Roseland, NJ - March 21, 2006 - ADP Employer Services, a leading provider of integrated outsourced payroll, benefits and human resource services, today released its ninth annual Screening Index, a yearly evaluation of hiring trends and issues. In 2005, ADP Screening and Selection Services conducted 4,861,435 background checks, a 12 percent increase over the previous year. Forty-nine percent of the education, employment and credential verifications revealed a data inconsistency compared to what the applicant reported.
"The consistent rise in the number of background checks performed year after year is evidence of the diligence employers are taking in the recruitment and hiring process," said Dean Suposs, General Manager of ADP Screening and Selection Services. "With ADP, employers can streamline the pre-employment screening process and reduce hiring risks, such as applicant dishonesty, negligent hiring liability and turnover."
The manufacturing industry represents a prime example of the benefits gleaned through pre-employment screening. "We've seen for manufacturing, in particular, pre-employment screening is conducted in an effort to reduce turnover and help the organization remain productive," adds Suposs.
In fact, according to the National Association of Manufacturers, 83 percent of U.S. manufacturers cannot find enough skilled workers to remain productive, with more than 80 percent reporting a "moderate or severe shortage" of machinists, operators, craft workers, distributors, technicians and other workers.* This labor shortage - combined with extensive state and federal government regulations, high employee turnover, and increased competition from low-cost countries - is forcing manufacturers to focus more heavily on effectively managing the hiring process in order to ensure efficient, productive operations.
"Today's manufacturing market demands tight margins, product innovation, and fast production timelines. In order to accomplish these objectives, employers need to make sure they're hiring honest and experienced employees who are invested in the success of the organization," said Lisa Barton, Human Resources, Hilex Poly Company, LLC. "We use ADP Screening and Selection Services to obtain accurate information in a timely manner, helping to ensure the right workers are hired."
ADP Screening and Selection Services conducted a separate survey to learn more about how clients are using/benefiting from the service.** Approximately 81 percent of manufacturing clients perform background checks for all job positions within their organization. The most common screens include: social security validation, address verification and felony criminal record checks
Additional Highlights and Report Findings:
Criminal Background Checks: Five percent of the criminal background checks conducted by ADP Screening and Selection Services revealed a criminal record in the last seven years.
Reference Verifications: Reference checks include total completed education, employment and credential verifications. Forty-nine percent of the checks performed revealed a difference in information between what the applicant provided and what the source reported. Six percent of the information differences were received with negative remarks in regard to the applicant.
Driving Record: Among the completed driving record checks, 24 percent had one or more violations or convictions. Five percent had four or more.
Credit Reports: Forty-six percent of the completed credit report checks showed a judgment, lien or bankruptcy, or had been reported to a collection agency.
Workers' Compensation Claim Records: Eight percent of the workers' compensation checks revealed an existing claim.
ADP's Screening Index is comprised of computerized calculations of the background verifications performed during the previous calendar year. Since its inception, the Screening Index has shown the different areas in which candidate screening can help employers by highlighting where data inconsistencies on a candidate's resume can exist. The Screening Index also includes background screening results within specific industries, including manufacturing, health care, hospitality, construction, retail, auto dealers, business services and transportation. For additional Screening Index statistics please go to: www.adphire.com/screeningindex.
ADP Screening and Selection Services provides outsourcing solutions to companies of all sizes from less than 10 employees to more than 10,000 employees. ADP Screening and Selection Services makes people selection easy by offering a solution that integrates an online application, job fit assessments, background screening, substance abuse testing and professional HR support. ADP Screening and Selection Services is part of ADP Employer Services (ES), a division of ADP, Inc.
About ADP
Automatic Data Processing, Inc. (NYSE:ADP), with $8.5 billion in revenues and approximately 590,000 clients worldwide, is one of the largest providers of a broad range of premier, mission-critical, cost-effective transaction processing and information-based business solutions. ADP Employer Services (ES), a division of ADP, Inc., offers the widest range of HR, payroll and benefit administration solutions from a single source, to meet the extensive business needs of employers worldwide. Built with more than 50-years of industry experience, ADP ES' cost-effective, easy-to-use solutions provide superior value to companies of all sizes. More than 518,000 companies rely on ADP ES for unparalleled service and compliance expertise, allowing them to focus on other core activities. For more information about ADP ES or to contact a local ADP sales office, reach us at 1.800.225.5237 or visit the company's Web site at www.adp.com.
*National Association of Manufacturers "Keeping America Competitive" report can be found at: http://www.nam.org/s_nam/bin.asp?CID=201721&DID=226576&DOC=FILE.PDF
**ADP Screening & Selection Service distributed a survey to approximately 5,400 clients. Results are based on 306 respondents.