e-ISSN : 2347 - 9671, p- ISSN : 2349 - 0187

EPRA International Journal of Economic and Business Review Vol - 3, Issue- 12, December 2015
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A STUDY ON EMPLOYEE
BACKGROUND CHECK ANALYSIS
(WITH REFERENCE TO SELECTED
ORGANIZATION IN VISAKHAPATNAM)
ABSTRACT

 B ackground check or background investigation is the process

of looking up and compiling criminal records, commercial
records and financial records of an individual or an organization.
Background checking is the process of authenticating the information
supplied to a potential employer by a job applicant in his or her resume,
Vinay Chaitanya Ganta 1
application, and interviews. In most application processes, lying about
1
Senior Research Fellow (Ph.D) background and credentials will keep the employer from hiring the

Dept. of Commerce and applicant. Background checking ensures the employer that the candidate
has the background and experience he or she claims. Background Deals
Management Studies
with the management of people in an organization. It is a management
Andhra University
function that helps manager’s recruit, select, train and develops
Visakhapatnam, members for organizations. Background is related to the promotions
Andhra Pradesh, India. and transfers from within the organization to jobs for which the existing
personnel are suitable. The focus of the current study is to understand
the importance of Employee Background Check Process and
implementation in the organizations. Through empirical study we
analyzed the Employee Background Check in selected organization in
Visakhapatnam, Andhra Pradesh. The back bone of the present study
is both the secondary and primary data.

KEYWORDS: Employee Background Check, Importance, Need, Objective, Scope, Findings and
Su gge st ion s.

INTRODUCTION Background Deals with the management of people

Background Verification is basically concerned with in an organization. It is a management function that helps
having the right types of people available as and when manager’s recruit, select, train and develops members for
required and improving the performance of existing organizations. Background is related to the promotions
people to make them to work more effective on their jobs, and transfers from within the organization to jobs for
Manpower management thus starts with Background which the existing personnel are suitable.
check. It is first done by studying three types of Forecasts. Background deals with the management of people in
1) The economic needs, an organization. It is a management function that helps
2) The Company sales and expansion forecast managers recruit, selects, Train and develop members
3) The employee market forecast for organizations. It is with the people’s dimensions in
Such forecast results in the company’s organization organizations. Background is related to the ‘continuous
plans. A Comparison of these two namely the forecast and process of manpower planning, selection, performance
the plans, can result in anticipating the manpower needs. appraisal, salary administration, training and management
development and retention of talented employees. Thus
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Background refers to a set of programs, functions and Every day people with criminal records, falsified
activities, designed and carried out in order to maximize educational credentials, and other serious liabilities are
both employees as well as organizational effect venal hired by companies who fail to thoroughly check their
effectiveness. Background is an actuating process, which backgrounds. The result can be acts leading to expensive
involves every worker. negligent hiring lawsuits.
OBJECTIVES OF BACKGROUND Knowing the backgrounds of the people you hire
CHECK is absolutely essential because a business can be held liable
The primary objective of Background check of for accidents and crimes committed by its employees: To
Employees is to ensure availability of a competent and protect your company and minimize risk, get reliable
willing work force to organizations. background information about everyone you consider for
Its main objective is to make the organization people employment. Employee Background Check minimizes
oriented. these problems with its services. You can verify the accuracy
1. To be ethically and socially responsible to the and/or completeness of information provided by job
needs and challenges of the society while applicants before hiring and training — and thus reduce
minimizing the negative impact of such demand the costs incurred by high turnover and reduce your risk
upon the organization. The failure of of liability.
organizations to use their resources for the Employee Background Check Services:-
society’s benefits in ethical way may lead to  General Information Reports
restrictions.  Driving Record Reports
2. To recognize the role of Background in Brining  Workers’ Compensation Reports
about organization effectiveness. Background is  Credit Reports
not an end self. It is only a means to assist the  Criminal History Reports
organization with its primary objectives.  Education Verification Reports
 In-Depth Reports
3. To maintain the departments contributions at a
 Rush Services
level appropriate to the organizations need.
Resources are wasted when Background SCOPE OF THE STUDY
demands. Every day people with criminal records, falsified
4. To assist employees in achieving their personal educational credentials, and other serious liabilities are
goals, at least insofar as these goals enhance the hired by companies who fail to thoroughly check their
individual’s contribution to the organization. backgrounds. The result can be acts leading to expensive
Personal objectives of employees must be met if negligent hiring lawsuits. More and more, employers big
workers are to be maintained, retained and and small feel the need to know about the background of
motivated. prospective, even current, employees. Employers had a
IMPORTANCE OF EMPLOYEE question how to find the best employees without violating
BACKGROUND CHECK privacy rights and other laws. The present study had great
scope to take up in small and big organizations.This study
Those two words have been devastating to many was carried out at selected organization in Visakhapatnam.
businesses and they could cost you millions of dollars.
NEED FOR THE STUDY
Negligent hiring is the failure to check the backgrounds
Shortage of skills.
of job applicants before you hire them.
Skills and knowledge people are always on short supply.
When a pizza deliveryman raped a customer, a Alternatively they are too costly to hire from outside. The
jury awarded the victim $6 million of the parent company’s best alternative is to improve skill and knowledge of
money. The firm had failed to do a background check existing employees.
which might have disclosed the man’s previous sex-offense  Technological Obsolescence
record. Growth of technology takes places very fast. This will
A trucking company was ordered to compensate a render current technology obsolete in the future. There
family when several family members were injured in an is a great need to upgrade technology. This needs suitable
accident caused by one of its drivers. The amount awarded training.
was many times what it would have been had the company
checked the driver’s record before hiring him.
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EPRA International Journal of Economic and Business Review
Personal Obsolescence OBJECTIVES OF THE STUDY
At the time recruitment employees possess certain of Background Verification and analysis are one of
knowledge and skill. As time passes knowledge becomes
major HRM function that helps manager to keep the
obsolete, unless it is updated by proper training. This
skilled members in the organization.
happens because of changes taking place in product
technology, production methods, procurement of better The major objective of the study is to study
machines, setting up of modern production lines, Background Check Analysis in the selected organization
introduction of modern method of supervision and in Visakhapatnam.
information processing through MIS and EDO. RESEARCH METHODLOGY
Organization Obsolescence Research provides an insight into any study top
Modern management has introduced a number of basically evaluate and judge the data or to find the solution
innovative steps in functions of management like planning, to any given problem a simple is representative of a group
organizing, controlling, coordinating and directing.
or population that identifies itself as part of it. The sample
Organization which is impervious to such changes is bound
chosen for this report is OCL pvt ltd, Visakhapatnam.
to fail and become obsolete.
 Upgrading Ability of Threshold DATA COLLECTION
workers The data collected contains primary data and
Public policy provides reservation to disadvantaged secondary data. The primary data has been collected
sections of the society like handicapped, minorities and mainly by interviewing and also observation and audit.
dependents of deceased workers etc. All these are Secondary data has been obtained from published
threshold workers having less than minimum prescribed journals, company broachers, books, internet, etc.
level of knowledge and skill. They require extensive
LIMITATIONS OF THE STUDY
training to bring them up to the minimum level of
1. As the project is prepared for academic purpose
performance standard.
only, it suffers from the limitations of time and
Coercive training by government
In order to provide better employability chances of money, due to which analytical study into all the
unemployed youth, certain governments taken initiative strategies adopted by the organization was not
to mobilize resources available at pubic/government and possible.
private sectors to outside candidates. One such example 2. The study was completed with in short span of
is the “Apprentice Training” conducted by govt. of India. A time that was available.
part of expenditure incurred for this by private sectors is 3. The report also suffers from the limitations of
reimbursed by government.
exhaustiveness as far as the information is
Human capital
concerned.
The latest thinking is to treat employees as “human capital”.
4. All this study is limited to selected organization
The expenditure involved is training and developments
are now being considered as an investment. in Visakhapatnam only.
There is great need to take up the present study
in selected organization in Visakhapatnam to fill the gap.

DATA ANALYSIS AND INTERPRETATIONS

1. Number of Respondent according to Gender:-

Gender No. Of Respondents Percentage

Male 48 64%
Female 12 16%
Contract Employees 15 20%
Total 75 100%
The above Chart shows that 64% of Respondents is male and female are 16% & remaining20% respondents are
others.

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e-ISSN : 2347 - 9671, p- ISSN : 2349 - 0187 Vinay Chaitanya Ganta

2. Are you satisfied with Background check facility by the company?

Background Check No. of Respondents Percentage
Yes 52 69%
No 20 26%
Not Replied 3 4%
Total 75 100%
The Above chart shows 69% respondents are satisfied with Background facilities given by the company.& Not
Satisfied are 4% of the employees.

3. Type of Background Check Offered?

Checks No .of Respondents Percentage
National Checks 48 64%
International Checks 15 20%
Both 12 16%
Total 75 100%
The above chart shows that 64% of respondents prefer National check & 20% International Checks type, both
preferred for 20%.

4. Does an Organization give importance to Background Checks?

BG Checks No. of Respondents Percentage
Yes 52 69%
No 10 13%
Not Replied 13 17%
Total 75 100%
The above chart shows 69% of respondents feel the organizational is interested in Background check formalities,
No for 13% and 17% are not replied.

5. Do you have faith in Background check agency?

General opinion No. Of respondents Percentage
Yes 49 65%
No 11 14%
Not Replied 15 20%
Total 75 100%
The above chart shows all the respondents have faith in their company’s policies.65% yes, 14% no feedback & not
replied 20%.

6. Do you prefer internal BG Agency or External Agency?

Type No. of Respondents Percentage
Internal 25 33%
External 50 67%
Not Required nil 0%
Total 75 100%
The above chart shows the 67% of respondents have prefer External Agency..

7. Are you happy with the Background Check process?

BG Checks No. of Respondents Percentage
Yes 52 69%
No 10 13%
Not Replied 13 17%
Total 75 100%
Around 69% of the people are happy with the B.G Check process, Not Satisfied are 13%, and Not Replied are 17%.

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EPRA International Journal of Economic and Business Review

8. How do you feel about Background Check Process & panel?

BG Checks No. of Respondents Percentage
Excellent 30 40
Good 33 44
Satisfactory 10 13.3
Poor 2 2.7
Total 75 100
44% of the respondents felt good about BG Check Panel &The parentage of poor we got only 2.7 percentage.
9. Did the PCS meet your expectations?
BG Checks No. of Respondents Percentage
Yes 45 60
No 16 21.3
Not Replied 14 18.7
Total 75 100
Around 60% Respondents felt that PCS met their expectations.
10. Are you happy with the salary what you offered from the company?
BG Checks No. of Respondents Percentage
Yes 45 60
No 30 40
Not Replied -- --
Total 75 100
60% of the respondents are happy with their salary.

11. How do you come to know about openings in the organizations?

BG Checks No. of Respondents Percentage
Friends 5 6.7
Internet 23 30.7
News Papers 40 53.3
Others 7 9.3
Total 75 100
54% of Respondents came to know about organization through Newsletter.

12. Do you want to refer more friends to Company?

BG Checks No. of Respondents Percentage
Yes 58 77.3
No 8 10.7
Not Replied 9 12
Total 75 100
77% of Respondents here happy to refer company to their Friends& Not Replied is 12%.
13. Did you have the right Designations?
BG Checks No. of Respondents Percentage
Yes 34 45.3
No 27 36
Not Replied 14 18.7
Total 75 100
Around 45% of the employees are happy with their Designations, and 36% of the employees are not happy, 19%
of the employees not responded.

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e-ISSN : 2347 - 9671, p- ISSN : 2349 - 0187 Vinay Chaitanya Ganta

14. What should be the company’s main source of BG Check?

BG Checks No. of Respondents Percentage
Employment Bureau 4 5.3
Direct Verification 17 22.7
Third Party Verification 39 52
Placement agency 13 17.3
Others 2 2.7
Total 75 100
The major source of Verification from Third party about 52% & Secondary is Direct Verifications which is 22.7%.
15. Did you fully know about the company policies before joining in this company?
BG Checks No. of Respondents Percentage
Yes 10 13.3
No 65 86.7
Total 75 100
Around 86.7% percent of the peoples did not know the fact; only 13% know it.

16. Did you informed details during BG Check?

BG Checks No. of Respondents Percentage
Yes 6 8
No 69 92
Total 75 100
Around 92% says no the question, but only 8% are responded yes.

17. How do you think about BG Check and selection procedure in your company?
BG Checks No. of Respondents Percentage
Satisfactory 72 96
Unsatisfactory 3 4
Total 75 100
The Overall percentage is 96 say satisfactory, and 4% are says not satisfactory.
FINDINGS 6. Employee screening programs also lays more
1. The data collected and analyzed and general emphasis in finding out a professional who has
observation has proven that organization has got the knowledge of problem solving skills.
done remarkable job in its Human resource 7. The organization must give encouragement in
development. career planning of employee with a view to attain
2. Each and every employee is well prepared to organizational Goals.
meet today’s challenges. 8. Employment screening programs in a nutshell
3. The Employees Recruited from through the provides the overall satisfaction for both the
employee screening programs are well employees and Management.
documented as the company requires various 9. There are employees in all experience level in
types of personnel to meet the job related the organization.
programmers behavioral programs and Quality 10. The internal department of core competencies
related programs. and continuous process improvements has
4. The Management most of the times responds made in organization. One of the most exciting
to the agencies to conduct survey on employee IT staffing companies to work for.
Background screening. 11. The management is showing their full efforts
5. Employee Screening program not only provides for the growth of organization.
the Family Background of the personal to be SUGGESTIONS
recruited but also provides information’s on 1. Create awareness about Clients requirements
latest strengths and changes such as among the employees by maintaining high level
convergence concepts scenario in the coming of motivation and focus.
years. 2. Design an effective system & Agency for
conducting Employee Background checks.

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EPRA International Journal of Economic and Business Review
3. More attention is to be paid on the feed back as CONCLUSION
it gives necessary inputs for the improvements Employee Background Check words have been
in the future. devastating to many businesses and they could cost you
4. Quantify the performance off the employee so millions of dollars. Negligent hiring is the failure to check
the backgrounds of job applicants before you hire them.
recruited.
Every day people with criminal records, falsified
5. Increase the competence levels among the
educational credentials, and other serious liabilities are
employees by giving suitable Training and hired by companies who fail to thoroughly check their
Development Program. backgrounds. Backgrounds can help to get them onboard
6. Identify the competencies and behavior pattern quickly and easily with an intuitive and easy to use
to be developed in each individual by way of employee background check system. To understand that
performance Appraisals and ratings indicating hiring the right candidate can involve more than just pre-
the level of individual is above expectation or employment screening and a criminal background check.
Knowing the backgrounds of the people hire is
according to the expectation or bellow the
absolutely essential because a business can be held liable
expectation.
for accidents and crimes committed by its employees.
7. Provide training to the employees so that they Employee Background Check minimizes these problems
will get better knowledge, skills, Morale and with its services. You can verify the accuracy and
attitude. completeness of information provided by job applicants
8. Convert organization into a ‘learning and before hiring and training and thus reduces the costs
development organization’ to make it a “GLOBAL incurred by high turnover and reduces the risk of liability.
PLAYER AND LEADER”. BIBLIOGRAPHY
1. Principles of Management- By R.N.Gupta.
9. Minimize Unnecessary Utilization of Lightings, 2. Business Management-By Reddy and Appanaiah
Air Conditioner, and Lifts &Items at which in 3. Personal Management and Industrial Relations-By
Dr.T.N.Bhagoliwali
turn help in cost reduction. 4. www.google.com
10. Maintaining Harmonious relationship with 5. www.KarnatakaHRGroup.com
Employees and Management. 6. www.HRCommunity.com
7. www.HRIndia.com
8. Mr.BV Raghunath – (HRD Professional

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