Why Do Company CEOs Care About Their Employees’ Background Verification Processes?

The best CEOs in the world share some common traits, such as courage, resilience, and high emotional intelligence. Another important quality is having foresight. It’s due to their ability to understand how certain events can manifest in the future, they put a significant amount of value in the employees’ background verification process. This helps them look after the best interests of their companies well before anything undesirable happens. It helps keep the company morale high as well, as no one likes their environment being disturbed by unsuitable entities coming and going. But aside from morale, there are some serious repercussions to not screening employees.

Let’s explore some of the reasons top company CEOs invest in this procedure:

Helps Onboard Authentic Candidates

One would be surprised at how frequently people lie on their CVs. Nearly 10% of Indians lie on their CVs, while 50% submit fake documents. This is worrying, especially for jobs where certain critical skills are required or for those jobs where sensitive information about the clients is shared with the employees. A background check is a good way to cross-verify a candidates’ educational qualifications, employment history, past salary details, and other such factors. It’s also the right time to find out a few details about their past company, the reason for leaving, and other such details. Conducting a background verification is the best way for the company’s top brass to figure out how suited an individual is for a role. Dependable ways to find out the authenticity of a candidate’s experience is to check out their past work experience, salary credit, and other employer-related details.

Makes Compliance Easier

There’s an increasing number of international companies setting up offices in India or investing in Indian companies. This has created an expectation for these Indian entities to follow global hiring procedures. There are many reasons for this, the top being that a background check acts as a preventive measure. Many of these companies are also stores of sensitive data – such as IT, financial services, health services, etc. This data shouldn’t be in the wrong hands as that could spell catastrophe. Therefore, they have certain policies in place for protection. CEOs of MNCs have to conduct background checks of their employees to be compliant with these guidelines. Being compliant helps attract foreign investment, as it heightens confidence and fosters trust between parties. It’s also much easier to comply with government policies after verifying potential employees based on authentic sources such as provident fund details, income tax returns, bank statements, etc.

Demonstrates Ethics and Integrity

By doing this process, a company demonstrates its commitment to integrity in two ways. First, they’re testing the ethical fibre and integrity of their candidate by assessing any misstatement or fabrication said by them. This is aligned with the spirit of integrity, as they’re doing a thorough background check rather than taking the easy way out and skipping this step. The second way is that by only hiring candidates who are honest about their history or have completely clean slates, the company is making sure their customers get the best services or products possible.

Therefore, by screening candidates, a company is making sure their employees and the work they do are both reflective of the company’s dedication to serving their clients.

No Loss of Billable Hours

One of the worst repercussions of failing to screen an employee is the time and money that is wasted on the hiring process. This includes the recruiter’s hours of service spent on the bad candidate, the resources that will be spent on hiring a replacement, any training initiatives, and more. By screening applicants, CEOs can avoid losing these resources that could otherwise be allocated somewhere else. Plus the normal work flow would be interrupted and that would cause further disruptions.

Ensures Workplace Safety

By hiring someone potentially dangerous, a company’s leadership would be exposing their employees to harm. This would be an irresponsible move, as employers have a responsibility towards their employees’ safety and welfare. Failing to do this can result in the company being charged with negligent hiring. In another way, if the candidate has been involved in business theft, they could replicate that behaviour in the office. Screening helps in avoiding situations like this.

Keep in mind that CEOs undergo screening, too. It’s not just employees who undergo verification, it’s the top management as well. Companies do this to ensure that high-profile hires don’t get into trouble for embellishing their credentials or cause harm to the reputation of the organization in any way. It can cause great damage to the company’s relationship with the public and with their clients, as well.

These are just the most serious of many reasons companies do background checks. Making informed and intelligent decisions in the hiring process help companies thrive in the long run. They use solutions like Digiverifier that conduct digital employment verification using data from dependable and authentic sources such as ITR and PF numbers. Connect with us to know more.