Reference checking

Employee Background and reference checking In India.

Prof. Prasad Kulkarni, Asst Professor, Gogte Institute of Technology, Udyambag, Belagavi.

Theoretical background:

Background screening confirms previous employment experience, education qualification, criminal record and drug test. The reference check is speaking with previous employers about skills and job requirement candidate possess. (Edward sandier) In India, employer asks the employee to provide few references in the selection process to verify later (Ashwatappa)

Background checking and reference checking is found to be necessary by the companies to reduce the risk of data theft, criminal activity, and workplace misbehaviors. (Tech story)

Background checks by the organization have immense benefits to the company. First, it authenticates candidates’ credentials. Second, eliminate any possible legal consequences. The employees with forged education certificates, fake salary slips if found by the external world will tarnish the image of the company. The background check will eliminate any concern of hiring a candidate with criminal background and anti-nationals. In future, it reduces sexual harassment, industrial accidents and labor unrest in the company. It reduces

Outcomes of reference checking

Reference checking will reveal following 10 areas of improvement

1. Confidence
2.  Communication
3. Experience
4. Knowledge
5. Time management
6. Delegation
7. Overcommit
8. Further education.
9. Detailing
10. Accuracy

(Source: the 20 common things that come during reference checks, Harvard Business review)

Indian reference checking and background verification Industry

Indian reference checking and background verification industry has touched Rs 250 crore in 2012. ( Kameswaran). The report by background check company Auth Bridge (2012) found that 19.47% employees fabricated their previous experience information. This has been followed by problems in references (9.93%), Fake addresses (7.08%) and forged education credentials (1.81%). (Check-out latest Employee Background check Trends- Industry wise)

Candidates can be screened pre-hire, pre-offer, pre-joining, post-offer or post-joining. Experts of the industry vouch that outsourcing these processes to background verification companies is a safer and securer way of ensuring that the workforce you hire is trustworthy, is compliant and does not come with any legal, criminal or terrorist history or links.

Employee Background Verification Services comprises of the following checks.

• Previous work or job Verification
• Colleagues and supervisors reference validation
• Academic credentials verification
• Personal data investigation
• Criminal history
• Disputes pending in the court
• National skill registry verification
• Frauds with banking and finance system
• International criminal data check
• Nationality verification
• Drug addiction
• CV Validation

Major players in background and reference checking industry in India

1. ·         A.M.S. Inform Private Limited         
2. ·         AuthBridge Research Services Private Limited
3. ·         Baldor Technologies Pvt Ltd (IDfy) 
4. ·         cFirst Background Checks India Private Limited     
5. ·         SecUR Credentials Pvt Ltd   
6. ·         EVAluationz India Private
7. ·         Footprints Collateral Services Private Limited          
8. ·         First Advantage Private Limited       
9. ·         iCrederity Info Services Private Limited       
10. ·         Integrity Verification Services Pvt. Ltd.
11. ·         Integrated Information Services Pvt Ltd      
12. ·         KPMG
13. ·         Matrix Business Services India Private Limited        
14. ·         Onicra Credit Information Company Limited
15. ·         Pinkerton Corporate Risk Management India Pvt Ltd.
16. ·         Premier Shield Private Limited          
17. ·         Screen Facts Services Private Limited           
18. ·         Supersoft Consultants Private Limited          
19. ·         TOPSGRUP Risk Intelligence Private Limited
20. ·         Verifacts Services Private Limited    
21. ·         Vibrant Screen Private Limited         
22. ·         Walsons Services Private Limited     

(Source: https://nationalskillsregistry.com/background-verification.htm)

Background and reference check cost: The cost for Background and reference check in India varies between Rs 300 to Rs 10,000 per candidate.

Background and reference checking process in few Indian firms. 

1.      Oracle Background and reference check:

In accordance with Oracle policy, background checks are required for individuals being considered for employment. Oracle’s background check vendor is Hire Right, a leading provider of on-demand background screening services. When Oracle initiates the process, Hire Right will e-mail a link to its online application, along with unique login and password information. Candidate should promptly use that information to login and complete (in its entirety) the online form. Hire Right will use the information candidate provided to prepare a background check report for Oracle. Oracle Human Resources will individually assess the results of this report.  
2.      Wipro background and reference check

Wipro hires approximately 10,000 people every year. After their in-house team and third party background Verification Company found that candidates using fake academic and experience certificates, it has delisted 300 companies and 150 colleges. 
3.      TCS background and reference check

 To avoid fraudulent academic certificates TCS has begun accrediting colleges. So far, TCS has accredited 350 campuses. This has resulted in drastic reduction in fraudulent cases to 200. For few positions, TCS even asked aspirants to submit passport in which criminal background check is done by the police. (Schwartz, K. D. 2005). 
4.      Cognizant background and reference check

Cognizant, another IT major, used third party service for background and reference checking. The third parties check the information from HR person of the old employer and also scrutinize the academic credentials of the employee. (Current market) 
5.      Kotak Mahindra background and reference check

The background check is done at the different level for companies. Kotak Mahindra accepts little deviations from age education and experience that may not harm the company at large. 
6.      Yes bank background and reference check

Similar to Kotak Mahindra Bank, Yes Bank allows candidates with minor deviations in age, education and experience details provided by the candidates. (Times of India) 
7.      Mankind Pharmaceuticals background and reference check

Mankind Pharmaceuticals use very stringent behavioral assessment techniques before background and reference checking. Candidates resume with too many skills and experiences were subject to background and reference checking. 
8.      PNB MetLife background and reference check

Fake CV’s are biggest problems to insurance company PNB MetLife. To verify the education and experience of the candidate, PNB MetLife asks the original documents at the beginning of the selection process itself. (Economic times) 
9.      Dell India background and reference check

Dell India not only have stringent selection process but also makes global compliance check mandatory to ensure proper selection.

Issues of background and reference checking in India.

• Layoff technique: Many firms gather background and reference checking as the tool for layoff at the time of crisis.
• Privacy: Many employees voiced the NASSCOM’s background and reference checking as the violation of privacy. In India, privacy laws are not clearly defined.
• Part-time job: Many companies though blacklisted few training centers, colleges and companies yet; they recruit from these sources for a contract employee. Their main motivation is to reduce the Human resource cost. This creates the dilemma between accredited and non-accredited centers.
• Lack of database: Unlike the USA where the data of citizens are clicked away, In India employee database is not formed. This makes third party background and reference checking companies to go physically and verify the documents. (Financial Express)

References:

1.      Andrea Edwards, the complete reference checking handbook AMACOM, page 4
2.      Ashwatappa, Human resource management, McGraw-Hill,  p 207
3.      Schwartz, K. D. (2005). The background-check challenge. InformationWeek, 1048, 59-61.
4.      http://techstory.in/authbridge/ October 14 2015)
5.      http://www.financialexpress.com/archive/india-lacks-the-required-database-for-background-screening/439988/
6.      http://articles.economictimes.indiatimes.com/2015-06-21/news/63671691_1_india-inc-rahul-sinha-background-checks
7.       http://timesofindia.indiatimes.com/business/india-business/Lying-your-way-to-a-new-job-just-got-tougher/articleshow/53834273.cms
8.      http://www.currentitmarket.net/2009/07/it-firms-gear-up-to-strong-background.html
9.      https://nationalskillsregistry.com/background-verification.htm
10.  the 20 common things that come during reference checks, Harvard Business review  August 2016
11.  Kameswaran, http://www.slideshare.net/kameshwerkc/trust-but-verify-52195431.