Understand the Benefits of Validating Background Checks in Your Company

Background check

Estimated reading time: 5 minutes

Do you usually validate background in your company? A background check is a common practice for checking the civil and criminal history of potential suppliers, customers, and employees.

This practice can avoid several future problems and serves as a prevention tool and helps in the selection of talents, the choice of suppliers, and the signing of contracts.

Therefore, performing this check brings several benefits and can be applied in different contexts. Want to understand the subject better? Read the full post!

What Does Background Validation Practice Mean?

The background check consists of researching the largest number of information in public databases about a particular individual or legal entity, in order to help in decision making. From references such as name, CPF or CNPJ, it is possible to identify traces of practices that are not recommended, unethical or that may clash with the company’s culture.

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How Does This Validation Work?

To verify information consistently, it is necessary to define what will be collected and how this process will be carried out. Some analyzes are simpler, considering only the financial, commercial, and criminal situations. References on criminal records are made available by the Court of Justice, Federal Police, Interpol, and FBI.

The references are then analyzed by a specialist, who makes an assessment according to the company’s objectives and delivers a report that will influence decision-making.

It is worth remembering that this check can be done in different contexts: when hiring a new employee, closing a partnership, buying from a supplier, hiring a service, even selling on credit to a customer, or closing a deal with a real estate company.

What Benefits Are Possible to Achieve by Validating Background?

This check is an important instrument to protect the company. The brand can also be spared from involvement in scandals, capable of totally damaging a corporation’s reputation.

Avoid Fraud

Background validation is an excellent tool to prevent fraud and corruption in your company. Of course, this concern must occur for ethical reasons.

However, with the easy dissemination of information over the internet, corruption must be fought even further. After all, occurrences like this generate negative exposure and can irreparably harm the company, tarnishing its image with the press, consumers, and potential partners.

Optimize Customer Onboarding

The background check can help in the onboarding of new customers, who do not have as much time to wait for a complete analysis of their profile. With the help of practice, it is possible to identify preferences, registration status, and behavior. This data allows for a more focused approach to the needs and expectations of this customer. In addition to preventing risks, without having to make a long and bureaucratic registration.

With this consultation, it is possible to check the criminal records of companies and avoid partnerships that could bring legal or financial problems. In this way, the company’s relationship with some fraudulent schemes is avoided.

Verification brings information such as global reports and links to reported entities, in addition to identity validation, allowing purchase authorization.

SEE ALSO: 5 Efficient Tips to Gain the Trust of an International Customer

Improve Company Compliance

Background validation can be applied in two ways when it comes to corporate compliance.

The first is during the selection process, in order to prevent fraudsters from entering as company employees. Especially with the LGPD, organizations must be even more careful with the leakage of information, proposing good internal practices and a code of behavior for employees.

But, if the person is malicious, it is difficult to act in a fully preventive way, trying only to contain the damage later. Therefore, it is worth checking and verifying that the professional is really suitable.

Improve Organizational Culture

Performing a background check helps make the company a safer place for customers and employees. Without this verification, the environment is prone to harassment, violent incidents, and even crimes, capable of harming the organization and other employees.

In other words, hiring people who don’t have a serious background, such as breaking the law, can help build a healthy workspace, with more trust and safety among people.

Health, trust, and safety make all the difference to a more productive and positive organizational climate, in addition to strengthening these values ​​in the organizational culture.

In other words, part of the company’s identity becomes related to these values, helping to expose customers and suppliers to the market, as well as hiring the best talent.

Bring More Operational Efficiency

This advantage is linked not only to repeat verification as a corporate norm but also to the automation or outsourcing of this work.

In addition to avoiding losses caused by fraud, by promoting checking as a routine it is possible to make the process cheaper, freeing up money and manpower for other important strategies for the company.

The verification work is carried out using technology and taking advantage of the digital resources currently present, speeding up the verification so that it is carried out in a timely manner.

Help With Recruitment and Selection

Background validation guides decision-making in a more accurate way, based on concrete data and less contaminated by subjective impressions, which easily lead to error.

It can be used as a factor during the selection process, verifying the information provided by candidates in the curriculum, for example.

Is it clearer what are the benefits of validating backgrounds and why is it important to invest in it? More than doing this verification, it is worth having a specialized company that has extensive experience in the subject and that can do this verification without violating information protection. At the same time, fulfilling its role of protecting the corporation.