Employee Background verification process is a thorough screening of a
candidate’s work history, education background and degrees, academic
certificates, legal records, and sometimes credit scores. The process usually
takes between 3-10 days and charge between Rs 2000 and Rs 3000 per candidate.
The fee goes up in case of extensive checks and for senior-level hires. The
company runs a background check on one’s resume/CV, once all the interview
rounds are qualified by the employee. An employee background check is a review
of a person’s commercial, criminal, employment, and/or financial records. Many
employers conduct background checks on job candidates. Some employers conduct
checks after they have hired an employee. This is an investment as background
checks help in safeguarding organizational assets, promoting safety at the
workplace, reducing turnover owing to right hiring, safeguarding company
reputation, avoiding legal action and inspiring confidence in customers and
per the survey of the Executives involved in background verification, IT and
ITES, banking and financial services and FMCG sectors are way ahead of their
peers in other sectors such as telecommunications, manufacturing, retail,
hospitality, healthcare, travel, education and entertainment. IT firms such as
Tata Consultancy Services (TCS), Infosys Technologies, and Wipro are known to
show zero-tolerance towards corporate fraud as well as fraudulent employees.
Stringent actions including termination of services and blacklisting such
candidates and recruiters are taken by them. The industry body for technology
companies, the National Association of Software and Services Companies,
maintains a centralized database of IT and ITES employees as well as
third-party verified information on education, experience history and personal
details of all these professionals.
portals such as Naukri, Monster, etc. and communities such as the CiteHR forum
also alert users of the blacklisted candidates. But there is no single platform
for non-IT/ITES companies, where details of fraudulent candidates and
recruiters can be found. The lack of a centralized repository of information,
defined processes and procedures to conduct checks at educational institutes,
police stations or courts makes the process of background verification
difficult and cumbersome. But with advanced forms of white-collar crimes
emerging, it is time that companies go the extra mile and conduct thorough
background checks on prospective employees.
do we need to verify the employee details before recruitment?
probability of hiring a wrong applicant is one out of every six (1:6)
candidates who hold misrepresented records to induce you into offering them the
job. There are many applicants who try
to get hired by means of fake degrees and false employment records. Simple
background verification would uncover these frauds and cease you from hiring
the wrong applicant. The current scenario of Resume Fraud states 53% of all the
job applications contain false detail according to the Society of Human
Resources Management, while 9% of the applicants falsely affirmed that they had
a college degree, listing false employers that didn’t even exist as per the
survey conducted by Hubspot.
are some of the details that background verification agencies find in order to
search for the employee who is the right fit for the company:
in the education received
in the compensation
in various unrelated industries
sets varying hugely
the quality of hires
degrees from unrecognized universities
courses being passed off as degrees
the reputation of the company
or reduce theft, fraud or any other criminal activity
Safety is a major reason to conduct
background and reference checks is to avoid harm or legal liability of any type
to the employer or to others. This includes harm to:
employees via sexual harassment or workplace violence.
organization’s customers by sexual assault on business premises.
public due to negligent driving
employer’s business through financial loss or image/reputational issues.
of legal claims, such as negligent hiring
multilevel jurisdictional criminal records search can be strong evidence that
the employer exercised due care in hiring.
Check: It is
important to check criminal records of individuals who own or who work with a
third-party vendor. Discovering beforehand about the owner being involved in
theft will save the hassle and worry about the same thing happening again.
is important to verify that all licenses are current and there has been no
refusal of license or probationary periods due to any wrongdoings.
Business Names: It
is also a must to identify whether the third-party vendor is using alias names
or the firm with a history of names has something to hide.
or legal issues:
It is required to check whether the employee is involved in any criminal cases.
Employers should always check the driving record of any individual operating an
organization vehicle at any time or who will drive personal/ rental vehicles on
company business. A motor vehicle record typically includes license status,
license class, expiration date, traffic violations, arrests and convictions for
driving under the influence, and license suspensions or cancellations.
thorough search reduces a company’s risks by confirming that the vendor is not
open to risk factors that might create lawsuits or other issues, the employee
is insured and is a legal resident, eligible to work in the country. Checking
important information priorly can also prevent financial concerns.
the best and reject the rest. Typically, past performance is a strong indicator
of future performance and can reveal an individual’s professionalism,
productivity, job skills, and interpersonal communication abilities.
Background Verification includes:
- Public records: These can easily be accessed from
the court records and criminal history by any law enforcement agency.
- Work history: It can be obtained from one’s past
employers, Duration of being hired with them, Job role in each company, Pay,
Performance history, Conduct in the company, Medical history.
- Education records: Companies will reach out to your
universities to match your credentials to avoid forging degrees, fake
certificates, bogus grades- the most common types of corporate frauds.
- Address verification: It is done by sending people to
physical locations to check out a candidate’s address.
private companies hire third-party agencies to do everything mentioned above.
While smaller firms usually depend on their internal team of HRs for background
verification of employees recruited. The HR team which takes care of the
background verification process has a powerful tool that they can use to learn
a lot about a job applicant- social media handles. Content that borders on
racism, a homophobic slur, inappropriate pictures, etc, is and should be, used
against the applicant. There are no laws that require companies from scanning
social media handles of candidates.
background check can range from a simple verification of your social security
number to a much more thorough check into your history. Information that an
employer might check can include your work history, credit, driving
records, criminal records, vehicle registration, court records, compensation,
bankruptcy, medical records, references, property ownership, drug test results,
military records, and sex offender information. Employers can also
conduct a character check, which might involve speaking with your personal
acquaintances, including friends and neighbors.
are various kinds of background checks, including business to business check
(B2B) and business to a consumer background check. (B2C). Third-party vendors
fall into the category of a B2B check with these background checks including
information on the creditworthiness of the company, work history, and
verification of state certificates. A few agencies in India like First
India Advantage, Mintly, Jantakhoj, AuthBridge, HireRight, and IDfy are
specialized in background verification, known as third-party service providers.
employers use a third party to check someone’s background, the Fair Credit
Reporting Act (FCRA) restricts what they are allowed to check, and how. The
FCRA is federal legislation that sets the standards for screening for
employment. The FCRA defines a background check as a consumer report. Government
firms or PSUs run an extensive verification before offering the job. They ask
for Residential proof of where you lived more than six months, Proof of current
local address and permanent address, Record from District Magistrates/ Police
Commissioners of areas where you lived. Further, either of those authorities
asks police stations to run the check and finally, the record that police find
is passed on the chain.
the advent of technologies, various tools have been used as:
Academics Depository (NAD) –
The government launched the NAD tool that digitally stores your education
records and can issue reliable certificates to verified users as they plan to
have every education board and institution in India on-board.
Skills Registry (NSR)
– NSR is the largest database of working professionals that helps the company’s
fact-check employees’ information.
associated with background screening and reference checks:
- Automation: Apart from phone-based reference
interviews, screening firms and employers are using advanced technology to
improve the results of reference checks. Some screening firms offer online
solutions that enable a broad set of reference sources to respond quickly and
confidentially. While few believe that the online reference checking does not
enable a hiring manager or screening professional to ask probing questions in
an interactive fashion. Though this is true, requesters always have the option
to call and ask follow-up questions about candidates after reading the initial
of contingent workforce:
According to the Bureau of Labor Statistics, nearly 4 out of 5 employers use
some form of nontraditional staffing such as hiring freelancers, temporary
workers or independent contractors on an as-needed basis. Employers largely
have the same liability issues as these workers as with regular employees, and
more employers are choosing to screen these workers to protect themselves.
- Globalization: Pre-employment screening is
becoming more complex as organizations increasingly look to overseas job
markets with advent of globalization. It is now common for a job applicant to
have been raised and educated in as well as to have worked in several different
countries. Employers recognize that candidate screening at all levels is more
complex and vital to organizational well-being. Multinational employers thus
must be careful to obey local laws concerning background checks.
every company you interview with looks into your social feeds. Social media has
made it easier for employers to map one’s interests, activities, and tastes,
enabling them to picture their personalities. Beware of an objectionable pic on
Facebook or a raging political comment on Twitter. The legal rights around
background checks are vague, due to privacy concerns raised by many.
are some rules and regulations need to be followed by the recruiters as per the
guidelines of the government. It’s mandatory for Indian companies having ISO
27001 certification to conduct background screening for employment. Your
medical information, financial background, and biometric data are private. An
employer can’t access it without your permission, but there are no laws to stop
companies from scanning your social media. In a few cases, for the hiring
of top positions, companies are more concerned about their background and do go
beyond the extent of verifying its approval, irrespective of the law. There
is some information that cannot be disclosed under any circumstances, including
bankruptcies after 10 years, civil suits and civil judgments and records of
arrest after 7 years, paid tax liens after 7 years and accounts placed for
collection after 7 years. However, these restrictions don’t apply if the
salary is $75,000 or more, for a senior position applicant.
sum it up, candidate verification is one of the most effective tools that you
should use to build the right ‘infrastructure’ of employees. India is seeing a
huge spurt in growth with many a start-up spawning from even tier-2 and tier-3
cities. Make sure candidate verification is a policy that is part of your
growing culture and is never side-lined. You might not see tangible benefits to
it, but you would’ve averted many an issue just by making sure you only allow
candidates who are vetted.