A Complete Guide to Employment Background Checks in Malaysia

Increasing Demand for Jobs in Malaysia

A recent human resource survey identified that Malaysia experiences a 31% year-on-year increase in hiring. Over the past six months, hiring activity has also increased by 15%, and month-to-month growth has improved by 5%, signaling ongoing demand in the labor market.

With the demand for an increased number of hires, naturally the need to conduct employment background checks also rises especially now that more companies are hiring remotely.  As a result of the rapid rise in hiring, employers are more concerned about their workforce’s security and safety. And in the competition for the best talent, they are also competing for qualified candidates, verified education credentials, and a clean employment history  that includes criminal records that do not compromise a candidate’s prospective position. Background checks have become increasingly important to employers as they can  identify and highlight any red flags that could indicate an  applicant may not be able to carry out their duties to the levels expected - particularly from a safety and efficiency perspective.

Pre Employment Background Screening in Malaysia

Pre employment background checks are a necessity in the Malaysian job market. They are an important part of the recruitment process as they provide information about a candidate’s previous employment, education and any criminal records. Background checks are a useful tool to assess the suitability of potential employees. They can help employers sift out unsuitable candidates and prevent potential problems for your company.

Background checks come in a variety of different forms, depending on the position and the hiring process. The most common background check is a criminal record check, which includes checking for any previous criminal offenses or convictions against the candidate’s background. For some positions, such as those in law enforcement or healthcare, there are more extensive background checks that include fingerprinting and drug tests.

Why is it a Must for Malaysian Companies to Perform Background Checks on their Applicants and Existing Employees?

Background checks are a necessary part of the hiring process. There are many reasons why companies need to conduct background checks on potential employees. The most common reason is to make sure that the person is qualified for the position they are applying for and doesn’t have a  criminal history that could compromise their position and  put the company at risk.

4 Benefits to Outsourcing Pre-Employment Screening of your employees 

1. Reduces time in the hiring process and improves the candidate experience

2. Staff have a greater level of assurance that they are working in a safe environment with trusted colleagues

3. Reduces compliance and legal risk

4. Identifies and aims to prevent high risk behaviors such as fraudulent practices or drug abuse.

What are the Most Commonly Requested Background Checks that Malaysian Employers Require?

A background check can be conducted in various ways, such as through public records, interviews with associates and friends, and even social media activity. 

You may be wondering what the most commonly requested background checks are that Malaysian employers require. Here is a list of some of them:

1. Criminal Records Check

This will look at any criminal convictions and arrest records, as well as any pending charges and court cases. The reason for this is to make sure the person has not committed a crime in the past that would make them unfit to work in certain industries.

2. Credit Report Check

This will examine the candidate's credit history, including how often they make payments on time and if there are any late payments or defaults in their history. This will look at information from major credit bureaus to provide a snapshot of candidates payment history.

3. Social Media Check

This will look for any information about a candidate on social media sites such as Facebook, Twitter or LinkedIn. This will pull any information you have posted on social media sites such as public posts and comments.

4. Employment Reference Check 

This will ask for a reference from a candidate’s previous employer to see if they have been an employee for a reasonable period of time and if there have been any issues with your work performance.

5. Education Verification Check 

This is done to confirm that the educational credentials that the candidates have listed on their application are legitimate. Their school's principal, registrar or other staff members will be contacted to verify the information on your application.

Background Screening Companies in Malaysia

Background checks can be conducted by either the company itself or by third parties who specialize in this type of service. These third party agencies will conduct a more thorough investigation than an in-house department.

There are various third party companies that offer pre-employment background checks in Malaysia, but not all of them offer the same services and quality. Veremark is one of the top background screening companies in Malaysia which ensures safe hiring with employment checks that are fast, accurate, secure, and scalable.

Featured Case Study: How Veremark helped Teleperformace Malaysia to Improve their Candidate Screening Processes, Saving the company both Time and Money

Teleperformance Malaysia is a multilingual BPO hub that supports services in more than 18 languages and dialects in Asia. They were looking for an immediately available new background checks and candidate reference screening solution for the rapidly increasing hiring to meet client business process outsourcing SLA contract and target needs.

When Alison Loftin (Director – Talent Acquisition Penang Malaysia) arrived at Teleperformance Malaysia, the process for background checking took a long time. There were many manual processes, 4 different background checking systems were being used. 21 documents needed to be manually uploaded online, which contributed to lost time and errors in the checking processes. It was also very difficult to capture high-quality scans of the requested documents, for them to be accurately checked and verified.

Alison got in touch with Daniel Callaghan, CEO Veremark, through the IndoChina HR Director Networking Group. Daniel provided Alison with an immediate demonstration of the integrated and scalable software UI & UX, from both the Talent Manager and Candidate perspectives, as well as the way Veremark delivers the best and trusted service based on its team culture and values.

“After a few days the Veremark experience was a marked improvement for the Teleperformance candidate screening processes, saving us both time and money.”

“The change to using the Veremark solution has been a great success. Teleperformance team members from Malaysia, India, Vietnam, Thailand, China, and Philippines, all hugely enthusiastic about its impact on the effectiveness and enjoyment of their day-to-day work.”

“We will always be recommending Veremark to our colleagues across Teleperformance country businesses around the world.”

- Alison Loftin (Director – Talent Acquisition Penang Malaysia)

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Teleperformance could get each of its countries up and running rapidly and seamlessly. Each country's Talent Manager was impressed with how Veremark’s trusted software and service ensured that a diverse Teleperformance team had a first-class experience every time.

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