The CFO’s Guide To Auditing Background Check Spend In 2022

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As the Chief Financial Officer, one is always looking for ways to curb wasteful spending and bring down operational expenses. As the CFO, background checks often get overlooked as they fall under the purview of human resources, but that should not be the case.  

As a CFO background check related questions such as these need answers for clarity.

1. How much has the company forecasted to spend on background checks for this financial year and subsequent? 

Ideally, there should already be a projection and forecast for this spend, but there are high chances of it not existing. This happens when the company pays per transaction, one background check at a time. 

Background checks cannot be put on the same platform as products. Employee verification is a process— that is an integral part of talent recruitment and employee retention procedure. These background checks need to vary according to the role and job requirement. You cannot follow a one size fits all rule. Each job will have its checkpoints, and the cost will vary as per those requirements. 

Make sure the HR and you are aligned regarding costs and forecasts. Then, speak to an employee verification professional to assess the program’s costs and adjust them accordingly. Do this activity twice a year.

You may think that employee screening is such a cost, but it is much more than just that upfront amount you shell out periodically. The actual price of it encompasses much more. Imagine all the costs incurred due to high employee turnovers, employment lawsuits, non-compliance and brand damage. To add to this is the low morale of the frustration of the human resources department. 

2. Now find out how much time HR has allocated to carry out background checks?

Sometimes the background verification processes can get long and tedious. Yet the HR refrains from complaining unless one directly asks them about it. They will always be reluctant to bring their issues to the notice of the CFO. 

Advanced know-how in the market uses technologies like face match, optical character recognition (OCR), document classification, image recognition, Aadhar based e-signs, and digital signatures. If you know that these lead to cost and time savings for HR, consider that.

If you could free up their time by providing a 10X faster screening (https://authbridge.com/employee-background-verification-screening/) and onboarding experience that offered end-to-end background checks with live dashboards and actionable insights, you would consider that. Please think of how productively they could use their freed uptime.  

Question your HR about the process and time it takes and address it by partnering with a technologically advanced employee verification services provider. 

3. How hassle-free is the screening experience for candidates?

The screening process is crucial because it weeds out the unfit and dishonest employees and because they are the first step of interaction with the applicant. This process will create the company’s first impression, and this should be an easy, smooth and positive experience.

So, ask these questions:

  • Are your candidate checks taking place online, via text, or email or do they still need to be done physically? If the percentage of checks via the phone is low, it isn’t enjoyable for the candidate. 
  • Do candidates have open access to support if they have queries or come across any issue in the verification form. 
  • What are people saying about the hiring experience with your company on platforms such as Glassdoor.

4. How long does the verification process take on average?

The answer to this – can neither be super-fast nor extra slow. 

  • A speedier check could mean that the review is missing pertinent information such as criminal record verification or health check-ups. It could lead to negligent hiring and more damage done than good in the long run. Cutting corners is not a solution. 
  • At the same time, an extra slow process is not conducive and quite wasteful. Speed is vital, no doubt, but it should not take precedence over compliance or accuracy. 
  • Last but not least, as a CFO, background checks being fruitful and achieving their goals is your responsibility. 

It is a great idea to vet the education background check spending and set a budget to ensure this essential activity is carried out.

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