Do Not Overlook the Discrepancies in Reference Checks
Employee background checks form an integral part of employee hiring activity. Organisations have ceased to consider the activity as a mere waste of time or an extra burden of additional cost. Employee Background check is a risk mitigation tool and it is carried out for employees to shield the organisation against future risks and uncertainty. Organisations have made it a practice to outsource the process of employee background screening to third party employee background verification companies. This saves the organisation a lot of valuable time, resources and effort which would have been otherwise required from the organisation’s end. Moreover, assigning the task of employee background check to an external body is always helpful to get an unbiased insight and report pertaining to an employee.
Pre employment background verification companies in India come out with a report about the employee after a series of meticulous checks are conducted. These checks dig out for any kind of discrepancies found between the antecedents stated and the information found after the completion of checks. Reference checks are quite important in order to assess the suitability of the employee hired. A research conducted by a leading background verification company in India, has ,come out with some insightful revelations. It shows the discrepancy trends in reference checks for the years 2010-11, 2011-12 and 2012-13 which reveals top 5 contributing reasons.
Non response from the referee has been the prime reason for discrepancy for 2010-11 and 2011-12, but there was a sharp dip in it during 2012-13. On the other hand, from a mere 3.2% in 2010-11, contribution of contradictory information has risen to 43.5% in 2012-13, making it the highest contributor to discrepancies. The other consistent contributing reasons across three years were incorrect/unconfirmed referee, referee’s refusal to verify, and negative feedback/performance. These statistics combined together can aid in alerting the organisations.
Reference check is quite important as it impacts the hiring decision to a large extent. Background screening companies carry out reference checks to compare the information stated by the employee to the information found post verification. Different reference discrepancies result in different outcomes and can impact the organisation. It varies from organisation to organisation to decide on their level of tolerance in light of the discrepancies revealed. The degree and extent to which a reference discrepancy can harm a company depends solely on the company’s discretion. Thereafter, an organisation can take a judicious decision pertaining to employee hiring. A decision thus taken helps in mitigating the risks associated with wrong hire.