- Posted by: Sanjeev
- 10 Aug, 2019
Why are Background Checks Important When Hiring an Employee?
A 2017 statistics report said that 1 out of 6 recruits lied on their resume. It also brought to light that 6,265 candidates among a million failed to clear the drug tests. The financial services sector faced 24% of discrepancies on the candidates’ resume, more than any other working sector.
In addition, the Economic Survey of 2017-18 anticipated that a state of urgency now exists for background checks in both formal and informal sectors. As the ‘gig economy’ is reshaping the future of work, the significance of background checks is worth more than the cost of doing them, creating a plethora of opportunities for detective agency.
In November 2018, a smokescreen was lifted off by Hyderabad Police Task Force of an otherwise legit company in Gurgaon. This company consisted of three people who were covertly manufacturing and selling fake employment certificates. Securing 30,000 to 40,000 INR from each candidate, they provided fake Secondary School Examination and Senior Secondary School Examination certificates.
The fallout of a bad hire can play out very badly for the company’s reputation. There are many reasons to get a background check done before recruitment. Among all the steps taken by the company pre-employment, this is the most important one. Keep reading to find out why a background check is mandatory for your company.
Criminal History: A hiring decision needs to be risk-free. A buried criminal past of an employee can hinder the company’s growth. A lack of research before hiring can put the reputation of the firm on the line as well. If it is a new venture, things might even crash before they could take a flight. A criminal history can also be dangerous in the workplace. If the job of that employee requires dealing with kids or even a customer-facing job, it is a threat. In case of a mishap, the employee may flee leaving the firm and the employer liable therefore, to save yourself from such situation you need to hire Corporate investigator.
Job Performance: When hiring someone, a lot of steps are to be taken beforehand. Job seekers apply for vacant job profiles; they are filtered and picked out by employers. They go through a series of interviews and finally make a hire. However, up until this stage, a false demeanor can be staged by the recruit. They can confidently feign to be perfect for the job profile. But a background check will include their education, expertise, work experience to give out a full picture of the employee. This information will promise whether your potential employee is really going to be good at the job or not.
Lowered Employee Morale: If many employees are back-to-back are getting fired or leaving, it can harm the work output. A bad hire can dent the team morale. This feeling can collectively reduce productivity. When work productivity is threatened, the demands of the customers are not being met. This job-related anxiety in employees can bring losses to the firm. Additionally, it can also look bad in the market.
Safety: A safe and sound workplace is a prerequisite to a productive one. There are safety policies and procedures that exist for the right reasons. They ensure fewer accidents, compliance, reduced workplace stress, and accessibility. When an employer makes an error in judgment while hiring, the whole workplace is affected by the decision. No safety handbook can undo the damage that an employee with an unknown criminal past. With a background check beforehand, a sense of security is guaranteed.
Trust: After background checks, an atmosphere of trust is established. With trust and conviction, comes dependence. This is a good thing. Reliability, as compared to aptitude, is in the long run far more essential to growth. A perfect employee might work for you a year, but they would leave the minute they get a better offer. But a reliable employee becomes essential to the workplace and gets invested for real. A trustful environment will also ensure increased productivity. Thus, good work culture is defined by its valued employees.
Internal Fraud and Theft Prevention: Employee fraud is not uncommon in businesses, banks, and other industries. Increased corruption, financial statement fraud, and asset misappropriation are among the common employee fraud threats. While this is something nobody can see coming, such a person’s behavior and psyche may display indications of threat. Fraud perpetrators exist in small and big companies. They can cause the entire downfall of the organization with their one move. Such kind of employees is likely to have a past where they have done similar things. This is where a background check comes in handy.
Turnover: Achieving optimal turnover is rare. When this turnover becomes dysfunctional, it can be highly detrimental to the growth of the company. The recovery will be expensive, difficult and slow. Low or high turnover is dependent on the kind of organization we are talking about. But after a couple of bad hires, the lack of professionalism of the employees is conjoined with the quality of the company. Therefore, yielding the right amount of turnover is greatly affected by a poor hiring decision. To someone who does things manually, a background check might sound far-fetched but it is as crucial as insurance is in today’s age.
Increasing Importance of Screening: There is a surge in demand for background checks. With Uber’s fiasco of unsafe drivers, a lot of new and old companies have started doing screening before hiring. An absence of this formality can now mean that it is an indicator of disorganized work sector. This move demonstrates the value you have incorporated into your company. New businesses have come to that conduct such investigations.
Recruitment costs and training time: A company moves ahead with short-term and long-term goals annually. These goals bear a cost. Costs of exit interviews, expenses of new hires, training costs: this is only the recruitment-related finances. The amount of investment in the training of the recruits goes to waste if it turns out to be a bad hire. This is only speaking in financial terms. It cannot even be imagined how much a letdown it is overall. Countless hours and days spent in and out on just one hire cannot be recovered even if the money is. A background check keeps this from happening to your company.
Lawsuits: Unfortunately, if your bad hire has duped a customer of your company, you are the one answerable as the employer. This accountability exists on a legal level. A corporation can be sued by outside party or parties for a slip-up. Thereafter, hiring a lawyer, keeping up with the fines and going to the court is a heavy cost to put up with. This can be a huge blow when the fault was not even yours.
Gig Economy: As mentioned earlier, the world on a whole is embracing the gig economy. This gig economy is the rapid growth of a workforce that consists of independent workers. These workers are better known as freelancers. While the hiring process of such employees is relatively short, a sense of confidence is needed to be established in them before hiring. It is obvious by now that this security is also reassured by background screening of the recruits.
We must realize that backgrounds checks are not expenses, but an investment in the company. Partnering with a fine and experienced background verification company can prove beneficial in the distant future. This domain of expertise in Employee Verification and Background Analysis is topped by DDS. Detective Agency in Delhi is the best investigation agency in Delhi, we provide advanced results immediately. Feel free to contact us on +91 8506870002.
