The reasons why companies should undertake pre-employment due diligence when recruiting new employees. Pre-employment due diligence entails the confirmation of data that has been provided to the employer by prospective employees together with an assessment of his background to ensure that he is qualified for the job. In Thailand, it is crucial to do some research on companies and their owners before employment is suggested, because the markets can be saturated and sometimes very competitive.
Here are some of the risks that companies face if they do not perform pre-employment due diligence:
- Hiring unqualified or unsuitable candidates: In case of insufficient or no screening, the wrong individuals end up being hired by companies with little qualifications, work experience, or even previous records of job inefficiency or corporate malice. This situation may lead to decreased effectiveness, low motivation among the employees, and even create legal and financial problems.
- Exposure to fraud and other criminal activities: employment screening also can be conducted before employment, which ensures that the candidate does not have a record of fraud with fake documents or a criminal bent that is dangerous to the organization. Currently, corruption, as well as financial fraud, are heard everywhere in Thailand, so carrying out proper background checks is a must.
- Reputational damage: If, by any chance, the company has hired a person and later realizes that the person is not suitable for the job or even has unethical practices, then the company’s reputation will be at risk and this may harm the consumers. It can also have a ripple impact on the organization’s revenues and its potential for continuous growth in the market.
If those risks are not managed well, then pre-employment due diligence helps these companies hire the right talent for the job. The background checks can be part of Due Diligence, which has to be conducted before employment and includes education and employment history verification, criminal record checks, reference checks, etc. There may also be Thailand-specific factors that make background checks, a language and culturally-sensitive process, more difficult for employers to carry out themselves and it may therefore also be possible to employ a Thailand-based professional due diligence firm offering pre-employment screening services.
In addition to mitigating risks, pre-employment due diligence can also help companies reap the following benefits:
- Improved hiring decisions: Through the accreditation of a candidate, companies are put in a better situation to hire a deserving candidate since they view the performance of the candidate in a previous company.
- Increased productivity: This is another advantage that comes with hiring a competent person for the job. This is because the employees hired will improve the performance of the firm by working harder and offering their best to the employer.
- Protection of company assets: But using pre-employment due diligence, it is possible to prevent embezzlement of assets such as intellectual property, trade secrets, and funds in a company by hiring a candidate with a criminal background.
All in all, pre-employment screening is a critical step for organizations that intend to conduct their business in Thailand. If those performing the hiring exercise are very keen on the background information of the candidates, and crosscheck the details provided, they can be on the safe side, minimize or eradicate risks &/or losses, and make better hires.
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