Top reasons for conducting employee verification in 2021
Employees are the backbone of an organisation and can help achieve the operational goals and business objectives. Hence, it is crucial to hire trustworthy employees.
Background check practices help the business learn about the candidate’s history and determine the steps they should take. Furthermore, there are also regulatory measures that companies have to comply with, and such assessments help achieve that.
There is so much more, and understanding the magnitude of employee verification will help you steer a successful business.
Let’s take a look.
Upholds employee safety
Nearly two million workplace violence cases and 30,000 instances of sexual assault against women are reported each year. So, it becomes crucial to ensure that the newly onboarded employee does not have a history of violence and sexual misconduct. Verification checks also help uphold the employees’ mental and physical health.
Avoid compliance issues
Employers must adhere to the Fair Credit Reporting Act (FCRA) guidelines to conduct employee background verification. It also refers to the information that an employer must reveal before, after, and during the check. Moreover, there are stringent penalties for violating the rules.
Maintain the reputation of the organisation
Apart from the compliance issues, employee verification helps maintain the reputation of the organisation. It is clear that the company is liable for an employee’s action. But, even when the company can sideline the impact of the activity, it can have negative consequences on its reputation. Employee verification helps sideline such issues.
Forge effective client relationship
The consequences of an employee’ activity or their track record is not just limited to the business’s reputation. It can affect the relationship with clients and various stakeholders. For instance, clients may refuse to partner with the company that has hired an investment banker with a history of money laundering. Furthermore, stakeholders can also refuse to work with an organisation to avoid association with the company.
Save assets
Onboarding an individual is a crucial step for a business. You have invested time and money in a candidate, which can become a problem if their crime or misdemeanour spruces up during the tenure. It can even lead to instances like insider trading and drain the company’s resources. Employee verification cannot give a 100 percent guarantee for saving the asset, but it can help minimise exposure to such cases.
Identify resume fraud
A good number of candidates lie in a resume for achieving a competitive edge over the other applicants, hiding employment gaps, and more. Such lies pose a risk on the organisation, but they are also a productivity killer if the candidate is unable to perform the tasks. Employee verification helps identify the discrepancies in a resume and falsified information.
Conclusion
Finally, employee verification has immense long term benefits, which helps avoid complications from onboarding a few bad apples. It is also crucial for achieving operational efficiency. Hence, the importance of background checks cannot be overlooked. Instead, it should be a core component of the hiring strategy. So, employ the tips outlined in the article and seek professional advice on conducting the checks.