Background Verification Problems and Solution
In a growing economy like India, companies are often seen in a mad rush to hire by hundreds. And such scenarios give rise to incomplete or no background checks of job-seekers leading to unfit and bad hires. Tight timelines for hiring and cost consciousness often tempt recruiters to go easy on checks and verification.
And it is fairly easy to fake documents in our country. There is an astounding number of companies operating in India which solely provides fake employment and educational certificates. As per a report by FirstAdvantage the discrepancies found were 60.4% in employment, 15.9% in address and 6.0% in education details.
The prevalent norm for Human Resource (HR) department of any company is to conduct reference check of candidate from their past employment details. As for the authentication of residential address, education and criminal records, it is typically outsourced to third party background verification companies.
These agencies usually take between 7 to 10 days to give a report and charges between Rs 2,000 and Rs 3,000 per candidate. About 90% of organized sector undertake some form of checks while 95% companies in the unorganized sector are still hiring without any background check, as per a report by HireRight. Most companies have zero tolerance towards corporate fraud and fraudulent employees.
In fact, the industry body for technology companies, National Association of Software and Services Companies, maintains a centralized database of IT and ITES employees and third-party verified information on education, experience history and personal details of these professionals.
Job portals such as Naukri, Monster and communities such as CiteHR forums also alert users of blacklisted candidates. But this is not enough for carrying out checks. There is no single platform for non-IT/ITES companies where details of fraudulent candidates and companies can be found.
Also, what makes the process of background verification difficult and cumbersome is the lack of a centralised repository of information, defined and secure processes and procedures to conduct checks at educational institutes, police stations or courts.
Background verification companies in India like DataFlow Group, KPMG and AuthBridge conduct 30k to 50k verifications per month ranging from Rs 2,000 to Rs 65,000 for senior level hires. Employee background check discrepancy level has risen by 48% in the past 2 years as per AuthBridge’s annual trend report with Financial Service industry leading the pack with 25% discrepancy cases.
Talentchain can be a panacea to all the above cited problems. With degree and employment certificates issued and stored on Blockchain, recruiters can always verify and trust an applicant’s claim on the physical resumes and be assured of quality and genuine hires.
Talentchain aids in creating an honest and transparent hiring process, which helps corporates to reduce time involved in background verification thus leading to a more aligned job-talent fitment. With rising costs of background verifications incurred by companies, this is the need of the hour.
Not only will fake certificates and fictitious job experiences be a thing of the past, it will be the nemesis of unrated and unrecognized institutions mushrooming across economies. This would give way to deserving and genuine candidates, benefiting all stakeholders who will be incentivized by promoting transparency and a trust inspiring ecosystem.