About 52 per cent of HR officials across sectors are cross-checking each detail of existing and prospective employees to minimise the risk of damage to brand image in case of a fraud or crime, according to a survey by the Associated Chambers of Commerce and Industry of India (Assocham).
"Companies are fast realising the benefit of doing background checks of prospective employees or risk hurting their brand image in a fraud case. Screening of job candidates at all levels, and even vendors and contract staff is preferred," the survey said.
Previous employment details, academic and professional certificates, identity, criminal records, and credit risk, among other information are checked thoroughly for authenticity and veracity, it added.
The chamber claimed it has received responses from officials of HR representing more than 1,500 small, medium and large businesses operating in National Capital Region, Mumbai, Kolkata, Chennai, Bangalore, Ahmedabad, Hyderabad, Pune and Dehradun.
"Background screening conducted by specialists adds a big preventive dimension which could significantly minimise the risk of engaging with the wrong people, whether at the work place or outside," said D S Rawat, secretary general of Assocham.
The employee verification process includes finding out the genuineness of work experience, educational documents and to see whether the candidate has any criminal record or not, the study said.
"Corporates are certainly becoming more careful and cautious when they are recruiting for the junior, middle and senior level positions," the survey said.
Assocham claimed many companies have not done any form of background check before hiring an employee mainly at junior levels.
The survey said that about 25 per cent of the companies who are unable to verify themselves are now increasingly outsourcing the employee verification process to specialized third party agencies who cross-check each and every detail of the job applicant and criminal record.