How Do Companies Do Background Checks In India?

How do companies do background checks in India

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The importance of employee background checks for making informed hiring decisions is a force to be reckoned with. Background checks help employers verify the credentials, education, and work experience of the candidates, safeguard a business from fraud practices, and ensure that the onboarded candidates possess the required skills and qualifications for the job. 

Employers can screen the candidate’s profile from all aspects from education to employment to a criminal history check to avoid getting into legal trouble and ensure that the workplace is free from any risks or hazards.

Companies That Conduct A Comprehensive Background Check Reap The Following Benefits:

  • Good company reputation: Employees with a criminal history or a questionable work history could negatively impact the company’s reputation, leading to loss of business as well as brand image.
  • Enhanced employee retention: A thorough background check can help employers identify candidates who are more likely to remain with the company for a longer time, reducing the cost and time associated with recruitment and training.
  • Maintain compliance: Some businesses have specific regulations regarding employee background checks. Employers must comply with these regulations to avoid legal penalties and fines.

How Do Companies Do Background Checks In India?

Screening candidates has become much easier than it was before, all thanks to the digitization of public data i.e. NIDs, driver’s licences, and negative and proprietary databases for court record checks and criminal history. It typically takes 2 to 5 working days to complete the background verification. However, the time may vary depending on what level an organization wants to dig into the candidate’s background (mostly done for leadership positions). 

The checks are mostly conducted once a candidate clears all the rounds of the interview. The process starts with identity checks followed by employment checks by calling your last employer. Then, companies look into public databases (criminal records) for any illegal activity. Next, they dig education records to verify your degrees and certificates.

The Following Are Some Common Steps Involved In A Typical Background Check Process In India:

  • Identity verification: The first step in a background check is verifying the candidate’s identity through their government-issued ID card, such as a passport, driving licence, or Aadhaar card.
  • Education verification: The company may verify the educational qualifications of the candidate by checking with the university or board that issued the certificate or degree.
  • Employment verification: The employment history of the potential candidates is validated by contacting the HR department of their previous employers to confirm their job titles, responsibilities, and work duration.
  • Criminal record check: The company may conduct a criminal record check by checking criminal records with the negative and criminal record proprietary databases.
  • Reference check: The company may also conduct a reference check by contacting the candidate’s previous supervisors or colleagues to verify their work performance, behaviour, and character.
  • Address verification: The company may verify the candidate’s current and previous addresses to ensure they are accurate.
  • Credit history check: Companies can conduct credit history checks to validate a candidate’s hold on important aspects like money management, signs of financial distress, records of repayment of loans, etc.

In India, there is no one-size-fits-all approach when it comes to background verification. Different companies conduct background verification in different ways. 

Big private and mid-sized companies partner with leading third-party background verification companies in India like AuthBridge to do the checks mentioned above. Then there are small enterprises that prefer to have an in-house HR team do all the work. Government firms or PSUs run an extensive background verification process before offering the job.

Industries That Are Most Suitable For Background Checks In India

  • White-collar industries (Financial services, accounting, IT, and much more)
  • Blue-collar industries (Logistics, Large-scale manufacturing, Construction, Energy & utilities)
  • Government services
  • Educational institutes
  • Workplaces involving “special care” people (for instance, children, specially-abled people)
  • Any profile that requires a special licence
Industries where BGV checks are must

The process and extent of the background check may vary depending on the company’s policies, the level of the position, and the industry. No matter, if it is a small company or a big private firm, having a robust background verification framework in place, helps stakeholders to make quality hiring decisions as well as stay time-efficient and productive. 

Employee Background Verification With AuthBridge

Comprehensive and seamless background verification can enable a long-term relationship with the new hires and provide a welcoming and safe workplace. 

AuthBridge emerges as a strong third-party enabler to help HR teams get data-driven insights into candidate history and automate background verification journeys so that they can focus on personalization during and before onboarding and offer human connections where desirable. With robust verification and onboarding solutions, organizations can get better transparency and trust to retain great talent.

FAQs around Background Checks In India

A background check is a process used by companies to verify an individual’s identity, employment history, educational qualifications, criminal records, and other relevant details to ensure the person’s credibility and suitability for a job.

Companies conduct background checks to ensure they hire trustworthy and qualified individuals, mitigate risks, comply with regulatory requirements, and maintain a safe and secure workplace environment.

Common background checks include identity verification, employment history verification, educational qualification verification, criminal record checks, address verification, credit history checks, and reference checks.

Companies verify an individual’s identity by checking government-issued documents such as Aadhaar Card, Passport, Voter ID, and Driver’s License to ensure the individual’s identity is genuine.

Companies verify educational qualifications by contacting educational institutions to confirm the authenticity of degrees, certificates, and other academic achievements listed by the candidate. This ensures that the candidate possesses the claimed educational background.

A criminal record check involves searching national and local databases to identify any criminal convictions, pending charges, or legal issues associated with the candidate. Companies often work with law enforcement agencies or third-party verification services to conduct these checks.

Companies verify a candidate’s address by checking utility bills, rental agreements, and conducting physical verification visits to the provided address. This ensures the candidate’s residential details are accurate.

If discrepancies are found, the employer reviews the findings and may discuss them with the candidate. Depending on the nature and severity of the discrepancies, the employer may decide to proceed with caution, provide an opportunity for clarification, or terminate the hiring process.

Yes, it is legal for companies to conduct background checks in India, provided they obtain the candidate’s consent and adhere to relevant data protection laws and regulations.

Background checks benefit employers by reducing the risk of hiring unqualified or fraudulent candidates, ensuring workplace safety, protecting company reputation, and complying with legal and regulatory requirements.

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