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Why do employee background checks matter so much?

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When companies think about employee background checks, it is combined with equal measures of anxiety and stress. More often than not, it is the most complicated process in the onboarding process.

Why are employee background checks important?

Call it compliance, call it good practice - a background check or employee background verification is critical to ensure that who you are hiring is the person they say they are. It is the only way you can confirm that the employment and education experience, and identity are all accurate and as the individual claims it is.

It is also imperative that employers protect themselves and prove that all appropriate measures have been taken to ensure that a new hire will not put the company, its clients or the workplace at any kind of risk.

Challenges of employee background checks

1) Data & document collection

Background checks start with data and document collection. Collecting the right data and accurately is one of the main reasons why background checks take the time they do. Insufficiencies are raised, there is communication back and forth between the vendor, HR and the new hire. And this results in a loss of time and productivity.

The same holds true for documents as well. People often upload the wrong files or upload low quality images that make it a challenge to complete their verification. In addition to this, each region, department and work level or band might have different requirements. Communicating this to each individual new hire becomes a manual task that obviously prolongs the process even further.

2) Identifying the right vendor & managing the process

For most startups, identifying and managing a BGC or employee verification vendor is a cumbersome process. With background verification becoming more and more important for fast growing startups, even companies with 50+ employees need it as part of their ISO certification process, and also to make sure they are in compliance with state & federal laws.

3) The worry about TAT

Turn Around Time - the one metric that all background check vendors are judged by. How long does it take for a case to get resolved. TAT is often interlinked with quality of the upstream process. TAT increases when BGC vendors have to do more of a back-and-forth with new hires to raise insufficiencies and get the right documents. This is a struggle that cuts across all organizations of all sizes, and in any geography.

4) Managing multiple vendors

Multiple vendors is a common problem faced by businesses that are geographically spread or are larger in size. Building a list of vendors and routing the right cases to the right vendor is a cumbersome process that is managed manually today. Across the world. Yes, no matter how large the enterprise, it is all still manual.

5) Data Security

Personal documents, and really sensitive ones at that, are often shared through insecure mediums like email and messages. Very often the recruitment system collects a few documents, another system captures more documents and either paper or digital forms capture the rest of the data. This is then pushed across to the BGC vendor across mediums that are far from being secure.

6) Fragmentation of Systems

Alluding to the point above - there are multiple systems involved in the process - recruitment, verification database, vendor systems, HCM and more. With the fragmentation of systems comes the complication of managing data sync across systems and building a streamlined flow.

We are reimagining onboarding

Our goal at Tydy is to Supercharge Onboarding. To make it as easy as possible for any organization to onboard new hires and deliver the best possible experience every single time. Our plan of action is to keep building a complete onboarding solution that lets you do everything from one place. Which is why we've already created the single most powerful and robust Data Capture and Employee Verification module you can possible imagine. We did this by making sure we could tick off every one of the above challenges. And we seem to be on the right track because this specific module is a customer favorite!

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