Companies run because of their workforce. So, we can say that ‘hiring’ is a regular business activity for any firm. There are many crucial steps in the hiring process. One of those steps is to conduct a background check on the potential candidates, usually those who have qualified through the basic selection stages of written and oral interviews. The background check can be referred to as a precautionary measure while hiring a candidate for the role. In this article, we will explain how companies do background checks in India.
What Does a Background Check Mean?
Background checks refer to the verification of the accuracy of information regarding a person’s education, employment experience, criminal background, and other past behaviours. Despite the fact that there are many different kinds of specific background checks, employment-related background checks are among the most common during the hiring process. It can also be referred to as one of the screening processes. Employers usually ask for one before extending an offer to a candidate.
How Do Companies Do Background Check in India?
The steps and depth of background checks may differ according to the job role. However, a basic process can be summarised as stated below. How companies do background checks in India are as follows:
- Inform the candidate that a background check will be done. To stay in compliance with the Fair Credit Reporting Act (FCRA) it is necessary for the companies to send a mail to the candidates informing them of the same. Some consent forms can be attached to the mail as well.
- Usually, companies call the candidates most recent employer to begin the background verification process. They will compare the information you provided with data from your previous employer.
- Call the references of the candidates. Companies usually ask for two to three references from candidates so that they can confirm their suitability for the position.
- Next, companies search public databases (criminal records) for any evidence of illicit behaviour.
- They then look through the educational records to confirm the candidates degrees and certifications.
- Next, companies will confirm the address. Companies occasionally even deploy representatives to actual locales to verify a candidate’s address.
- Businesses can check a candidate’s credit history to confirm their knowledge of critical topics, including money management, indications of financial difficulty, loan repayment history, etc.
Ways and Means to Do Background Checks by Different Companies
There are various ways companies do background checks. The most common ways are as follows:
- Large private enterprises may hire someone from outside, usually third-party agencies, to do the checking.
- Small and medium-sized companies typically allocate all duties to their HR department.
- Government companies, or PSUs, do a thorough background check by asking for the candidates residential proof. The company may ask district magistrates or police commissioners in the locations where you formerly resided for your record. Can even request police stations to conduct the investigation.
Why Are Background Checks Conducted?
Background checks help the company confirm the claims the candidate has made are true and ensure the candidate is trustworthy because candidates may make false statements in the job application. To make sure they are selecting the best applicant for their business, employers run background checks. Also, background checks increase workplace safety.
What Happens If the Job Offer Is Rejected Due to My Background Check?
By law, a potential applicant is entitled to receive a copy of the background check that led to the employer’s decision to reject them. The candidate can see the data the company used when making their decision in this report. The candidates can report any dissatisfaction to the dispute resolution system. Thus, it is imperative to identify the source of the inaccuracy revealed in the report.
Also, in such circumstances, many Indian companies dismiss the candidate. However, sometimes, if the candidate has a good reason, some firms will even accept the apology in writing. Therefore, speak with the employee and make an effort to find a workable solution to the issue.
FAQs on How Do Companies Do Background Checks
Here are a few frequently asked questions about how companies do background checks.
How do companies do background checks?
By law, before doing a background check, you must be informed in advance about the background investigation. From there, the companies may conduct the background check. Companies can choose to hire a third-party background-checking firm or proceed on their own.
How many years do companies go back for background checks?
In India, it’s typical to check a candidate’s employment history over the previous seven years. Surprisingly, there are no limitations on how far back an employer must look under federal law. Criminal histories are likewise excluded from the Fair Credit Reporting Act (FCRA).
Concerns about pre-employment vetting are frequently voiced by both employers and job seekers regarding the duration of the “lookback period”. The actual response is dependent on the nature of the background investigation and the geographical location of the people involved.
Are background verification processes legal in India?
Yes, background verification processes are indeed legal in India. However, in India, background checks on employees are largely unregulated. There are no set guidelines that govern it. Therefore, even though every company needs the candidates permission to conduct a background check, many do so regardless.
How long does it take to conduct a background check on hiring candidates?
Usually, the procedure for background check companies takes three to ten days. However, if a company wishes to look closely at your past (usually done for senior-level hiring), it may go beyond that.
Most of the time, once the candidate passes all interview stages, only then the company does a background check.
What do companies look for when doing background checks?
Companies use background checks to confirm the information applicants submit when applying for a position. While doing the background check, companies look for a number of details, which include information like academic background, employment history, identity, resume, credit history, drug testing, and an address check.
The reason to conduct background checks is to hire a genuine candidate who is fit for the job position the candidate applied for.
What is Fair Credit Reporting Act (FCRA)?
A federal regulation known as the Fair Credit Reporting Act (FCRA) governs the creation of consumer reports when running background checks as a condition of employment. The FCRA safeguards both employers from claims of unfair employment practises and job candidates from discrimination or privacy violations.
Thus, summarising the above-written article, the procedure and scope of the background check may change according to the company’s regulations, the position level, and the sector. No matter how big or small the company is, having a strong background verification structure in place aids stakeholders in making suitable hiring decisions as well as being timely and productive.
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