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The Empuls Glossary

Glossary of Human Resources Management and Employee Benefit Terms

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Employee Background Verification

Employee background verification is a process which allows to certify the authenticity of the information provided by the candidate. The process aims to mitigate the risk and ensure the safety of the workplace.

What is the employee background verification process?

Background verification for employees is a process to carry out in order to verify information provided by the candidates during the hiring process. This involves various candidate’s work history and experiences, responsibilities, education qualifications, certifications, resume checks and permanent address verification.

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What do HR ask in background verification?

HR ask for background verification from the new hires as follows:

        1. Candidate’s history: Candidates are asked for the confirmed dates of employment, candidates job responsibilities and resigned from the position voluntarily            or involuntarily.

       2. Education qualification: The candidate's education qualification, the courses and the degree that the candidate obtained, if there were any issues during the            candidate’s time at the institution.

      3. Reference check: The authenticity and personal demeanor of the candidate through the people they have worked with, which includes asking for the nature of            the candidate's work and their performances.

       4. Character and professionalism: The communication and team spirit skills are verified, which also includes reliability, punctuality in the work and uphold            professional standards and ethics.

       5. Criminal record check: This is done to ensure that the candidate’s admission does not tarnish the reputation of the company, which includes issues related to            theft or fraud, any other additional information about any crime committed.

Why do employees get background verification?

Here are some key purpose to conduct employee background verification:

  1. Validating candidate information
  2. Mitigating financial risk
  3. Workplace safety
  4. Protecting company’s reputation

       1. Validating candidate information: Verification allows the employee to validate the accuracy of information provided by the candidate during the hiring process,            which certainly includes all the details related to the education, work history and certifications.

       2. Mitigating financial risk: Background verification helps employers mitigate potential legal and financial risks associated with negligent hiring.

       3. Workplace safety: Background check allows to ensure workplace safety by checking criminal records and other relevant screenings to identify potential risks.

       4. Protecting company’s reputation: Background checks helps employers maintain the reputation of the company by ensuring that trustworthy individuals are hired.

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What happens if employee background Verification fails?

If employee background verification fails, the consequences are potentially negative and may also be denied for the opportunity. Some specific actions may be taken by the employers in such a situation which may vary from different organizations.

Possible actions that may be taken are:

  1. Employment offer withdrawal: Employers may choose to terminate as the background verification reveals significant discrepancies that are inconvenient with the job requirements.
  2. Discussion with the candidate: In such situations, employers tend to confront the candidate to discuss the findings. This allows the candidate to put their perspective and clarify the misunderstanding.
  3. Modify the job offer or conditions: In certain situations, employers may modify the conditions of the job based on the findings of background.
  4. Further investigation: If any minor discrepancies are found, the employer may conduct further investigation, which allows the candidate to provide clarification and employer may consider the situation before making any final decisions.

How does the employee background verification process work?

Here is a general format of employee background verification:

  1. Obtain written consent
  2. Information collection
  3. Verification check
  4. Review and analysis
  5. Decision- making process
  6. Communication

      1. Obtain written consent: Before conducting background check, it is necessary to obtain written consent by the candidate, which ensures compliance with           privacy and make clear to the candidate that background check is a part of the hiring process.

       2. Information collection: Relevant information about the candidate, such as resume, certification, references and other documents are collected to conduct the           background check.

       3. Verification check: Verification check includes employee history verification, reference check, educational qualification verification and criminal records if any            are verified before hiring any candidate.

       4. Review and analysis: HR reviews and analyzes the documents and conducts further investigation if any discrepancies are identified.

      5. Decision- making process: Based on the outcomes of the background check, the employer makes decisions regarding the job role and responsibilities.

       6. Communication: HR communicates the decision to the candidate after the background verification is done and if any discrepancies are identified the candidate is           given a chance to respond and clarify.

Is the salary slip checked in background verification?

Yes, salary slip is checked in the background verification process, the reasons to verify the candidate salary history for various reasons such as:

  1. Verification of employment: Salary slip can provide confirmation of the candidate's employment with a particular organization.
  2. Salary negotiation and compensation: Employers may use salary verification to validate the candidate’s previous salary and use that salary negotiation and determining the package.
  3. Assessing financial stability: Salary slips can provide insight into the candidate’s financial stability, salary verification is considered as part of overall assessment of a candidate’s financial responsibility.

Employee pulse surveys:

These are short surveys that can be sent frequently to check what your employees think about an issue quickly. The survey comprises fewer questions (not more than 10) to get the information quickly. These can be administered at regular intervals (monthly/weekly/quarterly).

One-on-one meetings:

Having periodic, hour-long meetings for an informal chat with every team member is an excellent way to get a true sense of what’s happening with them. Since it is a safe and private conversation, it helps you get better details about an issue.

eNPS:

eNPS (employee Net Promoter score) is one of the simplest yet effective ways to assess your employee's opinion of your company. It includes one intriguing question that gauges loyalty. An example of eNPS questions include: How likely are you to recommend our company to others? Employees respond to the eNPS survey on a scale of 1-10, where 10 denotes they are ‘highly likely’ to recommend the company and 1 signifies they are ‘highly unlikely’ to recommend it.

Based on the responses, employees can be placed in three different categories:

  • Promoters
    Employees who have responded positively or agreed.
  • Detractors
    Employees who have reacted negatively or disagreed.
  • Passives
    Employees who have stayed neutral with their responses.

Is UAN used for background verification?

The Universal Account Number (UAN) is a part of the background verification process, most importantly when the specific checks related to provident funds.

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