Automated Background Verification: How does it Work? & What are the Top Benefits?

Automated employee screening uses technology to check an individual’s background with such information as:

  • Criminal records
  • Employment history
  • Educational qualifications
  • Credit history

The objective is to make the process of conducting background checks efficient & accurate, allowing employers to make informed decisions about the job applicants quickly.

When V Trace conducted a survey with assorted job applicants & hiring teams, we found that:

  • Only around 16% of candidates say that they never lie or misrepresent information during the hiring process.
  • More than 65% of recruiters say they are willing to hire someone despite misrepresentation.

To make better hiring decisions, employers should use digital technologies to check and verify background information provided by job applicants.

How Does Automation Work?

Automating background screening involves either specialized software process automation tools and / or intelligent automation. Either way, the automation tool is integrated with other HR systems, such as Application Tracking System, to streamline the hiring workflow.

Background check automation can involve technologies such as:

  • AI Technologies such as Natural Language Processing, Computer Vision, OCR and intelligent document processing to process unstructured documents and extract data from them.
  • Robotic Process or Intelligent Automation for data extraction, comparison, and migration through software bots.
  • Blockchain to securely store, share, & validate information provided by applicants

These technologies allow businesses to automate complex background screening tasks with unstructured data, such as:

  • Getting consent from the applicant for the background check.
  • Collecting data about the candidate from different data sources: criminal record databases, court records, credit records, sanctions lists, or social media.
  • Contacting references or past employers.
  • Verifying provided information by cross-checking against collected data.

The Challenges Faced While Conducting Manual Background Verification

1. Lack of a standard background screening policy

Performing background checks doesn’t ensure that your recruitment team conducts them consistently across all applications. Manual screening is prone to human error and non-standard processes.

2. Time-consuming tasks can lead to hiring with insufficient screening

Screening can be time-consuming and organizations may skip some subtasks when handling these processes manually.

The background check process involves tasks such as:

  • collecting data from different sources
  • reviewing and verifying the information for accuracy
  • resolving any discrepancies or inconsistencies.

3. Hard to customize the screening process for different roles and situations

Each job & each applicant may have different requirements & considerations. The background screening process must be tailored to take these into account. This can be difficult to do manually, as it requires a thorough understanding of job requirements & ability to assess & evaluate the information collected accurately.

The Benefits Of Background Screening Automation

1. It Enables Faster Background Checks

AI and process automation tools can automate many of the tasks involved in background screening, such as data collection, verification, and analysis, which speed up the process significantly. Intelligent bots can reduce the time and the need for manual data entry and review by:

  • Quickly searching and analysing large volumes of data from various sources, such as public records and criminal databases
  • Identifying relevant applicant information
  • Generating Reports about the results of the screening

Blockchain technology can provide a secure & tamper-proof repository for screening data, which can help to streamline the verification process.

Since blockchain records are decentralized and encrypted, they can be accessed and verified without intermediaries. This can make it easier to confirm the accuracy and completeness of the collected information and to ensure that it is up-to-date and relevant to the job in question.

2. It Can Allow Continuous Background Screening

Using AI and RPA in background screening can enable continuous monitoring of an individual’s background rather than just during the hiring period. This can be achieved by setting up automated processes that regularly collect and analyse information about an individual, such as their criminal records.

This can help identify any changes or developments in an individual’s background that may be relevant to their employment and allow organizations to take appropriate action if necessary.

However, employers should consider compliance with relevant regulations when switching to continuous background checks.

3. It Can Help Reduce Bias

Manual background screening is susceptible to human bias if the recruitment team does not have clear guidelines to follow. They can rely on their prejudices and preconceived notions when evaluating an individual’s background. This can result in Unequal treatment of individuals & blanket bans based on arrests or convictions. By using data-driven AI algorithms to collect, compile, and analyse information, organizations can:

  • Minimize the potential for human bias to influence the outcome of a background check and ensure that individuals are evaluated based on relevant and accurate information rather than on subjective factors
  • Standardize and consistently apply their background screening processes, which can help reduce the potential for bias in hiring decisions

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