An employee background check is an indispensable process for organizations. Unnecessary myths surround the financial burden created by conducting background verification. However, statistics reveal that background check failures can result in greater monetary losses than the expense required to conduct one.

Index Introduction The reality behind background verification Debunking myths about invasion of privacy and social media activities Breaking the stereotype: Background verification for all industries Cost-Effectiveness of background verification solutions Beyond borders: International background verification Conclusion

 

Introduction

85% of employers have caught applicants lying on their resumes or job applications!! Shocking isn’t it?? This statistic testifies to the importance of employee background verification. In today’s competitive job market, a thorough background check serves as a cornerstone for a company’s security and image. However, with myths and misconceptions clouding employee background verification, it’s important to sieve fact from fiction and uncover the truth behind employee background verification.

 

The reality behind background verification

A company’s investment in a new employee is significant. The hope is that they will have a long and fruitful association where the company benefits from the recruit’s expertise while the employee learns and grows within the working environment creating an ideal win-win scenario.

Sadly, a bad hire ruins this ideology. A bad hire does not merely mean that you have a misfit or uncommitted staff member on board, the impact is more far-reaching. It can tarnish your company’s overall image which might take years to reinvent. Moreover, it can create a negative influence on other staff members which might take longer to identify and repair.

Today’s overly ambitious job market compels most applicants to tweak their resumes, desperate to find work. Keeping this in mind, conducting employee background verification before making employment decisions can help avoid disastrous hiring. It brings forth any information the person has withheld through the interview process, ensuring that the organization only invests in trustworthy individuals.

Employee background screening is of utmost importance for a recruiter. However, analyzing hundreds of CVs for a particular post and determining who to advance in the recruitment process based on partial and insufficient information, can be daunting. As a result, businesses seek ways to improve candidate screening and establish a more accurate and reliable recruitment process.

Background check companies help make evidence-based candidate selections by partnering with the corporate world.

 

Debunking myths about invasion of privacy and social media activities

Confidentiality is the guiding principle when it comes to the relationship between an employee and an employer.

Personal relationships, religious beliefs, and family matters are private aspects of an individual’s life that, in most cases, have nothing to do with work and are therefore none of an employer’s or hiring manager’s business. In the case of pre-employment verification, the distinction between “privacy invasion” and “necessary precaution” may be unclear.

A popular myth circulating pre-employment background checks revolves around ‘criminal record check’. Criminal record check allows employers to dip into a person’s past experiences, including criminal record as the security of individuals and communities within an organization relies heavily upon the employers.

Whether good or bad, a person’s past molds them into who they are today. For example, someone with a history of embezzlement would most certainly be unsuitable to have access to company funds. The same would go for someone with a past drug problem having access to medications. Thus, learning about their record helps recruiters make informed hiring decisions and not violate privacy.

Another myth twirling around relates to ‘social media screening’. The goal of social media screening is to highlight potential workplace safety concerns, including content that may be harmful or intolerant to other employees; may affect workplace morale, or tarnish brand image. Additionally, social media checks are limited to publicly available content, meaning privacy is up to the candidate.

“I found out that our CEO had discovered my Instagram account during the interview process. She liked my creativity—and it helped me land the job.”

The power of a strong social media profile shows off your skills, giving employers a peek into your personality, and most probably land you a job.

Regardless, any kind of employment background verification is not an infringement of an employee's right to privacy, but an essential part of a company’s informed hiring process.

 

Breaking the stereotype: Background verification for all industries

Ranging from multi-national companies to home-based cottage industries, employment background check is a must.

According to 2023 research conducted by career platform Zippia, the average cost of an unsuitable hire is 30% of their annual salary!!  There is a prevalent misconception that background checks are only for the big C’s of the corporate world, however, smaller and medium-sized businesses should place as much importance on recruiting the right employees as larger ones do. Because the probability of financial loss remains the same, irrespective of the company’s size & workforce. In fact, smaller businesses are at a greater risk of revenue loss than larger companies.

Also, another folktale around background verification swirls around the fact that only certain types of industries require pre-employment verification. While certain positions, such as those in law enforcement or finance, may require more thorough background checks, they are conducted by companies across various industries and job roles.

Ranging from the healthcare sector to the transportation industry, employers must understand the importance of making informed hiring decisions and maintaining a safe work environment, regardless of the job title or industry. Hence, an employee background verification becomes a necessity for any company.

 

Cost-Effectiveness of background verification solutions

“It costs $7,000 to replace a salaried employee, $10,000 to replace a mid-level employee, and $40,000 to replace a senior executive.”
Recruiting Times

An employee background check is an indispensable process for organizations. An unnecessary myth surrounds the financial burden created by conducting background verification. However, statistics reveal that background check failures can result in greater monetary losses than the expense required to conduct one.

Case Study
Following a management transition, Drake & Scull International (DSI), a prominent Dubai-based company, launched an intensive investigation into the actions of its preceding leadership. This intrusion brought about a series of criminal complaints lodged against former executives, members of the board of directors, and even certain family members.

The internal investigation revealed that DSI had been suffering from substantial annual losses, up to $857.5 million. The fact-finding committee attributed these losses to the previous management’s failure.

Now imagine, hiring without a background check! At first blush, a background check may sound like an unnecessary expense, however, the price you pay for a bad hire is much more. Also, it is important to understand that the cost of employee background verification varies depending on the company you use or the type of information you require. Nonetheless, recruitment without background checks is definitely more expensive, if not with it.

Beyond borders: International background verification

The world is a smaller place now and going global is the norm.

This is very true for the corporate world, where businesses have crossed borders and employment is available for all. Nonetheless, this globalization has increased the need for “international employment verification”.

An international employment verification helps you verify your applicant’s employment in over 190 countries. It plays a crucial role in verifying key aspects of an applicant's background when they have a global footprint. The information gathered encompasses employment and education history, licensure or certifications, criminal history, and financial history, providing employers with a well-rounded understanding of the candidate's qualifications, reliability, and suitability for the role.

However, international background checks can be challenging for employers, especially when a candidate has a global or multi-national background. These checks require particular expertise and resources, as employers must be aware of different laws and regulations in other countries. Additionally, employers must be mindful of cultural and language differences when conducting an international background check. There are potential legal and privacy implications to consider. Employers must ensure their compliance with relevant laws and regulations not only in foreign countries but also with global standards such as GDPR.

The complexity of conducting an international background check requires employers to have thorough processes in place to ensure an accurate check.

Conclusion

All things considered, employee background verification is crucial. Any myth about its cost-effectiveness or infringement of privacy pales in comparison to its role in safeguarding a company’s integrity, enabling informed hiring decisions, and ensuring a safe working environment. Therefore, any business, irrespective of its size, type, or expansion, needs to adapt to strong employment background verification. Check Xperts is a leading background verification company in Pakistan, which taps into various aspects of employee background verification to help companies save costs and reputations and help build trustworthy workforces.