Taleo Research Study Finds Current Background Screening Practices Leave Companies Vulnerable to Workplace Violence, Fraud and Theft
Study reveals inefficient pre-hire screening and ongoing employee verification practices
SAN FRANCISCO — March 15, 2006 – Taleo Corporation (Nasdaq: TLEO), the leading provider of talent management solutions, today released a research report that analyzes the current background screening and verification practices of a cross-section of large organizations.
Findings of this study reveal that organizations are exposed to workplace violence, fraud and employee theft due to inefficient pre-hire screening and ongoing employee verification practices. The report,” Background Checking: Uncovering the Facts,” was produced by Taleo Research, the talent management research division of Taleo.
Key findings of the Taleo Research survey reveal:
- 27 percent of organizations experienced a major problem —workplace fraud (10%), employee theft (10%) or workplace violence (7%)—with an employee who was screened in, but ended up having a criminal record that was not found.
The resulting impact to the company was considerable:
It caused employee termination for 58 percent, resulting in increased costs due to the associated turnover.
Negative media exposure for 5 percent.
26 percent had lawsuits, union conflicts or other impact.
- 57 percent of survey respondents believe that their organization should be doing a better job of screening employees prior to being hired.
- Only 19 percent consider their current background check process very effective at weeding out candidates that do not meet the criteria for employment at their company.
- Two-thirds of organizations do not conduct ongoing background checks on employees.
- Only 29 percent have ever run an audit of their current screening provider to determine the quality of their screenings.
“Workplace violence, compliance issues, fraud, theft and liability are all significant drivers for increasing concern about the most effective background checking methods,” said Alice Snell, vice president, Taleo Research. “Poor use of electronic data and manual steps for ordering background checks, processing the data and reporting on it can result in high costs and long turnaround times.”
She continued, “New methodologies and technology platforms can provide improved background checking quality and efficiency that will best safeguard organizations. We challenge companies to take a close look at their current pre and post hire background screening practices to ensure they are best protecting their organization against the risks and liabilities that are inherent in today’s society.”
In addition to examining the background checking practices of large corporations, the Taleo Research report also reviews the ongoing areas of risk for corporations and provides best practices for improved background checking through better processes and advanced technology. A complete copy of the report can be downloaded at: www.taleo.com/backgroundchecking.
Taleo customers leverage best practices in screening and employee verification with Taleo Verify™, its comprehensive background screening and identity verification solution for pre and post hire screenings. Integrated directly into its talent management solution, Taleo Verify delivers faster, more accurate screening results at significantly lower costs, helping organizations make the right hiring decisions and protect themselves against workplace dangers.
More information on how Taleo Verify can help protect organizations against the realities of workplace violence, theft and fraud can be found at www.taleo.com/verify.
Methodology
This survey was conducted between January and February 2006. The data analysis presented in the report is based on 79 respondents representing organizations with an average of 52,162 employees. Companies surveyed represent a broad range of industries including health care, financial services, manufacturing, defense, agriculture and technology.
About Taleo Research
Taleo Research analyzes the best practices and economics of talent management for organizations of all sizes, worldwide. The specialty research practice focuses on business analytics that tie talent management technology and process improvements to financial results. Taleo Research also conducts primary research on critical issues of talent management and maintains a valuable library of talent management resources. Published reports and studies include Hidden ROI of Talent Acquisition and Mobility, Quality of Hire, Internal Mobility, Economics of Candidate Relationship Databases, Corporate Careers Site Value Creation, Jobseeker Surveys, among others. Founded in 1997 as iLogos Internet Intelligence, Taleo Research is the talent management research division of Taleo.
About Taleo Corporation
Taleo (NASDAQ: TLEO) delivers on demand talent management solutions that enable organizations of all sizes to assess, acquire, develop and align their workforce for improved business performance. Taleo’s customers use its suite of solutions to improve their talent management processes to reduce the time and costs associated with these processes and to enhance the quality, productivity and effectiveness of their workforces. Taleo currently has more than 350 corporate customers with approximately 500,000 registered users who use our services to fill positions in almost 100 countries. For more information visit www.taleo.com.
Press Contacts:
Krista Canfield
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e-mail: kcanfield@horngroup.com