1. The Use of Criminal Background Checks in Hiring Decisions ©SHRM 2012 July 19, 2012 SHRM Survey Findings: Background Checking—The Use of Criminal Background Checks in Hiring Decisions

2. The Use of Criminal Background Checks in Hiring Decisions ©SHRM 2012 Key Findings 2  Do organizations conduct criminal background checks on job candidates? Sixty-nine percent of organizations reported that they conduct criminal background checks on all of their job candidates. Eighteen percent of organizations conduct criminal checks on select job candidates, and 14% do not conduct criminal checks on any job candidates.  When do organizations initiate criminal background checks? Among organizations that conduct criminal background checks, most initiate criminal background checks after a contingent job offer (62%) or after the job interview (32%). Very few organizations (4%) initiate criminal background checks before a job interview.  Why do organizations conduct criminal background checks? Organizations conduct criminal checks on job candidates 1) to reduce legal liability for negligent hiring (52%) and 2) to ensure a safe work environment for employees (49%).  What type of criminal activity could influence the decision not to hire a particular job candidate? The top two criminal activities that are very influential in the decision not to hire a job candidate are a convicted violent felony (96%) and a convicted nonviolent felony (74%).  Do organizations allow job candidates to explain the results of their criminal checks? Yes; 58% of organizations allow job candidates to explain the results of their criminal checks before the decision to hire or not to hire is made, and 27% allow job candidates to explain the results after the decision is made.

3. The Use of Criminal Background Checks in Hiring Decisions ©SHRM 2012 Does your organization, or an agency hired by your organization, conduct criminal background checks for any job candidates? 3 Note: Respondents who answered “not sure” were excluded from this analysis. Percentages may not equal 100% due to rounding.

4. The Use of Criminal Background Checks in Hiring Decisions ©SHRM 2012 Does your organization, or an agency hired by your organization, conduct criminal background checks for any job candidates? Comparisons by organization staff size 2,500 to 24,999 employees (83%) 100 to 499 employees (69%) > 1 to 99 employees (48%) 4 Comparisons by organization staff size Organizations with 100 to 499 employees and 2,500 to 24,999 employees are more likely than organizations with 1 to 99 employees to conduct criminal background checks for all job candidates. Note: Only statistically significant differences are shown. Comparisons by organization sector Publicly owned for-profit organizations are more likely than privately owned for-profit organizations to conduct criminal background checks for all job candidates. Comparisons by organization sector Publicly owned for-profit (84%)>Privately owned for-profit (62%)

5. The Use of Criminal Background Checks in Hiring Decisions ©SHRM 2012 When does your organization, or any agency hired by your organization, initiate criminal background checks on job candidates? 5 n = 343

6. The Use of Criminal Background Checks in Hiring Decisions ©SHRM 2012 What are the primary reasons your organization conducts criminal background checks on job candidates? 6 Note: Percentages do not equal 100% due to multiple response options. Respondents were asked to select top two options.

7. The Use of Criminal Background Checks in Hiring Decisions ©SHRM 2012 When conducting a criminal background check on job candidates, how influential is/would be the discovery of each of the following in your decision NOT to extend a job offer? 7 Note: Figure represents respondents who answered “very influential.” Percentages are based on a scale where 1 = “not at all influential” and 4 = “very influential.”

8. The Use of Criminal Background Checks in Hiring Decisions ©SHRM 2012 When conducting a criminal background check on job candidates, how influential are/would be the following factors related to a criminal activity (regardless of whether they resulted in conviction) in your decision NOT to extend a job offer? 8 Note: Figure represents respondents who answered “very influential.” Percentages are based on a scale where 1 = “not at all influential” and 4 = “very influential.” Other information that influences the decision not to extend a job offer is nondisclosure of criminal activity prior to a background check.

9. The Use of Criminal Background Checks in Hiring Decisions ©SHRM 2012 Does your organization allow job candidates, in certain circumstances, the opportunity to explain the results of their criminal background check that might have an adverse effect on an employment decision? 9

10. The Use of Criminal Background Checks in Hiring Decisions ©SHRM 2012 Criminal Background Checks Conducted on Select Job Candidates 10

11. The Use of Criminal Background Checks in Hiring Decisions ©SHRM 2012 Which category of job candidates does your organization conduct criminal background checks on? 11 Note: The data in this figure represent organizations that conduct criminal background checks on select job candidates. Percentages do not equal 100% due to multiple response options. With small sample sizes, the response of one participant can affect the overall results considerably; this should be noted when making interpretations of the data, particularly when interpreting small percentage differences.

12. The Use of Criminal Background Checks in Hiring Decisions ©SHRM 2012 Demographics: Organization Industry 12 Note: n = 386. Percentages do not equal 100% due to multiple response options. Percentage Manufacturing19% Health care and social assistance17% Professional, scientific and technical services12% Other services, except public administration10% Educational services9% Finance and insurance7% Retail trade5% Public administration4% Transportation and warehousing4% Religious, grantmaking, civic, professional and similar organizations4% Accommodation and food services3%

13. The Use of Criminal Background Checks in Hiring Decisions ©SHRM 2012 Demographics: Organization Industry (Continued) 13 Percentage Arts, entertainment and recreation3% Utilities3% Administrative and support and waste management and remediation services2% Construction2% Information2% Wholesale trade2% Agriculture, forestry, fishing and hunting2% Real estate and rental and leasing2% Repair and maintenance2% Mining1% Management of companies and enterprises1% Note: n = 386. Percentages do not equal 100% due to multiple response options.

14. The Use of Criminal Background Checks in Hiring Decisions ©SHRM 2012 Demographics: Organization Sector 14 Note: n = 386. Percentages do not equal 100% due to rounding.

15. The Use of Criminal Background Checks in Hiring Decisions ©SHRM 2012 Demographics: Organization Staff Size 15 n = 375

16. The Use of Criminal Background Checks in Hiring Decisions ©SHRM 2012 Demographics: Other 16 Does your organization have U.S.-based operations (business units) only or does it operate multinationally? U.S.-based operations only76% Multinational operations24% n = 386 Is your organization a single-unit organization or a multi-unit organization? Single-unit organization: An organization in which the location and the organization are one and the same 36% Multi-unit organization: An organization that has more than one location 64% n = 387 For multi-unit organizations, are HR policies and practices determined by the multi-unit headquarters, by each work location or both? Multi-unit headquarters determines HR policies and practices 56% Each work location determines HR policies and practices 4% A combination of both the work location and the multi-unit headquarters determine HR policies and practices 40% n = 257 What is the HR department/function you responded for throughout this survey? Corporate (companywide)71% Business unit/division15% Facility/location15% Note: n = 256. Percentages do not equal 100% due to rounding.

17. The Use of Criminal Background Checks in Hiring Decisions ©SHRM 2012  Response rate = 19%  Sample composed of 544 randomly selected HR professionals from SHRM’s membership  Margin of error +/-4%  Survey fielded December 28, 2011-February 7, 2012 17 Methodology Background Checking—The Use of Criminal Background Checks in Hiring Decisions For more poll findings, visit www.shrm.org/surveyswww.shrm.org/surveys Follow us on Twitter: http://twitter.com/SHRM_Researchhttp://twitter.com/SHRM_Research For more poll findings, visit www.shrm.org/surveyswww.shrm.org/surveys Follow us on Twitter: http://twitter.com/SHRM_Researchhttp://twitter.com/SHRM_Research Project leader: Justina Victor, survey research analyst, SHRM Research Project contributors: Evren Esen, manager, SHRM Research Mark Schmit, Ph.D., SPHR, vice president, SHRM Research Copy editor: Katya Scanlan