Business

How Do Employment Verification Companies Gather Information?

Most companies conduct extensive employee background verification to ensure that you are socially responsible, financially stable, and honest about the details of...

· 3 min read >

Most companies conduct extensive employee background verification to ensure that you are socially responsible, financially stable, and honest about the details of your job application. As a responsible job seeker, you probably know this, whether it’s from Hollywood movies, the information you’ve found on the Internet, or previous job experiences.

According to a recent survey, 96% of the companies conduct background verification on the prospective candidate, and over 50% collaborate with third-party employee background verification companies in India. In this article, we will discuss the reasons for this growth in numbers and also explain how these companies acquire the necessary information. 

Why do employers conduct background checks?

Whether you are applying for a part-time job or considering a managerial position in a multinational company, your past can be explored. Why? Well, firstly, an employer wants to make sure that you are honest about your past, whether personal or professional. The latest data reveals that more than 40% of resumes contain some sort of wrong or altered information. In this regard, employment verification software can help avoid the unpleasant consequences of poor hiring decisions. 

The reason behind employee background verification can be straightforward. For example, a company can opt for a background verification to check if the applicant actually graduated from the university he mentioned in his resume or not. Also, things get more challenging when you apply for a more responsible position with a better salary package. For example, if you are applying for an accountant position that involves dealing with sensitive information about the company, the organization can also review your credit report to make sure you are reliable and trustworthy enough to take on the responsibilities. 

How Do Background Verification Companies Collect Information?

Background verification is an integral element of the hiring process, and employee background verification companies in India allow employers to make an informed decision based on the most accurate information. If a hiring manager makes the wrong hiring decision, they can not only build a bad reputation but also face legal repercussions and potential financial losses. An external third-party verification company minimizes the time and cost of the entire process, and this is how they collect information regarding the applicant. 

Employee Inquiries and Identity Verification

Before proceeding with the national records and credit history, employee background verification companies in India will gather information about you as an applicant. Once you submit your resume, basic information about you, such as your address and date of birth, can be verified to ensure your identity is correct and matches with government records. 

Education and employment records

One of the integral elements of your resume is your education and work experience. Still, unfortunately, a lot of people are not entirely honest about their educational qualifications or even where they worked before their interview. Due to such occurrences, most companies want to check if the applicant is telling the truth with the help of a series of interviews and then contact your old educational institute or employer. 

When it comes to asking questions regarding your salary slip, it might seem overkill for the other person to ponder it. However, believe it or not, most companies do, and a lot of candidates lie about it during the hiring process. While it may seem challenging for an organization to verify this type of information, employee background verification companies in India can effortlessly provide such information. If you end up “forging salary records”, it will be difficult to deal with its consequences, to put it mildly.

Because of the increasing amount of false information provided during job interviews, employee verification is becoming more common. This usually comprises everything from job designation to employment dates and your salary at each company. In order to avoid losing a potential job because of bad faith, provide the correct information or avoid fully asking questions regarding your past salary (this will only work if the hiring manager chooses not to ask for information about your past salaries).

Financial records

If you are applying for a managerial position in a company, especially one that deals with the company’s financial resources, a background verification company can check your credit history. Such a check generally includes bankruptcies, loans, evictions, or any other financial scenario that prevents a given applicant from acquiring a managerial position. For such type of information, background check companies ask the banking institution, or in some cases, even the rental agencies. If an applicant has a really bad credit history, such a thing indicates financial irresponsibility. 

If you are feeling like someone is digging into your credit reports, do not worry. Similar to your other personal information, the organization will need permission to verify your financial information. Moreover, it is mandatory that the company notify you in writing and wait for your confirmation before viewing your financial history. 

Will my company inform me in advance before proceeding with the background checks?

Don’t worry, the company must acquire written permission to do detailed background verification. In addition, if the information revealed during the background checks prevents you from getting a job, the organization must provide you with a detailed report and notify you in writing the reason behind your refusal. This helps you correct any discrepancies that may appear during the verification of your information.

If your future employer has already informed you regarding a background check, there are a few things to bear in mind. While some background information may be necessary to your potential employer, these verifications cannot be grounds for discrimination. If the hiring manager has requested a background verification for you, other candidates must go through these procedures as well. 

Finally
Nowadays, conducting employee background verification before hiring is an integral process. With the number of people lying at the interview stage, even checking a college degree is necessary before offering a permanent position. The employee background verification companies in India will not only provide relevant information about potential hires but also look into minute details that will be too costly and time-consuming for businesses.

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