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3 Reasons Why Background Checks Are Essential For The Gig Economy

May 13th, 2021

hiring, gig economy, background checks

3 min read

1-May-13-2021-09-42-57-51-PMMale looking at computer screen with a coffee

Thanks to unprecedented times brought on by a global pandemic, the way that people work has changed drastically over the past year. Many organizations had no choice but to adapt digitally or risk falling behind, sometimes being forced to make difficult decisions. One decision? Lay off, employees. 

In 2020, nearly 355,000 jobs were lost in Ontario alone. With many people looking for new ways to generate an income, interest in the gig economy grew. Made famous by companies like Uber and Airbnb, the gig economy offers people the freedom to be flexible in more aspects than a traditional 9-5 job. Websites like Fiverr saw an increase of freelance registrations rise 48% over Q3 of 2020 as people are looking for ways to generate revenue outside of the ‘corporate norm’ by outsourcing their skills and services.

A freelancer can be a huge asset to your business, giving you the boost you need when you’re busy or too short-staffed to take on more work. If you want to ensure that freelancers you work with do great work for you, it is recommended you check each potential candidate’s credentials and background in detail. For businesses hoping to mitigate risk and avoid liability, background checks are essential for the gig economy. 

In this blog, we will be highlighting the 3 reasons why it’s essential for your business to complete regular background checks when looking to hire freelancers as the gig economy continues to grow in popularity. 

Freelancers have access to sensitive company information 

The importance of background verification for freelancers cannot be overlooked. Organizations must ensure that not only are their employees being protected, but their sensitive data is not at risk of being mishandled by an individual that is unknown to the business. A comprehensive background check can ensure on-demand workers are not only qualified to do the job properly, but also possess a clean personal and professional record. 

Mohamad Ali, President and CEO of Carbonite states, “Freelancers are often tasked with developing projects and working on files on their own computers, without the same security tools and policies an employee working at a large enterprise [has], [...] This puts freelancers in a precarious situation." 

Freelancers can be a great asset to any business, but businesses must do the work to ensure trustworthy people are hired to work on their projects. Performing a background check will reassure you the freelancer you hire will maintain your company’s privacy and reputation, remaining a valuable asset.

You can verify an individual 

As organizations search for talent, it is important to ensure that freelance candidates have the right skills and expertise for their needs. To accomplish this, it is recommended that you utilize background screening technology during your hiring process as a tool for verifying the identity of candidates during the recruitment process. A simple background screening process can help your organization avoid the nearly 78% of candidates who admitted to or would consider misrepresenting themselves on their application, saving you both time and money. By implementing a comprehensive background screening technology solution, hiring managers, recruiters, and hiring boards can be certain that all applicants meet the minimum qualification and that their employment history is accurate. 

Conducting one of Certn’s quick, seamless and user-friendly background checks can help identify these three common lies on a resume:

Three common lies on a resume listed

With the available talent pool increasing because of the continued impact of the pandemic, it may be more common to find more embellished truth on resumes. Incorporating background screenings as part of your hiring process for freelancers can provide necessary details about a person’s past employment history, education, and criminal history that cannot be obtained any other way.

Maintain your culture of trust and safety 

Building a cohesive team is extremely important for any business. Organizations work hard to maintain their culture to ensure that their employees feel safe and secure at all times in the workplace. Regularly implementing background checks directly results in an environment where employees can rely on and trust each other right away allowing employees to experience less stress by 74% in their day. 

As background screening technology continues to evolve, it allows for your hiring team to easily access insight into a potential candidate and explore if their qualifications match your organization’s values. Background checks are no longer seen as something only practiced by large corporations. Tools are now available to any sized company, allowing for new and effective screening practices to be adopted. Those tools include Certn’s background screen products such as: 

Certn Home Page Product Tab Opened

As the modern workforce becomes more complex and diverse, hiring trustworthy freelance employees is a key driver of a successful business. Companies constantly look for ways to streamline and simplify their hiring process to find the highest-quality workers, and trust will continue to be critical. Background screening has emerged as an effective way to help companies better verify the trustworthiness of job candidates while maintaining their culture and managing risk.

Conclusion:

The popularity of the gig economy grew tremendously because of the global pandemic and an accompanying shift towards a new digital era. People will continue to look for opportunities that are outside the 9-5 norm as there’s a real desire to have more flexibility and choice in how they work each day. If hiring external candidates for short-term projects is part of your business plan, background screening must be included in your process. It will protect not only your organization but also your people and culture.

Ready to get started? We have a variety of solutions, including Employment Verification, Credit Checks, and Education Verifications that can help any industry stay on top of its hiring process!  

You can Book a demo  with one of our industry experts to make sure your business stays one step ahead and ready for the new digital era.

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