A candidate’s employment history can provide information about his job experience, technical skills, behaviour, conduct and loyalty and honesty to the company. Employee background checks can be a challenging process for companies to conduct manually. It consumes a lot of time and might result in errors. Therefore, hiring background verification companies that automate the background screening process is the most viable option. 

What Are Employee Background Checks?

Background verification is the method of verifying all the information that a candidate has provided on his resume. It is done to ensure that the candidate is genuine and is not exaggerating his job title or roles and responsibilities. Recruiting the wrong candidate can harm your company, and it can lead to losses for your company and damage its reputation. The background verification process conducted in MNCs is strict, ensuring a detailed screening of the recruits. Background verification companies ensure that there are no errors in the background checks and that suitable candidates are hired for a particular role.

How Is Background Verification Done in IT Companies  

Employee background checks are significant in IT companies as the industry deals with sensitive data, projects, and concepts. Hiring a wrong candidate by mistake can lead to fraud, data breaches, loss of customers, and most importantly, loss of time and money. There are many reasons why companies should perform background checks, and listed below are some of the significant reasons:

  • Minimize Liability

If any employee of an organization indulges in fraud practices, it may lead to financial loss, damaged reputation, or a lawsuit. An organization can prevent this by conducting thorough screenings and recruiting only those who clear the screening. 

  • Protect Assets

An IT company works with sensitive information that needs to be kept confidential. In numerous instances, employees have leaked important information or traded it to competitors in exchange for money. Such things can hurt the company, and IT companies must be careful when screening candidates.  

  • Create a Safe Environment

A business should provide a safe and secure workplace for every employee. Clients and stakeholders should be able to rely on the company to partner with them. Honest employees are highly valued by the company and help build a company with ethics. Employee background checks prevent businesses from hiring people who are tricksters and may threaten the workplace safety and environment. 

  • Hiring Qualified Candidates

Candidates often falsely mention their capabilities and job titles on their resumes to grab lucrative opportunities. Hiring these candidates will result in losses as they won’t be able to handle their responsibilities well. IT companies need people who possess the skills and knowledge in the field. For instance, a Java developer should know markup languages, frameworks, and JavaServer pages. Employment verification companies ensure that an applicant with the right qualifications is hired. 

  • Protect Reputation

IT companies would be unable to retain clients or attract new customers if they have a record of data breaches. Many things depend on the company’s reputation, and a client would get ready to partner with an organization only when it has proved its capability. A single incident or mishap can result in a bad reputation for the company. 

Background Verification Checks in IT Companies

IT organizations can hire background verification companies to conduct background screenings. It is essential to ensure that suitable candidates are hired who are technically skilled to discharge their responsibilities efficiently. A background screening ensures that IT companies hire the best talent. For background screening in IT companies, various aspects such as educational qualifications, criminal records, candidate’s work history, credit score, civil records, and social media profiles are checked. 

Work History

Companies generally call the past employer to verify a candidate’s work history, performance, job titles and responsibilities, last salary drawn, and reasons for leaving. Most IT companies ask candidates for references from previous companies, and these contacts are usually the direct managers of the candidate. Past employers are contacted to cross-check whether the information provided is genuine.  

Educational Background

The educational qualifications and certificates matter a lot when it comes to freshers as they do not have any experience to rely upon. IT companies should hire only skilled candidates who have the technical knowledge, and certain companies only hire candidates with a specific cut-off/ GPA. Many applicants use fake certificates, degrees, and false grades to grab job opportunities. To allay the risk of hiring unqualified candidates, it is essential to conduct employee background checks

Criminal Records

Companies need to check the public records from law enforcement agencies and courts to ensure that the candidate has no record of crimes. White-collar crimes are also sometimes considered, and the company has the power to decide which candidates to recruit and which to reject. However, candidates are informed before the screening, and upon rejection, the candidate should be sent a copy explaining why they were rejected.  

Credit Score

Credit scores show the financial position of a candidate and decide the risk of lending to a person. Some companies use it to check whether a candidate has committed fraud or indulged in dishonest financial practices. This is especially relevant to the financial sector, where employees deal with large amounts of customers’ deposits etc. 

Repute is one of the best companies that conduct employee background checks efficiently. The whole process is automated through their Smartonboard platform. After candidates have scanned and uploaded their documents, they can be authenticated right from the data source in a few clicks. The Repute network connects thousands of companies on a blockchain network; therefore, there is no scope for fraud or error during document verification. The automated process also saves time, and the HR department can focus on other significant jobs. 


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