PBSA

PBSA Journal PAGE 13 JAN/FEB 2025 Except where otherwise indicated, articles are copyright © by PBSA 2025. All rights reserved. Navigating Complexities in Pre-employment Screening in the U.S.: Addressing Key Challenges By John Tsefrikas T he U.S. pre-employment screening industry operates within an increasingly complex environment where organizations balance thorough vetting with stringent compliance requirements. As employers seek to make informed hiring decisions, they can often encounter a variety of factors such as regulatory requirements, data privacy concerns, verification inconsistencies including identity, and the evolving landscape of technologies. This intricate landscape requires a forward-thinking approach to ensure that organizations can confidently assess candidate suitability quickly to improve time to hire, while maintaining compliance with federal, state and local laws. With nearly half – 46% – of reference checks revealing discrepancies between candidate claims and screening outcomes, according to AccuSourceHR, these challenges underscore the importance of robust screening practices and data. Navigating the U.S. Compliance Landscape One of the foremost challenges in U.S. pre-employment screening is managing the web of regulations governing the practice. The Fair Credit Reporting Act (FCRA), along with varying state-specific rules, mandates how consumer reporting agencies must operate—ensuring accuracy, securing consent, and maintaining transparency in adverse action notices. Keeping pace with this regulatory landscape is essential for maintaining compliance and avoiding legal pitfalls. To effectively navigate this, organizations need capabilities that can seamlessly align screening practices with evolving legal standards and quickly reduce the burden of constant regulatory monitoring. Balancing Data Privacy and Security Data privacy concerns have gained prominence in the U.S. with the enactment of laws such as the California Consumer Privacy Act (CCPA) and other states with emerging data protection measures. Safeguarding personal information collected during background screenings, obtaining candidate consent for verification purposes and implementing robust security protocols to prevent data breaches are critical considerations for screening companies operating in the U.S. Addressing Verification Confidence and Reliability Challenges A key challenge for many organizations lies in ensuring the accuracy and reliability of data retrieved during screenings. Discrepancies in areas such as income or employment history, court records and more, are common. These discrepancies can arise due to inconsistent candidate- provided information, the limitations of certain verification processes and varying record access across states. To mitigate this, screening providers need capabilities that can quickly combine access to trusted data sources with robust verification methods. Various sources exist in the U.S. market to obtain this information. Leveraging Technology Tools for Efficiency, Precision and Further Certification Technological advancements such as artificial intelligence, machine learning and automation offer opportunities to enhance both the efficiency and precision of screenings. However, adapting to these new technologies presents challenges of their own—particularly in terms of ensuring that automated processes meet regulatory standards and maintain accuracy. Organizations that prioritize the integration of secure, scalable technology solutions—backed by strong client support and implementation services—will be better positioned to optimize their screening workflows and adapt to changing demands. One of the foremost challenges in U.S. pre-employment screening is managing the web of regulations governing the practice. Continued on page 14

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