final dcode

8/8/2019 Final Dcode

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INTRODUCTION:

It is the ultimate nightmare for every human resources, security, or risk management

professional; your phone rings late Friday afternoon as you wind up loose ends from yet

another challenging week and are looking forward to a quiet weekend. A panic stricken

voice informs you that Mr. X in accounting has assaulted another co-worker and

threatened to harm a supervisor. It turns out Mr. X was not only stealing money, but did

not really have the experience claimed.

As the mess is being sorted out, everyone will be asking you the same question over and

over. From the company CEO, CFO, and corporate attorney to managers, supervisors,

and co-workers, there is one thing everyone wants to know; how did that person get hiredin the first place?

If the matter turns into litigation, the legal fees for just one incident of workplace

misconduct can easily soar into the six figures. Injured co-workers, members of the

public who were damaged, or even the bad employee who may claim wrongful

termination can sue your firm. Once litigation starts, you will also find that in addition to

your normal duties you now have a second and full time job dealing with the discovery

process in litigation and the organizational fallout.

The statistics on the consequence of even one bad hire are chilling. The financial cost tobusiness from theft, violence, and false credentials can be enormous. There are other

costs that are hard to measure, such as the harm to employee morale or the firms

reputation. Industry statistics suggest the cost of even one bad hiring can exceed

Rs.100000 taking into account the time spent on recruitment, hiring, and training and the

amount of time the job is left undone or done badly by an unqualified applicant.

Given the enormous price tag of the bad hiring decision, it is no surprise that employers

of all size are turning into various tools to boost the effectiveness of hiring process. The

tools run from honesty and skills testing to behaviors-based and group interview

techniques.

Ultimately none of these has proved effective in weeding out bad candidates, unless used

in conjunction with a program of pre-employment background screening to obtain hard

facts about a candidate.

Mount Carmel Institute Of Management Page 1


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Employment Screening Services & Employee Background Checks:

Employment screening services and employee background checks are vital to

maintaining workforce integrity and safety. Background check or backgroundinvestigation is the process of looking up and compiling criminal records, commercial

records and financial records (in certain instances such as employment screening) of an

individual.

Background checks are often requested by employers on job candidates, especially on

candidates seeking a position that requires high security or a position of trust, such as in a

school, hospital, financial institution, airport, and government. These checks are

traditionally administered by a government agency for a nominal fee, but can also be

administered by private companies. Results of a background check typically include past

employment verification, credit score, and criminal history.

These checks are often used by employers as a means of objectively evaluating a job

candidate's qualifications, character, fitness, and to identify potential hiring risks for

safety and security reasons. Background check is also used to thoroughly investigate

potential government employees in order to be given a security clearance. However,

these checks may sometimes be used for illegal purposes, such as unlawful

discrimination (oremployment discrimination), identity theft, and violation of privacy.

The onus of selecting the right candidate lies primarily on the HR Executive who uses his

experience and expertise to evaluate the candidate. A direct interaction with the candidate

speaks volumes of his personality. However, a more in depth evaluation of the

prospective employee is a must.

Types of checks

Employment References

Education Verification - School grades, degree and any professional

qualifications obtained

Character Reference Check

Gaps in employment history Identity and Address Verification

Whether an applicant holds a directorship

Credit History - bankruptcies

Criminal History Report

http://en.wikipedia.org/wiki/Position_of_trusthttp://en.wikipedia.org/wiki/Good_moral_characterhttp://en.wikipedia.org/wiki/Security_clearancehttp://en.wikipedia.org/wiki/Discriminationhttp://en.wikipedia.org/wiki/Employment_discriminationhttp://en.wikipedia.org/wiki/Identity_thefthttp://en.wikipedia.org/wiki/Violation_of_privacyhttp://en.wikipedia.org/wiki/Position_of_trusthttp://en.wikipedia.org/wiki/Good_moral_characterhttp://en.wikipedia.org/wiki/Security_clearancehttp://en.wikipedia.org/wiki/Discriminationhttp://en.wikipedia.org/wiki/Employment_discriminationhttp://en.wikipedia.org/wiki/Identity_thefthttp://en.wikipedia.org/wiki/Violation_of_privacy


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What is Pre Employment Screening?

As the name suggests, it is the process of screening / verifying a person's background

information prior to employing him in your organization. It has become imperative toconfirm and re confirm a persons background, his character and his proposed

experience. Pre Employment Screening (verification) aids in eliminating such risks as

work place violence, internal thefts etc. Hiring an undeserving candidate can

unnecessarily increase your training and recruitment costs, harm your organizations

harmony and put confidential information into jeopardy.

Failure to conduct a background check has multiple negative repercussions which can

well be avoided through a well balanced pre employment screening program.

IMPORTANCE OF BACKGROUND SCREENING:

The use of background report is becoming a common phenomenon in today's job market.

The corporate world is requiring all its employees or job applicants to undertake checks

to ensure all the information they provide is truthful. The need for caution is even more

now than earlier mainly because of safety and security measures. No matter the status or

position of your employment, a check into one's life has to be done. Fear has risen among

employees who worry that employers can go digging up information that does not relate

to a job or vacancy. In their defense the employers indicate that they are only being

cautious.

To understand this concept, first we need to know why these checks are necessary to

employers. The market today calls for a thorough background report of employees hence

companies or organization follow suit. To prevent lawsuits that may otherwise arise due

to inappropriate hiring of staff, state background checks help to counter this. Child

smuggling rings have resulted in tougher measures to prevent this syndicate hence all

employees that care for children are screened. The global war on terrorism has made

security concerns a priority of any nation thus not just anyone can be hired without first

knowing his/her identity. Due to the significance of their jobs; executives, directors or

officers require tougher screening than the rest. They have access to large resources and a

considerable amount of power thus the need for caution. Applicants today may tend to

falsify their resume so as to make it appear fit for a certain job description; they try to

prey on the knowledge that employers don't have the time to run checks on them. In the

US, state background checks are a necessity for a certain category of jobs. They include

those working in retirement homes and adoption agencies. The advent of modern

technology has made it cheaper and faster to vet an employee or applicant.



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A background check often includes the social security number, credit records, bankruptcy

status, medical records, driving records, educational records, criminal records, vehicle

registration, court records, property ownership, and personal references, past employers,

drug test records, incarcerations records, military records, character references and statelicensing records. Information that is not usually included is criminal history, any arrests

that may have taken place in the life of an individual, bankruptcy status though it is

usually public knowledge and any compensation that an employee may have been

awarded in the past. Permission is required by employers to access certain records that

include medical, educational and military service. Proper procedure has to be followed

by employers in conducting this kind of process. It requires the permission of the

applicant or employee as stated in the law. In most cases, falsifying a resume is a

criminal offensive and the employer can take stern measures against you.

BENEFITS OF SCREENING:

Uncovers falsified or puffed credentials.

Eliminates uncertainties in the hiring process.

Saves money and time spent in recruiting, hiring, and training.

Can help protect against negligent hiring lawsuits.

Reduces turnover.

Reduces workplace violence.

Failure to perform pre-employment screening could destroy everything a businessowner or manager has worked hard to build.

Elimination of risks of theft and fraud

OUTSOURCE YOUR EMPLOYEE SCREENING NEEDS:

Many organizations outsource the entire screening procedures to an agency that

specializes in doing so. This helps them to

Save time, energy and resources in learning the screening process and instead

concentrate on running their own business, something that they do best.

Absorb the new candidate and grow with him. Since the specialists have already

completed a thorough background check, there is nothing left to worry about.

Help the HR department to concentrate on their core competencies.

Furnish the reports put together by the screening team as a legal document at a later

stage



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force the managers of an enterprise to express their goals with specificity so that they can

be understood and undertaken by the workforce and to provide the resources needed for

them to successfully accomplish their assignments. As such, HRM techniques, when

properly practiced, are expressive of the goals and operating practices of the enterpriseoverall. HRM is also seen by many to have a key role in risk reduction within

organizations.

Synonyms such aspersonnel managementare often used in a more restricted sense to

describe activities that are necessary in the recruiting of a workforce, providing its

members with payroll and benefits, and administrating their work-life needs. So if we

move to actual definitions, Torrington and Hall (1987) define personnel management as

being:

a series of activities which: first enable working people and their employing

organizations to agree about the objectives and nature of their working relationship and,secondly, ensures that the agreement is fulfilled" (p. 49).

While Miller (1987) suggests that HRM relates to:

".......those decisions and actions which concern the management of employees at all

levels in the business and which are related to the implementation of strategies directed

towards creating and sustaining competitive advantage"

Its features include:

Organizational management

Personnel administration

Manpower management

Industrial management

FUNCTIONS:

The Human Resources Management (HRM) function includes a variety of activities, and

key among them is deciding what staffing needs you have and whether to use

independent contractors or hire employees to fill these needs, recruiting and training the

best employees, ensuring they are high performers, dealing with performance issues, and

ensuring your personnel and management practices conform to various regulations.

Activities also include managing your approach to employee benefits and compensation,

employee records and personnel policies. Usually small businesses (for-profit or non-

profit) have to carry out these activities themselves because they can't yet afford part- or

full-time help. However, they should always ensure that employees haveand are aware

ofpersonnel policies which conform to current regulations. These policies are often in

the form of employee manuals, which all employees have.



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In simple terms, an organization's human resource management strategy should

maximize return on investment in the organization's human capital and minimize

financial risk. Human Resources seeks to achieve this by aligning the supply of skilled

and qualified individuals and the capabilities of the current workforce, with theorganization's ongoing and future business plans and requirements to maximize return on

investment and secure future survival and success. In ensuring such objectives are

achieved, the human resource function purpose in this context is to implement the

organizations human resource requirements effectively but also pragmatically, taking

account of legal, ethical and as far as is practical in a manner that retains the support and

respect of the workforce.

Human Resources may set strategies and develop policies, standards, systems, and

processes that implement these strategies in a whole range of areas. The following are

typical of a wide range of organizations:

Recruitment, selection, and on boarding (resourcing)

Organizational design and development

Business transformation and change management

Performance, conduct and behavior management

Industrial and employee relations

Human resources (workforce) analysis and workforce personnel data

management

Compensation, rewards, and benefits management

Training and development (learning management)

Implementation of such policies, processes or standards may be directly managed by the

HR function itself, or the function may indirectly supervise the implementation of such

activities by managers, other business functions or via third-party external partner

organizations.

IMPORTANCE OF HUMAN RESOURCE MANAGEMENT:

Each and every employee has to contribute individually and also collectively to the

success of the organization. At the low level they have to contribute to a goal. To makethem contribute the human resource management team has to work harder. It is found

that the contribution of an employee is low when they do not know what they are doing.

Lack of knowledge on a particular process or technology, leads to low productivity in the

organization. The human resource department should identify such employees and train



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them in the necessary skills. They should also know the individual and group psychology

to deal such employees in the organization.

The HR management team should attract the right talent to their organization, giveappropriate compensation, retain them and also develop them to meet the current and

future organizational goals. The HR management team is dedicated to this work round

the clock. Without them it is not possible to have the right team to execute projects. They

need to keep track of the skill acquired by the employees during their tenure in the

organization and deploy them for the right projects.

The employees need to be properly trained and motivated by the human resource

management team. The ethical policies should be communicated to them at the right time

and the problems in the organization should be revealed to get the right solution from

them. Thus they should make the employees work more efficiently to meet theorganizations goal.

STATEMENT OF THE PROBLEM:

The impact of fake CV is appalling to any organization and hence background

verification process is necessary to prevent negligent hiring suits. Thus, it will assure the

reliability of a CV and helps the business to hire only those likely to be effective on the

job.

LITERATURE REVIEW:

Article: 1

By Lester S. Rosen

(Published in the Career Section of the Sunday San Francisco Examiner/Chronicle)

Employers are increasingly turning to background screenings of job applicants as a way

of minimizing legal and financial exposure. Concerns about workplace violence,

negligent-hiring lawsuits, wrongful termination and other problems are leading manyemployers to be more careful about who is hired in the first place.

For applicants, however, background screening can create an uneasy feeling that they are

mistrusted from the start or that Big Brother is watching.

The fact is, however, that background screening of job applicants benefit employers and

employees alike.



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For applicants, the advantage of working for a company that requires screening is that

efforts have been made to ensure that co-workers have the qualification and credentials

they say they have. In addition, employers typically screen for criminal records,

especially those involving in violence or dishonesty.For the employer, screening saves the time and money wasted in recruiting, hiring and

training the wrong candidates and eliminates potential difficulties in the work force.

Of course, a background screening is not a full-fledged investigation. Screening

companies are typically looking for red flags indicating potential problems or resumes

that are not factual or omit important information.

When an employer uses a background screening company to prepare a report, several

steps must occur:

The employer must clearly disclose to the applicant in a separate document that a

report is being prepared. The disclosure can no longer be buried in an application

in the fine print.

A signed release is required before checking records such as criminal convictions

or pending criminal cases, driving records, credit reports or educational

credentials.

An additional notice is required when a background firm checks references, such

as asking previous employers about job performance.

If an employer intends to deny employment based upon information in the report,

the job applicant must receive a copy of the report and a notice of legal rights.

If an applicant believes the information is wrong, the applicant can inform the

screening agency, which must remove or correct inaccurate or unverifiedinformation, usually within 30 days.

Applicants have the right to inspect their files.

This is designed to strike a balance between an employers need to exercise due diligence

in hiring and an applicants right of accuracy and privacy. For applicants who are

genuinely the victims of mistaken identity or bureaucratic errors, there is an opportunity

to know what is being said about them and to fix the record so they are no denied

opportunities unfairly.

For a job applicant, honesty is always the best policy. Negative information honestly

disclosed in an interview with an interview with an explanation may well have no effect.

However, if the employer discovers it through a third party, then the lack of honesty may

be the reason for not getting the position.

Even a criminal conviction cannot legally automatically disqualify a person from

employment, without considering the nature of the offense, when it occurred, what the

applicant has done since and whether it is related to job performance.



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SCOPE FOR FURTHER STUDIES:

Background checks are frequently conducted to confirm information found on an

employment application or rsum/curriculum vitae. One study showed that half of all

reference checks done on prospective employees differed between what the job applicant

provided and what the source reported. They may also be conducted as a way to further

differentiate potential employees and pick the one the employer feels is best suited for

the position. Employers have an obligation to make sure their work environment is safe

for all employees and helps prevent other employment problems in the workplace.

To find out the awareness of background verification in the IT, ITES,

Infrastructure and Pharmaceutical Sectors.

To find out the utility of background verification in the IT, ITES, Infrastructure

and Pharmaceutical Sectors.

To find out the significance of background verification in the IT, ITES,

Infrastructure and Pharmaceutical Sectors.

To find out the opinions of companies about outsourcing background verification

to the third party vendors.

OBJECTIVES:

To study the recruitment process adopted by companies.

To study the background check process.

To study the factors affecting the verification.

To analyse the percentage of selected and rejected candidates based on

background verification.

To give suggestions to impose the efficiency of recruitment process using

background verification.

Operational definition of concepts:

Employment Verification: An employment verification is a method of

verifying dates of, or gaps in, employment and positions held with the HR or

Accounting departments of a candidates previous employer.

http://en.wikipedia.org/wiki/Application_for_employmenthttp://en.wikipedia.org/wiki/R%C3%A9sum%C3%A9http://en.wikipedia.org/wiki/Curriculum_vitaehttp://en.wikipedia.org/wiki/Application_for_employmenthttp://en.wikipedia.org/wiki/R%C3%A9sum%C3%A9http://en.wikipedia.org/wiki/Curriculum_vitae


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Time constraints

Study through a single background verification firm

The study will b carried with pure academic objectives but findings may be

valuable feedback only to the organization and cannot be generalized.

OVERVIEW OF THE CHAPTER SCHEME:

Chapter One: Introduction: this chapter includes the subject background of the

research topic.

Chapter Two: Design of the study: this chapter includes:

1. A brief introduction of the subject background

2. Statement of the problem

3. Review of previous literature if any

4. Scope of the study

5. Objectives of the study

6. Hypothesis if any

7. Operational definition of concepts

8. Methodology

9. Sampling plan

10. Tools and techniques for collection of data

11. Plan of analysis

12. Limitations

13. An overview of the chapter scheme

Chapter Three:Profile of the company

This chapter includes complete profile Dcode Research Services Pvt Ltd, nature of its

business, organizational structure, competitors, and vision and mission statement.

Chapter Four: Analysis of the study



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Here the primary data collected in tune with its objectives will be analyzed. Each

question shall be reduced to a TABLE followed by the explanation and inferences.

The analysis will be supported by Graphs, charts, diagrams wherever necessary.

Chapter Five: Summary of findings, conclusions and suggestions

This chapter provides summary of the findings, conclusions drawn from the findings

and suggestions for improving strategy of Dcode Research Services Pvt Ltd,

Bangalore.

COMPANY PROFILE:

DCODE RESEARCH SERVICE PVT. LTD.:

Dcode research private limited is a start-up risk management company specializing in

providing wide range of professional services from pre-employment to post-employment

verifications catering to the fast growing IT, ITES and other industries in India. This

company started in November 2005.

DCODE VISION

"To be the Best Background Screening Solutions Provider"

DCODE MISION:

"To become the most reliable, committed and cost-effective pre and post

employment screening solutions provider in India"

Dcode Research, the most rapidly growing background Screening Company, delivers

higher returns to clients through its cost-effective, high-value services model thus

making hiring process easier.

The company works diligently to help you with your needs, always keeping in mind, the

basic aspects of our business - quality, integrity and efficiency. For aspirants looking toenhance their career prospects, we provide an opportunity and help them realize their

goals.

Dcode delivers world-class talent of experienced professionals with deep business and

technical acumen. By continuously refining skills and adapting to new technologies, we

help taking your business productivity to new heights.



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LOCATION:

The company is head quartered in Bangalore, having network of associates in major

metros.

COMPETITORS:

The major competitors are FADE, Authbridge, Verifacts and Hill & Associates.

SWOT ANALYSIS:

Strengths:

A network of contacts nearing 20000+ across all industries (the fastest in this segment)

Weakness:

The industry itself is not geared up for background check.

Opportunities:

The IT industry is aware of the recent scamps and frauds.

More demand for verification companies in the IT sector.

Less competition since there is only few players conducting background

verification.

Threats:

Major competition from FADE, Authbridge, Verifacts and Hill & Associates, a well

established company in the field of risk management and background screening.

SERVICES PROVIDED:

1. Education Verification: when hiring an individual, companys salary packages

and positions is based on the individuals education. Failing to verify important

information can result in having unqualified people in positions the dont deserve

affecting companys ability to compete. With this search the company will validate



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schools attended, diplomas, degrees, and date of attendance. Based on the information

supplied by the candidate, Dcode research will attempt to verify an applicants academic

history such as Degree earned, Date Degree earned, Degree in progress and Type of

degree. Dcode research verifies this information by directly contacting theUniversities/Institutions from which the candidate passed out.

2. Employment Verification: some candidates may be less than truthful about

their employment history. Internal research shows this to be the number one discrepancy

on resumes and job applications. The background specialists will verify information on

applicants resume, validate dates of employment, position, salary, reason for leaving or

termination and eligibility for re-hire, and they interview former supervisors who had

personal knowledge of the applicants skills and qualifications. Additionally, DcodeResearch also reports any discrepancies in employment history including time gap to the

employers.

3. Reference Verification: a verification of business or personal credentials is a

valuable source of information about the applicants general image as perceived by

others. Results may offer insight into the candidates trustworthiness, reliability,

competency and integrity. All questions can be customized to clients unique needs.

Interviews with former employers, co-workers may fill in the blanks when it comes toevaluating potential employees. Dcode Research conducts reference interviews with

those identified by applicants or the HR managers of companies where the candidates

were earlier working.

4. Criminal Checks: the report generates a list of addresses the applicant has lived

at the last seven years. They use these addresses as the benchmark for beginning a

criminal record search. This is the most effective way to verify the candidates criminal

history and the best way to ensure legal protection. These records will indicate if a

subject has a criminal act or offense filing within the last seven years, or more if

applicable. Complete reports will include the date filed, charges, level of the charges,

deposition date and final disposition.



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Analysis and interpretation

Question 1, Q.13 and Q.14 are applicable to the total sample, i.e. 70. Question 2 to question 4 is applicable to the respondents who have answered

No in question 1, i.e. companies that do not conduct background screening.

(Sample size: 5)

Question 5 to question 12 is applicable to the respondents who have answered

Yes in question 1, i.e. companies that conduct background screening. (Sample

size: 65)



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Table 1: showing the frequency of companies conducting background screening:

Frequency No. of respondents Percentage

Yes 65 92.9

No 5 7.1

Analysis:

The above table shows that 92.9% conduct background screening of their employees and

only 7.1% companies do not conduct background screening.

Graph 1: showing the frequency of companies conducting background screening

0

10

20

30

40

50

60

70

No. of respondents

Yes

No

Inference:



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Ultimately none of the hiring tools proves to be effective in weeding out bad candidates,

unless used in conjunction with a program of pre-employment background screening to

obtain hard facts about a candidate. Thus, from the table and analysis it can be inferred

that most of the companies are aware of background screening and conduct backgroundscreening as part of the recruitment process in order to minimize the risk of fraudulent

entries and dishonesty in work place.

Table 2: showing the reason for not conducting background screening:

Reason No. of respondents Percentage

Lack of resources 4 80

Background screening is not important 0 0

Existence of stringent hiring process 1 20

Others 0 0

Analysis:

The above table shows that 4 companies do not conduct background screening because of

lack of resources and 1 company do not conduct background screening as there exist a

stringent hiring process.

Graph 2: showing the reason for not conducting background screening

0

0.5

1

1.5

2

2.5

3

3.5

4

No. of respondents

Lack of resources

Background screeningis not important

Existence of stringenthiring process

Others

Interpretation:



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From the table and analysis it can be inferred the companies that lack in resources and

believe that they have a stringent hiring process do not want to invest in conducting

background screening.

Table 3: showing the willingness of the companies to conduct background screening in

the near future who does not conduct at present:

Willingness No. of respondents Percentage

Yes 0 0

No 0 0

Not sure 5 100

Analysis:

The above table shows that all the 5 companies that do not conduct background screening

are not sure whether they would like to conduct background screening in the future.

Graph 3: showing the willingness of the companies to conduct background screening in

the near future who does not conduct at present

0

1

2

3

4

5

No. of respondents

Yes

No

Not sure

Inference:



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From the table and analysis it can be inferred that the 5 companies that do not conduct

background screening are startup companies and have limited resources and so not

decided if they would like to conduct background screening in the future.

Table 4: showing whether the companies would like to outsource background screening:


Yes 0 0

No 0 0

Not sure 5 100

Analysis:The above table shows that all the 5 companies that do not conduct background screening

are not sure whether they would like to outsource background screening in the future.

Graph 4: showing whether the companies would like to outsource background screening

0

1

2

3

4

5

No. of respondents

Yes

No

Not sure



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Inference:

From the previous table and analysis it can be inferred that as the companies who do not

conduct background screening are not sure of conducting it in the future.

Table 5: showing the reason for conducting background screening:

Reason No. of respondents Percentage

After an incident in the company 3 4.6

Heard of recent scams 15 23.1

Company policy 47 72.3

Others 0 0

Analysis:

The above table shows that out of 65 companies who conduct background screening, 3

started after an incident in the company, 15 started after hearing the recent scams about

fake resumes and 47 companies conduct as it is a part of their company policy.

Graph 5: showing the reason for conducting background screening

0

10

20

30

40

50

No. of respondents

After an incident inthe company

Heard of recentscams

Company policy

Others



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Inference:

From the table and analysis it can be inferred that with the increasing importance of

background screening, many companies have made it a company policy while hiring and

few have started after hearing the recent scams and only 3 have started after an incidentin the company to avoid the risk of hiring fraudulent employees.

Table 6: showing the types of background verifications that the companies conduct:

Types No. of respondents Percentage

Employment verification 28 43.1

Education and Employment verification 31 47.7

Police verification 0 0

Drug screening test 0 0

All the above 6 9.2

Analysis:

The above table shows that 43.1% companies conduct only employment verification and

47.7% companies conduct both employment and education verification. Only 9.2

companies conduct all the four i.e. employment, education, police and drug test.

Graph 6: showing the types of background verifications that the companies conduct

0

5

10

15

20

25

30

35

No. of respondents

Employment verification

Education andEmployment verification

Police verification

Drug screening test

All the above

Inference:



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Applicants today may tend to falsify their resume so as to make it appear fit for a certain

job description. From the table and analysis it can be inferred that police verification and

drug screening test are not common in India whereas employment and education

verification is being conducted by most of the companies as there is results of fakeinformation provided by the candidates to get their dream jobs.

Table 7: showing job levels at which background check is conducted in the companies:

Job-level No. of respondents Percentage

Entry level 28 43.1

Middle-level 0 0

Top-level 0 0

All-level 37 56.9

Analysis:

The above table shows that out of 65 companies who conduct background screening, 28companies conduct background screening for the entry level employees whereas other 37

companies conduct at all level.

Graph 7: showing job levels at which background check is conducted in the companies

0

5

10

15

20

25

30

35

40

No. of respondents

Entry level

Middle-level

Top-level

All-level

Inference:

The global war on terrorism has made security concerns a priority of any nation thus not

just anyone can be hired without first knowing his/her identity. Due to the significance of



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their jobs; executives, directors or officers require tougher screening than the rest. They

have access to large resources and a considerable amount of power thus the need for

caution. From the table and analysis it can be inferred that most of the companies

conduct background screening at all the job-levels whereas only a few conduct at theentry level.

Table 8: showing the medium adopted by the companies for conducting background

screening:

Medium No. of companies Percentage

In-house 16 24.7

Out-source 21 32.3

Both 26 40

Analysis:

The above table shows that out of 65 companies who conduct background screening, 16conduct in-house, 21 outsource to background screening agencies and 26 conduct both

in-house and outsource.

Graph 8: showing the medium adopted by the companies for conducting background

screening

0

5

10

15

20

25

30

No. of companies

In-house

Out-source

Both

Inference:

From the table and analysis it can be inferred that most of the big companies conduct

both in-house as well as outsource background screening where as few companies with



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less headcount conduct background screening in-house and few others who do not have a

trained background screening department outsource it.

Table 9: showing the benefits gained by the companies by conducting background

screening:

Benefits No. of respondents Percentage

Preventing fraudulent entries 26 40

Reducing unproductive workforce 19 29.2

Reducing attrition 0 0

Reducing hiring expenses 0 0

All the above 20 30.8

Analysis:The above table shows that 26 companies conduct in order to prevent fraudulent entries,

19 conducts to reduce unproductive workforce and 20 conducts to prevent fraudulent

entries as well as reduce unproductive workforce, attrition and hiring expenses.

Graph 9: showing the benefits gained by the companies by conducting background

screening

0

5

10

15

20

25

30

No. of respondents

Preventing fraudulententries

Reducing unproductiveworkforce

Reducing attrition

Reducing hiring expenses

All the above

Inference:

Hiring an undeserving candidate can unnecessarily increase your training and recruitment

costs, harm your organizations harmony and put confidential information into

jeopardy. Thus from the table and analysis it can be inferred that background screening



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help in reducing fraudulent entries, unproductive workforce, attrition and hiring

expenses.

Table 10: showing the time taken in the background screening process by different

companies:Time-taken No. of respondents Percentage

Less than a week 13 20

A week 24 36.9

15 days 13 20

A month 15 23.1

More than a month 0 0

Analysis:

The above table shows that 20% companies require less than a weeks time, 36.9%

requires a week, 20% requires about 15 days and 23.1% requires about a months time inthe background screening process.

Graph 10: showing the time taken in the background screening process by different

companies

0

5

10

15

20

25

No. of respondents

Less than a week

A week

15 days

A month

More than a month

Inference:As employment verification and drug screening test do not require much time the

companies that conduct only these verifications requires less time whereas education and

police verification takes longer time than drug screening and employment verification

and so requires longer time in the background screening process.



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Table 11: showing the difficulties faced by the companies during the process of

background screening:

Difficulties No. of respondents Percentage

Insufficient data 19 29.2Cost 4 6.2

Poor responses 18 27.6

Lack of time 20 30.8

Others 4 6.2

Analysis:

The above table shows that the difficulty faced by 30.8% of the companies is lack of

time, 29.2% is insufficient data, 27.6% is poor responses and 6.2% is cost.

Graph 11: showing the difficulties faced by the companies during the process of

background screening

0

2

4

6

8

10

12

14

16

18

20

No. of respondents

Insufficient data

Cost

Poor responses

Lack of time

Others

Inference:

As the hiring process involves high cost and time, the H.R.Managers are being

pressurized by the top management to complete the formalities within a limited period of

time and thus lack of time is a major difficulty faced during background screening. In

many cases the company is not provided with the data that the applicants are required to

provide and also the incorporation of the sources are other major difficulties faced by the

companies during background screening.



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Table 12: showing the frequency of getting fake resumes:

Frequency No. of respondents Percentage

> 10 47 72.3

10 30 12 18.5< 30 6 9.2

Analysis:

The above table shows that the frequency of getting fake resumes less than 10 is 72.3%

and between 10-30 is 18.3% and only 6% more than 30.

Graph 12: showing the frequency of getting fake resumes

0

10

20

30

40

50

No. of respondents

>10

10 30


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Free of biasness 6 8.6

Competitive pricing 9 12.8

Network 6

Faster service 20 28.6All the above 29 41.4

Analysis:

The above table shows that 8.6% of the companies look for free of biasness and network,

12.8% of the companies look for competitive pricing, 28.6% for faster services and the

rest 41.4% look for all the factors in a third party vendor.

Graph 13: showing the factors that companies look for in a third party vendor

0

5

10

15

20

25

30

No. of respondents

Free of biasness

Competitive pricing

Network

Faster service

All the above

Inference:

From the table and analysis it can be inferred that as background verification is a part of

recruitment process, the more time involved in background verification, the more is the

hiring expenses as well as the recruitment process is delayed. Thus most of the

companies look for faster. Also in the competitive market, companies look for

competitive pricing as well as better network and free of biasness.

Table 14: showing the willingness to contact Dcode Research for outsourcing

background screening:



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Yes 3 4.3

No 67

Analysis:

The above table shows that 3 companies are willing to contact Dcode Research for

outsourcing background screening whereas 67 companies are not willing to contact

Dcode Research.

Graph: 14 showing the willingness to contact Dcode Research for outsourcing

background screening

0

10

20

30

40

50

60

70

No. of respondents

Yes

no

Inference:

From the table and analysis it can be inferred that almost all the companies are satisfied

with their vendors and few who do not conduct background screening and are planning to

conduct in the future would prefer to contact Dcode Research for outsourcing.

SUMMARY OF FINDINGS

Majority of companies conduct background screening of their employees and

only few companies do not conduct background screening.



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Companies that do not conduct background screening is because of lack of

resources and existence a stringent hiring process.

Companies that do not conduct background screening are not sure whether they

would like to conduct background screening in the future. Companies that do not conduct background screening are not sure whether they

would like to outsource background screening in the future.

Companies who conduct background screening started after an incident in the

company or after hearing the recent scams about fake resumes and most of the

companies conduct as it is a part of their company policy.

Companies mostly conduct both employment and education verification. Only

few companies conduct all the four i.e. employment, education, police and drug

test.

Companies mostly conduct background screening at all level and few at the entrylevel.

Among the companies who conduct background screening, most of them conduct

both in-house and outsource it.

Companies conduct background screening mainly in order to prevent fraudulent

entries and to reduce unproductive workforce and very few to reduce attrition and

hiring expenses.

Companies that conduct only employment verification requires less than a

months time and those education verification require requires about a months

time.

Difficulties faced by most of the companies during background screening are lack

of time and insufficient data.

The frequency of getting fake resumes less than as the applicants are now aware

of background screening that is being carried out by most of the companies.

The companies mainly look for all the factors i.e. free of biasness network,

competitive pricing and faster services and in a third party vendor.

Conclusion

Not doing a thorough background check is as dangerous a practice as not having

insurance. In the recent year there have been quite a number of events that have lead to



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immediate need for an increase in the security for that companies and the workforce of

the company. With the huge advancement in technology over recent years, data theft is

the new invisible crime and poses a real threat to all business. Because employees have

access to vast amounts of data that sensitive data is vulnerable in the hands of a dishonestemployee.

There are increasing numbers of companies that have understood the importance of

background check while hiring heir employees and have made it mandatory. This is

mainly because of bad experience in the past with respect to employees faking their

resumes, particularly the educational qualifications and the experience. Although, in

practice, not all companies conduct a background check, therefore, it is necessary that in

order to hire the right kind of employee and reduce fraudulence and dishonesty in

workplace, companies should make it a part of the process to conduct background check.

When we make background check a part of the process of recruitment, there are all

possibilities that the candidates applying are aware of the practices followed by the

company. This automatically discourages fraudulent candidates from applying, which is

a blessing in disguise as it saves the company a lot of time and money by no interviewing

the wrong candidates.

Talking about the kind of checks, criminal and drug test are not so popular in India. In an

advanced country like the United States, criminal check is almost compulsorily done

while recruiting for any job level. It becomes more important in India because there is

huge number of foreign companies setting up their operations in India. It is a matter of

credibility. Any fraudulent practices by the employees, especially in foreign company,

adversely affect the reputation of the company and mostly the country. Such cases are

always blown out of proportion and get attention world-over. To avoid such a disgusting

situation, it is always better that criminal check should be taken more seriously and

should be made mandatory at all levels of employment. Criminal check will increase the

security of the workforce and is important for the companies to perform a strong criminal

check if they want to increase the security of the workforce and in turn increase the

productivity.

In conclusion, it is necessary for the companies to conduct background check and make

it a routine part of recruitment process in order to hire the right kind of employees and

reduce fraudulence and dishonesty in work places.

Suggestions



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Most of the companies are no conducting criminal check, so Dcode Research can

probably recommend these companies to conduct this check since it is the most

important check in the background screening process.

Most of the companies look for faster service among the third party vendors soDcode Research should try to provide faster service than its competitors.

Dcode Research should opt for competitive pricing strategy so that they can be

the

Dcode research must stress the importance of background check at all levels of

management in it sector and provoke more and more it companies to implement

background screening.

Dcode research can recommend the companies to outsource education

verification since the quality and reliability of this check done by them is too

good and they would be directly contacting the head of the university/institution

through their network and this would reduce the pressure of the human resource

department.

There is a lot of scope for background screening agencies currently in India, so

Dcode Research can also start up its operations in other major cities and should

build up a strong network team across India.

Dcode is a new company in the field of background screening and most of the

companies are not aware of this company, so it should involve in heavy

advertisements. It can come up with attractive print ads and advertise it in

newspaper or HR journals.



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Websites:

http://www.naukri2000.com/careers/it_hyderabad.php3

http://www.deccanherald.com/content/3396/background-screening-integral-part-hr.html

http://en.wikipedia.org/wiki/Background_check

http://en.wikipedia.org/wiki/Human_resource_management

http://www.bangaloreit.com/

http://www.google.co.in/

Articles:

Important investment with individuals getting involved in frauds there is an increasing

need of this activity in firms - Deccan herald; Tuesday 18 may 2010

Background screening can help boss and applicants Lester S. Rosen - Career Section of

the Sunday San Francisco Examiner/Chronicle

NAME:

http://www.naukri2000.com/careers/it_hyderabad.php3http://www.deccanherald.com/content/3396/background-screening-integral-part-hr.htmlhttp://en.wikipedia.org/wiki/Background_checkhttp://en.wikipedia.org/wiki/Human_resource_managementhttp://www.bangaloreit.com/http://www.google.co.in/http://www.naukri2000.com/careers/it_hyderabad.php3http://www.deccanherald.com/content/3396/background-screening-integral-part-hr.htmlhttp://en.wikipedia.org/wiki/Background_checkhttp://en.wikipedia.org/wiki/Human_resource_managementhttp://www.bangaloreit.com/http://www.google.co.in/


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DESIGNATION:

COMPANY NAME:

QUESTIONNAIRE

AN EVALUATION ON BACKGROUND SCREENING PROCESS DURING

RECRUITMENT

*1. Do you conduct Background screening in your organization? (If no,

Q.2-Q.4; if yes, Q.5-Q.12)

Yes No

2. If No, Is it due to one of the following?

Lack of resource Background Screening is not important

Existence of stringent hiring process

Others

3. Would you like to conduct in the near future?

Yes No

Not sure

4. Given the high pressure of HR managers, would you outsource it?

Yes No

Not sure

5. If yes when did you start conducting background verification?

After an incident in the company

Heard of recent scams Company Policy Others

6. What are the verifications you conduct for your organization? [Can tick

more than one]



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Employment verification Education and Employment verification

Police verification Drug screening test

All the above

7. At what level do you conduct background check in your organization?

Entry level Middle level Top level All level

8. How is the background check conducted in your department?

In-house

Outsource Both

9. Background verification has helped your organization in reducing?

Preventing fraudulent entries

Unproductive workforce Attrition

Hiring expenses All the above

10. How long does this background verification process take?

Less than a week A week

15 days A month

More then a month

11. What types of difficulties are faced in Background Screening?

Insufficient data

CostPoor response

Lack of timeAll the above

12. What is the approximate percentage of getting fake resumes?

> 10 10-30



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< 30

*13. What do you look for in a Third Party Vendor (background verification)?

Free of bias Competitive Pricing Network of those who conduct these

checks Faster service

All the above

14. Would you like to minimize the risk of fraudulent entries into your

company by contacting Dcode Research Pvt. Ltd.?

Yes No

Mission of Dcode Research Pvt. Ltd.:

"To become the most reliable, committed and cost-effective pre and post

employment screening solutions provider in India"

final dcode

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