Adapting to Change: Building a Futureproof Background Screening Strategy

Today, companies are not just competing for the best minds-they're also ensuring that each new hire meets the highest standards of trust and experience.

It has been a year since Singapore's Ministry of Manpower (MOM) implemented new verification requirements for Employment Pass (EP) applications and renewals. As part of the COMPASS framework, requirements mandate that applicants reach a certain points score in order to be eligible for an EP. One component of the scoring system is evidence of education and as such candidates may submit evidence of both the accreditation and authenticity of their qualifications, ensuring the veracity of declared credentials and reducing discrepancies in EP applications.

MOM's initiatives are aimed at elevating workforce integrity across all sectors, creating a hiring environment where both employers and employees can engage with full confidence in the authenticity of qualifications and identities.

As we look ahead, it's likely that such efforts, driven by government agencies in Singapore and across the region, will continue to expand, with a broader focus on verifying professional qualifications, and ensuring that all hires meet the rigorous standards expected in today's competitive business landscape.

Regulatory Updates

To stay ahead of these emerging trends, companies should begin by reassessing their current screening programmes to determine if they go beyond the basics and encompass a full spectrum of background screening services to comprehensively mitigate their employment risk.

Here are some recent trends we have seen:

Singapore:

Singapore's regulatory landscape is evolving, with agencies like the Ministry of Manpower (MOM) and the Monetary Authority of Singapore (MAS) stepping up efforts to drive more stringent compliance measures to enhance workforce safety and integrity, particularly through more robust background screening initiatives.

MOM has recently tightened rules on work pass requirements, fair consideration, and foreign worker protection, indicating a future focus on privacy, labour rights, data-driven hiring, and anti-discrimination measures.

Similarly, the Monetary Authority of Singapore (MAS) has been instrumental in maintaining a secure financial environment, particularly through its guidelines on managing technology risks, cyber resilience, and customer data protection. Recent updates to MAS's outsourcing guidelines have clarified the criteria for being classified as a "material outsource provider," sparking discussions within the financial sector. This has led to many in the sector assessing their third-party vendor networks and mandating that those individuals that are engaged in providing services are subject to background screening. Organisations such as HireRight have extensive experience in assisting organisations in rolling out these programs.

To stay ahead of these changes, employers will need to adopt agile compliance strategies and proactively monitor regulatory trends to ensure sustained operational success.

Regional Shifts

Throughout the APAC region, background screening involves navigating key considerations such as privacy, data protection, and identity verification, ensuring that processes remain both thorough and compliant with local regulations. In addition to the laws in Singapore, several other APAC countries are taking similar measures-for example:

India's Digital Personal Data Protection Act (DPDPA) enforces strict guidelines for managing personal data, emphasizing privacy and giving individuals greater control over their information. Businesses must now implement strong data protection measures and ensure compliance to avoid penalties, reflecting India's growing focus on digital security.

Australia's Security of Critical Infrastructure Act 2018 (SOCI) mandates strict security measures for critical infrastructure, including risk management and cyber incident reporting. Compliance with these regulations is crucial for maintaining security and operational integrity in Australia.

In addition to the above, the region has seen a swing towards data localisation for certain critical checks, such as the National Police Checking Service (NPCS) in Australia which now mandates that storage, processing and access of such records is ringfenced within Australia.

With varying regulatory frameworks, companies must rigorously safeguard personal information to avoid legal risks, reputational damage, and loss of trust. Compliance with diverse data collection and storage requirements, including data localisation mandates, adds complexity, especially for multinational firms. This means not only complying with existing regulations but also anticipating future changes and being prepared to implement them swiftly.

Next Steps: Three Considerations

Creating a robust background screening programme is a critical reflection on your company's commitment to integrity and risk management. As you navigate the complex regulatory landscape across the APAC region, it's worth considering whether your current approach truly addresses the deeper issues at play. Are you merely scratching the surface with basic checks, or are you delving into the specific risks associated with different roles, particularly those handling sensitive data?

Evaluating Vendor Partnerships

Evaluate your vendor partnerships carefully-do they have the expertise to keep you informed of evolving regulations and the agility to implement them seamlessly in the background screening process? It's not just about understanding the laws; it's about having a provider that proactively informs you of changes, has a framework already compliant with the necessary requirements, and offers the expertise and service quality to fully support your screening needs. Are your background screening providers equipped with the technical expertise and service quality to guide you through the intricacies of cross-border data transfers?

The Importance of Regular Audits

Regular audits aren't just a formality-they're a necessary deep dive into your practices, revealing areas that may need strengthening. Are you conducting these audits frequently enough to stay ahead of regulatory changes, and are you prepared to update your policies and technologies in response?

Employee and Stakeholder Engagement

Have you invested in educating your employees and stakeholders about the importance of compliance? A well-informed team, from entry-level staff to senior management, is essential for the success of your screening programme. Are your training programmes and communication strategies sufficient to instil the significance of these practices, or is there more you could do to engage your workforce earlier on in the hiring process?

Looking Ahead

As you reflect on your company's screening program, consider whether your current framework and partnerships are truly up to the task. The future of talent acquisition demands a thorough, multi-faceted approach to background verification. Candidates in the market are also exposed to the potential need and requirements of screening and expect it as part of the hiring process when looking for job.

By critically assessing your screening practices now, you can ensure that your organisation is not only compliant but also resilient. This commitment to continuous improvement enables your business to adapt swiftly to industry changes, anticipate customer needs, and leverage emerging technologies. By fostering a culture of innovation and agility, you position your company to outperform competitors, capture new market opportunities, and, ultimately, drive sustainable growth.

Release Date: November 7, 2024