruitment
2011 2012 2013 2014(Q1-Q2)
Staffing and Recruitment 36.0% 34.2% 38.3% 35.5%
Minor 31.0% 26.8% 31.4% 27.7%
Major 5.0% 7.3% 6.9% 7.8%
Education | 51.1% Employment | 33.7% Professional | 33.2%
2011 2012 2013 2014(Q1-Q2)
Staffing and Recruitment
40%
30%
20%
10%
0%
35.7%
Overall: 35.7%Minor: 29.0% | Major: 6.6%
31.0% 26.8% 31.4% 27.7%
5.0% 7.3% 6.9% 7.8%
15BACKGROUND SCREENING TRENDS - EMEA
DISCREPANCY RATES BY SECTOR
As screening is required for all financial service institutions in the UK, candidates
working within the sector are well aware that they will be screened and are familiar
with the process. Consequently, discrepancy rates are lower than average at 23.0% for
the period, with more than one in five verifications uncovering discrepancies.
Within the sector, discrepancies occur in nearly a third of education verifications, a fifth
of employment verifications and nearly a quarter of professional verifications.
Financial Services
2011 2012 2013 2014(Q1-Q2)
Financial Services 26.4% 23.8% 20.7% 18.6%
Minor 17.5% 14.0% 11.9% 11.0%
Major 8.9% 9.7% 8.8% 7.7%
Education | 31.2% Employment | 19.9% Professional | 23.1%
2011 2012 2013 2014(Q1-Q2)
Financial Services
30%
20%
10%
0%
17.5% 14.0% 11.9% 11.0%
8.9% 9.7% 8.8% 7.7%
23.0%
Overall: 23.0%Minor: 14.0% | Major: 9.0%
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