How can digital transformation boost employee background checks in a post COVID-19 world?

The use of technology tools and digital platforms can bring much needed respite to conduct employee background checks during uncertain times.

The COVID-19 pandemic has triggered an unexpected disruption in corporate India, spurring the digitalization in human resources (HR) practices. Remote working, training, hiring and virtual onboardings has become the new norm in workforce management. The benefits of HR digital transformation are substantial but one of the key challenges that persists is the inability to conduct in-depth or digital background checks of potential employees. The primary reasons for employee background checks are a pressing need to bring in superior talent with the right capabilities and legitimate credentials, mitigating potential instances of misconduct at the workplace and adopting it as a leading practice in the overarching risk and compliance framework.

The EY survey highlights that the use of new age and innovative tools will strengthen the employee background checks process.

• Using digitized data to reduce manual processes
• Harnessing the power of blockchain for enhanced integrity and greater efficiency
• Leveraging automation and machine learning to enable faster processing and strengthen the reliability of the process

Need for role and responsibility-based background checks

53% have the same scope for background checks across levels and roles

70% preferred engaging independent third-party service providers for background checks

Employee background check has evolved to form a key element in for the digital HR. There has been rapid adoption across several sectors such as ecommerce, logistics, staffing and manufacturing, going beyond the typical sectors (IT-ITeS). However, the emphasis given to the scope based on the role and responsibility of the prospective employee is not perceived vital.

• One size doesn’t fit all

Digital HR and recruitment teams should explore a tailored model, based on the criticality of the potential employee’s level, role, department and responsibility.

• Global hiring increasing complexities

Today’s hyperconnected world has led to many business executives moving across several cities or countries. The process of a background screening gets complex in such cases. Multinational employers must be careful to adhere to local laws and cultural sensitivities in these situations.

The COVID-19 impact

68% faced challenges in completing background checks during the COVID-19 lockdown

36% were unable to complete the checks

With remote working and work from home, organizations are exposed to several risks. The threats associated with onboarding unverified employees tend to be high in general but are higher during crisis times. The EY survey conducted amid the lockdown period stated that many organizations faced several challenges in conducting employee background checks and digital background checks can be key.

The survey also results show that recruiters were not equipped to conduct even the first level of screening — comparing originals with the copies of the documents. Some cases had potential candidates reluctant to share information over phone calls, rendering the process unfinished.

The way forward

Background checks must be done for all employees as a leading practice. A prioritized and phased approach can be adopted to streamline the process. Several areas should be explored when selecting a trusted partner for digital employee background checks.

Digitization is the way forward. The adoption of emerging technologies by HR is key to continue digital employee background checks efficiently in the future.