Checks on Workers’ Comp Claims Rise to 10 Percent in Annual ADP Hiring Index

April 13, 2004

ADP Employer Services, a provider of integrated outsourced payroll and human resources services, has released its seventh annual Hiring Index, a yearly evaluation of hiring trends and issues.

Compared to last year’s index, the number of full background checks performed in 2003 increased approximately 26 percent, from 3,000,667 to 3,762,677 checks. This 2004 study also illustrates how the job market and economy have affected the American workforce.

Compiled by ADP Screening and Selection Services, the 2004 study demonstrates that 10 percent of the 3.8 million background checks performed revealed a data inconsistency or negative information.

Subcategories within the study show that of those background checks, the number of checks with a history of workers’ compensation claims rose to 10 percent and the number of data inconsistencies between resume information and information discovered through resume reference checks increased slightly to 52 percent.

Each of these statistics marked an increase from the 2003 Hiring Index, in which nine percent of background checks had a previous worker’s compensation claim, and 51 percent of the resume reference checks contained a data inconsistency regarding resume information.

The 2004 Hiring Index also reveals that 44 percent of all credit record checks showed a judgment, lien or bankruptcy, or had been reported to a collection agency. This is a reported significant increase compared to the 24 percent recorded in the prior year’s findings.

“With the nation’s current unemployment rate lingering between four and seven percent, many individuals are seeking employment. The findings within the 2004 Hiring Index highlight the importance for employers to recognize the need to check and verify information that job seekers have provided,” commented Dean Suposs, general manager of ADP Screening and Selection Services. “Poor hiring decisions can have long-term legal and financial ramifications for employers. Pre-employment screening can significantly reduce that risk.”

Other statistics from the 2004 Hiring Index showed that among records checked:

*Five percent had a criminal record;
*31 percent had a driving record with one or more violations or convictions;
*The food stores and services industry led all but one category for the number of data inaccuracies discovered.

ADP’s Hiring Index is comprised of computerized calculations of the background verifications performed during the previous calendar year. Since its inception, the Hiring 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.

Specifically, the Hiring Index measures criminal records, employment history, education and credential records, as well as driving, credit and workers’ comp claim records. Over the past seven years, the Hiring Index has evolved to include background screening results within specific industries, including manufacturing, health services, food stores and services, business services, transportation and retail.

For additional ADP Screening and Selection Services statistics, go to:

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