The introduction of new business models In India, is altering the way we do business. The entrepreneurial spirit has grabbed on in a major way, and India is now recognized as a rapidly rising startup location. The ecosystem is presently seeing a “flooding” of entrepreneurship supported by novel ideas, thanks to angel investors, organizations, and crowdfunding projects.
With growing startups employee Background Verification (BGV) is becoming more common practice throughout the recruitment processes in India. Employers are more concerned with the employees they recruit since there is a strong association between the values and personal characteristics of the people, they hire for the business development.
Why do investors insist on startup background checks?
While the thriving startup culture is good news for the Indian economy, there are risks associated with certain jobs in the sharing economy. The development of contract employment, temporary workers, and shared models raises security risks. The ongoing surge of potential misrepresentation of documents or identity involving office support staffs, highlight the significance of proper employee background verification and personnel screening. Whereas formerly only employees were subjected to background checks before recruiting, companies today require employee screening and due diligence for the startups.
Technology-enabled solutions can be a boon for the requirement of background verification that can establish confidence and accelerate commercial partnerships or startup financing. Off beam hiring cost far more than money, with reputational harm often irreversible.
New domain with evolving motivation
Start-ups adopting BGV demonstrates that they want to invest in the potential set of talent with an experienced background in their respective fields. Employers dealing with contractors on third-party payrolls take responsibility for confirming since their brand is being represented, and the recruitment companies have little motivation to conduct rigorous background checks. Misrepresentation of information continues to be a major source of challenges in the talent acquisition process, and that drives businesses to collaborate with BGV platforms in order to mitigate those risks and develop a working atmosphere of trust, safety, and responsibility.
Here are top five reasons why emerging startups should invest in background verification checks:
- Safeguard the company against potential litigation – When a company considers hiring someone, it should conduct a background check to find any criminal past the individual may have. A company can potentially limit unfavorable legal implications that may result from hiring someone with a criminal past through the use of a detailed background check.
- Protect the valuable data- Background checks are important security measure because a company would not want to recruit someone who might hurt organization in any capacity including theft or corruption of data assets.
- Minimize vulnerability- Negligent hiring suits are costly, time-consuming, and detrimental to a company’s brand. Fortunately, doing a routine background check on candidates is an easy method to help mitigate those claims. Startups may be more adaptable than larger corporations, but they are also significantly more susceptible. Even if many start-ups recruit through personal ties and recommendations, a standard background check procedure should be in place to safeguard the organization.
- Validate education qualifications- When attempting to get your start-up off the ground, there may be a lot of pressure to make the right decisions since making the wrong ones can be disastrous for an organization. Let’s face it: there just isn’t enough fund at the start of an entrepreneurial journey to recruit as many people as you want, therefore it’s critical to hire people that fulfil a diverse set of needs and skill sets. This is where background verification comes into the frame to make hiring easier for business. A company can make a confident recruiting selection for the start-up by validating a candidate’s work and educational history through a background check.
- Safeguard brand image – Starting a business has a number of responsibilities, one of which is deciding who to hire. It is critical for start-ups to do a background check for their safety. This not only potentially reduces the chance of tarnishing the company’s reputation, but it also helps companies to recruit the best individual possible to help their business thrive.
Long story short, each startup is unique, and the background verification process for these expanding entrepreneurial operations might vary greatly. As previously said, the stakes for each hiring is very high, therefore the company must conduct detailed background verification check to ensure the image, integrity, and, finally, the future of their firm.
(The author is Mr. Amit Singh, Head- Commercial, First Advantage India, a leading employee background verification firm headquartered in the US and the views expressed in this article are his own)