Employee background verification is among the most pivotal processes in an organization, especially while making hiring decisions. It is a process of vetting the applicant who has applied for a job in the organization and ensuring the validity of the information provided in the resume.
You might ask why it is necessary to perform a comprehensive employment verification? That’s because a recent survey revealed that a wrong hire could cost companies and employers an average of over INR 20 lakhs.
Although we were unable to find data regarding the number of candidates who were fired after failing their background verification, one can safely assume that providing false information will likely get a job applicant fired. Many aspiring candidates forget that there is a process called employee background verification whose sole intention is to find out if they have provided false information. Even a small aberration in the resume that looks intentional will lead to being fired on the spot, a call which is generally made by the HR team and higher officials of the organization.
Here is why businesses perform employment verification
A lot of job aspirants believe that a background verification process will not delve too much into the information they provide and resort to adding information to sweeten their resume. Unfortunately, such a thing can have severe repercussions, with the least punishment being asked to vacate the position. Here are some of the details that employment verification companies find:
- Gaps in job experience.
- Education related discrepancies.
- Discrepancies in the compensation.
- Working experience in different unrelated industries.
- Criminal history.
- Employment history.
- Fake education certificates from unrecognized universities.
- Certificate courses being portrayed as full-time degrees.
In addition, employment verification companies also help in revealing if the candidates have kept the company in the dark about any pending court cases or criminal history. It can easily help organizations weed out unsuitable applicants (if the company has a policy against it).
Background verification companies will also verify employment history, which will include their designation, duration of employment, performance, memos they have received, general behaviour and so on.
A lot of companies even go to the extent of verifying their permanent and current address in person. All of this background verification ensures that someone with dubious credentials does not enter the organization.
Multinational companies often hire the services of employee background verification companies in India to run background checks. At the same time, start-ups perform such verification using the little resources they have at their disposal, usually the HR team.
The HR team, which generally performs the employment verification, has a powerful tool that they can use to learn more about a job applicant – social media handles. Content that is relate to racism, inappropriate pictures, homophobic slurs, etc, is, and should be use against the potential candidate. There are no laws that refrain companies from scanning applicants’ social media handles.
There are instances when a company finds discrepancies. And the HR team must decide to either fire the candidate or allow them to explain themselves. A face-to-face discussion with the human resource team can help clear doubts whether a candidate lied or if there was some sort of miscommunication that does not deserve any kind of punishment.
While a computerize employment verification may not always be foolproof, it is the exact reason why there should be human involvement so that contingencies can be address.
Is background check worth the money?
A comprehensive background check will be a cost-effective method. The only disadvantage is that it might take a few attempts for the companies to figure out what works best for them and what doesn’t.
However, if you consider the bigger picture, hiring the wrong candidate can easily. Become more costly for business reputation than not spending on conducting an employment verification. If a client decides to sue your business. Because the HR manager hired a candidate with false credentials. Then there is not much a company can do instead of facing the judiciary.
A comprehensive employment verification creates a sense of security among employees reduces chances of terminating employees. Saves other employees from correcting poor performance and so on. Keep in mind that a single wrong hire can create many issues for your business. Which may be challenging to recover from.
Financial and Reputational
There have been numerous instances where companies faced financial and reputational loss because of the behaviour of its employees. In an ideal world, it might be typical to consider the word of a job aspirant based on the information provided on the resume alone. However, the real world works very differently, and it is necessary to verify every detail provided in the resume.
Companies should realize that employee background verification is not perform. Because of an inherent lack of trust. But because systems like this have been form to ensure the smooth running of work. Companies also need to be open with their job applicants regarding the verification procedure. Having prior permission from the candidates regarding the employment verification can prevent several risks, both financially. And reputation wise, for the business. If the company acquires the consent of the future employee and handles the data with responsibility. Then employment verification is a process that reaps several benefits in the long term and averts any immediate ‘faux pas.’
A dishonest hire will not treat your clients how they are suppose to be treat. Lack of such a commitment from an employee will reflect poorly on your company. Such kind of behaviour can also lower the morale of other employees who will take a share of the blame as well.
Simply put, employment verification is one of the most effective tools. That companies should use to create the right ‘infrastructure’ of employees. As a responsible company, make sure employee background verification is a must-have feature and is never side line.