When the European Union’s comprehensive data privacy regulation went into effect in 2018, the law not only changed business practices in Europe, it also became a catalyst for similar measures across the globe.
In Latin America, where leaders are debating and enacting new laws modeled after the EU’s General Data Protection Regulation (GDPR), the shift toward data privacy is also sparking new worries among employers about compliance as they conduct background checks.
Take Brazil, where a new GDPR-like law will become effective next year. Some employers and education institutions, unsure of its mandates, have stopped providing information about job candidates to employers. In other cases, employers are eschewing background checks altogether or conducting them without the job seeker’s knowledge.
But as Brazil’s law and others like it take effect, those practices can lead to damaging repercussions for employers. Without proper background checks, organizations risk onboarding poor-quality candidates. HireRight’s 2019 Employment Screening Benchmark Report found that 60% of respondents reported better hires, and 56% touted more consistent safety and security when they screen job seekers.
And if companies don’t comply with the new regulations, they could encounter hefty penalties. In Brazil, employers may face fines of up to 2% of their global annual revenue for not following the country’s data privacy law when it goes into effect. FULL ARTICLE