Top Things Employers Look Out For in Background Screening

This is a guest contribution by Credit Bureau Singapore, as part of a partnership between CBS and AMTD PolicyPal Group (PolicyPal and ValueChampion), in line with our mission to empower people with financial knowledge and help them attain financial wellness.

Employees are the foundation of an organisation and selecting skilled and quality hires are crucial to sustaining a successful business in the long term. 

In order to ensure only the right candidates are hired, employers conduct background screening as a routine measure to maintain quality standards.  Some common reasons include:

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1. Hiring individuals with a history of job stability and positive work experiences can lead to lower turnover rates, saving the company time and resources associated with recruiting and training new employees.
2. By verifying the credentials, qualifications, and work history of candidates, employers can make more informed hiring decisions. This helps in selecting individuals who are likely to perform well in the role and contribute positively to the organization.
3. Background screenings can uncover instances of resume fraud or misrepresentation of qualifications. This ensures that candidates are honest about their skills and experiences.
4. In roles where employees have access to sensitive information or valuable assets, background checks are essential for safeguarding against theft, fraud, or misuse of company resources.

Related: 4 Tips on Building Your Credit Score in Singapore

Here are some common types of background screening services in Singapore: 

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• Identity Check

Employers may verify the identity of candidates by cross-referencing personal information provided on resumes or job applications with official documents such as passports or identity cards. 

• Education verification

Employers verify the educational credentials of the candidate by checking on the authenticity of degrees, diplomas, certifications, and attendance at academic institutions. 

• Employment verification

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This process involves confirming an applicant’s work history, including previous employers, positions held, dates of employment, and reasons for leaving, to ensure accuracy and honesty in the candidate’s resume. Employers may also contact references provided by the candidate to obtain insights into the candidate’s work performance, skills, and suitability for the role. This helps the employer to gain insights into their work ethic, strengths, and areas for improvement.

• Criminal Records

These screenings involve searching for any criminal history, including misdemeanours and if a candidate has any criminal convictions or pending charges.

• Financial Records verification

Some employers may conduct credit history checks or bankruptcy checks to assess a candidate’s financial stability. Some positions, particularly those involving financial responsibilities, may require a review of the candidate’s credit report to assess their financial stability and responsibility. A credit report shows a comprehensive overview of a person’s past borrowing and credit repayment behaviours and discloses any outstanding debts or signs of financial distress that the person might have encountered. 

• Social Media Screening

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Employers may review publicly available information on candidates’ social media profiles to assess their professionalism, behaviour, and suitability for the role.

• License and Qualification Checks

For positions requiring specific professional qualifications or licenses, employers may verify the validity of the candidate’s certifications or licenses through relevant regulatory bodies or professional associations.

Related: 5 Foolproof Ways to Improve Your Credit Score

Conclusion

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Hiring the right candidates is one of the most challenging tasks for any company. With the costs involved combined with rapid changes happening in technology and job requirements, it is important for companies to do their due diligence before hiring for any role. 

Hiring individuals with problematic backgrounds could damage a company’s reputation if their actions reflect poorly on the organisation. Employers can mitigate this risk by doing sufficient background checks to ensure the integrity of the candidate’s profile to  reduce turnover rates. 

Nevertheless, the relevance of these checks can vary based on the industry and the level of the position being filled. Consequently, some employers may not consider certain checks necessary. Ultimately, the hiring decision remains at the discretion of the employer.

Curious to know if your credit score will pass a potential employer’s screening? Purchase a copy of your credit report at https://www.creditbureau.com.sg/. 

Last but not least, be sure to follow and like Credit Bureau Singapore’s Facebook page for more useful content and tips to build a good credit reputation!

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