Sterling: More businesses are relying on outsourced HR to ensure compliance

The increasing complexity surrounding recruitment compliance, right to work checks and background screening has driven businesses to employ external experts to limit the risks to their organization, according to a survey by one of the leading suppliers of background and identity services, Sterling.

In research undertaken during its webinar, “The Why, When and How of Outsourcing”, the firm found that 89% of respondents felt that compliance surrounding background checks is now more complex than it has ever been. This has led to an uptick in the use of third-party experts to reduce the risks associated with hiring, with over half (56%) of those surveyed admitting to outsourcing recruitment. A further 44% revealed they use an external partner for background screening.

According to Sterling, businesses need to be wary of getting ‘lost’ in compliance and ensure they have the steps in place to mitigate potential risks.

Steve Smith, Managing Director EMEA at Sterling, explained:

“The introduction of the likes of GDPR and tightening of compliance belts in the last few years has put so much pressure on HR teams to rethink the use of data, it’s perhaps unsurprising that so many respondents felt that background checks – which can be hugely data-driven – have become more complex. Indeed, it is only natural that as the screening industry matures, complexity has increased – and it will only continue to do so. However, given the increasing scrutiny facing employers today, it’s important that businesses don’t allow themselves to be overly daunted by compliance, but instead look at what is absolutely necessary and what can – or even should – be delivered by an external expert.

There are more component parts in a background check today. The admin burden internally has drastically increased, driving much of this need to outsource that we’ve noted. In fact, as we found in our compliance trends report, time is one of the biggest factors for European businesses when looking at why they should outsource.”

SOURCE Sterling

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