How Multinational Companies (MNCS) Do Background Verification?

How Do Multinational Companies Choose Their Employees?

Multinational companies choose their employees from all over the world, making background verification a crucial step in the hiring process. 

Thorough background checks are crucial because they help mitigate risks associated with hiring across different countries and cultures. These checks verify the candidate's credentials, experience, and potential red flags, ensuring the company makes informed hiring decisions. This process ultimately protects the company's reputation, assets, and overall security in a global marketplace.

The Comprehensive Background Verification Process in MNCs

The background verification process involves verifying the background of individuals before they are hired, and getting information, for example, on any criminal records or previous work experience. The verification can be done through a variety of methods including social media vetting, criminal record checks, address verification, credit history verification and over 40 categories of background checks, across 180 countries worldwide.

Therefore, the process of HR background verification is not a simple one. It involves multiple countries and the information to be verified is varied and vast. Companies might find it difficult as it requires time and effort to collect the data, and accurately review and contact the sources.

Generally, there are 3 stages to how multinational companies conduct employee background verification:

• Initial Application Review
• Consent and Disclosure 
• Conducting the Background Checks 

Initial Application Review

MNCs begin by carefully reviewing the candidate's application and resume to quickly verify the accuracy of information provided and to ensure it aligns with the job description. The candidate is often interviewed to assess their qualifications, experience, and overall fit for the position.

Consent and Disclosure

Once a candidate is shortlisted, they are required to provide written consent for the background check. This ensures compliance with privacy regulations and legal requirements.

Note that this can also be done earlier, during the application process with the clause saying that should they be shortlisted, they would have to undergo employee background checks. 

Conducting the Background Checks

Finally, multinational companies conduct background verification. As it involves many candidates from different countries, companies often hire third-party background screening providers, such as Veremark. 

Background Checks Also Verify Customers to Prevent Scams

Multinational companies often have to verify the accuracy of their customer's background information in order to prevent any frauds, scams, and identity theft. However, the verification process is time-consuming and can be costly. With automated screening software, it can be made more efficient and cost-effective through automation of the processes and the expert service delivered.

IT company background verification process

Automated screening software can scan through thousands or even millions of documents to verify the authenticity of a candidate’s credentials. This can be done for many types of documents such as passports, driver’s licences, and social security cards. 

Usual Types of Background Verification Conducted by Multinational Companies

Background checks are not merely a formality; they're a critical tool to ensure the right fit for both the company and the potential employee. Below are the usual types of background verification conducted by multinational companies:

Employment Verification

This is often the first background check conducted during the hiring process. MNCs or the third-party they hired reach out to previous employers to confirm the dates of employment, job titles, and responsibilities held by the candidate. This ensures the accuracy of the information provided in the resume and helps the company assess the candidate's experience and suitability for the role.

In the UK, it’s possible to conduct an Instant Employment Check. Learn more about it here. 

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Educational Verification

For many positions, educational qualifications are crucial. MNCs verify the authenticity of degrees, diplomas, and certifications claimed by the candidate. This involves contacting educational institutions to confirm that the candidate has indeed earned the stated qualifications.

In some countries, education verification is a requirement. For instance, in Singapore, the Ministry of Manpower requires employers to verify if their candidate’s educational qualifications are legitimate. Learn more about the MOM Education Verification here. 

Criminal Background Checks

Multinational companies take safety and security seriously. Criminal background checks are conducted to uncover any criminal history that could potentially impact the candidate's ability to perform the job or pose a risk to the company. These checks typically involve searching local, national, and sometimes international criminal databases, sometimes in all countries where the candidate has worked.

In the UK, criminal records checks usually involve DBS checks, which have several levels. Learn more about DBS checks here.

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Credit Checks

For certain positions, particularly those involving financial responsibilities, MNCs may conduct credit checks. This helps them assess the candidate's financial history and responsibility, ensuring they are trustworthy and capable of handling financial matters.

Here’s more information on Credit Checks. 

Identity and Address Verification

Multinational companies verify the candidate's identity through official documents like passports or national identification cards. Additionally, they confirm the candidate's address to ensure they reside where they claim. This is crucial for compliance with local regulations and to ensure the candidate can legally work in the intended location.

Learn more about Veremark’s Identity and Address Checks. 

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Global Sanctions and Compliance Checks

In today's interconnected world, MNCs operate across borders. Global sanctions and compliance checks are conducted to ensure that the candidate is not on any sanctions lists and that they comply with international regulations. This is particularly important for companies operating in industries with strict compliance requirements.

Here’s more information about Veremark’s Global Sanctions Check, 

Reference Checks

Reference checks provide valuable insights into the candidate's work ethic, skills, and overall character. MNCs reach out to professional references provided by the candidate to gather information about their past performance and suitability for the role. These references can be former supervisors, colleagues, or even clients.

Here’s a guide on Employee Reference Checks and the 23 Questions For a More Informed Hiring Decisions. 

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Common Challenges in Background Verification

Considering these numerous checks, the amount of information that has to be verified, and the large volume of candidates to vet, it’s not surprising that multinational companies encounter several challenges in background verification. These include:

Varying International Regulations

Each country has its own set of laws and regulations governing background checks. MNCs must navigate this complex web of legal requirements, ensuring compliance in every jurisdiction they operate in. This can be particularly challenging when dealing with data privacy laws, which vary significantly from country to country.

Data Accessibility and Accuracy

Accessing accurate and reliable information can be difficult, especially in countries with less developed record-keeping systems. Language barriers, different cultural norms, and varying levels of data privacy can further complicate the process of obtaining comprehensive background information.

Time and Cost Considerations

International background checks often take longer and are more expensive than domestic ones. Coordinating efforts across multiple countries, dealing with time zone differences, and managing language barriers can all contribute to delays and increased costs.

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Cultural Sensitivity and Bias

Multinational companies must be mindful of cultural differences and avoid potential biases when interpreting background check results. What may be considered a red flag in one culture might be perfectly acceptable in another. Cultural sensitivity and a nuanced understanding of local contexts are essential to avoid making unfair judgments.

Technological Advancements and Privacy Concerns

The rise of social media and other online platforms has created new avenues for gathering information about candidates. However, MNCs must balance the benefits of this technology with the need to protect candidate privacy and avoid discriminatory practices.

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Addressing the Challenges: Best Practices For Conducting Background Checks 

To ensure a fair, compliant, and effective process, here are some best practices multinational companies follow: 

Develop Clear Policies 

Establishing clear policies and procedures for international background checks, including timelines, communication protocols, and data protection measures, can help streamline the process and mitigate risks.

Consult with a Legal Team

Since different countries have varying regulations regarding background checks, it’s a good idea to consult a legal team to adhere to the specific laws of each jurisdiction where you operate. 

Alternatively, partner with a trusted background screening provider such as Veremark since they have the solid framework to conduct checks in various countries in compliance with their respective laws. 

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Prioritise Candidate’s Privacy

As a part of compliance, never cut corners when it comes to protecting the candidates’ information. Consider laws such as GDPR in the UK, PDPA in Singapore, FCRA in the US, and DPA in the Philippines. 

Generally, it means never skipping on getting writing consent, making sure the candidate is informed of how the information will be processed, and keeping them posted on the status of their background checks and application in general. 

Prioritise Cultural Sensitivity

Training hiring managers to be culturally sensitive and aware of potential biases can help ensure fair and equitable evaluations of candidates.

Tailor Background Checks to Specific Criteria

Not all background checks are necessary for every position. Tailor the checks to the specific requirements of the role and the location. This helps avoid unnecessary delays and costs while ensuring relevant information is gathered.

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Communicate with the Candidates Throughout the Process

Keep candidates informed about the progress of their background checks. Provide them with a timeline, explain any delays, and be open to answering their questions. Transparency builds trust and fosters a positive candidate experience.

Leverage Technology

Use automated cloud-based Software-as-a-Service tools (sometimes powered by AI technology) to provide an efficient way to collect, store, and share the required information from various sources in a secure manner. 

Utilising technology solutions for data collection and analysis can streamline the process, improve accuracy, and reduce costs.

Partner with a Reliable Background Screening Provider

Partnering with reputable background check providers who specialise in international screenings can help MNCs navigate legal complexities, access reliable information, and ensure compliance with local regulations.

Choosing the Right Background Check Provider for Multinational Companies

Selecting the right background check partner is crucial for multinational companies (MNCs). It's not just about ticking boxes; it's about ensuring a seamless, compliant, and effective process that safeguards your company and empowers your hiring decisions. Here's what to look for:

Trustworthiness and Reputation: Your background check provider should be a trusted name in the industry, recognized for its accuracy, reliability, and adherence to ethical standards. Look for providers that are trusted by the world's best workplaces, as this indicates a commitment to quality and a proven track record.

Global Compliance Expertise: Navigating the diverse legal landscape of international background checks can be daunting. Choose a provider with a strong legal framework and expertise in complying with laws and regulations across various countries. This ensures your checks are conducted legally and ethically, minimising risks and potential complications.

Comprehensive Check Options: Different roles and locations may require different types of background checks. Opt for a platform that offers a comprehensive suite of checks, including employment verification, education verification, criminal records checks, credit checks, identity verification, global sanctions checks, and reference checks. This allows you to tailor your checks to your specific needs.

Additional Features to Consider:

• Flexible Packages: Look for providers that offer flexible packages, allowing you to choose the specific checks you need without being locked into unnecessary services.
• No Long-Term Contracts: Avoid providers that require long-term contracts. Opt for those that offer month-to-month or pay-as-you-go options, giving you the flexibility to adjust your services as needed.
• Seamless Integration: Choose a provider whose platform or services can be easily integrated into your existing HR systems or applicant tracking software (ATS). This streamlines the process, saves time, and ensures a smooth flow of information.

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Trust Veremark for Your Background Verification Needs

For multinational companies seeking a reliable, efficient, and comprehensive solution to their background screening needs, Veremark offers a suite of features tailored to streamline the hiring process. 

Trusted by the world’s best workplaces, our automated and straightforward screening reduces risks by providing reliable candidate verification across various industries and roles. Our global checks ensure compliance and security, no matter where your candidates are located. Enjoy the flexibility of pay-as-you-go services without the constraints of long-term contracts, and benefit from our 24/7 global support, ensuring you have the assistance you need whenever and wherever you need it. 

Veremark’s solutions not only enhance the accuracy and reliability of your hiring process but also accelerate your time to hire, helping you build a trustworthy and competent workforce efficiently​​.

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