Employee background verification


Employees’ background verification firms now get calls from banks, insurance and hospitality companies, besides BPO and call centers.

Increasing instances of frauds in BPOs and fake CVs in the market have forced private firms, especially in the IT sector, to approach background screening firms to verify details of job candidates in depth before they put them on the rolls.

Besides IT and BPO companies banking, insurance, hospitality and manufacturing firms are also keen on the background screening exercise before they recruit people. But this trend is largely confined to the private sector.

What is positive is that domestic companies have recognized the need for a pre-employment check to counter attrition and the theft of data. Interest shown by other industries would definitely fuel the pre-employment screening business, which was alien to companies in India till 2001.

Estimating that about 13% of people who apply for jobs claim false educational and work experience, first Advantage Quest Research, a global pre-employment background screening services firm claimed that about 15,000 to 20,000 verifications are done annually in India.

Home-grown FMCG major Dabur India Ltd takes assistance of professional and investigative agencies while hiring people at some level.

Companies in banking, insurance and hospitality sectors admitted the help of background screener in recruitment process but declined to divulge the details. Pointing out that as they go global, Indian companies are opting for background check because perceived risks from having employees with dubious backgrounds could dent their global image, experts said screeners conduct checks like education, employment, database and criminal records, if any, and these tests are conducted with the full knowledge of a prospective employee.

Team Computer HRD Director said the company has hired a Mumbai-based background screener to validate the claims of candidates in terms of experience in terms of experience, exposure and work profile before their recruitment. Similarly, IT majors like TCS, Patni, CSC and Electronic Data Systems do it too.

Currently, large IT firms spend anywhere between Rs.3,000 and Rs.6,000 per candidate while mid-size companies shell out between Rs.1,000 and Rs.2,000 per candidate. Bangalore-based recruitment firm TVA Infotech revealed that of 100 false bio-data, 99 candidates fail to make entry into any company, while one smart chap with fake CV manages the show. But hiring volume in the IT and BPO is so large that even a small percentage tends to get magnified.

In our end note as an article writer you may be surprised to note that job candidate verification for executive cadre positions was in vogue with companies like Larsen & Toubro, HLL etc., even 30 years back. Only difference is that even after taking the employee on the rolls they could sack them in ‘probation’ period if the reports of the candidates were averse. The verification was done mostly with the previous employer.

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