The contingent workforce (consultants, contractors, temps, and other project based workers) is a rapidly expanding sectors of the U.S. workforce. Growing at 15% annually and comprising over $100 billion in total spend this group is also one of the most prone to security issues. Workplace security has emerged as one of the most serious challenges facing businesses.
70% of corporations carry out minimal background checks on full-time internal candidates and estimates indicate that far fewer companies do any background screening of their contingent workers according to the Society for HR Management.. Since almost 90% of businesses use temporary employees and two million people work each day in temporary positions, the potential threat to U.S. business is substantial.
These threats include:
- Workplace violence
- Workplace harassment
- Theft of or damage to company physical property
- Theft of proprietary or sensitive information and intellectual property
- Employee negligence, misconduct, or fraud
The results of these security risks are significant:
- 25% of workers report they have been attacked, harassed, or threatened in the workplace according to HR.com
- 43% of respondents describe exposed resume exaggerations and falsifications as “significant” to “extremely significant” according to a 1999 corsSurvey on HR issues.
- 6% of the annual revenue for the average company is lost to employee theft according to the ACFE.
- $400 billion annually is accrued in employee fraud costs companies
- Around 20% of U.S. workers have criminal records and 13% of applicants do not disclose their criminal history according to the Department of Justice.
- Another cost of inadequately screening potential employees is legal liability. In so-called “negligent hiring” cases, companies have been found responsible for problems that occur as a direct result of their failure to thoroughly investigate candidates before hiring them.
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