Why Outsourcing Background Verification Services Is the Best Decision You Can Make for Your Company?

As the hiring process for new employees becomes increasingly complex, companies are turning to background verification services to ensure that they are making the best possible hiring decisions. During the first quarter of 2021, the telecom sector had the highest difference or variation in the results of background verification, with a maximum gap of 49.7%. Background verification services help to confirm that an applicant's information is accurate and that they have the necessary qualifications and experience for the position. 

Many companies struggle with managing their own background verification process in-house. That's where outsourcing background verification services comes in. In this blog post, we will discuss the benefits of outsourcing background verification services, common challenges with in-house background verification services, factors to consider when outsourcing, and how to choose the right service provider.

Table of Contents 

I. Introduction 

II. Understanding Background Verification Services 

III. Common Challenges with In-House Background Verification Services 

• Limited resources 

• Inefficient processes 

• Lack of expertise 

• Inconsistent quality 

• Cost of a failed hire 

IV. Benefits of Outsourcing Background Verification Services 

• Cost savings 

• Access to expertise 

• Scalability 

• Increased efficiency 

• Improved quality 

V. Factors to Consider When Outsourcing Background Verification Services 

• Reputation and experience of the service provider 

• Data security and privacy policies 

• Flexibility in accommodating needs 

• Turnaround time 

• Customer support and communication 

• Pricing and contract terms 

• Global capacities 

VI. Importance of Candidate Experience in Background Screening 

VII. How to Choose the Right Background Verification Service Provider 

• Identify your needs 

• Research potential service providers 

• Compare and evaluate service providers 

• Request references and samples 

• Make a decision 

VIII. Best Practices for Working with an Outsourced Background Verification Service Provider in India 

• Clearly define expectations and requirements 

• Establish communication protocols 

• Review and approve reports promptly 

• Provide feedback and follow-up 

IX. Conclusion 

I. Introduction

Background verification services involve the process of verifying an applicant's information and credentials before hiring them. This includes criminal record checks, education and employment verifications, reference checks, credit checks, and drug testing. Background verification services are important because they help to ensure that companies are hiring qualified and trustworthy employees.

Outsourcing background verification services can be a wise decision for many companies. By outsourcing, companies can benefit from the expertise and experience of the service provider while saving time and money. Additionally, outsourcing allows companies to scale their verification processes more easily, improving efficiency and quality.

II. Understanding Background Verification Services

Background verification services include a range of checks and verifications designed to confirm an applicant's information and credentials. Some of the most common types of background verification services include criminal record checks, education and employment verifications, reference checks, credit checks, and drug testing.

The purpose of background verification services is to ensure that companies are making informed hiring decisions. By verifying an applicant's information and credentials, companies can reduce the risk of hiring an unqualified or untrustworthy employee.

III. Common Challenges with In-House Background Verification Services

While some companies may choose to manage their own background verification services in-house, this approach can be challenging for several reasons. Limited resources, inefficient processes, lack of expertise, and inconsistent quality are all common challenges that companies face when managing their own background verification services.

Limited Resources - Background verification services require a significant investment of time and resources, including staff, equipment, and technology. Many companies struggle to allocate the necessary resources to manage their own background verification services in-house.

Inefficient Processes - Without the proper expertise and technology, background verification processes can be time-consuming and inefficient. This can lead to delays in the hiring process and frustration for both the company and the applicant.

Lack of Expertise - Background verification services require specialized knowledge and expertise. Many companies may not have the necessary expertise in-house to manage these services effectively.

Inconsistent Quality - Without a standardized process for background verification, quality can be inconsistent. This can lead to errors and inaccuracies in the verification process, which can ultimately impact the hiring decision.

Moreover, replacing a salaried employee can be a costly endeavor for businesses. According to PeopleKeep, some studies predict that the average cost can be as high as 6 to 9 months' salary. Given the steep cost of a failed hire, outsourcing background checks is likely to be a more valuable option than attempting to conduct them in-house. By outsourcing background checks, organizations can ensure a thorough and efficient screening process that minimizes the risk of making a costly hiring mistake. 

IV. Benefits of Outsourcing Background Verification Services

Outsourcing background verification services can help companies overcome these common challenges and benefit from a range of advantages. Some of the key benefits of outsourcing background verification services include cost savings, access to expertise, scalability, increased efficiency, and improved quality. 

Cost Savings - Outsourcing background verification services can be more cost-effective than managing these services in-house. Service providers can leverage economies of scale to offer lower prices while maintaining quality.

Access to Expertise - Service providers have specialized expertise in background verification services. By outsourcing, companies can benefit from the expertise of the service provider without investing in training and development internally.

Scalability - Outsourcing allows companies to scale their background verification services more easily. As the company grows, the service provider can adapt to meet the changing needs of the organization.

Increased Efficiency - Service providers have established processes and technology in place to streamline the background verification process. By outsourcing, companies can benefit from increased efficiency and faster turnaround times.

Improved Quality - Service providers have standardized processes and quality control measures in place to ensure accurate and consistent background verification results, which can significantly improve the quality of the hiring process.

V. Factors to Consider When Outsourcing Background Verification Services

Outsourcing background verification services can be a great decision for your company, but it's important to choose the right service provider. Here are some factors to consider:

Reputation and Experience of the Service Provider - Look for a service provider with a strong reputation in the industry and a track record of delivering high-quality services. Do your research and check their reviews and testimonials from previous clients. You may also want to look for a provider who specializes in your industry or has experience working with companies similar to yours.

Data Security and Privacy Policies - It's important to ensure that the service provider you choose has strong data security and privacy policies in place to protect your employee's sensitive information. Make sure they comply with relevant data protection regulations and have measures in place to prevent unauthorized access, disclosure, or alteration of data.

Flexibility in Accommodating Needs - When selecting a BGV partner, it's important to assess their flexibility in meeting your company's unique and evolving needs. Look for vendors who are adaptable and willing to accommodate your requirements not just now, but also in the future. Additionally, consider vendors who offer comprehensive employee background verification services and can handle all pre-employment screening checks to streamline your hiring process. 

Turnaround Time - Depending on your company's needs, you may require fast turnaround times for background verification services. Be sure to discuss your requirements with potential service providers and ask about their average turnaround times for different types of checks. 

Customer Support and Communication - Good customer support and communication are essential for a successful outsourcing relationship. Find a service provider that has a reputation for providing exceptional customer service and promptly addressing any questions or issues you may have.
Pricing and Contract Terms: Cost is always a factor to consider, but don't make it the only one. Look for a provider who offers competitive pricing and transparent contract terms. Be sure to review the contract carefully and clarify any doubts before signing. 

Checking for Their Global Capacities - Given the prevalence of candidates with international backgrounds, it's important to assess whether your BGV partner is equipped to handle searches beyond India. Be sure to evaluate the partner's capabilities and eligibility to conduct searches in other countries. Consider whether the BGV partner covers all parts of the world and can perform employee background checks outside India. By doing so, you can ensure that your BGV partner has the necessary expertise to support your hiring needs in an increasingly globalized marketplace. 

VI. Importance of Candidate Experience in Background Screening  

A background check is an uncertain experience for potential employees, which is why it's important for the background check partner to value and understand the candidate's experience. The best background check partners treat candidates with respect and care, presenting a positive image of the employer's organization. By ensuring that the background check process is transparent, respectful, and responsive to candidate needs, employers can help to establish a positive employer brand and enhance the candidate experience. 

According to Global HR Research, the majority of employers, as high as 96%, already conduct some form of background check on their potential hires. In the next section, we will discuss how to choose the right background verification service provider for your company.

VII. How to Choose the Right Background Verification Service Provider

Choosing the right background verification service provider is essential for the success of your outsourcing project. Here are some steps you can take to find the right provider:

Identify Your Needs - Before you start looking for a provider, identify your company's specific background verification needs. This will help you narrow down your search and find a provider who can meet your requirements.

Research Potential Service Providers - Look for background verification service providers who have a good reputation in the industry and experience working with companies like yours. You can find providers through online searches, industry associations, and referrals from colleagues.

Compare and Evaluate Service Providers - Once you have a shortlist of potential providers, compare their services, pricing, and contract terms. Evaluate their strengths and weaknesses and ask for references from previous clients.

Request References and Samples - Ask potential providers for references and samples of their work. This will help you get a sense of their quality and reliability.

Make a Decision - Based on your research and evaluations, choose the provider that best meets your needs and requirements. 

VIII. Best Practices for Working with an Outsourced Background Verification Service Provider in India

To ensure a smooth and successful partnership with an outsourced background verification service provider in India, consider the following best practices:

Clearly Define Expectations and Requirements - Communicate your specific needs and requirements clearly to the service provider, including the types of checks you require, the turnaround time, and any specific details or nuances related to your industry or business.

Establish Communication Protocols - Set up regular check-ins and communication channels to ensure you stay up to date on the status of your background verification requests.

Review and Approve Reports Promptly - Review and approve background verification reports as soon as possible to avoid delays or bottlenecks in the hiring process.

Provide Feedback and Follow-Up - Offer feedback to the service provider on their performance and follow up on any issues or concerns to ensure continuous improvement.

IX. Conclusion

In conclusion, outsourcing background verification services can be a smart decision for businesses in India looking to streamline their hiring process and reduce risk. By considering the factors discussed in this article, including reputation, data security, pricing, and turnaround time, and following the best practices outlined, you can ensure a successful partnership with a background verification service provider.