According to recent research, a large percentage of companies perform background checks on their prospective employees. Nowadays, with increasing business risks, startups are also increasingly performing background verification to hire competent employees. Simply put, no one can dodge a background verification simply by applying for jobs only at startups. Here are some of the key reasons why even new and small companies should perform background verification before offering a permanent position to anyone-
They want to grow and succeed
When people think of startups, they might think of the tech industry, where every new venture is aspiring to do as well as Facebook or Google. Even startups working outside the IT and tech ecosystem will have the same ambitions. While applying for a job at a startup, one may think they are applying to work at a smaller company, but that company might not stay small for long. Every startup wants to become a force to reckon with, and for this, they need a team of qualified people. This makes it essential for startups to perform background checks on all future employees, and get the right people on board.
They must select the right candidate
Most companies perform background checks on their candidates to be confident that they selected the right candidate. Unknowingly hiring a person who steals or is involved in violent crimes due to negligent hiring, is something that startups want to avoid. Startups are actively looking for a person who is the right fit for the job. Since hiring processes are quite expensive and time-consuming, hiring a competent person is the only cost-effective outcome. When it comes to startups, pressure to hire the right candidate is even higher since lawsuits related to negligent hiring can cost a fortune and ruin their image in public.
Qualification demands are often more specific
Startups are usually described as rewarding but demanding places to work. Those demands can extend to the job descriptions. Since startups can’t afford to hire a lot of people, they need to make sure each candidate can multitask and deliver on more than one responsibility. Hence the jobs in these companies often have a long list of skill and qualification requirements. Recruiters and hiring managers should perform a background verification to make sure candidates have the qualifications and skills they claim on their CV.
They need to protect their interests
Comprehensive background checks help protect companies – especially startup organizations – in multiple ways. A comprehensive background verification helps businesses avoid negligent hiring suits (and related issues), which is probably the most significant protection that background checks provide to a startup. In addition, this also helps protect a company’s assets.
Startups can be the target of embezzlement and fraud from in-house employees simply because there are fewer resources overseeing payroll, checks, and vendors list, making it easier for internal resources to get away with stealing money from the company. Executing comprehensive background checks and reference checks helps small organizations and startups protect themselves from such unfortunate incidents
People investing in the company may require it
Developing a startup from scratch usually requires a lot of networking and fundraising. Even if the entrepreneur running a startup isn’t exactly well versed in the finer points of the business, there’s a significant chance their investor is. In addition, if an investor is investing their hard-earned money into a startup, they would like to make sure that the startup is following smart and safe policies for everything, from smart product design and manufacturing to hiring. Simply put, startups are more likely to run comprehensive background checks as they grow, because investors will expect those checks to be performed.
Trust is essential
In most cases, startups are usually very small and tight-knit. Most of the key members spend a lot of time working together on projects, services, expansion strategies, etc. Also, most startups have a familial or friendly atmosphere, and that’s something that only happens when people are open and comfortable with one another.
To quickly become comfortable with their new hire, startups must trust their employees, and transparent background verification can help them lay the foundation for that trust. From education verification, criminal checks, reference checks, credit verification to employment verification, startups should perform these types of screening largely to verify whether or not a candidate is someone they want to invite into the work family.
Needless to say, all startups are a little bit different, and the background verification procedure for these growing entrepreneurial ventures can be diverse in range. As we have already mentioned earlier, the stakes are going to be very high for every hire these organizations make, so they must not offer a job until they are completely sure that an aspirant is someone they can trust with the image, integrity, and lastly, future of their firm.
How Repute Can Help Startups?
In India, rules and regulations for employee background checks are not stringent. Therefore, it is the intrinsic responsibility of employment background verification companies like Repute to handle the information and data checks with seriousness and responsibility. Repute can be your trusted partner in making your startup grow with the right employees on board. We protect businesses from all kinds of irregularities associated with the hiring process through our unique and innovative solutions for background verification. Contact us today to know more.