Why rescreening matters more than ever in 2025

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Why relying on initial background checks alone could be a costly mistake

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In many organisations, background screening is still treated as a one-time step before onboarding. But the risk profile of an employee doesn’t stay static.

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More than half of background checks contain false-positive errors, and around 90% have at least one false-negative error, according to recent research. The assumption that everything remains unchanged after hiring introduces significant blind spots—especially in roles where compliance and integrity are critical.

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In 2025, we’re seeing growing awareness among HR, compliance, and risk leaders that pre-employment checks aren’t enough to protect the business. Rescreening—checking existing employees at regular intervals—is becoming a critical part of a responsible workforce strategy.

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As specialists in workforce risk and integrity, we’ve worked with companies across finance, healthcare, logistics, and tech. And the same question keeps coming up: What’s changed since they joined?

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Here’s what you need to know—and what action to take.

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A background check is a snapshot, not a guarantee

The purpose of a background check is to reduce uncertainty at the point of hire. But once someone is in the role, that check becomes outdated. Circumstances change. So does risk.

• A criminal record might be acquired after joining.
• Professional licences or certifications may expire unnoticed.
• Financial distress or changes in legal standing may raise red flags for regulated roles.
• Employees moving into new roles may require updated checks based on changing responsibilities.
  
  

In most companies, these developments are never flagged unless someone proactively updates HR—which rarely happens.

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One global fraud survey found that 38% of fraud incidents involved collusion between internal and external parties, while 29% were committed entirely by employees. Most of these were only discovered after the fact.

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The risk environment is shifting

Several macro trends are driving renewed urgency around rescreening in 2025:

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1. Regulatory scrutiny is increasing

From the EU Whistleblower Directive to Singapore’s Employment Agencies Act, regulations are evolving to require more robust workforce due diligence. The Monetary Authority of Singapore (MAS), for example, has placed greater emphasis on fitness and propriety checks for appointed representatives—many of which must be repeated at regular intervals.

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Companies that fail to maintain up-to-date records may face:

• Financial penalties
• Regulatory sanctions
• Audit failures or reputational damage
  
  

2. Internal fraud and misconduct are on the rise

According to the Association of Certified Fraud Examiners’ 2024 report, organisations lose an estimated 5% of annual revenue to fraud, with a notable portion attributed to long-term employees whose circumstances had changed post-hire.

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Many companies only learn about these risks after an incident—by which point the damage is done.

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3. The workforce is more mobile and global

With remote work now the norm, especially across tech and services sectors, organisations are employing talent across jurisdictions with varying legal requirements and risk profiles. What may be compliant in one location may not be enough elsewhere.

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Without a standardised approach to rescreening, these gaps can go unnoticed until a regulatory review or incident forces a reactive response.

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Not every role needs the same level of scrutiny

One of the misconceptions about rescreening is that it’s burdensome or overkill. In reality, most companies benefit from applying a tiered approach based on role risk.

• High-risk roles (finance, compliance, legal, safety-critical): annual or biannual rescreening
• Customer-facing or regulated roles: every 1–2 years
• General staff: every 2–3 years
• Role changes or promotions: trigger-based rescreening

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Policy frameworks should also account for employee movement, regulatory changes, and business expansions into higher-risk markets.

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If you're unsure what types of checks to include—criminal record, sanctions, credit, licence validity, or others—this guide (Employee rescreening: Top checks to consider)  outlines the most common rescreening checks and when they apply.

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A case for proactive rescreening

Let’s say you hired a finance manager three years ago. At the time, all checks were clear. But since then:

• Their professional certification lapsed.
• They’ve been flagged in a global sanctions database due to a directorship in a newly listed entity.
• And they’ve since taken on expanded responsibilities involving regulatory filings.
  
  

Each of these changes carries implications—but without a rescreening process, they would likely go unnoticed.

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Approximately 57% of employers in North America do not conduct post-hire screenings, including periodic employee rescreening and continuous monitoring. That’s a large gap given today’s compliance environment.

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Characteristics of a sound rescreening program

The most effective organisations we work with treat rescreening as a core HR and compliance function, not an afterthought. They:

• Maintain a central schedule of rescreening by role type
• Use platforms that automate reminders and workflows
• Tailor check types based on the nature of risk (e.g. criminal record, credit, licences)
• Document policies and maintain audit trails
• Integrate rescreening into their promotions and mobility process
  
  

In short, rescreening is operationalised, not left to ad hoc decisions.

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Time to reassess your exposure

If your organisation hasn’t reviewed its rescreening approach recently, now is the time.

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The legal, financial, and reputational cost of relying on outdated records is rising—and the tools to stay ahead are already available. HR and compliance teams that treat rescreening as part of their core governance process are better equipped to identify and mitigate risk before it escalates.

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We believe every company should be asking this simple question: What do we know about our people today—not just the day they were hired?

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If you're reviewing your own rescreening approach, we’re happy to walk you through how other companies are structuring theirs.

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Get in touch for a complimentary review or reach out to your Veremark account manager.

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