by Suman Gupta
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HireRight’s 2019 India Employment Screening Benchmark Report reveals that finding, developing and retaining talent is a top business challenge
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4 in 5 Indian employers conduct checks on all job candidates, with 75% reporting that screening helps assure better quality of candidates
Mumbai, 18 November, 2019 – Despite government figures suggesting that unemployment is at a 45-year high[1], more than 4 in 5 (84%) Indian organisations are expecting a hiring surge in the coming 12 months; according to the 2019 India Employment Screening Benchmark Report by HireRight, a leading provider of global employment background checks.
Fewer companies anticipate any form of decline in their workforce this year compared to the last report (11% in 2019 versus 13% in 2018). However, there remains concern over talent acquisition – over a third of respondents in India (33%) deemed finding, developing and retaining talent as one of their top 3 business challenges of 2019; ahead of growing revenues (19%) and maintaining a competitive edge (18%).
India is one of the most consistent screening nations globally
Almost 4 in 5 (79%) of organisations in India conduct checks on all job candidates, with a massive 75% of respondents reporting that screening helps them assure better quality candidates and half (51%) saying it ensured more consistent safety and security.
Compared to last year, there has been a 19% increase in both employment (88%) and education checks (83%). These differed greatly from global trends which prioritise criminal (88%) and identity checks (63%) above all else.
Potential risks Indian organisations face
However, the report also identified big drops in credit (-36%) and professional license (-9%) checks – potentially exposing organisations to significant risks. The number of criminal (37%) and identity checks (26%) conducted in India for international candidates was significantly lower than the global numbers of 56% and 34% respectively.
In addition, there also seems to be little incentive to add more checks, with half (49%) of Indian organisations surveyed having no plans to introduce new screenings in the coming months.
Marcellus Solomon, General Manager, India at HireRight, comments:
“With India aspiring to become a $5 trillion economy by 2025, we can expect heavy investments in infrastructure, digitalisation and entrepreneurship – but to power these ambitions, India needs good talent.
“We need to ensure India is able to attract, retain and nurture the best talent; all while standing on the global stage. One of the best ways to assure quality of hires, improve company reputation and ensure all candidates are treated fairly in the recruitment process is to leverage a robust and consistent background screening process.”
According to figures released by the Ministry of Statistics and Program Implementation (MoSPI) in May 2019
Additional Trends Uncovered
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A lack of consistency in background screening processes
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Only 61% of respondents in India screen independent contractors, while 59% check temporary workers – despite non-employees making 40% of the workforce for approximately 1 in 10 (9%) of organisations in India.
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Issues among senior executives
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Although approximately 1 in 6 (16%) Indian businesses have previously uncovered issues with senior hires during screenings, this year’s report revealed that screening at the upper echelons is becoming less consistent
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Over two thirds (70%) of respondents admitted to knowing of issues that had arisen at the executive level following an M&A, up from 52% in 2018.
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Meanwhile, 42% believed it was possible that some members of their board had never had their credentials checked, compared to 29% the previous year.
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Increased focus on data privacy
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9 in 10 (90%) felt their organisations were now more focused on data privacy than before the GDPR was introduced.
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Two thirds of respondents were concerned with keeping up to date with relevant regulations (64%) and with making sure their organisation is compliant (62%).
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However, 1 in 5 (17%) felt that keeping up with changes in screening laws simply wasn’t a priority – up from 10% in 2018.
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HR investments for 2019
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The top investment was making HR processes more efficient (58%), followed by creating an employment brand that attracts talent (50%)
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Half (50%) of the respondents in India said they are looking to invest in new HR technologies in the coming 6 months – compared to only 1 in 5 (21%) globally.
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