Imagine this- your company has been sued for negligent hiring because of the losses incurred by an employee you have hired recently! Is this your worst nightmare come true? Imagine hiring a candidate after a series of interviews only to find out later that they had been lying on their resumes all along. 

With increasing competition for job openings, you might come across candidates who may exaggerate certain details, or more importantly, hide information that may be critical. As a result, it is better to perform detailed background verification every time before hiring. 

Employee background verification has become a norm in the industry today. As hiring the right candidate is becoming more critical for an organization's success and reputation, companies increasingly prefer conducting background verification before bringing candidates on board.

Here are the various facets of employee background verification. 

Index What is employee background verification? Why is it important to conduct background verification before hiring? What are the benefits of background verification? Conclusion  FAQs

What is employee background verification?

As the name itself suggests, employee background verification is a process through which certain public and private records of an individual are inspected. Background verification involves verifying the details submitted by a prospective hire before the final decision is made. 
According to a report from HR.com and the National Association of Background Screeners (NABS), 95% of employers use one or more types of background screening techniques. The report further highlighted that employers not only conduct these checks before deciding to hire a candidate but also during the employment lifecycle. 

Background verification is typically conducted after you finalize a candidate and before the employment contract is signed. What will be included in a background check depends on the nature of the job, exposure to sensitive information, and the level of check required. Also, the candidate’s consent to conduct their background verification is highly important, which could otherwise lead to legal problems.

Why is it important to conduct background verification before hiring?

Pre-employment background verification should be a staple in your hiring process by allowing you to make decisions that are based on evidence. Listed below are some key benefits of background verification before hiring a candidate. 

• Informed decision: 
  Picture this: You have gone through all the resumes and shortlisted two candidates, both have similar credentials and seem fit for the job, but there is only one vacancy! What will you do?
  
  You decided to run background checks on both of these candidates. Background checks revealed that one of the candidates had hidden conflicts and the other had a passion for mentoring. The job you were recruiting required leadership roles--the decision for you is now clear. You hire the second candidate with confidence.That’s the power of employee background verification, it gives you surety and confidence in your decision, backed by evidential data. 
  
  
• Work environment:
   A 2019 survey by Glassdoor found that 77% of prospective employees would take a company’s culture and working environment into account before applying.
  
  A background check is essential to build a positive work environment. A positive work environment can make a lasting impact on professionals in all sectors. It can boost productivity, attract higher-calibre employees, and retain them for longer than companies that do not prioritize their cultures. Additionally, studies show that companies with highly engaged employees can see 21% higher profitability.  
  
  As organizations have gender diversity, you expect the work environment to be safe, healthy, and motivating for employees. Just because a background check was missed and an unsuitable employee entered the ecosystem and made the work environment unsafe may jeopardize the whole business and lead to greater employee turnover. 
  
  
• Organization protection:
  A little girl back in April 2019, died after a wrong injection had been administered to her. 
  The Pakistan Medical and Dental Council (PMDC) is responsible for penalizing doctors found guilty of violating the medical code of conduct. The hospital responsible was fined PKR 500,000 only and ordered to dismiss untrained staff.
  
  There have been numerous cases where companies have been sued for negligent hiring because they did not conduct a background check. These organizations had to pay sizable fines because of this mistake.
  
  A background check helps protect the organization against potential liability claims. Moreover, a background check helps a business comply with various laws, which may exist at the federal, state, or local level. Background checks are also part of some industry regulations, such as the financial services sector.
  Depending on the industry you belong to and its requirements, background checks help comply with the laws of the land. Once you are sure that the candidate you are hiring is perfectly qualified for the job by conducting a background check, then and only then should you be hiring them.  
  
  

What are the benefits of background verification? 

Background checks offer a wide range of benefits to employers. They help hire the right staff and contribute towards the overall success of an organization, whether that means higher profits or improved reach.

Here are four key benefits of background verification. 

• Increase Job Applicant Quality
  Making pre-employment checks front and centre at the recruitment stage discourages people who hope to hide serious issues. It encourages applicants to submit accurate resumes, reducing misstatements and discrepancies. Candidates with a genuine background and verifiable qualifications will come forward. You’re more likely to attract applicants who feel encouraged by the fact that an employer is thorough and values honesty and integrity. The flip side of this is that running pre-employment checks deters candidates or applicants with something to hide in their employment history or personal record. Either way, these screenings increase the quality of job applicants.
  
  
• Protecting Reputation
  In today's digital age, an organization's reputation can be easily tarnished by negative news, social media posts, or customer complaints. By conducting background checks, businesses can protect their reputation by ensuring that they are not hiring individuals with a history of misconduct or unethical behaviour.   
  
  
• Mitigating Risks and Fraudulent Activities
  One of the primary benefits of employee background verification is that it helps organizations mitigate the risks of fraudulent activities, theft, and other criminal activities. By conducting a thorough background check, businesses can ensure that they are hiring trustworthy individuals with clean records. This can help reduce the risks of financial loss, legal liabilities, and reputational damage.
  
  
• Improved Regulatory Compliance
  A third-party background screening provider like Check Xperts, with in-house compliance expertise, can help your company properly create a screening solution that satisfies not only your industry standards but also state and federal regulatory requirements, which vary state-to-state and by the type of position you are staffing. Without this type of background screening program in place, your company risks fines, and ongoing legal issues.
  
  

Conclusion

Employee background verification is an essential step in the hiring process, ensuring informed decisions, a safe work environment, and organizational protection. It enhances job applicant quality, protects the company's reputation, mitigates risks, and ensures regulatory compliance. 

By partnering with Check Xperts, a background verification service in Pakistan with over 100+ background verification solutions provided for local and global companies, you can safeguard your organization and foster a positive work culture. Ready to take the next step? Reach out to Check Xperts today and let us help you build a trustworthy and successful team. 

FAQs

1. Is background verification done before the offer letter? 
   Yes, background checks can be conducted on blue-collar employees. These checks focus on verifying work experience, technical skills, and criminal history. They help employers ensure the reliability and integrity of their workforce. Background verification varies according to the company’s policies. Some companies extend a conditional offer letter that is contingent upon the successful completion of the background check while others prefer to complete the background verification process before issuing a formal offer letter. 
   
   
2. What is the meaning of BGV status green?
   It means that the candidate has successfully passed all the background checks. A "green" status indicates that there were no significant issues or discrepancies found in the candidate's records. 
   
   
3. Is background verification mandatory for a job? 
   Background verification is not universally mandatory for all jobs, but it is a common practice and highly recommended for many positions. The necessity of background checks can depend on several factors, including the industry, the nature of the job, and regulatory requirements.