A record 4.3 million workers quit their jobs in August with many of them moving towards the more flexible gig economy. Since the beginning of the COVID-19 pandemic in 2020, the number of people transitioning to freelance and independent contract work has skyrocketed. Over 80% of major U.S. companies say that they plan to employ freelance labor in the coming years. With the global gig economy projected to be worth nearly $350 billion by the end of 2021 and consist of over 67 million people, the need for advanced digital background screening technology may be more important than we realize.
The Importance of Background Checks in the Growing Gig Economy
Just as an employee represents a brand or organization when working in-house, the same is true of freelance or contracted workers performing tasks remotely. The public expects companies to employ respectable individuals who do not put the customers’ safety or financial well-being at risk — any failed attempt may very well lead to reputational damage for the organization or its brand. Furthermore, gig workers may gain access to vulnerable company information, making it critical to hire trustworthy contractors.
With over 50% of traditional job applications containing inaccurate information, what makes employers think the gig economy landscape will be any different?
Background checks are the most effective way to mitigate the risk of hiring workers who could misuse vulnerable information or poorly reflect a company’s values. Still, the digitalization of information has increased exponentially in recent years, creating genuine concern for traditional background screening methods. Organizations must consider digitalized and automated background check strategies to adequately investigate individuals while maintaining a streamlined onboarding process. Using background check technology that employs artificial intelligence and machine learning allows companies to make safer hiring decisions faster, more accurately, and more efficiently. Furthermore, with a limited labor pool, it’s more important than ever to process quality applicants quickly before they go somewhere else.
How Exactly Is AI Aiding the Background Check Industry?
For years, the background check process has remained consistent. However, as technology and information sharing continue to evolve, so does the need for more advanced technology to adequately unearth an individual’s records. Here’s how AI and machine learning are changing the landscape of background checks:
1. Instant processing- As part of the identification process, companies like Base64.Ai instantly verifies the identity of the worker via their ID, driver’s license, passport, or visa, then compares the data with other systems to verify their background. This helps prevent situations where a candidate is wrongly identified and passes a background check when they shouldn’t be.
2. Greater accuracy — Human error can be quite common when processing data manually. AI can help catch and reduce the amount of errors that happen during the tedious background check process.
3. Streamlining onboarding — AI technology verifies relevant data such as facial recognition, voice identification, and Covid-19 vaccination card verification to help move along the screening process within seconds, letting companies make decisions and fill roles without wasting time or resources. With so many options for workers, time-to-close is critical for acquiring more/better talent.
Base64.ai: Providing End-to-End Solutions for the Gig Economy
Founded by the gig economy veterans, Base64.ai helps companies automate data extraction and streamlines identity verification in the onboarding processes associated with the growing global gig economy. Our artificial intelligence-based software can instantly process an individual’s data and identity from over 700 document types while they’re still in your onboarding funnel — allowing safer, more accurate decision-making when hiring for remote positions. Base64.ai’s versatile automation software is easily integrated into existing workflows, making it the perfect background check solution for companies looking to modernize systems and increase efficiency. Base64.ai is a secure cloud system that has a SOC 2 data security certification and is a current member of the Professional Background Screening Association (PBSA).
The gig economy will continue to boom in the coming years, and the need for companies to introduce automated, AI-based background check technology into their workflows is evident. Don’t let a lack of information or misused resources contribute to the negative impacts that accompany misguided hires.