Inadequate employee background verification can result in business losses, poor performance, inappropriate workplace behavior and lack of safety, etc. However, such problems can be mitigated if companies implement proactive employee screening steps from the first instance. In this post, we’ll go over how to conduct an employee background check quickly, accurately and efficiently, what to look for, and which employee verification services to use.

Different businesses require different levels of screening. For example- In the case of logistics firms, when we employ their services, we expect them to arrive on time and at the proper location to transport our goods. We rarely think about the background of the delivery agents that provide these services. We assume that human resource managers who hire employees at these logistics companies are taking responsibility for the screening. Similarly, in the case of banking services, banks would go one level deeper to ensure that their employees have no records of any financial irregularities. This would keep their customers’ assets safe. 

To be successful, every business must follow a rigorous hiring process. 

The Consequences of Neglecting Background or Identity Verification

A rigorous selection process puts your applicants to the test, but don’t assume you know everything about them after a lengthy interview. Candidates could appear professional and with a stack of records in hand, be all ready to impress your HR department in the process of selection. However, statistics show that a substantial percentage of resumes submitted have wrong information, and the only way to find out is to do a pre-employment check. 

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A lack of adequate pre-employment screening on your potential employees, could expose your business to the following risks:

  • Without background verification, the chances of employing the wrong individual are 1 in 2:

With the growth of diploma mills and fraudulent organizations, your company runs the risk of hiring unqualified applicants. Three out of every six candidates have exaggerated or misrepresented their credentials to persuade the organization to hire them. Applicants often use fake degrees and phony employment records to gain employment. Fake resume applicants are not only unethical and fraudulent, but they are also unqualified for the job. This fraud is exposed by a simple background check, which prevents you from hiring the wrong person. 

  • Your potential employee could have a criminal record:

The Kellogg School of Management and Northwestern University’s Pritzker School of Management conducted a study on hiring people with criminal records. According to researchers, people with a criminal history were more likely to be fired for misconduct. Hiring someone with a criminal record may damage your company’s reputation and create a highly unstable work environment. An employer has the legal authority to investigate a candidate’s criminal background. A criminal background check is the best approach to know about any past criminal activity thoroughly.

  • The lack of a background check could put your workers’ safety at risk:

Employees who have a history of drug misuse or criminality could threaten their coworkers’s safety as well. Neglecting employee drug tests and criminal background checks can lead to workplace violence and misconduct. According to the Substance Abuse and Mental Health Services Administration (SAMHSA), 9% of the estimated 22.4 million illicit drug users work full or part-time. A substance abuser’s inappropriate behavior will obstruct their co-worker’s performance and hinder their productivity. Such mishaps are avoided by drug tests and criminal background checks, making your workplace more stable and productive.

  • An improper background check leads to attrition:

Falsified information can lead to recruitment of employees with insufficient qualifications. Such employees can never stay put for too long due to their lack of ability to complete the task at hand. Pre-employment screening prioritizes quality, ensuring that you select the best candidate from a pool of candidates. Hiring suitable candidates with a positive mindset and the right qualifications will help your company reduce staff attrition and increase overall efficiency. 

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So, BGV is an effective way to mitigate any future attrition risks and bad hiring decisions. Due to its importance to every employer, background screening has gained significant popularity worldwide in recent years. To mitigate all of the risks stated above, verification should be a required element of a company’s onboarding process. Apart from the advantages of background screening via HR technology it also assures that your business saves time, effort and money in the process.

The Bottom Line 

Businesses must take all possible precautions to avoid recruiting errors. Using a background verification service can help mitigate the risks associated with onboarding a new employee. They can leverage their understanding of industry sectors, client needs, and candidate competencies to assist in selecting suitable candidates. 

Repute is a talent management network that allows recruiters and employee benefits providers to have access to verified identification and employment data via HRMS platforms in a simple, fast, and secure manner—all with the approval of the data owner, i.e., the employee. This provides a framework for apps that aim to make the hiring process smoother. For recruiters as well as employees, and thus boost employee satisfaction. Moreover, companies can benefit from data availability online since they can make informed decisions quickly by looking at personnel history. In this way, the cost of hiring an employee is reduced and does not go to waste. And the HR department may focus on more vital activities rather than verification calls.

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Last Update: May 18, 2022

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