Background Verification – Importance and meaning

Background Verification

It is an investigation done by the company on a prospective employee or company. Casual due diligence is done when hiring an employee, such as verifying their qualification or demanding a recommendation letter from their former company. But when a company is going for a merger, investment, or acquisition in a new business, a third party is hired to audit the prospect to weigh the possibility of a profit or loss.

The same helps companies avoid making mistakes and make better onboarding and hiring decisions. 

In this glossary, we will cover:

1. Background Verification Process
2. How many days does background verification take?
3. What does a background check include?
4. What can make you fail a background check? 
5. Even if everything else goes right, can the employer withdraw their job offer because of background verification failure? 
6. How can employee onboarding software help?

Let’s look at them, one at a time below.

Background Verification Process

The employee background verification process broadly involves looking back at the candidate’s history in terms of work, study, and legal records, and address. Here’s how different companies approach the process-

1.MNCs hire a third party to do this on a background check for the candidate on their behalf

2.SMEs lend the responsibility to the HR team. They ask for documents like salary slips, previous offer letters, Aadhar card, PAN, and more from the candidates.

3.PSUs have the most detailed background verification check. They ask for residential proof of places where you have lived for more than six months in the past 4 years. Basis that, respective police commissioners run a check. 

How many days does background verification take?

The process usually takes up to 3-4 weeks but in some cases may take up to 6-8 weeks. 

What does a background check include?

Generally, the background verification includes checking work history(performance, salary, position), Education history (performance, name of school/ college). Apart from this, Aadhar card, PAN card, address verification, criminal record, reference check, social media, drug test, credit score are also done. 

What can make you fail a background check? 

Background verification processes are a breeze until you are not lying or things are not miscommunicated. Here are some of the reasons that can make you fail your background check. 

1. Qualifications and the result shared are not right.
2. Job salary slips, tenure, the position were not rightly mentioned.
3. There is some criminal record.
4. You failed the drug test and more…

In a nutshell, until you have not shared the wrong information, you are safe and will easily pass the test. Stay honest! 

Even if everything else goes right, can the employer withdraw their job offer because of background verification failure? 

Yes, if the information you provided is found false, the employer has the right to withdraw the job offer. However, for doing that, they would need to share all the correct documentation with you formally to know what criteria you failed in and how. The employer must release the adverse action notice stating that the candidate has failed the verification and hence denied the job offer. 

How can employee onboarding software help?

Using employee onboarding software helps HR and the selected candidate in digitizing and automating the process.  

• Once HR triggers the onboarding process. It automatically shares the mail with the candidate to upload their details in their profile.
• Between the duration of hiring and joining, the potential employees keep receiving text and video emails talking about the company, culture, and more.
• It cuts the paperwork; everything can be done online, great for remote and hybrid work models.

Also Read: What you need to see during Background Check