Besides being a human resources nightmare, these frauds also pose a risk to the confidentiality of data in the event an employee starts moonlighting for competing firms. It can lead to siphoning of valuable information that can give the competitor an edge and even render the system vulnerable to cyberattacks. LinkedIn poll respondents are most worried about moonlighting, with a whopping 41% revealing they have encountered it in their company. Meanwhile, 10% of the polled users have issues pertaining to candidates' hidden criminal records. This worrisome fraud risk scenario can force even the grittiest and most enthusiastic employers to retreat to old ways of hiring without taking adequate background screening measures, even if that means not tapping into the reserve of potential that can create a vibrant workspace.
Obsolete screening methods
Currently, the hiring industry relies almost entirely on multiple third-party verification vendors who physically visit addresses to check the claims made by prospective employees. As many as 59% of the LinkedIn poll respondents revealed that their organizations employ third-party intermediaries for pre-employment background checks, while 18% conduct manual checks and 9% onboard employees without any employment verification at all. The manual process is not only time-consuming but also error-prone and allows room for misinterpretations. As many as 14% of the LinkedIn poll respondents confided that their current manual verification process is riddled with errors, while 66% felt that their current method is time consuming. The costs involved and the exposure of employees’ Personal Identifiable Information (PII) data and the challenges it entails, too, weigh heavy on employers. Additionally, physical verification methods alone are almost redundant now that fraudsters are devising technically advanced scams. Taking the non-virtual part out of the equation makes the process transparent, reduces the chances of employees submitting doctored documents, and ticks all the boxes of data privacy compliance.
Tech interference
While the fraud menace threatens to arrest the application of technological advancement in the hiring space, the answer to the dilemma lies in tech itself. The development of employee background check tools has led to a complete overhaul of pre-hiring formalities. These tools perform API-based ID checks of educational, domicile, criminal, credit, and past employment records against several official databases. Along with this, they also conduct a digital address verification, and harness face-match and geotagging technologies to identify inconsistencies in photographs and verify the sanctity of the claims made. Scaled and customized to fit the hiring prerequisites of diverse industries, these models also have a shorter turnaround time as compared to traditional methods, making for a swifter hiring experience.
Revolutionizing hiring
At a time when HR departments are reassessing their hiring modules and work strategies and adopting a digital-forward hiring system, it will be ideal to employ a precise and regulatory-compliant model to expedite and secure pre-employment checks. The sky is the limit when it comes to the successful implementation of virtual employee background check and it can soon pave the way for machine learning-based results and even the creation of the first-ever employer trust network using blockchain technology.
