7 Benefits of background checks you cannot miss out
Based on data from the Central Statistics Agency (BPS) 2018, Indonesia’s population is around 260 million with an open unemployment rate (TPT) of 5.13 percent. The high unemployment rate in Indonesia is caused by many factors, one of which is the problem of candidate competence that is still below the minimum requirements of the company. Therefore, finding competent prospective employees is a challenge for companies.
Employment background check is here to solve one of these problems. In finding suitable candidates, background checks are included in a package that cannot be separated from the recruitment process itself. Background checks are generally conducted before the company makes a decision to hire the selected candidate.
However, it is never too late for companies that have already hired employees without conducting an employee background check. This process can still be done even after the employee starts working, to support future decision-making such as promotions, division transfers, or placing employees in more appropriate positions.
Benefits of Conducting Pre-Employment Background Checks
Here are seven benefits that companies get from conducting pre-employment background checks:
1. Integrity
Integrity demonstrates an employee’s ethics and morals in the workplace. Assessing a candidate’s integrity is crucial in the hiring process. At least a small part of a candidate’s integrity lies in the honesty with which he or she presents himself or herself through a CV or resume. Based on our experience in providing background screening services since 2008, we found that fake certificates are often found. At least, throughout 2022, discrepancies in educational background checks are among the top five most commonly found discrepancies.
To avoid hiring employees with fake diplomas, the most basic checks (background, professional certificates, and identity cards) need to be done on selected candidates. Without integrity, no matter how brilliant a candidate is, they could potentially cause costly consequences for the company.
2. Knowing the Track Record
In fact, it’s hard for companies to know what a candidate is like on a day-to-day basis just based on resume and interview sheets. Another advantage of doing a background check is to gain knowledge about the candidate’s track record.
Verification of the track record can be done by getting information directly from the candidate’s former HR and supervisors.
Here are some things that need to be verified:
- Position
- Period of employment
- Employee status
- Performance, including achievements and bad records if any
- Reason for termination of employment
- Eligibility of the employee for employment
3. Early Detection
Early detection is essential to alert the company if a candidate has a criminal record, such as cheating, violence, or drug use. Companies can look for information through social media, police records, district attorney databases, and other publicly accessible databases.
4. Ensuring Regulatory Compliance
In some industries, especially highly regulated ones like banking or insurance, background checks are not just an option, but a legal obligation. Ensuring that all employees have gone through adequate background checks is an important part of complying with applicable regulations.
5. Reduce Employee Turnover Rate
One of the significant benefits of background checks is the reduction of employee turnover. By ensuring that the hired employee is the best fit for the position offered, companies can reduce the risk of high employee turnover due to wrong hiring decisions. This ultimately saves on the cost of recruiting and training new employees.
6. Improving Work Environment Security
Security is a priority for every company. By conducting background checks, companies can identify potential risks that may be posed by employees who are dishonest or have a history of risky behavior. This helps create a safer and more comfortable work environment for all employees. In addition, this step can also help companies avoid financial losses and reputational damage due to acts of fraud, theft, or other unethical behavior from employees.
7. Prevent Inappropriate Hiring
In the recruitment process, companies often rely solely on the information presented by candidates through resumes, cover letters, and interviews. However, this information may not be entirely accurate or illustrate the potential risks that the candidate may pose.
Through background checks, companies can verify various important aspects, such as employment history, educational background, criminal record, and references from former employers or colleagues. This process helps companies to ensure that candidates have the integrity, competence, and behavior that match the company’s standards and needs.
Also read:
6 Facts Behind Fake Diploma Cases
Beware of Fake References from Your Employee Candidates
Here’s How Background Screening Screens the Right Candidates
Pre-Employment Background Check Services
However, most companies that choose to conduct pre-employment background checks on their own find the process to be very time- and energy-consuming. In addition, they realize that the results are biased due to limited resources. At this point, to conduct a proper background check and get objective results, a company needs to delegate the process to an experienced and trusted third party.
Integrity has been trusted by its clients as a provider of mitigation solutions, including background check services. If your company needs detailed information on how background checks can work for your company, do not hesitate to contact us.