Several companies when recruiting candidates, conduct character reference checks and think this is equivalent to background checks. I've written an earlier article which explains why character reference checks don't make sense. Companies need to be aware of the risks if this critical process of a thorough background check vetting is not undertaken. My article on why companies conduct background screening will help to clarify this and also address the question on how does background check services help.
Companies who appreciate the importance of background checks attempt to do this themselves or even outsource this to headhunting companies who primarily only have the capability conduct character reference checks. What they fail to understand is that a thorough background check on an individual can be very complex and that this task is best left to professional background screening companies.
Moreover, one-size-fit-for-all approach to background checks will not work as the risks vary by industry and by the roles and accountabilities of individuals. A creative approach to background checks needs to be crafted and this requires lot of experience which only background screening companies can provide. For example, a CXO level will require different mix of checks than a rank-and-file worker. A CXO from a banking industry will need to be differently checked from his/her peer in a manufacturing industry.
Hence, why a background checking company needs to be employed has been sufficiently explained. How to select one requires further analysis and that has been covered in this highly recommended article.
This article is written by Kannan Chettiar, Managing Director of Avvanz. Avvanz is an employee lifecycle management company with 3 business pillars - Screen --> Hire/Onboard --> Develop.