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Hiring the right talent is crucial, but it’s not always easy. A thorough background check is a vital step in the recruitment process, yet surprisingly, many companies still skip it. According to Sterling’s 2016 Background Screening Trends and Best Practices Report, a whopping 40% of respondents admit they don’t conduct background checks. However, the tide is turning—25% of these companies plan to start doing so in the coming year.
Why does this matter? Because the consequences of a bad hire can be staggering. Topgrading research reveals that a bad hire can cost your company between 5 to 27 times the employee’s actual salary. Beyond the financial hit, a poor hiring decision can also damage team morale and expose your company to legal risks.
You might find yourself wowed by a candidate’s resume or impressed by their interview responses. But before you roll out the red carpet, it’s crucial to take a step back and verify that everything checks out.
A background check is your opportunity to ensure that a candidate’s story aligns with reality. This process typically involves verifying the candidate’s identity, confirming their education and employment history, and checking for any criminal records. Through these checks, recruiters gain a more complete and accurate picture of who the candidate really is, ensuring that they are who they claim to be and have done what they say they’ve done.
According to Tamp Campbell Trant, a Recruitment Consultant at HR à la carte Inc., background checks not only enhance the overall quality of applicants but also reduce the costs associated with bad hires. Ultimately, they help companies avoid future legal risks.
Noor Laily Alviani, Assistant Talent Acquisition Manager at Glints, echoes this sentiment, especially when it comes to senior hires.
“Background checks are crucial, particularly for senior-level positions. These roles are critical, and the stakes are high.”
So, if you want to avoid the costly cycle of constant turnover, investing in a thorough background check process is a smart move.
Education claims are one area where candidates sometimes stretch the truth. Khairunnisa Della Egaputri, a Talent Acquisition Business Partner at Gojek, points out that resume fraud is not uncommon, especially concerning educational qualifications. She suggests validating a candidate’s education through reliable data sources like Ristekdikti.
In today’s digital age, social media offers a treasure trove of insights into a candidate’s character. By reviewing their social media activity, companies can gauge how candidates engage with various issues, their communication style, and even their values. Della notes that social media can reveal risky attitudes that might not surface during the interview.
“For example, if a candidate has posted tweets about racism, provocation, or badmouthing their boss, these are red flags that can indicate a risky hire,” says Della.
Avoiding legal and financial liabilities is another critical reason for conducting background checks. Della advises that companies can validate a candidate’s criminal history through online resources to ensure peace of mind and workplace safety.
While other background check methods involve reviewing documents and data, a reference check involves speaking directly with people who have worked with the candidate. This step is crucial for gathering firsthand accounts of the candidate’s work ethic, strengths, areas for improvement, and overall fit for the role.
“Mostly, we ask about the candidate’s claims, their strengths, what they need to improve, and how they handle challenges,” Della explains.
Noor Laily Alviani adds that reference checks provide a “360-degree perspective” on the candidate, offering insights that even the most thorough interview process might miss.
However, Della cautions that reference checks should be seen as supplementary information rather than the sole basis for hiring decisions.
“Reference checks shouldn’t be relied upon 100%; they’re just additional insights.”
During a reference check, it’s also important to validate the candidate’s previous job responsibilities, the scope of their role, and their achievements. This ensures that what the candidate has listed on their resume aligns with what they actually did in their previous jobs and with what your company needs.
“For instance, if I’m hiring a talent acquisition specialist who claims they’ve recruited across Southeast Asia, but the reference check reveals they’ve only worked in Indonesia, that’s a mismatch with what we’re looking for,” says Della.
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When conducting reference checks, it’s crucial to avoid leading questions that could elicit subjective opinions or personal biases. Recruiters should focus on factual information and remain neutral, not letting personal opinions cloud their judgment.
“We need to avoid subjective opinions and focus on facts,” Della advises.
What if a reference check comes back with negative feedback? This can be a tough situation, especially if the reference check is the final step before making an offer.
Noor Laily Alviani shares that she has had to reject candidates based on negative reference checks, even at the final stage of the hiring process.
“It depends on how crucial the feedback is. Does it validate any doubts we had during the interview process?” Avi adds.
Glints TalentHub is our complete talent solution that covers all aspects of talent acquisition, management, and development. Our team can help you access the extensive talent pool across Southeast Asia and build great teams quickly and affordably. Simply schedule a call with us and our dedicated experts will be thrilled to guide you in your journey towards building a borderless team.
This article is brought to you by Glints TalentHub. Leading companies are actively building their borderless teams in Southeast Asia, Taiwan, and beyond. However, the prospect of going borderless can be daunting due to complex regulations and cultural ambiguities. With Glints TalentHub, you’ll have a dedicated team of in-market legal, HR, and talent experts by your side at every step of the way.
Glints TalentHub offers an end-to-end, tech-enabled talent solution that encompasses talent acquisition, EOR, and talent development. We empower businesses to leverage the strengths of regional talent efficiently to build high-performing, cost-efficient teams.
Schedule a no-obligation consultation with our experts to receive a tailored proposal today.
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