Last year, ICICI Bank set up a fraud prevention unit. It functions as an independent auditor and keeps an eye out for risks and frauds threatening the organization, including recruitment-related fraud. All new employees at the bank have to undergo full background checks. Like many organizations, the bank outsources its candidate verification process to specialist agencies, says Ramkumar.
While a number of companies sign up with specialist agencies, others—such as Dr Reddy’s Laboratories Ltd and Samsung India Electronics Pvt. Ltd—keep track through an in-house reference check process.
Prabir Jha, global head of HR at Dr Reddy’s Laboratories, says that the HR department not only calls up referees provided in a résumé, but also contacts the candidate’s previous boss, peers and juniors before hiring. “We did not hire a senior executive with an otherwise strong track record after we found out from his former colleagues and juniors that his people skills were poor,” says Jha. “For us, working in a team is one of our core values and we obviously can’t compromise on that.”
Jha adds that the extent of background checking also depends on the nature of the industry. “The space that we operate in is a niche space and, therefore, finding out about an employee is easier in comparison to, say, the IT or ITeS industry.”
Multi Sscreen Media has dedicated people within its sourcing team, which oversees the background check process. The company also hires third-party agencies for the verification process, says senior vice-president, HR, Anjani Kumar.
Since 2006, companies across sectors have begun taking background checks seriously. Earlier, companies would verify the antecedents only of senior executives; now some are doing it across all levels.
“Even five years ago, there was no concept of background checking in the corporate world; the practice has only picked up in the last couple of years,” says Mahajan. “Companies are realizing that the possibility of fraud is higher among people with integrity issues than those who don’t (have such issues).”
Forensic practice
KPMG’s forensic practice helps organizations conduct background checks. The key offerings of KPMG’s background verification services include database verification, which helps clients ascertain if the candidate has been reported for any misconduct; education, employment and reference verification; criminal verification; and address verification.
First Advantage’s Dehade gives an example of how senior executives, too, aren’t above all this. Recently, a centre head was being considered for a senior post at a multinational bank. The mid-level executive was moving from a technology company and had impeccable credentials. After handing him the offer letter, the bank got First Advantage to do a background check.
During investigation, it was found that the candidate had deliberately not submitted his relieving letter. “On probing and checking with his previous employer, it was found that the candidate was terminated on grounds of improper conduct,” says Dehade, who declined to name the bank.
Tata Consultancy Services Ltd, or TCS, which recently sacked 20 employees for furnishing fudged résumés, has a team within its recruitment unit that oversees the verification process. At TCS, a candidate’s credentials are verified on various parameters through specialized agencies