When it comes to screening new workers, the gig economy is a contradiction.
It's a labor market built on speed and flexibility. Yet, the process for conducting background checks on those workers is slow, redundant, and increasingly risky.
Every time a gig worker joins a new platform, they must go through the same background check process, producing the same personally identifiable information (Social Security number, driver's license, or other documents) that they showed to the last dozen businesses or digital platforms that contracted for their services.
For the platforms hiring these gig workers — whose primary business is to provide goods and services and not spend millions of dollars in screening the participants on their platforms — this results in duplicated personal data across countless databases, an increase in compliance costs, and greater breach exposure without meaningfully improving safety for the business and its customers. In essence, the gig economy's system — or in some cases lack of a system — for conducting background checks doesn't work as well as it should.
And, of course, it needs to work well because trust is a big factor with all businesses in the gig economy. If customers worry that the driver who picks them up or the handyman who comes to their house can't be trusted, then they will take their business elsewhere.
Clearly, a better system for those background checks is needed, and anyone seeking such a system can take a cue from the TSA's PreCheck program used at airport security lines. Travelers who use TSA PreCheck undergo a thorough vetting that includes a background check, fingerprinting, and even an interview to prove they're low risk. In return, they receive a Known Traveler Number that lets them use expedited security lanes at airports. While everyone else waits in a long line, these passengers who have already been screened move through quickly each time they fly.
A similar type of expedited screening is needed in the gig economy to make background checks less cumbersome, faster, and more accurate — and ultimately even more trustworthy.
One option for accomplishing that would be a verified digital credential that eliminates the need for users to repeatedly provide their private personal information. Instead, once the individual has been vetted and their information verified, they would receive a digital credential that contains proof of their identity and background without the need for sharing sensitive information over and over. This credential, bound to the individual and stored in their phone, could be used for starting a new job, signing up for a gig platform, renting a home, or other situations where people are called on to prove their identity. The individual would have this credential for life, with it continuously updated.
Gig economy platforms would find this particularly helpful. They would know instantly that the person's background information had already been verified. They would no longer need to collect and store all that personal data from the people they hire, creating a potential target for cyber thieves and liability for their business. The process would also work more efficiently. The platforms could onboard drivers, delivery personnel, or others in a day rather than requiring every worker to undergo a new background check. For gig workers, there would be advantages as well. They could start to earn money more quickly, rather than waiting on results from background checks.
Unfortunately, right now most platforms rely on fragmented, one-time background checks, often done by third parties. The process is slow, inconsistent, and quickly becomes outdated. Workers have to repeat the same steps for every new app or gig.
With this digital credential, platforms could easily verify both sides of a transaction — service providers and service seekers. For example, a rideshare driver could show that their driving record is clean and their license status has been verified. A customer hiring a home caregiver could show verified ID and payment credentials, reducing fraud and increasing accountability.
The business wins in both instances — eliminating inefficiencies, limiting liability, and creating a smoother, quicker screening environment for workers.
About Raj Ananthanpillai
Raj Ananthanpillai is the founder and CEO of Trua, a digital identity-verification and screening company. He is also a serial entrepreneur, investor, inventor, and leading authority on digital trust, identity, and privacy. Ananthanpillai has built and grown several impactful tech companies, and his ventures have provided mission-critical solutions for federal agencies, including key contributions to various national security programs such as TSA PreCheck, Fortune 500 companies, and global organizations. His upcoming book, The Trust Crisis, published by Forbes Books, is scheduled to be released later this spring.
