How to conduct an employee background verification check?

How to conduct an employee background verification check?

An employee background verification check is based on thorough observation and examination of the academic certificates, educational background, legal records, work history of a candidate. 

The employee verification process usually takes up to 3-10 days. Moreover, the cost varies as per the process of screening. The fee is high if the extensive checking is required. Generally, Extensive background verification is required for senior levels recruitment. 

The employee verification process is a reflection of an employee’s educational, employment, financial, and criminal records. The process varies from company to company. 

At times, the background verification is conducted before hiring an employee. While some organizations avail an employee background verification after the candidate is hired. 

Organizations invest in the employment verification process because it is crucial to conduct the verification for safeguarding the assets of an organization.

Employment verification check is conducted to avoid any sort of legal action, assure safety at the workplace, and to hold on to the company’s reputation.

The reasons that support the fact that employee background verification check is important 

The reasons behind the background verification of an employee are as follows: 

  1. Safety: Safety is a significant concern not only for the company but also for the other employees. 
  2. Criminal checks: The employee criminal check needs to be conducted as soon as possible. It would not only help in discovering the risks beforehand but would also save the risks of hassle and danger. 
  3. Lawsuit or legal issues: An employee should be checked whether he or she is not involved in any criminal cases.
  4. License verification: It is also required to verify beforehand that the employee owns all the current licenses that are genuine. Furthermore, no licenses have been ceased due to any breach of conduct. 
  5. Maximization of productivity: Recruitment is an essential process for bringing about an overall improvement of the company. The new employees are to contribute to the overall well being of the organization. So, in order to maximize productivity, good hiring of employees is to be done. Furthermore, hiring is to be done cautiously. One should be verifying the background meticulously. 

The statistical analysis supports that background verification is extremely important to be included in the recruitment procedure. 

It has been statistically analyzed that a background verification check of an employee forms a strong foundation. It build trust in an employee who will be serving for the overall development of the organization. 

Statistical analysis that supports the fact that employee background verification check should be conducted before hiring: 

  • According to the Wall Street Journal, almost 34% of the application forms false statements about education, experience, etc.
  • According to a survey, the fraud resume issue costs employers annually 600 billion approximately. 
  • Out of 3100 managers that had been dealing with the recruitment procedures. 49% of the applicants had been caught with fabricated parts of their resume. 
  • Every year, US employers undergo a loss of 60 billion dollars due to drug and alcohol abuse at the workplace for wrong recruits without verification. 
  • According to a survey, an organization loses almost 6% of its annual revenue due to fraud and abuse issues created by its own employees who had been hired without any background verification. 
  • 2016 witnessed a high record being set of 15.4 million victims of identity theft. 
  • An organization loses 20% of its total earnings due to theft by its employees. 
  • Each year witnesses 10,000 threats in the workplace, and almost 12,000 workers have been found to have been injured and attacked. 
  • 8% rapes, 7% robberies or theft, 16% assaults have been found to have occurred in the workplace too because of the employees hired without any background verification check. 
  • According to a survey, 57% of the homicide deaths were due to violent threats and abuses at the workplace.

According to a survey, the top reasons for conducting the employee background verification check are

  • 86% for the protection purpose of the customers as well as the employees;
  • 52% to assure the improvement in the quality of the recruits; 
  • 38% as mandated by the law and regulation and 
  • 36% for the prevention or the reduction in theft, criminal activity, and embezzlement.

Steps for an employment history verification check before hiring 

 The basic background check of an employee includes the following: 

  1. Check on criminal records: In case a company needs to hire an employee who is going to be entrusted with a position of security or trust, criminal record checks are mandatory for such recruits.
  2. Validation of social security: This is a verification of the candidate’s social security number and rechecks the name, date of birth, and other personal details of an employee. Such a verification proves that the employee had not been involved in any fraudulent cases.  
  3. Check on Address history: This traces back to the previous residential address of the employee. It makes it easier for further research. 
  4. Check past employment rating and reviews: Before hiring an employee, the company must ask for candidate behavior at the workplace from his/her previous employer. Alternatively, refer to the IREER platform to see all past employers’ reviews about the candidate before hiring.
  5. Check on the US terror watch list: During the verification, this checklist is to be checked in case the candidate is to be employed with a job that would be entitled to the security. 
  6. Check on the sex offender registry: This verification is essential to ensure the security of the female as well as male employees. 
  7. Social Media Accounts Check: This is the most required verification in today’s internet era, which becomes vital to check the behavior and social life of the employee.

Over 60% of the multinational companies conduct a third party background verification of the employee. It includes the involvement of a third-party for the verification of the background of an employee. 

Background checks include Business to Business checks (B2B) and Business to Consumer checks (B2C). Business to Business checks involves the involvement of the third-party vendors for the creditworthiness of the information like work history, verification of the state certificates, etc. 

There is no such strict procedure or guidelines for an employment verification check. The company may adopt any part or full extensive procedure based on their objective and cost factor. Some companies have their in house verification check operation, or some companies prefer to hire external agencies for an employee verification examination.

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