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Background Screening in the News: How Shifting Business Models Affect HR

As many companies experience downturns that require restructuring, the models for talent management are becoming increasingly critical for the average company; the way in which you hire matters more. You decide the structure of your organization chart and determine what role automation will play in your company. Here are just a few current events where background screening will be essential in the way these companies—and yours—move forward.

Kroger to Have Layoffs in a “Turnaround Effort”

Kroger is in an evolving industry: with the growing popularity of “picked for you” groceries and grocery delivery services, they are radically changing their entire staffing model. Fox Business reported that hundreds of people would be laid off from Kroger stores at this time due to disappointing numbers and the explosive growth of automation. With the use of “self-checkout lanes” and other automated features, Kroger’s business model required a dramatic shift. Rather than doing their talent search based on a need for many entry-level employees, their model is moving to a smaller group of specialized and skilled staff.

Many companies are in the process of making this transition. Manufacturing has already made the leap towards heavily automated labor; assembly-line production is increasingly sourced abroad. The introduction of AI has increasingly winnowed the employee pool for physically skilled labor in favor of those who can navigate complex software.

While background screening is essential in all labor decisions, it is particularly crucial when you are searching for highly skilled labor. Make sure that your background screening is thorough enough to verify education and experience. Your company needs a workforce that can accomplish the significant changes required if you want to stay competitive.

Uber Launches “Uber Works” for On-Demand Shift Labor

Uber, the ride-share and food delivery company, is always looking for ways to expand their business and gain useful market share. TechCrunch recently reported that the ride-share giant would launch a new program called “Uber Works.” This service is designed to match available workers—the contractors who typically work for Uber as ride-share drivers—with shift work through staffing agencies. Finding someone to fill in “last minute” may be an attractive option for some employers.

This model shows another side of the “gig economy” as it grows: companies will still be responsible for all of the hiring, contracts, and tax forms for these contractors. Uber is comfortable to remain as the “middle-man” connecting workers with work. Companies stand to lose out if they trust more contractors without doing extensive background screening, and there is an overall lack of efficiency in training many contractors rather than training a few well-chosen employees.

As companies attempt to take advantage of the ability to hire “on-demand” rather than giving consistent or long-term employment, they may see negative results if they don’t invest in screening their new contractors carefully.

Tight Labor Market Causes Casino to Hire “Too Few” Security Personnel

Meanwhile, in Pennsylvania, the current tight job market is creating some concerns. While companies like Kroger struggle to keep their workers in the face of automation pressure, the security sector relies heavily on human labor. Jobs in this field are still plentiful and need employees. Consider the case of Mohegan Sun Pocono, a casino that is facing the opposite shift in its labor market.

Distributor jobs in the area have attracted away so much talent that they have a hard time getting people to accept their job offers! Once hired, security guards—especially the night shift—often keep looking and end up moving on to other work. The Mohegan Sun received a hefty fine for not having enough of the right personnel on hand to meet demand.

When you contrast Kroger’s layoffs to the Mohegan Sun’s desperate hiring, the consistent factor in both is the necessity of background screening. Whether the market is plentiful or tight, background screening remains essential! As the labor market fluctuates in the wake of technology and roles settle, it will be crucial to emphasize the import of robust background screening. This fact is true even when your applicant pool may be small!

Out of a pool of 78 candidates, only six were chosen to work at the Mohegan Sun. Not maintaining sufficient staffing resulted in expensive fines, leading the casino to believe they needed even more competitive rates if they wanted to attract employees. While the type of labor may affect your hiring process, thorough screening is more important than ever to make sure you find the quality employees you need.

Successful Companies Are Balanced Companies

As you can see, the current market is automating rapidly and increasingly reliant on contractors. At the same time, it is still dealing with the challenges of a tight job market where there are more jobs than there are trained or skilled applicants.

Background screening will be an essential part of the future of this evolving labor market. At CNet Technologies, we are closely observing the ways that labor shifts and changes over time. This way, we can offer you the most useful background screening options for your business.

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