Background checks are essential for every company. The misconception is that more prominent companies and MNCs need this more than MSMEs and start-ups; however, that is not true. The cost of a bad hire and the ramifications of the same will be more challenging to handle for small businesses. First and foremost, a bad hire comes with a cost; when you are a small business, you need someone with the right expertise to perform a particular role; if the person has faked their way into the organisation it is a pain and cost to re-hire. Both human and monetary resources are expended when they could be put to much better use.
If the hire commits some fraud in the company, bearing the legal implications and penalties resulting from that becomes a pain for small businesses. Their reputation also gets tainted, and coming back from that is quite a task. This is why background check companies are all the more essential for small businesses. They need to be very clear about who they are bringing on board and must be careful during the selection process.
Background check companies can make or break the hiring decisions of the company. Keeping this in mind, one should not go purely by cost, speed, or even recommendations. It is imperative to get answers to a few questions to see if the background check company best aligns with the priorities and objectives of your small business.
What verification services does the background check company provide?
Look for a company that provides comprehensive and can provide everything ranging from instant identity verification, pre-employment background checks, academic qualification checks, reference checks, Digital KYC, digital address verification for employees, etc. Having a single point of contact for everything related to verification is easier than having multiple vendors on board.
How technologically advanced and scalable is the company?
Small companies may have limited requirements at this stage, but they are constantly in expansion mode. Can the background check companies grow with them? Are they scalable enough? Make sure they are technologically advanced and are powered by Advanced Artificial intelligence. Companies that use innovative technologies like image recognition, liveness detection, optical character recognition, biometric anti-spoof, face match, digital signatures, and document classification will cost and time efficiency for the HR function. This ensures that the background check process is more secure, scalable, and seamless.
Is the solution customizable?
Make sure that the solution that is being evaluated offers customizable workflows and can be easily integrated with any onboarding tool or HRMS. It should be able to plug in or remove any verification component based on the industry or candidate profile. Ideally, go for something that is easily integrated into your existing HRMS via API or can be used as a stand-alone web platform.
How stringent are the background check company’s privacy and security policies?
In today’s digital age, Data is liquid gold. Even the most minor data security breach can derail your progress and hamper your ability to recruit top talent. When you select a screening partner, ensure it has data security practices to protect sensitive data. Their onboarding and verification products should adhere to General Data Protection Regulation requirements and meet global encryption standards. This will ensure that your company remains compliant with ever-evolving regulations, especially while scaling up.
They should impart comprehensive data security and privacy training encompassing local and global requirements to all the employees selling their solutions. They should meet international standards like ISO 27001:2013, and their privacy policies should include regulations in each area your company operates in. While one may think these questions are over the top for small businesses that don’t have large hiring requirements, it reflects their commitment to data privacy and security. It shows how well they understand your industry and can support you.
Is this solution cost-effective?
While bringing a solution provider onboard seems like an expense, it should be offset by its financial benefits. For example, Digital KYC, an integral part of background check services, enables on-the-the-spot verification as it is powered by Artificial Intelligence, Machine Learning, and deep search algorithms. Digital KYC ensures faster onboarding, reducing account activation TAT by 80% and significantly reducing operational costs by almost 70%. Ensure that your background check service provider offers similar cost benefits.
