In collaboration with and commissioned by

March 13, 2017

2016 Employment Verification (E-Verify)

SHRM Survey Findings

About SHRM

The Society for Human Resource

Management (SHRM) is the world’s

largest HR professional society,

representing 285,000 members in

more than 165 countries. For nearly

seven decades, the Society has

been the leading provider of

resources serving the needs of HR

professionals and advancing the

practice of human resource

management. SHRM has more than

575 affiliated chapters within the

United States and subsidiary offices

in China, India and United Arab

Emirates. Visit us at shrm.org.

About CFGI

The Council for Global Immigration

(formerly known as the American

Council on International Personnel),

a strategic affiliate of SHRM,

comprised of over 200 corporations,

universities and research

institutions is engaged in the global

movement of talent. CFGI members

are in-house professionals

responsible for ensuring compliance

with immigration and related

employment laws worldwide. Learn

more about us at www.cfgi.org.

Table of Contents

3 Definitions and Introduction

4 Implications of This Research

5 Key Findings

6 Mandatory Electronic Verification System

10 Form I-9 and E-Verify Verification Processes

16 Demographics

23 Methodology

24 Resources

2©SHRM 2017

Introduction

3©SHRM 2017

There are approximately 11 million undocumented immigrants in the United States. At the

same time, employers of every size, shape and industry continue to face challenges in finding

the right employees with the right skills to fill specific positions. Although there is no single

solution for closing the skills gap, employment-based immigration is a necessary component of

U.S. employers larger workforce policy.

The current employment verification process, the Form I-9, uses paper documentation to verify

employment eligibility of people seeking employment in the U.S. The current E-Verify system

relies on the Social Security Administration and the Department of Homeland Security

databases to confirm work authorization. Both the employment verification process and the E-

Verify systems are limited in their capability to detect unauthorized employment. To address

this limitation, it is critical that the employment verification process possesses sufficient

security features to protect U.S. employers from persons using fraudulent identities to work.

Altogether, the current Form I-9 and E-Verify processes include, and are continuously affected

by, a significant degree of subjectivity. As such, it is important to monitor and evaluate

employment verification practices and procedures to ensure compliance with the intent and

requirements of the federal rules and regulations.

Employment verification: The process

in which employees provide documents

that verify their eligibility to work in the

United States. As part of this process,

employers review the documents and

complete the Employment Eligibility

Verification Form (Form I-9) as required

under the Immigration Reform and

Control Act (IRCA) of 1986.

E-Verify: An Internet-based program run

by the United States government that

compares information from employees’

Employment Eligibility Verification Form

(Form I-9) to data from U.S. government

databases. Employer participation is

voluntary unless mandated by federal or

state/local law. Some federal contractors

are required to participate, as are certain

employers seeking to extend the work

permit of certain foreign graduates in the

science, technology, engineering and

mathematics fields.

Definitions

Implications of This Research

4©SHRM 2017

The Employment Verification Survey was conducted for the purpose of assessing, evaluating

and monitoring current employment verification procedures and practices in U.S. organizations

as reported by HR and immigration professionals. Previously, the Employment Verification

Survey was completed in 2006 and 2014.

The results of this research inform HR professionals, executives and public policy makers on

the state of employment verification and E-Verify within U.S. organizations in 2016.

Specifically, these findings serve as a measure of the effectiveness, efficiency and use of

employment verification processes and procedures by organizations in 2016.

Furthermore, the results of the 2016 Employment Verification Survey provide U.S. authorities,

governing bodies, business professionals and public policy makers with empirical evidence

and context they can use when comparing organizations’ current practices with established

employment verification rules, laws and regulations set forth by the United States government.

While there is no

single solution for

closing the skills

gap, employment-

based immigration

is a necessary

component of our

larger workforce

policy.

.

Key Findings

5©SHRM 2017

1. Strong support for mandatory electronic verification system: Employers indicated they

would support a mandatory electronic verification system (83% either strongly or somewhat

support it). Employer support was even stronger if the electronic verification system is designed

to avoid allegations of employment-based discrimination (95%), include strong safe harbor to

protect employers (95%), authenticate identity (94%) or include photo matching to authenticate

identity (84%). These findings are consistent with 2006 and 2014 Employment Verification

Survey findings.

2. Challenges with Form I-9 and E-Verify verification processes: In alignment with 2006 and

2014 survey results, maintaining records when keeping track of documents with an expiration

date continues to be the most frequently reported challenge (37%) with the Form I-9

employment verification process. For E-Verify, the fact that it does not replace Form I-9 (25%)

and an unclear process for resolving tentative nonconfirmations (22%) were again the most

frequently reported challenges.

3. Opportunities for improving participation in E-Verify: In 2016, among employers that did

not participate in E-Verify, 37% reported that the primary reason for not participating was the

fact that E-Verify does not eliminate the requirement to complete Form I-9.

92%of employers, on

average, reported

they would support a

mandatory electronic

verification system if

it included specific

features:

Eliminates Form I-9

Authenticates identity

Includes strong safe

harbor

Provides brief period to

resolve work

authorization disputes

Avoids allegations of

employment-based

discrimination

Includes photo matching

to authenticate identity

Mandatory Electronic Verification System

Employers support a mandatory electronic verification system when it includes specific features

Note: n = 389-395. Results of scaled items were consolidated into “Support” and “Would Not Support” dimensions for reporting purposes.

7©SHRM 2017

89%

94%

95%

92%

95%

84%

11%

6%

5%

8%

5%

16%

Eliminates Form I-9

Authenticates identity

Includes strong safe harbor

Provides brief period to resolve work authorizationdisputes

Avoids allegations of employment-baseddiscrimination

Includes photo matching

Support

Would Not Support

Similar to 2006 and 2014 survey results, 82% of employers report they would support a mandatory electronic verification system in 2016

Note: 2016 (n = 390), 2014 (n = 557), 2006 (n = 484). Results of scaled items were consolidated into “Support” and “Would Not Support” dimensions for

reporting purposes.

8©SHRM 2017

82% 83%92%

17% 17%8%

2016 2014 2006

Support Would Not Support

Form I-9 & E-Verify Verification Processes

Employers report challenges with the Form I-9 verification process

37%

14%

11%

10%

9%

8%

6%

9%

34%

18%

10%

11%

6%

6%

8%

31%

28%

10%

11%

8%

17%

4%

Maintaining records

Authenticity of documents

Situations not within Form I-9instructions

Balancing I-9 compliance withdiscrimination concerns

Regulations and Form I-9 areunclear

Variety of acceptable documents istoo large

Authenticity of the identity*

Other

2016

2014

2006

.

10©SHRM 2017

Note: 2016 (n = 651), 2014 (n = 601), 2006 (n = 486). Percentages do not total 100% due to multiple

response options.

More

than 50%of respondents

indicated their

organizations

encountered

challenges with the

Form I-9 verification

process

*Not surveyed in 2014 and 2006.

60% of employers participate in E-Verify because it is mandated by federal or state law

Note: n = 253. Excludes responses from participants who indicated that their organizations did not participate in E-Verify.

11©SHRM 2017

Mandatory (federal or state law)

60%

Voluntary40%

Employers reported significant challenges with using E-Verify in 2016 and 2014

Note: 2016 (n = 327), 2014 (n = 300). Percentages do not total 100% due to multiple response options.

12

The fact that E-Verify does not replace the paper-based Form I-9 and the process for resolving tentative

nonconfirmations continue to be primary challenges for employers using E-Verify in 2016.

©SHRM 2017

25%22%

12%

7% 7% 6% 5%9%

23%19%

13%

7%5%

8% 7% 6%

Does not replaceForm I-9 process

Process forresolving tentativenonconfirmations

is unclear

Authenticity ofdocuments

Balacing I-9compliance withconcerns aboutdiscrimination

Process is toocomplicated

Authenticity ofidentity

Variety ofacceptable

documents is toolarge

Other

2016 2014

In 2016, almost one-half of employers have participated in E-Verify for five years or longer

Note: n = 229. Responses with less than 30 respondents were excluded from this analysis.

13©SHRM 2017

46%

32%

16%

5 years or longer3 to 4 years1 to 2 years

In 2014 and 2016, employers reported training new E-Verify administrators through a combination of online and in-person tutorials

Note: 2016 (n = 300), 2014 (n = 304). Percentages do not total 100% due to multiple response options.

14©SHRM 2017

77%

29%

6%

3%

2%

10%

76%

29%

8%

3%

9%

Online tutorial

Additional in-person training

Additional online training

Additional outsourced training delivered off-site

Additional outsourced training delivered on-site*

Other

2016

2014

*Not surveyed in 2014.

Demographics

Demographics: Organization Industry

Note: n = 474. Percentages do not total 100% due to multiple response options.

16©SHRM 2017

Percentage

Professional, scientific and technical services 19%

Manufacturing 18%

Health care and social assistance 15%

Educational services 12%

Government agencies 7%

Finance and insurance 6%

Retail trade 6%

Construction 6%

Accommodation and food services 4%

Wholesale trade 3%

Demographics: Organization Industry (continued)

Note: n = 474. Percentages do not total 100% due to multiple response options.

17©SHRM 2017

Percentage

Real estate and rental and leasing 3%

Transportation and warehousing 3%

Information 3%

Administrative and support and waste management and remediation services 2%

Agriculture, forestry, fishing and hunting 2%

Utilities 2%

Religious, grant-making, civic, professional and similar organizations 2%

Mining, quarrying, and oil and gas extraction 1%

Arts, entertainment and recreation 1%

Repair and maintenance 1%

Other industry 10%

Demographics: Organization Sector

Note: n = 390. Percentages do not total 100% due to rounding.

18©SHRM 2017

54%

23%

12%

6%

3%

Privately owned for-profit

Nonprofit/not-for-profit

Publicly owned for-profit

Government

Other

Demographics: Organization Staff Size

Note: n = 374. Percentages do not total 100% due to rounding.

19©SHRM 2017

29%

32%

21%

12%

6%

1 to 99 employees

100 to 499 employees

500 to 2,499 employees

2,500 to 9,999 employees

10,000 or more employees

Demographics: Region

Note: n = 175. Percentages do not total 100% due to rounding.

20©SHRM 2017

37%

23%

23%

18%

South

Midwest

West

Northeast

Demographics: Other

n = 393

21

Does your organization have U.S.-based operations

(business units) only, or does it operate multinationally?

U.S.-based operations only 77%

Multinational operations 23%

Is your organization a single-unit organization or a multi-

unit organization?

Multi-unit organization: An organization that has

more than one location64%

Single-unit organization: An organization in which

the location and the organization are one and the

same

36%

For multi-unit organizations, are HR policies and

practices determined by the multi-unit headquarters, by

each work location or by both?

Multi-unit headquarters determines HR policies

and practices51%

A combination of both the work location and the

multi-unit headquarters determines HR policies

and practices

45%

Each work location determines HR policies and

practices5%

n = 394

n = 262

©SHRM 2017

SHRM Survey Findings: 2016 Employment Verification (E-Verify) Survey

22

Project lead:

Michael Sarette, researcher, SHRM

Research

Project contributors:

Rebecca Peters, director, Government

Affairs, Council for Global Immigration

Chatrane Bribal, senior advisor, SHRM

Government Relations

Evren Esen, SHRM-SCP, director,

workforce analytics, SHRM Research

• 453 HR professionals from a randomly selected sample of SHRM’s membership

completed the survey for a response rate of 9%. The margin of error is +/-5%.

• Data collection for the survey took place October 11-November 18, 2016.

• A comparison between the report’s sample of 453 HR professionals and the

SHRM membership population indicated that the report’s sample had more HR

professionals from smaller organizations, more respondents from privately

owned for-profit and nonprofit/not-for-profit organizations, and fewer

respondents from publicly owned for-profit organizations. Industry categories

were similar, although they were not directly comparable because survey

respondents were allowed to select multiple industries.

©SHRM 2017

Survey Methodology

Resources

23

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