When hiring employees in India, background checks play an indispensable role in verifying a potential employee’s credentials. With the prevalence of resume fraud, it’s crucial for employers to ensure the authenticity of the information provided by job candidates.
The Significance of Background Checks in India
- Rising Concerns with Resume Fraud: In 2012, a staggering one in five CVs of Indian employees in the IT sector were believed to contain false or misleading information. By 2021, according to the Global Benchmark Report by HireRight, 70% of hirers identified discrepancies in Indian candidates’ employment histories.
- Beyond Employment Histories: Background screenings are not just about verifying work experiences. They also serve as a protective measure against potential threats to a company. A comprehensive background check can flag dishonest work histories and help in identifying potential risks associated with a candidate.
Navigating the Legal Landscape
- Legal Requirements: While it isn’t mandatory to run background checks on employees in India, employers can request relevant information about job applicants. This includes criminal background checks, education verification, and employment history. However, it’s imperative to obtain informed consent from job applicants before initiating these checks.
- Handling Sensitive Data: Employers are obligated to handle and store employees’ sensitive data in compliance with Indian laws. This includes ensuring the protection of the applicant’s personal information, maintaining confidentiality, and using the gathered information solely for legitimate purposes.
Types of Background Checks in India
- Criminal Record Checks: Employers can delve into a candidate’s criminal history by examining public court records. This can be done by contacting local police stations or accessing available cases online through the Indian government’s National Crime Records Bureau.
- Employment and Education Verification: Verifying a candidate’s previous employment details and educational qualifications is standard practice. This involves contacting previous employers and educational institutions.
- Credit Reports: Especially relevant for positions in finance, employers can use a candidate’s PAN card to verify credit history and outstanding debts.
- Social Media Scrutiny: Employers can review public social media profiles of candidates. While they can request access to private profiles, candidates are not obligated to comply.
Common Mistakes to Avoid
- Over-collection of Data: It’s essential to only collect data that’s necessary for the role, respecting India’s privacy laws.
- Skipping Consent: Always obtain consent from candidates before initiating the verification process.
- Neglecting ISO 27001 Certification: This global Information Security Management System (ISMS) provides best practices for handling sensitive data and reducing the risks of security breaches.
Background checks are a vital component of the hiring process in India, ensuring that companies onboard genuine and qualified candidates. With tools like Rippling, the process becomes seamless, integrating background checks directly into the onboarding flow.