Saturday, September 23

Why do employers conduct background checks?

In most cases, big multinational companies do not assume that people applying for jobs lie on their resumes and job applications – quite the contrary.


Employment verification in India is generally a final step taken by companies to help ensure a sound hiring decision and protect the company from various potential risks. 


Job Competence


For several companies, background verification is a reliable method of verifying claims made by job applicants during the hiring process. Due to the challenging employment market, the appeal of overstating educational qualifications or modifying job histories, for example, can grow. 


As a future employee, wouldn’t you feel more comfortable knowing that all your co-workers have been through a comprehensive background check to help ensure they are qualified for the position they hold?


Workplace Safety


Every company has certain responsibilities for their employees’ welfare, as well as for the safety of vendors, customers, and visitors. 


For example, if a company hires someone who harms his coworkers, in that case, the company may face claims regarding negligent hiring. This is why it is necessary for companies to conduct a reasonable investigation using employment verification services to discover whether the candidate is unfit for the position or may cause harm to other employees working in the organization. 


Workplace Theft


Most companies understand that most business theft is performed by people working inside. A comprehensive background check can help employers make intelligent and informed hiring decisions to mitigate risks related to theft.


Honesty and Integrity


A confirmed lie or fabrication made by an applicant during the hiring process is usually enough for an employer to question the applicant’s honesty or integrity and potentially disqualify them from the position. 


To understand the importance of background verification, look no further than the very public examples of CEOs and high-profile professors and coaches that forged their credentials, only to cause reputation harm to the organization that failed to perform a comprehensive employment verification on them. 


How do Companies perform Background Checks?


When a company chooses to perform background checks on its own, they do not need to seek consent from the candidate. However, when they engage employment verification services to conduct background checks on job applicants, they must notify each of the candidates in writing to acquire written consent. It is up to the job applicant to grant authorization or reject the requests for the background checks. 


If the company fails to hire a candidate based on the information received while performing employment verification in India, then the company must provide the candidate with an adverse disclosure statement. The disclosure usually contains a copy of the consumer report/background checks the company used to make its hiring decision, along with information on the applicant’s right to dispute the reports used.


Information Included in an Employee Background Verification


The amount of information included in a background verification generally depends on the sensitivity of the reason for which the background verification is being conducted. It includes the following:

  • Criminal background check


Undoubtedly, this should be the top priority. No one would like to work with someone who has a criminal record. If your employees feel unsafe inside the company premises, they can easily make decisions like quitting or persuading others to quit, leaving the company understaffed and scrambling. Moreover, if the employee is a member of a working union, they can also opt for reporting their grievance, further complicating the issue and tarnishing the image of the company.

  • Work experience


Almost every resume contains some type of discrepancy. According to Indeed, 40% of people lie on their resumes. Such a thing can put the organization in an awkward situation. No company wants to have an unqualified person represent them, especially if the position requires a certain level of experience. 


A comprehensive employment verification in India can help ensure the resume’s authenticity and other available information. 

  • Education history

Education verification helps confirm whether the applicant has really completed his education from the mentioned college or not and has the necessary knowledge to perform the job at a high level. Even earlier, companies have suffered a reputational loss when they hire without verifying the educational level of the candidate. The most famous story is of Liv Loberg, a nurse from Norway. She claimed that she had a health degree from the prestigious London School of Economics. Unfortunately, nothing of this sort was true. At last, she ended up spending fourteen months in prison, and affected the credibility of the Norwegian healthcare system. 

  • Reference checks


Reference checks using employment verification services allows companies to verify an applicant’s education and employment history by contacting previous supervisors, professors, and colleagues.


Some HR managers argue that references checks don’t help in revealing any red flags since candidates only list down references that will provide positive reviews. 


However, according to employment verification services, these reference checks can help employers learn more about a candidate’s strengths and weaknesses. 


To ensure more accurate and honest answers, HR managers should ask more specific, open-ended questions from references to get a clear idea regarding the candidates’ contribution in specific tasks and how they handled various situations. 

  • Social media checks


Social media verification is the next big thing amongst hiring managers and recruiters. This kind of check allows them to humanise the candidate and get unique insights that extend beyond the resume. 


Verifying a candidate’s social media account can also help reveal any potentially inappropriate behaviour that might not be visible during the interview.


Is background check worth the money?


The right employment verification in India will be a cost-effective method. The only downside of such checks is that it might take a few attempts for companies to figure out what works best for them and what doesn’t. 


However, when we consider the bigger picture, hiring a dishonest candidate is more costly for businesses than conducting proper background verification. If a client sues your business because you hired a candidate with fake education or criminal history, then there is not much you can do instead of facing the judiciary.