Month: April 2017

Background Verification – Being Prepared

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A wild boar was rubbing his tusks against a tree.

A fox passing by asked him what he was doing.

“My tusks are my weapons,” said the boar. “I’m sharpening them.”

“Why waste time sharpening your weapons when there’s no danger in sight?” said the fox. “You’re being foolish.”

Just then a hunter appeared on the scene. Frightened by the boar’s sharpened tusks, he turned on the fox instead and shot him dead.

You have to be prepared; isn’t it!

Imagine a situation where the human resource department has to do bulk recruitment or just one recruitment but they have a strict time constraint. Within that time span they need to advertise, do initial screening, fix an interview and then complete the final HR round. After all these steps; there is one more step before handing over the offer letter and that is – background verification.

To get the work done on time and to fasten the process, these companies could hire a third party vender – companies that provide background verifications at a zooming speed. But then, apart from the time constraint, there is one more constraint the HR department faces and that is budget.

Now, background verification is a new addition to various recruitment steps. It still needs to get the importance – it holds. It is a step that – people usually take lightly. Considering own experience and the very important, face value, candidates are hired.

What happens when the initial preparation is not done properly?

News 1:
Shyam worked in Hewlett Packard’s (HP) Bangalore office for three years without any issues. And then, he quit. A few months later, Shankar joined the company and when he was in the canteen one day, some employees were surprised that he looked exactly like Shyam. Of course, Shankar denied any knowledge of Shyam. However, in the HR verification, it turned out that Shankar was indeed Shyam.

What transpired was that Shankar had failed to get his college degree. So, his girlfriend, who worked in the company, used her brother Shyam’s degree to get Shankar a job. In the course on three years, at the company, Shankar passed and got his own degree. So, he re-applied, this time with his own degree, and got in. This time with real identity.

18th aprilNews 2:
The Uber rape case in New Delhi has revealed the murky underbelly of slapdash background checks in India.

There are many more stories which tells us that we are not giving much time for preparation. And who is at the loss! Cost of background check for one employee is actually not a cost, it is the much needed preparation. A company’s goodwill is at stake! So, it high time we take background verification more seriously and are prepared! After all, you can’t buy back your goodwill, you can just earn it!

Be careful not to be penny wise, pound foolish – Invest in background screening!

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Blog ImageTake care of the pennies and the pounds will take care of themselves! Never have truer words been said. Sometimes we focus on the pennies we save; little realizing, cutting corners now, may cost us a lot more in due course of time. Well, that’s a lesson we all learn somewhere down the road.

Uber learnt this lesson the hard way, when they had to fire their Senior Vice President of Engineering, Amit Singhal. The aforementioned employee did not disclose the reason for him leaving Google in his application – sexual harassment charges were levied against him at Google. Infosys has terminated the employment of hundreds of employees due to discrepancies in their resumes. TCS has fired several employees when their resumes were found to be fudged. I’m already trying to approximately evaluate how much this must have cost these employers per candidate that they released.

Just last month, two startups faced a severe setback here in India. The founder of Viral fever’s sexual harassment charges came to light. The controversial shutdown of Stayzilla was in the news last month following the arrest of the co-founder and CEO. Both these startups were backed up by prestigious investor firms. Now, even investors will work out the due diligence before backing entrepreneurs.

We have to understand that carrying out background checks is not merely a routine HR practice but forms a significant part of pre-employment screening. This cannot be done by just anyone; it has to be entrusted to professionals who specialize in background screening. HR professionals often feel the need to get these checks done only for their permanent employees and probationers. Why leave out the trainees, fixed term contract staff, vendors, job contract workers, labor contract workers and others whom we work with.

I feel we don’t take these checks very seriously, as there is no statutory requirement of background screening in our Indian laws. However, the Indian association of professional background screeners lists the below mentioned checks to be carried out to authenticate the antecedents of a candidate:-

1. Address verification
2. Employment verification
3. Education verification
4. Reference checks
5. Global data base check
6. Criminal background check
7. Drug testing and
8. Credit checks

Did you know – the RBI issued notices to banks requiring them to conduct background checks of all the personnel recruited as dealers? The legal profession has also clearly stated in Section 24A of the Advocates Act, 1961 that no person shall be admitted as an advocate on a state roll if he is convicted of an offence involving moral turpitude.

Furthermore, background screening is mandatory for Indian companies to get an ISO 27001 certification. According to a study done by the US Small Business Administration, for every dollar an employer invests in employment screening, the return on investment ranges from $5-16, resulting from improved productivity, reduced absenteeism, lower turnover and decreased employer liability.

Generally, the most common reason among organizations for not conducting background checks is cost. However, the cost of background checks represents a fraction of the cost of – terminating an employee’s service, re-recruiting, re-hiring and re-training.

So let’s be penny wise and save our pounds! After all, a stitch in time saves nine

Employee Background Verification – Discrepancy Statistics for March 2017

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Here are the high level monthly discrepancy statistics for March 2017.

We observed that 1.7% of the overall number of cases had discrepancies (could be major or minor).

Next, let us look at the breakup of the discrepancies to identify further which types of components (checks) were the source of these discrepancies. These discrepancies were in education and employment checks, with education and employment discrepancies accounting for 50% each of the total discrepancies.