Job Description

Background Verification or BGV is an important cog in the wheel of your organization.
A must-have process to be integrated into your overall people policy because of the increasing number of employee frauds. The resulting fraudulent activities in the corporate set-up are costing businesses millions and even billions. This is the reason why a well-structured and comprehensive BGV policy is necessary to mitigate risks, ensure a safe workplace, and maintain organizational integrity. 

If you are planning to make background verification rigorous, this blog will guide you throughout. You will learn the essential steps required to create a robust BGV policy as per your organizational needs in India.

Why Background Verification is Important: A Brief Look

Before delving into the creation of a background verification policy, it's important to understand its significance. Background verification helps in the following: 

Ensuring Safety

Protects employees, clients, and the organization's assets by identifying potential risks.

Legal Compliance

Ensures adherence to local laws and regulations.

Maintaining Reputation

Helps in maintaining the organization's reputation by avoiding association with individuals involved in fraudulent or criminal activities.

Reducing Turnover

By hiring the right candidates, organizations can reduce turnover rates and associated costs.

Know more: Importance of Pre-employment Background Verification Checks

Key Components of a Background Verification Policy

A comprehensive BGV policy should include the following components:

Objective and Scope

Define the objective of the background verification policy. This document should explain why background checks are necessary and what the organization aims to achieve through them. The scope should outline who will be subject to BGV – typically all new hires, and in some cases, existing employees or vendors.

One of the primary objectives of the background verification policy is to ensure that new hires are truly qualified and trustworthy. It helps in maintaining the integrity and safety of the organization. This policy applies to all prospective employees and may also extend to current employees and contractors as deemed necessary. 

 

Roles and Responsibilities

Clearly define the roles and responsibilities of all stakeholders involved in the BGV process. This includes HR personnel, hiring managers, and external verification agencies.

For example, the HR Department should initiate the background verification process, communicate with candidates, and maintain records. The hiring managers must provide necessary information and support to the HR department. A third-party background verification agency should conduct the verification checks and provide reports.

 

The Verification Process

Special focus should be given to defining and outlining the step-by-step process involved in background verification. This should include:

 

Initiation - When and how the BGV process is initiated.
Documentation - List of documents required from the candidate (e.g., ID proof, educational certificates, employment history).
Verification - Detailed steps of the verification process.
Reporting- How the results will be reported and to whom.
Timeframe - The expected time frame for completing the verification process.
 

READ: Employee Background Verification in India: Everything You Need to Know

Types of Background Checks

 Specify the types of background checks that will be conducted. Common checks include identity verification, criminal record check, educational verification, employment history verification, reference check, and address verification.
 

Consent and Privacy

Consent and Privacy are crucial elements in the background verification policy. As privacy regulations around the world become stringent, it is a good practice to obtain written consent from candidates before conducting background checks. Additionally, the policy should outline how the organization will protect candidates' personal information and ensure compliance with data privacy laws.

 

Possible Action on Adverse Findings

Define the actions to be taken if adverse findings are discovered during the verification process. The HR department can review the case and may consult with relevant stakeholders. It should also outline the appeal process for candidates who wish to dispute the findings. The candidate will be informed of the findings and allowed to provide an explanation or additional information. The final decision will be made based on the severity of the findings and their relevance to the job role.

 

Periodic Review and Updates

Background verification policies should be periodically reviewed and updated to reflect changes in Indian laws, industry standards, and organizational needs. For example, the BGV policy can be reviewed annually to ensure compliance with legal requirements and industry best practices.

 

Implementing the Background Verification Policy

 

Once the BGV policy is created, it must be effectively implemented. This can be achieved by training HR personnel and hiring managers about the new policy and ensuring they understand their roles and responsibilities. Communicate the policy to all employees and candidates. Provide a copy of the policy and obtain an acknowledgement from employees. Partner with reputable background verification agencies like Calibehr that comply with local laws and industry standards. Regularly monitor the BGV process to ensure compliance and effectiveness and conduct audits to identify any gaps or areas for improvement.

 

Background Verification in India

When creating a BGV policy for an organization in India, it's important to consider the legal framework governing background checks. Key regulations including Indian Penal Code (IPC) related to impersonation and fraud are relevant to identity verification. Information Technology Act, 2000, governing the handling of digital information, including data privacy and security. Right to Information Act, 2005 offers relevant guidelines on the disclosure of information plus various state-level and national labour laws and regulations that may impact the BGV process.

Calibehr is a leading background verification services company with more than 15 years of experience. Contact us today to find out how we can help you create a strong BGV policy as per your organizational need.