shrm survey findings: employment verification june 16, 2014

SHRM Survey Findings: Employment Verification

June 16, 2014

SHRM Survey Findings: Employment Verification ©SHRM 2014

Definitions

• Employment Verification: The process in which employees produce documents that verify their identity and eligibility to work in the United States. Part of this process is for employers to review documents and complete the Employment Eligibility Verification Form (Form I-9).

• 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. Participation is voluntary unless mandated by state 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.

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SHRM Survey Findings: Employment Verification ©SHRM 2014 3

• What challenges are associated with the Form I-9 verification process? Although nearly half (44%) of respondents indicated they do not face any challenges, 34% reported difficulty maintaining records when keeping track of documents with an expiration date, and 18% encounter issues with the authenticity of documents presented by employees.

• How many employers participate in E-Verify? Overall, 56% of respondent organizations indicated they participate in E-Verify. Publicly owned for-profit (79%) and privately owned for-profit (62%) organizations were more likely to report using E-Verify than nonprofit organizations (40%) and government agencies (33%). Larger organizations (100 or more employees) were also more likely to report using E-Verify than organizations with fewer than 100 employees. Of those organizations that do use E-Verify, 38% participated on a voluntary basis, whereas 36% are fulfilling their requirement as a federal contractor.

• How long have employers participated in E-Verify, and how long does it take to implement the program? Almost half (48%) of respondent organizations have participated in E-Verify for more than three years, and 51% indicated that it takes one week or less to implement the program. Organizations with 500 or more employees reported implementation of E-Verify took longer than smaller employers.

Key Findings


• What challenges do organizations encounter with the E-Verify process? For those organizations that currently use E-Verify, almost half (47%) reported experiencing no challenges with the E-Verify process. Among those organizations that have experienced challenges, the most commonly identified issues include the fact that it does not replace the Form I-9 process (23%), the process for resolving tentative non-confirmations is unclear (19%), and issues with the authenticity of documents presented by employees (13%). Government agencies (29%) are were more likely than privately owned for-profits (5%) to agree that balancing Form I-9 compliance with concerns about discrimination and unfair immigration-related employment practices is a challenge.

• Why do employers opt out of E-Verify? Nearly half (45%) of organizations that do not participate in E-Verify indicated the reason for their lack of participation is the fact that E-Verify does not eliminate the requirement to complete Form I-9; another 34% do not participate because they are not familiar with the program.

• Support for a mandatory electronic verification system. More than four fifths (83%) of organizations support a mandatory electronic verification system. Furthermore, a vast majority of employers (96%) would support a mandatory electronic verification system if it included strong safe harbor to protect employers. Organizations would also like this system to help avoid allegations of employment-based discrimination (96%), authenticate identity (94%), provide a relatively brief period to resolve disputed work authorization cases (93%), or eliminate Form I-9 (92%).

Key Findings


• More than two in five organizations do not participate in E-Verify, the federal online platform that uses I-9 information to confirm employment eligibility. However, more than one third of those organizations are simply not familiar with the service, and a vast majority of HR professionals overall support mandatory electronic employment verification. By investing more time in learning about the E-Verify service, or exploring other means of improving their employment verification processes HR professionals can help ensure their organization’s compliance.

• About one half of HR professionals who do participate in E-Verify said it took one week or less to implement the system. However, over one quarter said the implementation process took a month or longer, and in some cases, several months. If an organization decides to participate in the E-Verify service, it may be beneficial to devote specific staff, if only for a short period of time, to handle the E-Verify process.

• Many criticisms of the E-Verify process are centered on the fact that, while it does match up U.S. Social Security data with applicants’ information, it does not guard against the fact that the applicant may be using stolen or borrowed documents, or is perhaps not being truthful with their information. Knowing that, HR professionals will need to employ additional and potentially more stringent application processes in order to avoid any legal violations.

What Do These Findings Mean for the HR Profession?


What challenges does your organization currently encounter with the Form I-9 verification process?

Note: Percentages do not equal 100% due to multiple response options.

No challenges

Maintaining records when keeping track of documents with an expiration date

Authenticity of documents presented by employees

Balancing Form I-9 compliance with concerns about discrimination and unfair immigration-related employment practices

Situations that do not fall within the Form I-9 instructions and handbook

Variety of documents employees are able to present is too large

Regulations and Form I-9 process are unclear

Other

44%

34%

18%

11%

10%

6%

6%

8%

40%

31%

28%

10%

10%

17%

8%

4%

2006 (n = 486)2014 (n = 601)


What challenges does your organization currently encounter with the Form I-9 verification process?

Note: Only statistically significant differences are shown.

Comparisons by organization staff size

1 to 99 employees (32%) >100 to 499 employees (30%)

500 to 2,499 employees (18%)2,500 to 24,999 employees (12%)


• Organizations with 1-99 employees were more likely than organizations with 100 or more employees to agree that they encountered no challenges with the Form 1-9 process.

• Organizations with 2,500-14,999 and 100-499 employees were more likely than organizations with 1-99 employees to report situations that do not fall within the Form I-9 instructions and handbook as a challenge.


100 to 499 employees (37%)2,500 to 14,999 employees (32%)

> 1 to 99 employees (5%)


Has your organization ever been concerned about the authenticity of the documents presented by employees or authenticity of the identity being presented by the person seeking employment (either new employees or current employees providing documents for reverification)?

Yes, 34%

No66%

Organizations concerned with the authenticity of documents

presented by employees

Note: n = 511. Respondents who answered “don’t know” were excluded from this analysis.

Yes24%

No, 76%

Organizations concerned with the authenticity of the identity being presented by the person

seeking employment

Note: n = 513 Respondents who answered “don’t know” were excluded from this analysis.


Has your organization ever been concerned about the authenticity of the documents presented by employees or authenticity of the identity being presented by the person seeking employment (either new employees or current employees providing documents for reverification)?



500 or more employees (47%) > 1 to 499 employees (26%)


• Organizations with 500 or more employees were more likely than organizations with 1-499 employees to express concern about authenticity of documents presented by employees.


500 employees or more employees (32%) > 1 to 499 employees (18%)

• Organizations with 500 or more employees were more likely than organizations with 1-499 employees to express concern about authenticity of the identity presented by the person seeking employment.


Does your organization participate in E-Verify?

Yes, 56%

No44%

Note: n = 572. Respondents who answered “don’t know” were excluded from this analysis.


Does your organization participate in E-Verify?



100 to 499 employees (56%)500 to 2,499 employees (59%)

2,500 to 24,999 employees (72%)25,000 or more employees (80%)

>1 to 99 employees (37%)


• Organizations with 100 or more employees were more likely than organizations with 1-99 employees to indicate they participate in E-Verify.

Comparisons by organization sector

• Publicly owned for-profit organizations were more likely than other organizations to indicate they participate in E-Verify. Privately owned-for profit organizations were more likely than nonprofits and government agencies to indicate they participate in E-Verify.


Publicly owned for-profit (79%) >Privately owned for-profit (62%)

Nonprofit (40%)Government (33%)

Privately owned for-profit (62%) >Nonprofit (40%)

Government (33%)


What is the primary reason your organization participates in E-Verify?

My organization voluntarily partic-

ipates38%

We are required to participate as a federal contractor

36%

We are required to participate by state

law20%

Other7%

Note: n = 321. Percentages do not equal 100% due to rounding. Only respondents whose organization participates in E-Verify were asked this question. Respondents who answered “Not sure” were excluded from this analysis.


How long has your organization participated in E-Verify (round to the nearest time period)?

Less than12 months

10%

One to three years42%

More than three years48%

Note: n = 308. Only respondents whose organization participates in E-Verify were asked this question.


How long did it take to implement E-Verify at your organization?

Less than a day

One to 7 days

Eight to 30 days

31 to 90 days

Four to six months

Seven to 12 months

More than a year

Other*

17%

34%

22%

13%

10%

3%

1%

1%

Note: n = 260. *Respondents who answered “don’t know” were excluded from the analysis. Only respondents whose organization participates in E-Verify were asked this question.


How long did it take to implement E-Verify at your organization?



Less than seven days 1 to 499 employees (71%) > 500 or more employees (29%)

Seven days to six months

500 or more employees (78%)

> 1 to 499 employees (23%)


• Organizations with 500 or more employees reported implementation of E-verify taking longer than organizations with 1-499 employees.


How do you train new E-Verify administrators at your organization?

Online tutorial required by E-Verify

Additional in-person training developed by my organization

Additional online training developed by my organization

Additional training delivered off-site

Other

76%

29%

8%

3%

9%

Note: n = 304. Percentages do not equal 100% due to multiple response options. Only respondents whose organization participates in E-Verify were asked this question.





Online tutorial required by E-Verify

1 to 499 employees (83%) > 500 or more employees (69%)

Additional online training required by my organization


Additional in-person training required by my organization





• Organizations with 1-499 employees were more likely than organizations with 500 or more employees to indicate they use online tutorials to train E-Verify administrators. However, organizations with 500 or more employees were more likely than organizations with 1-499 employees to use additional training services.







Government (14%) > Publicly owned for-profit (2%)

• Government agencies were more likely than publicly owned for-profit organizations to offer additional training off-site to new E-Verify administrators.


What challenges has your organization encountered with the E-Verify process?

No challenges

Does not replace Form I-9 process

Process for resolving tentative non-confirmations unclear

Authenticity of documents presented by employees

Authenticity of the identity of the person seeking employment

Balancing Form I-9 compliance with concerns about discrimination and unfair immigration-related employment practices

Variety of documents employees are able to present is too large

Process is too complicated

Other

47%

23%

19%

13%

8%

7%

7%

5%

6%

Note: n = 300. Percentages do not equal 100% due to multiple response options. Only respondents whose organization participates in E-Verify were asked this question.







• Organizations with 500 or more employees were more likely than organizations with 1-99 employees to agree that the E-Verify process does not replace Form I-9 process.

• Organizations with 500 or more employees were more likely than organizations with 1-99 employees to agree that process for resolving tentative non-confirmations is unclear.






Government (29%) > Privately owned for-profit (5%)


• Government organizations were more likely than privately owned for-profit organizations to agree that balancing Form I-9 compliance with concerns about discrimination and unfair immigration-related employment practices is a challenge.



What are the reasons your organization does not participate in E-Verify?

E-Verify doesn’t eliminate requirement to complete Form I-9

Unfamiliar with program

Inadequate legal safeguards for employers to participate in program

E-Verify vulnerable to use of identity fraud to gain employment

E-Verify is not required/not needed

Cost/resource issue

Other

45%

34%

11%

8%

8%

2%

10%

Note: n = 242. Percentages do not equal 100% due to multiple response options.


Would your organization support a mandatory electronic verification system?

Strongly support Somewhat support Probably would not support

Would not support at all

33%

50%

15%

2%

63%

29%

6%2%

2014 (n = 557) 2006 (n = 484)


Would your organization support a mandatory electronic verification system if it:

Includes strong safe harbor to protect employers

Avoids allegations of employment-based discrimination

Authenticates identity

Eliminates Form I-9

Provides a relatively brief period to resolve disputed work authorization cases

71%

71%

66%

60%

57%

25%

25%

28%

32%

36%

4%

4%

5%

6%

6%

0.005

0.018

0.005

Strongly support Somewhat SupportProbably would not support Would not support at all

Note: n = 550-557.


Demographics


Demographics: Organization Industry


Percentage

Manufacturing 18%

Health care and social assistance 16%

Professional, scientific and technical services 15%

Other industry 11%

Educational services 8%

Finance and insurance 8%

Transportation and warehousing 8%

Retail trade 6%

Construction 5%

Accommodation and food services 4%

Administrative and support and waste management and remediation services

4%


Demographics: Organization Industry (continued)


Percentage

Repair and maintenance 4%

Arts, entertainment and recreation 3%

Utilities 3%

Wholesale trade 3%

Mining, quarrying, and oil and gas extraction 3%

Real estate and rental and leasing 2%

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

Information 2%

Agriculture, forestry, fishing and hunting 1%


Demographics: Organization Sector

n = 546. Percentages do not equal 100% due to rounding.

Privately owned for-profit

Nonprofit

Publicly owned for-profit

Government

Other

50%

23%

17%

9%

2%


Demographics: Organization Staff Size

n = 535. Percentages do not equal 100% due to rounding.

1 to 99 employees

100 to 499 employees

500 to 2,499 employees

2,500 to 24,999 employees

25,000 or more employees

23%

31%

23%

18%

6%


n = 418.

Demographics: Other

Percentages do not equal 100% due to rounding.

U.S.-based operations only 74%

Multinational operations 26%

Single-unit organization: An organization in which the location and the organization are one and the same.

32%

Multi-unit organization: An organization that has more than one location.

68%

Multi-unit headquarters determines HR policies and practices

53%

Each work location determines HR policies and practices

3%

A combination of both the work location and the multi-unit headquarters determines HR policies and practices

43%

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

For multi-unit organizations, are HR policies and practices determined by the multi-unit headquarters, by each work location or by both?

Does your organization have U.S.-based operations (business units) only, or does it operate multinationally?

n = 560.

n = 392.

Corporate (companywide) 64%

Business unit/division 18%

Facility/location 18%

n = 394.

What is the HR department/function for which you responded throughout this survey?


SHRM Survey Findings: Employment Verification

• Response rate = 12%• 611 HR professionals from a randomly selected sample of SHRM’s membership

participated in this survey• Margin of error +/-4%• Survey fielded February 14-28, 2014

Survey Methodology


For more survey/poll findings, visit shrm.org/surveys

For more information about SHRM’s Customized Research Services, visit shrm.org/customizedresearch

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About SHRM Research

Project lead:Eliza Jacobs, researcher, Workforce Analytics, SHRM Research

Project contributors:Lynn Chen, Workforce Analytics, SHRM ResearchAlexander Alonso, Ph.D., SPHR, vice president, SHRM ResearchEvren Esen, director, Survey Programs, SHRM Research

Copy editor:Katya Scanlan, SHRM Knowledge Center

http://www.shrm.org/surveys

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Founded in 1948, the Society for Human Resource Management (SHRM) is the world’s largest HR membership organization devoted to human resource management. Representing more than 275,000 members in over 160 countries, the Society is the leading provider of resources to serve the needs of HR professionals and advance the professional 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.

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shrm survey findings: employment verification june 16, 2014

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