The online space is saturated with billions of people having access to the internet for various reasons. These range from shopping to job hunting to seeking information and fulfilling other basic needs. One thing is clear: there is a wealth of information online, and everyone is looking to buy, sell, or find something. Today, most job application processes are being done online, businesses need to know who is applying for their vacancies and if they meet up with all the requirements needed for the job. This is where a thorough background check comes in.
For businesses, the hiring process has evolved from traditional methods that typically took days to more modern approaches involving technology. With a large number of candidates vying for positions and a significant gap in the employment market, hiring the right employees is crucial for a company’s success. Coupled with the high level of inaccuracies in job applications, where 53% contain incorrect information, ensuring accurate and effective hiring becomes even more essential.
A major aspect of the revolution in the hiring space is the implementation of thorough background checks. These checks ensure workplace safety and help protect the company’s reputation.
In this article, we explore why companies should prioritize background checks on their prospective candidates.
What Is a Background Check?
Background checks are investigative processes used to verify the information provided by job candidates. They involve examining various aspects of a person’s past to ensure their suitability for a position. This deep dive uses third-party resources to examine public records, law enforcement, credit bureaus, academics, and work history.
Many companies believe hiring only involves reviewing resumes, conducting interviews, and offering jobs to top candidates. However, this approach can be risky, as there may be certain information about a job applicant that could harm the organization. Relying solely on trust is not enough; companies should know both who the candidates are and their history.
Types of Background Checks
Companies typically perform several types of background checks, each serving a unique purpose. Some of these checks include:
- Criminal History Checks: These checks look for any criminal records at the local, state, and federal levels. About 44% of job applicants have undisclosed criminal records, and these checks help identify potential threats to workplace safety.
- Employment Verification: This involves confirming a candidate’s previous employment details, such as the company, job titles, durations, and reasons for leaving.
- Education Verification: HR verifies a candidate’s educational background to ensure they have the required qualifications.
- Credit Checks: These are used primarily for positions that involve financial responsibilities. They help assess the candidate’s financial stability and responsibility.
Benefits of Conducting Background Checks
Organizations losing about 5% of annual revenue to fraud, with a median loss of $130,000 per case, reveals the importance of background checks. Background checks offer numerous advantages, making them an essential part of the hiring process. They help reduce the risk of workplace violence and other safety issues by identifying past criminal behavior, and allowing employers to make informed decisions. This step is crucial in creating a secure work environment for all employees. Additionally, Background checks ensure new hires don’t have histories that could harm the organization’s reputation or workplace culture.
How Prembly is Solving the Challenges and Limitations of Background Checks
Despite significant benefits, background checks pose challenges for HR companies, requiring substantial time and capital, especially for small businesses. Another major issue is the accuracy of background checks, as they rely on various external sources. HR companies must use reputable background check providers for reliable information, as inaccurate data can harm both employer and candidate.
Prembly is leading the way in solving these challenges, our Background Check solution is a comprehensive suite that offers a wide range of checks and screenings tailored to meet specific needs. Built for global partner enterprises, we provide the infrastructure to accurately deliver in-depth background information on individuals and entities across the globe, using reputable and supported partner sources. Their employment checks offer an in-depth inquiry into an individual’s work history, empowering businesses to make informed hiring decisions.
Prembly’s other comprehensive sub-services include Membership Checks, Identity Checks, Litigation Checks, Reference Checks, Credit Checks, KYB Checks, and Drug Tests. With global coverage across multiple regions, they provide the necessary tools for thorough background checks.
Get started with Prembly’s solutions today.
