SHRM Survey Findings: Employment Verification June 16, 2014

Definitions Employment Verification: The process in which employees produce documents that verify their identity and eligibility to work in the United States. Part of this process is for employers to review documents and complete the Employment Eligibility Verification Form (Form I-9). E-Verify: An Internet-based program run by the United States government that compares information from employees’ Employment Eligibility Verification Form (Form I-9) to data from U.S. government databases. Participation is voluntary unless mandated by state law. Some federal contractors are required to participate, as are certain employers seeking to extend the work permit of certain foreign graduates in the science, technology, engineering, and mathematics fields. 2SHRM Survey Findings: Employment Verification ©SHRM 2014

What challenges are associated with the Form I-9 verification process? Although nearly half (44%) of respondents indicated they do not face any challenges, 34% reported difficulty maintaining records when keeping track of documents with an expiration date, and 18% encounter issues with the authenticity of documents presented by employees. How many employers participate in E-Verify? Overall, 56% of respondent organizations indicated they participate in E-Verify. Publicly owned for-profit (79%) and privately owned for-profit (62%) organizations were more likely to report using E-Verify than nonprofit organizations (40%) and government agencies (33%). Larger organizations (100 or more employees) were also more likely to report using E-Verify than organizations with fewer than 100 employees. Of those organizations that do use E-Verify, 38% participated on a voluntary basis, whereas 36% are fulfilling their requirement as a federal contractor. How long have employers participated in E-Verify, and how long does it take to implement the program? Almost half (48%) of respondent organizations have participated in E-Verify for more than three years, and 51% indicated that it takes one week or less to implement the program. Organizations with 500 or more employees reported implementation of E-Verify took longer than smaller employers. SHRM Survey Findings: Employment Verification ©SHRM Key Findings

What challenges do organizations encounter with the E-Verify process? For those organizations that currently use E-Verify, almost half (47%) reported experiencing no challenges with the E-Verify process. Among those organizations that have experienced challenges, the most commonly identified issues include the fact that it does not replace the Form I-9 process (23%), the process for resolving tentative non-confirmations is unclear (19%), and issues with the authenticity of documents presented by employees (13%). Government agencies (29%) are were more likely than privately owned for-profits (5%) to agree that balancing Form I-9 compliance with concerns about discrimination and unfair immigration-related employment practices is a challenge. Why do employers opt out of E-Verify? Nearly half (45%) of organizations that do not participate in E-Verify indicated the reason for their lack of participation is the fact that E-Verify does not eliminate the requirement to complete Form I-9; another 34% do not participate because they are not familiar with the program. Support for a mandatory electronic verification system. More than four fifths (83%) of organizations support a mandatory electronic verification system. Furthermore, a vast majority of employers (96%) would support a mandatory electronic verification system if it included strong safe harbor to protect employers. Organizations would also like this system to help avoid allegations of employment-based discrimination (96%), authenticate identity (94%), provide a relatively brief period to resolve disputed work authorization cases (93%), or eliminate Form I-9 (92%). SHRM Survey Findings: Employment Verification ©SHRM Key Findings

More than two in five organizations do not participate in E-Verify, the federal online platform that uses I-9 information to confirm employment eligibility. However, more than one third of those organizations are simply not familiar with the service, and a vast majority of HR professionals overall support mandatory electronic employment verification. By investing more time in learning about the E-Verify service, or exploring other means of improving their employment verification processes HR professionals can help ensure their organization’s compliance. About one half of HR professionals who do participate in E-Verify said it took one week or less to implement the system. However, over one quarter said the implementation process took a month or longer, and in some cases, several months. If an organization decides to participate in the E-Verify service, it may be beneficial to devote specific staff, if only for a short period of time, to handle the E-Verify process. Many criticisms of the E-Verify process are centered on the fact that, while it does match up U.S. Social Security data with applicants’ information, it does not guard against the fact that the applicant may be using stolen or borrowed documents, or is perhaps not being truthful with their information. Knowing that, HR professionals will need to employ additional and potentially more stringent application processes in order to avoid any legal violations. SHRM Survey Findings: Employment Verification ©SHRM What Do These Findings Mean for the HR Profession?

What challenges does your organization currently encounter with the Form I-9 verification process? SHRM Survey Findings: Employment Verification ©SHRM Note: Percentages do not equal 100% due to multiple response options.

What challenges does your organization currently encounter with the Form I-9 verification process? SHRM Survey Findings: Employment Verification ©SHRM Note: Only statistically significant differences are shown. Comparisons by organization staff size 1 to 99 employees (32%)> 100 to 499 employees (30%) 500 to 2,499 employees (18%) 2,500 to 24,999 employees (12%) Comparisons by organization staff size Organizations with 1-99 employees were more likely than organizations with 100 or more employees to agree that they encountered no challenges with the Form 1-9 process. Organizations with 2,500-14,999 and employees were more likely than organizations with 1-99 employees to report situations that do not fall within the Form I-9 instructions and handbook as a challenge. Comparisons by organization staff size 100 to 499 employees (37%) 2,500 to 14,999 employees (32%) >1 to 99 employees (5%)

SHRM Survey Findings: Employment Verification ©SHRM Has your organization ever been concerned about the authenticity of the documents presented by employees or authenticity of the identity being presented by the person seeking employment (either new employees or current employees providing documents for reverification)?

SHRM Survey Findings: Employment Verification ©SHRM Note: Only statistically significant differences are shown. Comparisons by organization staff size 500 or more employees (47%)>1 to 499 employees (26%) Comparisons by organization staff size Organizations with 500 or more employees were more likely than organizations with employees to express concern about authenticity of documents presented by employees. Comparisons by organization staff size 500 employees or more employees (32%)>1 to 499 employees (18%) Organizations with 500 or more employees were more likely than organizations with employees to express concern about authenticity of the identity presented by the person seeking employment.

SHRM Survey Findings: Employment Verification ©SHRM Does your organization participate in E-Verify? Note: n = 572. Respondents who answered “don’t know” were excluded from this analysis.

Does your organization participate in E-Verify? SHRM Survey Findings: Employment Verification ©SHRM Note: Only statistically significant differences are shown. Comparisons by organization staff size 100 to 499 employees (56%) 500 to 2,499 employees (59%) 2,500 to 24,999 employees (72%) 25,000 or more employees (80%) > 1 to 99 employees (37%) Comparisons by organization staff size Organizations with 100 or more employees were more likely than organizations with 1-99 employees to indicate they participate in E-Verify. Comparisons by organization sector Publicly owned for-profit organizations were more likely than other organizations to indicate they participate in E- Verify. Privately owned-for profit organizations were more likely than nonprofits and government agencies to indicate they participate in E-Verify. Comparisons by organization sector Publicly owned for-profit (79%)> Privately owned for-profit (62%) Nonprofit (40%) Government (33%) Privately owned for-profit (62%)> Nonprofit (40%) Government (33%)

SHRM Survey Findings: Employment Verification ©SHRM What is the primary reason your organization participates in E-Verify? Note: n = 321. Percentages do not equal 100% due to rounding. Only respondents whose organization participates in E-Verify were asked this question. Respondents who answered “Not sure” were excluded from this analysis.

SHRM Survey Findings: Employment Verification ©SHRM How long has your organization participated in E-Verify (round to the nearest time period)? Note: n = 308. Only respondents whose organization participates in E-Verify were asked this question.

SHRM Survey Findings: Employment Verification ©SHRM How long did it take to implement E-Verify at your organization? Note: n = 260. *Respondents who answered “don’t know” were excluded from the analysis. Only respondents whose organization participates in E- Verify were asked this question.

How long did it take to implement E-Verify at your organization? SHRM Survey Findings: Employment Verification ©SHRM Note: Only statistically significant differences are shown. Comparisons by organization staff size Less than seven days1 to 499 employees (71%)>500 or more employees (29%) Seven days to six months500 or more employees (78%)>1 to 499 employees (23%) Comparisons by organization staff size Organizations with 500 or more employees reported implementation of E-verify taking longer than organizations with employees.

SHRM Survey Findings: Employment Verification ©SHRM How do you train new E-Verify administrators at your organization? Note: n = 304. Percentages do not equal 100% due to multiple response options. Only respondents whose organization participates in E-Verify were asked this question.

How do you train new E-Verify administrators at your organization? SHRM Survey Findings: Employment Verification ©SHRM Note: Only statistically significant differences are shown. Comparisons by organization staff size Online tutorial required by E-Verify1 to 499 employees (83%)>500 or more employees (69%) Additional online training required by my organization 500 or more employees (15%)>1 to 499 employees (3%) Additional in-person training required by my organization 500 or more employees (31%)>1 to 499 employees (20%) Additional training delivered off-site500 or more employees (5%)>1 to 499 employees (1%) Comparisons by organization staff size Organizations with employees were more likely than organizations with 500 or more employees to indicate they use online tutorials to train E-Verify administrators. However, organizations with 500 or more employees were more likely than organizations with employees to use additional training services.

How do you train new E-Verify administrators at your organization? SHRM Survey Findings: Employment Verification ©SHRM Note: Only statistically significant differences are shown. Comparisons by organization sector Additional training delivered off-siteGovernment (14%)>Publicly owned for-profit (2%) Government agencies were more likely than publicly owned for-profit organizations to offer additional training off-site to new E-Verify administrators.

SHRM Survey Findings: Employment Verification ©SHRM What challenges has your organization encountered with the E-Verify process? Note: n = 300. Percentages do not equal 100% due to multiple response options. Only respondents whose organization participates in E-Verify were asked this question.

What challenges has your organization encountered with the E-Verify process? SHRM Survey Findings: Employment Verification ©SHRM Note: Only statistically significant differences are shown. Comparisons by organization staff size 500 or more employees (67%)>1 to 99 employees (33%) Comparisons by organization staff size Organizations with 500 or more employees were more likely than organizations with 1-99 employees to agree that the E-Verify process does not replace Form I-9 process. Organizations with 500 or more employees were more likely than organizations with 1-99 employees to agree that process for resolving tentative non-confirmations is unclear. Comparisons by organization staff size 500 or more employees (71%)>1 to 99 employees (29%)

What challenges has your organization encountered with the E-Verify process? SHRM Survey Findings: Employment Verification ©SHRM Comparisons by organization sector Government (29%)>Privately owned for-profit (5%) Comparisons by organization sector Government organizations were more likely than privately owned for-profit organizations to agree that balancing Form I-9 compliance with concerns about discrimination and unfair immigration-related employment practices is a challenge. Note: Only statistically significant differences are shown.

SHRM Survey Findings: Employment Verification ©SHRM What are the reasons your organization does not participate in E-Verify? Note: n = 242. Percentages do not equal 100% due to multiple response options.

SHRM Survey Findings: Employment Verification ©SHRM Would your organization support a mandatory electronic verification system?

SHRM Survey Findings: Employment Verification ©SHRM Would your organization support a mandatory electronic verification system if it: Note: n =

SHRM Survey Findings: Employment Verification ©SHRM Demographics

Demographics: Organization Industry SHRM Survey Findings: Employment Verification ©SHRM Note: n = 550. Percentages do not equal 100% due to multiple response options. Percentage Manufacturing18% Health care and social assistance16% Professional, scientific and technical services15% Other industry11% Educational services8% Finance and insurance8% Transportation and warehousing8% Retail trade6% Construction5% Accommodation and food services4% Administrative and support and waste management and remediation services4%

Demographics: Organization Industry (continued) SHRM Survey Findings: Employment Verification ©SHRM Note: n = 550. Percentages do not equal 100% due to multiple response options. Percentage Repair and maintenance4% Arts, entertainment and recreation3% Utilities3% Wholesale trade3% Mining, quarrying, and oil and gas extraction3% Real estate and rental and leasing2% Religious, grant-making, civic, professional and similar organizations2% Information2% Agriculture, forestry, fishing and hunting1%

Demographics: Organization Sector SHRM Survey Findings: Employment Verification ©SHRM n = 546. Percentages do not equal 100% due to rounding.

Demographics: Organization Staff Size SHRM Survey Findings: Employment Verification ©SHRM n = 535. Percentages do not equal 100% due to rounding.

n = 418. Demographics: Other SHRM Survey Findings: Employment Verification ©SHRM Percentages do not equal 100% due to rounding. U.S.-based operations only74% Multinational operations26% Single-unit organization: An organization in which the location and the organization are one and the same. 32% Multi-unit organization: An organization that has more than one location. 68% Multi-unit headquarters determines HR policies and practices 53% Each work location determines HR policies and practices 3% A combination of both the work location and the multi-unit headquarters determines HR policies and practices 43% Is your organization a single-unit organization or a multi-unit organization? For multi-unit organizations, are HR policies and practices determined by the multi-unit headquarters, by each work location or by both? Does your organization have U.S.-based operations (business units) only, or does it operate multinationally? n = 560. n = 392. Corporate (companywide)64% Business unit/division18% Facility/location18% n = 394. What is the HR department/function for which you responded throughout this survey?

31 SHRM Survey Findings: Employment Verification Response rate = 12% 611 HR professionals from a randomly selected sample of SHRM’s membership participated in this survey Margin of error +/-4% Survey fielded February 14-28, 2014 Survey Methodology SHRM Survey Findings: Employment Verification ©SHRM 2014

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