How AI can help you with background screening

How AI can help you with background screening

February 8, 2023
12:19 pm
Artificial intelligence, Background checks, background screening, background verification

Uber, a well-known multinational app-based cab booking service, had to settle a $10 million lawsuit in 2016 due to its failure to conduct a background check on the drivers. However, it was only one instance where Uber failed to conduct background checks on drivers, which led the company into legal hassles. Another report states that Uber paid an $8.9 million fine in Colorado (USA) for recruiting drivers with past criminal records and motor vehicle offenses.

Background screening for customers and employees is challenging for banking, finance, and many other sectors. Adopting the latest technologies in background screening is the only viable solution for these companies. Fortunately, artificial intelligence has devised a promising mechanism that assures error-free and quick background screening.

Limitations of Traditional Background Check

The traditional background screening process has two prominent limitations. Firstly, the process needs to assure 100% accuracy, and many well-known companies have paid hefty fines due to failures in background screening. Secondly, the conventional background screening is time-consuming, which makes the process unproductive and costly.

In 2017, JP Morgan Chase, a leading American investment bank and financing company, was slapped with a $1.25 million fine by the American Financial Industry Regulatory Authority (FINRA).

According to FINRA’s report, the company failed to conduct a background screening on more than 8,500 employees.

William Hill, a reputed British bookmaker, was also fined 6.2 million pounds in 2018 for accepting money from people with criminal backgrounds. The company should have checked these people’s backgrounds before accepting funds from them.

Why are changes in approach required?

The examples above suggest the limitations of the traditional background check. The examples also stress adapting to the modern AI-integrated mechanism to bring accuracy and swiftness to background screening. Artificial intelligence can process a large amount of data in a short time. On the other hand, it prioritizes the relevant information and omits unnecessary data from the verification process. Finally, a data-driven decision ensures error-free background screening.

Keeping sensitive financial information safe is a massive challenge for the banking sector. Many banks fail to maintain security, which compromises sensitive customer information. Such banking and financial institutions lose the trust of their buyers. AI-integrated background screening also helps overcome security concerns for banking institutions. Besides processing and analyzing data quickly, AI tools ensure that the standard measures to maintain data security are followed.

A More Detailed and Accurate Analysis

Background screening is complex for small to large enterprises due to the absence of a mechanism to perform detailed analysis. The companies that deploy manual verification need to conduct in-depth data analysis. As a result, mistakes appear in background screening.

A few mistakes may appear small or ignorable initially, but such mistakes can harm a company’s reputation in the long term. Moreover, the states change policies after certain intervals. Maintaining compliance in background screening becomes complex when new policies emerge.

Adopting artificial intelligence for background screening is the best way of overcoming such concerns. The AI-integrated background screening system can run in-depth analyses and determine the factors that may lead to noncompliance with the state’s policies. Moreover, a detailed analysis is essential to maintaining accuracy in background screening.

A detailed report always helps business managers make the right decisions on hiring employees for their organizations. Similarly, the banking sector offers certain products to customers with exceptional financial records. Detailed background screening is crucial before offering such products to customers.

A Better Understanding of Multiple Risks

Manual background screening overlooks the risks that are minor or negligible. But small mistakes often become the system’s loopholes, which miscreants may exploit to commit fraudulent activities. Companies like Uber, JP Morgan Chase, and others have suffered immensely from faulty manual verification. Such companies paid hefty fines and suffered massive financial losses due to the mistakes in manual background screening.

Artificial intelligence deals with an extensive data set and identify all potential risks precisely.

An automated system does not overlook small or negligible risks. As a result, it can create a detailed risk assessment report for the users. As a result, companies recruit people with the cleanest background records. Moreover, the banking sector can identify all potential risks before offering users credit or other financial products.

More Attention Given to the Right Data Points

AI-integrated systems have to follow certain algorithms. Therefore, background screening becomes a systematic process with AI-based automation. A systematic process gives more importance to relevant data. The system follows its algorithm to prioritize data analysis to quickly and efficiently identify potential risks.

Manual background screening often fails to prioritize the right data in a risk assessment process. Therefore, much time is well spent dealing with data that holds little relevance. Artificial intelligence technology makes risk assessment more systematic by making it easier to identify relevant data and prioritize analyzing it in an organized manner.

Giving more attention to the relevant data makes the overall risk assessment in background screening more accurate. Nevertheless, it also improves the overall background screening speed.

Data from Various Sources for Background Analysis

Background screening involves collecting data from different sources and accumulating it on one platform to create an accurate background report. A manual process may need to be revised to acquire data from different sources for various technical reasons. Nevertheless, humans tend to skip processes that are prolonged and tiring.

But, an AI-integrated system does not leave a stone unturned in analyzing the data and creating background screening reports. The system can quickly establish communication with different sources and collect data systematically. It runs a relevancy check once data from different sources has been collected. Finally, it prepares a detailed background report after omitting the irrelevant data from the system.

Automation Speeds up the Process

Traditional background screening could be faster and more convenient. Many companies adopt aggressive business expansion policies, making it difficult to get accustomed to the slow conventional background screening process. Many companies invite errors to make the existing process faster, eventually leading to hefty financial penalties and reputation damage.

Thanks to automation in background screening, the process has become faster. Since the process does not depend on human intervention, it runs systematically to access online reports, patterns and records to create background screening reports. The overall process happens quickly, and the system can run background analyses of multiple individuals simultaneously.

Conclusion

So, these are the changes that AI-integrated automated systems have brought to background screening services. Both small and large companies have benefitted immensely due to more accuracy and lesser time consumption in background checks. Moreover, traditional background screening is costly, while advanced AI-integrated systems do not require human intervention. As a result, background screening becomes fast, effective, and cost-effective.

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What Background Screening Automation can do for Indian Companies?

What Background Screening Automation can do for Indian Companies?

January 4, 2023
2:43 pm
Background checks, background screening, background verification, Indian companies, verification

Background screening is the most critical part of hiring; companies screen candidates before sending the offer letter. However, earlier, the background screening process was done manually and involved paperwork, which was time-consuming. Thankfully, in the age of automation, things are easy. Background checks are improving with artificial intelligence (AI) and other innovative technology. Employee background check processes are now entirely automated, enhancing their effectiveness. Candidate data is also available in public databases, which saves physical resources.

The HR department is vital to the company’s ability to hire new employees. But it can take a long time to look at many applications and check the information given. Working with a screening service that combines best-in-class technology with expert advice and direction can help you get high-quality background check results and improve the overall effectiveness of your hiring process. Using technology to do background checks during the hiring process has several benefits. First, the way background checks are done has entirely altered thanks to modern technologies, which means hiring new staff requires considerably less manual labor. This article presents how end-to-end automation software helps with background screening.

What are automated background checks?

An artificial intelligence (AI) program called Automated Background Checks runs background checks on prospective employees. A background check investigates a candidate’s past based on the rules set by their current or potential employer. A background check entails looking into a person’s work, education, criminal history, credit history, motor vehicle history, and license history.

How does automated background screening help Indian companies?

Reduces Double Entry with ATS Integration

Most recruiters already know that an applicant tracking system (ATS) is helpful because it makes it easier to track many resumes and other candidate details. When coupled with background screening technologies, the ATS can reduce double entry and provide talent acquisition professionals with information on where candidates stand in the screening process.

You can enter identical candidate information into two different systems if your applicant tracking system (ATS) and background screening procedure operate correctly. But when you put them together, your applicant tracking system automatically sends demographic information about applicants to your background check tool. It helps to proceed rapidly from one step to another and makes background screening easy.

Speedy Verification

HR staff members would only want to spend a little time on verification. The background check system has made screening and hiring new candidates quick and easy. Nowadays, all a business must do to request a background check on a job application, or recruit is emailing a screening request to the background check provider. Background checks in India are done by top companies using automation software that helps with quick verification. They can easily access the candidate’s data and get their educational background. This speedy verification process is what makes automated tools worth using.

Huge organizations frequently review the documents of hundreds of applicants. Just picture doing that by hand! Most utilize specialized technologies and safe internet platforms to speed up turnaround to a few days.

Handy and Accurate Information

Using reliable screening sources has contributed to gathering accurate information on candidates’ pasts. Earlier, when screening took place manually, even HR personnel were prone to miss information, especially when performing a criminal history or reference check. In-depth background checks are now available thanks to innovative technology. The results are also accurate and trustworthy.

Background checks are required for new hires and candidates by state organizations and agencies. The extent of the check will be decided by the organization.

Completely Automated Screening

One of the reasons Indian companies are moving towards screening software is its automated background-checking features. Candidates must initially fill out a form on the employer’s website. The data is then automatically filled in by the screening service. HR must keep an eye on the verification’s development and await the results. The results are immediately made available in response and require no further action.

HR staff gains enough benefits with technological progress. Property owners run background checks on prospective tenants to ensure they let a trustworthy person into their homes. They receive the results instantly, exactly like HR professionals do. Proprietors and property managers have access to screening equipment that deconstructs and electronically processes personal data to look into the histories of tenants.

Simplifies Drug Screening

Although scheduling a visit to a testing center is required for employment drug screening, it should be brief. You can give candidates access to a user-friendly portal where they can browse for testing centers nearby, schedule their test, and obtain their results once they are ready using mobile, paperless drug screening technology.

Paperless drug testing also stores chain of custody information to save candidates from keeping track of paper documents when they take a drug test.

Data Protection

Many employers think twice before revealing information through a background check. Data sharing between HR staff members is made secure by background screening technology, preventing it from falling into the wrong hands. Even though background check technology does not completely replace risk management practices, it does ensure adherence to the highest security standards.

It can assist organizations in setting up security measures to protect data and traffic to servers that are not on their property. The company’s IT team or department must work on limiting data access to third parties.

Work Eligibility Verifications

Verifying a candidate’s right to work is the common routine under the hiring procedures. If hiring a candidate remotely, it may be impossible to complete in-person verification of job eligibility documents, such as a passport, birth certificate, or driver’s license.

You can virtually gather and verify documents and run an entirely paperless I-9 process by working with a background check company that provides electronic I-9 services. Additionally, you can integrate offline work processes with your background screening software to quickly spot people whose social security numbers do not match and receive alerts when someone’s work authorization is about to expire.

Transparent Work Environment

A significant benefit of using technology in hiring and screening is the improved working environment brought about by higher-quality recruits. Additionally, it frees HR staff members’ time to concentrate on other activities. Background checks can also reduce potential risks in the future. The degree of trust in the workplace can arise when a person consents to ongoing monitoring.

End-to-End Automation

Technology allows for the end-to-end automation of background checks. Prospective employees must fill out an online form on the company’s website with all their contact information. The screening platform will then automatically generate all the necessary data.

Finally, cutting-edge technology, like artificial intelligence and machine learning, helps analysts’ mental processes by finding connections, deciphering their context, and raising precautions as necessary. Online sources for data collection include media, legal records, and a wide range of other sources.

Staying Informed about the Workforce by Monitoring

Once the employee gets employed, background screening technology enables you to move on to the next stage of employment screening. Post-hire monitoring is a necessity for many firms.

By routinely checking government exclusion along with the debarment lists, workforce monitoring technology automates the process of confirming your employees’ employment eligibility.