With technological advancement, many companies have enabled detailed background checks before offering you a job. A background check is an essential practice but tends to prolong an organization’s hiring process.
When you enter the corporate world, the employers ask you to submit personal information for background verification. To make it an easier process for yourself, you need to understand employee verification and how organizations benefit from employment verification in India.
Let’s take you through the fundamentals of background verification, what is analyzed, and its advantages to companies.
Background Check – The Fundamentals
A background check is a process to filter the hiring quality based on the identity verification of employees. Employers request documents during the hiring process to validate the identity of individuals and ensure that you won’t be a liability to any organization.
The background checks are essential to ascertain the information about your educational background, employment history, criminal record, and other related activities. Depending on the workplace sector, additional specific background checks may be performed.
Factors Considered for Background Check
Being a multi-step process, there are various factors considered for background verification. Here is the list of factors that organizations emphasize for the verification of applicants:
- Educational Certification
This verification helps the employer to give a green signal to details mentioned in the job application.
- Work History
Sometimes, candidates may boast about their previous work history. To determine whether the details provided are valid, an employer may retrace your organizational work history.
- Criminal Record
Through this verification check, employers inspect the criminal records within the state, national, or local boundaries. If organizations find a criminal history against you, it may put the organization into legal disputes, so they don’t prefer such candidates.
- Credit Records
Credit record verification assures organizations if a job applicant is worthy enough to hold financial responsibilities. High credit and default history may pose various financial challenges for organizations, especially in the financial services domain.
- Drug Screening
This factor may be considered before bringing a new hire to an organization. Drug screening tests ensure that an applicant is not a drug addict, maintaining certain decorum and safety in the workplace.
The Advantages of Background Checks in Organizations
Considering the factors mentioned above, organizations get the following benefits from detailed background checks:
- Quality Hiring in an Organization
Organizations have high expectations from recruits to get more productivity from them. The quality of hiring in organizations is improved through background screening.
It helps organizations unveil any wrong information claimed on resumes. A study by the Society for Human Resources Management (SHRM) reveals that candidates who indulged in fraudulent activities in the past have altered their resumes to secure a job.
Presenting falsified information about the employment history, education, certification, or criminal records results in poor hiring in companies. Furthermore, it leads to financial, legal, and regulatory risks for the hiring organizations.
Background screening ensures prevention of potential risks and cost-effective hiring.
- Mitigated Inappropriate Hiring Risks
Background verification helps mitigate the risk of negligent hiring in the organization. Suppose an employee harms his/her peers within the realm of the job responsibilities, the concerned employer is held accountable for causing such damages.
Moreover, negligent hiring can cause a surge in the company’s cost for potential hiring. As per the reports of SHRM, the average settlement of negligent hiring is close to a whopping $1 million in the United States!
- Safe Workplace Environment
Background checks encourage workplace safety and security by tracking records of the fresh hires. Moreover, it reduces the risks of theft and violence on the work premises.
The U.S. Chamber of Commerce, in collaboration with the American Management Association, issued the figures that 30% of failures in businesses occur due to employee theft.
To reduce such risks and promote organizational growth, companies must perform background screening to improve hiring quality.
Winding Up
Comprehensive background checks, including verification of employment, are vital to bringing trustworthy and dependable candidates into companies. Manual background verification in an organization may be tedious while taking up a lot of time. To reduce the hassles of performing background checks and maintaining 100% accuracy, Repute uses reliable blockchain technology. Repute’s open talent network automates the entire verification process, reducing risk and speeding up the process.
This smart software nullifies errors in hiring new employees by validating all claims made during in submitted documents during the hiring process. For more information about our tech-driven employee verification procedure, don’t hesitate to get in touch with us. Allow us to assist you in onboarding the best workforce for your company’s growth.
