The “gig” economy has resulted in more contract workers and self-employed persons in the marketplace than ever before. Technological advances have made it possible for an increasing number of workers to work freelance instead of being hired on as formal employees. In the past, less stringent hiring and screening measures were taken with these employees, as they were viewed as temporary.
However, recent data has revealed that employers are now screening the vast majority of their freelance and contract workers. One study showed that as many as 86 percent of companies are now screening this class of workers – up a huge 45 percent from the year 2012.
The following are four of the top reasons companies are now screening their contract workers:
1. Record Numbers of Self-Employed Workers
With so many more of this type of employee in the workplace, the odds of hiring the wrong person are much higher. Employment screening reduces the risk of fraud, lawsuits and loss with all workers, increasing the quality of the entire staff.
2. The Expanded Role of Contract Workers
While in the past freelance and contract workers usually only had limited access to the company’s data, equipment, facilities, clients and other workers, today their roles are often much more involved. Because of this expanded capacity, many businesses are choosing to conduct contractor background screening just like any other worker.
3. Increased Instances of Fraud on Resumes and Applications
Research has indicated that applicants are much more likely to lie on employment applications than they were even five years ago. A majority of businesses have reported finding at least one misrepresentation, distortion or outright lie on a job application or resume, and 56 percent of applicants admit to lying. This is likely due to a more competitive marketplace, and businesses can no longer afford the risk.
4. A Desire For the Best Candidates
There is clearly a trend toward longer-term contract workers and freelance assignments due to the growth of the gig economy. This model is expanding to established businesses as well. As always, companies want to connect with the best, brightest and most trustworthy candidates in the pool of available workers. Employment screening is an efficient and reliable way to help accomplish this whether the employee is permanent or temporary.
Freelance, temporary and contract workers are more prevalent in the workforce than ever before. It’s no wonder businesses are screening them in increasing numbers.
Disclaimer Statement: All information presented is for information purposes only and is not intended to provide professional or legal advice regarding actions to take in any situation.