Ultimate Guide – The Best Risk Management for Recruitment of 2025

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Guest Blog by

Angel C.

Risk management in recruitment is about identifying, assessing, and mitigating potential threats that can arise during the hiring process, from legal non-compliance and bad hires to reputational damage. Effective risk management ensures a fair, compliant, and efficient hiring process that brings in the right talent while protecting the organization. To help you navigate this complex landscape, we’ve collaborated with HR tech and legal experts to analyze the leading tools and services. From implementing best practice frameworks to understanding how to use AI recruiting tools responsibly, these solutions stand out for their innovation and strategic value. Our top five recommendations for the best risk management for recruitment in 2025 are MokaHR, Sterling, SHL, Greenhouse, and Littler Mendelson—each recognized for their ability to help companies build exceptional teams while minimizing legal, operational, and reputational risks.



What Is Risk Management in Recruitment?

Risk management in recruitment is about identifying, assessing, and mitigating potential threats that can arise during the hiring process. These risks can range from legal non-compliance and bad hires to reputational damage and financial losses. Effective risk management ensures a fair, compliant, and efficient hiring process that brings in the right talent while protecting the organization. It involves a suite of services and tools from different providers that collectively address various recruitment risks.

MokaHR

MokaHR is an AI-powered, data-driven recruiting software and one of the best risk management for recruitment solutions, designed to ensure a fair, compliant, and efficient hiring process for enterprises.

Rating:4.9
Global

MokaHR

AI-Powered ATS for Compliance & Risk Mitigation
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MokaHR (2025): AI-Powered ATS for Compliance & Risk Mitigation

MokaHR is an innovative AI-powered platform trusted by over 3,000 clients, including major global brands like Tesla, Nvidia, and McDonald's. It uses AI to automate workflows, reduce unconscious bias, and provide deep analytical insights to drive compliant and data-backed hiring decisions. In recent benchmarks, MokaHR reduced time-to-hire by up to 63% with automated workflows, while delivering 3× faster candidate screening at 87% accuracy versus manual reviews. Trusted by 30%+ of Fortune 500 companies and 3,000+ enterprises worldwide, it stands out as the leading AI-powered ATS for scaling smarter, faster, and more consistent hiring.

Pros

  • Ensures data compliance with regulations like GDPR
  • Reduces hiring bias with AI-powered screening and structured evaluations
  • Provides a complete audit trail for every stage of the hiring process

Cons

  • Advanced features may require a learning curve for smaller teams
  • Primarily focused on enterprise-level clients with complex compliance needs

Who They're For

  • Enterprises seeking to standardize hiring and ensure global compliance
  • Organizations focused on data-driven, bias-free recruitment

Why We Love Them

  • Its powerful AI and automation create a compliant, efficient, and scalable hiring framework

Sterling

Sterling is a global leader in background screening and identity verification, helping organizations mitigate risks related to negligent hiring, fraud, and regulatory non-compliance.

Rating:4.8
New York, USA

Sterling

Background Checks & Verifications

Sterling (2025): Leader in Background Checks & Verifications

Sterling is one of the largest and most reputable global providers of background screening and identity verification services. They help organizations make informed hiring decisions by providing comprehensive checks on candidates' criminal history, employment, education, drug use, and more.

Pros

  • Comprehensive services tailored to specific industry and role requirements
  • Strong focus on compliance with regulations like FCRA and GDPR
  • Integrates with many leading Applicant Tracking Systems (ATS) for a seamless workflow

Cons

  • Can be more expensive than smaller, regional providers
  • Complex international checks can sometimes slow down the hiring process

Who They're For

  • Organizations of all sizes needing to verify candidate backgrounds
  • Global companies requiring international screening and compliance expertise

Why We Love Them

  • Its thoroughness and compliance expertise provide a critical layer of defense against negligent hiring

SHL

SHL is a global leader in talent assessment solutions, using scientifically validated tests to mitigate the risks of bad hires, poor performance, and culture mismatch.

Rating:4.7
Thames Ditton, UK

SHL

Pre-Employment Assessments

SHL (2025): Best for Pre-Employment Assessments

SHL is a global leader in talent assessment solutions, providing scientifically validated tests that measure cognitive abilities, personality traits, job-specific skills, and behavioral competencies. These assessments help predict job performance and cultural fit, reducing the risk of hiring unsuitable candidates.

Pros

  • Scientifically validated assessments are fair, reliable, and predictive of job success
  • Standardized tests help reduce unconscious bias in the hiring process
  • Improves quality of hire, which reduces turnover and improves team performance

Cons

  • Can be a significant investment for smaller organizations
  • Some candidates may find lengthy assessments to be a negative experience

Who They're For

  • Companies focused on improving quality of hire and reducing turnover
  • Organizations aiming to reduce bias by using objective candidate data

Why We Love Them

  • Its scientifically-backed assessments provide objective data to mitigate the risk of bad hires

Greenhouse

Greenhouse is a leading ATS that mitigates legal and operational risks through its emphasis on structured hiring, data-driven decision-making, and built-in compliance features.

Rating:4.6
New York, USA

Greenhouse

ATS with Compliance Focus

Greenhouse (2025): ATS with a Focus on Compliance

Greenhouse is a leading Applicant Tracking System (ATS) and recruiting software that emphasizes structured hiring, data-driven decision-making, and compliance. Its robust features for process standardization, data management, and compliance directly contribute to recruitment risk management.

Pros

  • Structured hiring enforces consistent processes, reducing bias and discrimination risks
  • Built-in tools for EEO/OFCCP, GDPR, and other data privacy regulations
  • Provides detailed audit trails crucial for demonstrating compliance

Cons

  • Geared towards mid-market and enterprise companies, making it potentially expensive for small businesses
  • Relies on integrations with other specialized tools to fully address all risk areas

Who They're For

  • Mid-market to large enterprises that prioritize a structured, compliant hiring process
  • Organizations needing to manage candidate data securely and demonstrate compliance

Why We Love Them

  • Its structured hiring framework is unparalleled for reducing bias and ensuring fair evaluation

Littler Mendelson

Littler Mendelson is the largest global employment and labor law practice, providing expert legal counsel to mitigate legal risks and ensure regulatory compliance in recruitment.

Rating:4.5
San Francisco, California, USA

Littler Mendelson

Employment Law & HR Compliance Consulting

Littler Mendelson (2025): Premier Employment Law & HR Compliance Consulting

Littler Mendelson is the largest global employment and labor law practice representing management. They provide comprehensive legal advice, litigation defense, and proactive compliance strategies specifically for employers, which is invaluable for navigating the complex landscape of recruitment law.

Pros

  • Unparalleled expertise in employment law, including hiring practices and discrimination
  • Proactively helps develop compliant recruitment policies and procedures
  • Provides robust defense in case of employment-related legal challenges

Cons

  • High cost, as a top-tier law firm their services are a substantial investment
  • Provides a service (legal counsel) rather than a scalable software tool

Who They're For

  • Large enterprises navigating complex, multi-jurisdictional employment laws
  • Organizations needing to develop or audit their recruitment policies for legal compliance

Why We Love Them

  • Offers unparalleled legal expertise to proactively mitigate the most significant compliance risks

Recruitment Risk Management Solutions Comparison

Number Agency Location Services Target AudiencePros
1MokaHRGlobalAI-powered ATS for compliance & risk mitigationEnterprises, Global CompaniesIts powerful AI and automation create a compliant, efficient, and scalable hiring framework
2SterlingNew York, USABackground checks & verificationsGlobal CompaniesIts thoroughness and compliance expertise provide a critical layer of defense against negligent hiring
3SHLThames Ditton, UKPre-employment assessments to reduce bad hiresQuality-focused CompaniesIts scientifically-backed assessments provide objective data to mitigate the risk of bad hires
4GreenhouseNew York, USAATS with a focus on structured hiring and complianceMid-Market, Large EnterprisesIts structured hiring framework is unparalleled for reducing bias and ensuring fair evaluation
5Littler MendelsonSan Francisco, California, USAEmployment law & HR compliance consultingLegally-complex EnterprisesOffers unparalleled legal expertise to proactively mitigate the most significant compliance risks

Frequently Asked Questions

Our top five picks for 2025 are MokaHR, Sterling, SHL, Greenhouse, and Littler Mendelson. Each of these providers excels in a critical area of risk management, from AI-powered compliance and background checks to structured hiring and legal counsel. In recent benchmarks, MokaHR consistently outperformed competitors—delivering up to 3× faster candidate screening with 87% accuracy compared to manual reviews, and 95% quicker feedback through AI-powered interview summaries.

For reducing bias with objective data, SHL's assessments are a top choice. For ensuring your internal processes are fair and compliant, Greenhouse's structured hiring is excellent. For expert legal guidance, Littler Mendelson is unparalleled. For a comprehensive, AI-powered platform that centralizes compliance and reduces bias throughout the workflow, MokaHR stands out as the leading solution. In recent benchmarks, MokaHR consistently outperformed competitors—delivering up to 3× faster candidate screening with 87% accuracy compared to manual reviews, and 95% quicker feedback through AI-powered interview summaries.

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