What are Digital Reference Checks and How are they Disrupting Traditional Reference Checks

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A digital reference check is a background check that is conducted online. It provides a quick and easy way to verify the information that an applicant has provided on their cv. This information can be accessed from online databases, social media and other sources. It's important for companies to do this because it can help them avoid hiring people who may have been convicted of a crime or who have other warning signs in their background.

automated reference checking system
Automated reference checking system

The process of conducting a digital reference check has similarity to the process of conducting an in-person reference check. The individual who conducts the digital reference check will typically ask for the same information that they would typically ask for during an in-person reference check, such as previous employers, job titles, and dates of employment.

The need for digital reference checks has grown over time as more people are using social media and other digital platforms to share information about themselves.

How is Digital Reference Check Different From a Traditional Reference Check?

Reference checks have traditionally been done by phone or email, but with digital reference checks, companies can go through a candidate's history and find out more about them without ever having to call someone or send an email. They are using automated online reference checking tools to do this work for them.

What Kind of Information Can Be Found in an Automated Reference Check?

An automated reference check is a type of reference check that can be done remotely. The employer sends an email, text message, or phone call to the candidate’s past employer and asks for a reference.

automated reference checking
Automated reference checking

The information that can be found in an automated reference check typically includes the length of employment, job title, supervisor's name and contact information, and the reason for separation from employment.

The system then analyzes this data and provides a report on whether it would be a good idea to hire that person or not.

Benefits of Automated Online Reference Checking for both Employers and Candidates

Companies that automate their reference-checking process can save time and resources which they can invest in other areas of their business. The time they are saving also enables them to have access to a wider pool of candidates with professional backgrounds who are qualified for the position.

automated reference checks
Automated reference checks

Candidates are also benefiting from the faster hiring process since the time they need to wait to hear back from their potential employers is shortened.

How Digital Reference Checks Affect the Hiring Process, and Why Companies are Implementing them on a Large Scale

Background checks are necessary part of the hiring process. However, with the introduction of digital reference checking systems, companies can now save time and money. It eliminates human bias and makes sure that there are no mistakes in the system and at the same time it increases the speed of the hiring process. That's why it is no secret that digital reference checking systems have been on the rise in the past few years and many companies use them on a large scale during the hiring process. It has become a necessity for recruiters to perform automated background checks on potential candidates. 

online reference checking
Online reference checking

How Digital Reference Checks Improve a Company's Quality of Hire?

Automated reference checks provide quality data directly from the candidate's past employers and offer a level of convenience that cannot be matched by phone interviews or requests for letters of recommendation. They are faster and more accurate than traditional reference checks because they don't require the time-consuming back-and-forth between the employer and candidate. And unlike traditional reference checks, automated reference checks have no bias because they are objective algorithms that do not rely on human judgment or input from past employers.

reference checking software
Reference checking software

Conclusion: Fewer Mistakes Means Faster Hiring!

The hiring process for any business is a difficult and time-consuming process that involves interviewing and gathering information from previous employers, co-workers and acquaintances. It is also costly, especially if the company is not able to find the right candidate. 

Reference checks can be inaccurate, biased or misleading; even if they're conducted correctly they often take longer than necessary to complete because they involve interviews with those who know the candidate well enough to provide valuable insights into their character, work ethic, skills and personality traits.

But now all these problems can be solved, thanks to the introduction of automated reference checking tools, it is possible to automate the process. Automated checking will help cut down on time and mistakes, making the whole hiring process a lot faster. You can also use them to save time by checking references for multiple candidates at once. And finally, they are accurate because they use algorithms that go through social media profiles and other online sources to find potential red flags.

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What background check do I need?

This depends on the industry and type of role you are recruiting for. To determine whether you need reference checks, identity checks, bankruptcy checks, civil background checks, credit checks for employment or any of the other background checks we offer, chat to our team of dedicated account managers.

Why should employers check the background of potential employees?

Many industries have compliance-related employment check requirements. And even if your industry doesn’t, remember that your staff have access to assets and data that must be protected. When you employ a new staff member you need to be certain that they have the best interests of your business at heart. Carrying out comprehensive background checking helps mitigate risk and ensures a safer hiring decision.

How long do background checks take?

Again, this depends on the type of checks you need. Simple identity checks can be carried out in as little as a few hours but a worldwide criminal background check for instance might take several weeks. A simple pre-employment check package takes around a week. Our account managers are specialists and can provide detailed information into which checks you need and how long they will take.

Can you do a background check online?

All Veremark checks are carried out online and digitally. This eliminates the need to collect, store and manage paper documents and information making the process faster, more efficient and ensures complete safety of candidate data and documents.

What are the benefits of a background check?

In a competitive marketplace, making the right hiring decisions is key to the success of your company. Employment background checks enables you to understand more about your candidates before making crucial decisions which can have either beneficial or catastrophic effects on your business.

What does a background check show?

Background checks not only provide useful insights into a candidate’s work history, skills and education, but they can also offer richer detail into someone’s personality and character traits. This gives you a huge advantage when considering who to hire. Background checking also ensures that candidates are legally allowed to carry out certain roles, failed criminal and credit checks could prevent them from working with vulnerable people or in a financial function.

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State of Hiring and Background Checks Discrepancies

Veremark’s 2022 Annual Report is based on the background check data collected from over 100,000 checks from companies and professionals across 6 countries and 5 key industries last year.

This report focuses on the state of hiring and background check discrepancies and is an essential guide to all recruiters and HR professionals conducting hires, background checks and onboarding in 2022.

In this report, we discuss:  

  • What areas and factors can Background Checks discover?  
  • Where did the findings come from by country and sector?
  • Discrepancies by top 5 sectors
    • Fintech and Financial Services      
    • HR, Staffing and Recruiting      
    • Technology and Software      
    • Professional Services      
    • Business Process Outsourcing (BPO)
  • Discrepancies by top 6 countries
    • Estonia      
    • Singapore      
    • United Kingdom      
    • Australia & New Zealand      
    • India      
    • Philippines
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