Why Must Startups Get A Background Check Done On Their New Hires?

India is producing several startups across the country.. Startups have their share of problems that include competition, funding, and looking for the right talent, which helps build the company’s reputation and enhance growth. The task of bringing in reliable candidates is challenging. Thus, all startup companies must conduct an employee background check before hiring a candidate to rest assured that the new hires are genuine value additions to the company. 

Companies cannot afford to hire the wrong candidate as it can negatively impact their growth and result in losses in terms of time and money. Moreover, it negatively affects the service or the product that the company is offering. HR managers need to be most particular about the candidates they are onboarding. Background verification companies help companies verify the profiles of the potential candidates so that there is no scope of fraud in candidature. 

What is Background Verification?

An Employee background check is done to verify whether applicants have provided the correct details about themselves, their job responsibilities, and experience in the resume. Millions of candidates all around the globe tend to exaggerate their experience and salary so that they can grab lucrative opportunities. 

A background check conducted on applicants includes a careful and detailed screening of their past employment records and academic qualifications, criminal records, court record checks, CIBIL score checking, address verification, identity verification, etc. Any discrepancy might result in termination or withdrawal of the job offer as companies cannot compromise when choosing a suitable candidate. Every applicant is made aware of the employee background check procedure before they are brought on board. The process is often more convenient if applicants have gotten themselves verified through reputed background verification companies. The report provided by verification companies can be used in other enterprises to which a candidate may apply. It reduces the burden on the human resources department, which already has a lot of responsibilities. 

Who are Considered to be Bad Hires?

Any applicant who has produced false educational certificates by getting degrees through universities not registered under the University Grants Commission or Council of Boards for School Education in India, or has provided false identity documents such as a Pan card, Voter ID card, Driver’s License, or, has a record of abuse, assault, violence, thievery, arson, or any other crime, or has a bad credit score due to non-payments, accumulated debts, numerous loans- are categorized as bad or unsuitable hires. 

The requirement for a strict system that can help allay the risk of fraud is essential, especially when freelancers and blue-collared workers are hired. Some entrepreneurs may conduct their employee background verification on specific candidates to prevent additional expenses. This might incur more expenses at a later date for the company than the money they would have saved, due to decreased productivity levels and damage to reputation beyond repair. 

Background verification companies must assist companies in protecting their reputation in the most vulnerable years. Companies should understand that in recruiting someone who has made false claims, they are inducting someone who can access valuable information, steal money from the company, and cause harm in terms of misbehavior, violence, and harassment. Startups should create secure places where everyone feels comfortable working together and contribute to productivity and development. 

A clean employment background verification builds the company’s trust in a candidate and helps build a safe place overall. 

Most Common Employee Background Checks

1. Past Employment Record – The previous employment record of a company is checked to understand the responsibilities and job title a candidate held in the previous company. The salary slips are also inspected to ensure that a candidate has provided the correct details to the potential employer. 
2. Educational Qualification – As startups mostly hire freshers, educational certificates are vital as they assess a candidate’s capability. Freshers cannot be judged upon their previous experience. Certain companies have a specific cutoff that candidates need to meet, and sometimes applicants provide certificates to grab high-paying jobs. 
3. CIBIL Score Check – This step is conducted by companies hiring candidates who need to handle financial matters regularly. This is checked to ensure that the applicant is trustworthy. Maintaining a good CIBIL score shows that a candidate is financially righteous. 
4. Identity and Address Verification – Some companies conduct address verification and check the identity proofs of candidates. 
5. Civil Records – The court records are checked to ensure that a candidate has no record of committing any crime. Any issue related to the civil code of conduct is also considered, as companies would not want to destroy the peaceful environment in their companies.

Trusting a reliable and reputed background verification company is ideal for startups as their smaller teams cannot handle the tedious job of going through multiple resumes and conducting employee background checks. 

Repute’s open talent network automates the process of background verification. Our platform authenticates the data provided by candidates right at the source through blockchain technology, such that there is no scope for fraud. The automated process saves time and effort and eliminates mistakes that might have been committed in manual checks.