HR leaders and their teams mostly understand the importance of background screening. Not only does it reduce the costly risks of a bad hire, but it also ensures workplace safety, and increasingly, it is a requirement in regulatory frameworks such as Singapore’s COMPASS system.
According to a survey by Robert Half, 98 per cent of CFOs in Singapore reported making a bad hiring decision —a costly mistake that companies could have avoided with better screening. At the same time, regional data indicate that over 21 percent of education verifications in Asia Pacific contain discrepancies, highlighting the risk of falsified credentials.
For companies managing tight budgets or with lean HR teams, the decision can feel like a balancing act between control, compliance and cost. Adding to the complexity are new guidelines from the Ministry of Manpower (MOM), stricter data protection laws, and a rising need for foreign talent, all of which place increased pressure on HR to get screening right.
In this article, we explore the two main options for screening and verification among Singapore employers: outsourced support versus an in-house approach.
What is in-house background screening?
In-house background screening is a process whereby HR teams verify a candidate’s history using internal resources. This can involve manual collection of documents, phone-based reference checks, online research, or the use of free-to-access government portals.
In Singapore, companies may attempt to conduct criminal record checks, verify educational qualifications with local institutions, or request personal information directly from candidates. While this approach may seem more cost-effective at first, it can be time consuming, taking resources away from other high-value tasks and often leading to inconsistent results, missed red flags, and legal blind spots if HR teams lack expertise in privacy law or international verification protocols.
Read also: the real cost of a bad hire
What is outsourced background screening?
Outsourced background screening is when a company engages a specialist vendor to conduct checks on your behalf. These vendors typically offer access to secure technology platforms, international databases, and a trained team that can handle everything from reference calls to education verification and sanctions screening.
Outsourcing is increasingly popular among firms with regional hiring needs or high compliance standards, such as those in banking, healthcare, and professional services, given tighter regulations. RMI provides MOM-compliant packages designed to streamline hiring while meeting legal obligations under PDPA.
Key factors to consider when deciding on in-house vs outsourced background screening
Ensuring PDPA compliance and MOM requirements
MOM has tightened requirements for verifying educational qualifications in recent times, particularly for Employment Pass applications. Employers are now expected to provide documentation and proof that qualifications are legitimate and obtained from recognised institutions.
At the same time, PDPA requires that all personal data collected during the hiring process be stored and handled securely. Failure to comply with either can result in delays or penalties to the application. Outsourced providers are typically better equipped to meet these regulatory standards due to established processes and secure systems.
Read also: Navigating the new NRIC guidelines: what it means for background screening
Time, resources, and screening turnaround speed
In-house screening often places additional strain on already busy HR teams. Tasks such as chasing down references, verifying overseas qualifications, or interpreting background reports can take hours, sometimes even days. If the team lacks training in fraud detection or document analysis, the screening may be superficial at best.
Outsourcing frees up internal resources and often delivers faster turnaround times, particularly for checks involving foreign institutions or legal databases. This helps companies accelerate their time-to-hire and reduce dropout risk among strong candidates.
Costs and long-term risks
On the surface, conducting background screening in-house appears more cost-effective, but there are often hidden costs involved. These include the time it takes staff to conduct the various checks and balances, training, document storage, and the risk of hiring mistakes due to inaccurate or missed information.
On the other hand, vendors typically charge on a per-check or per-candidate basis, with scalable packages depending on the company’s size or sector. For companies that hire frequently or operate in high-risk environments and regulated industries, outsourcing offers greater long-term value and risk mitigation.
Global screening capabilities for international hiring
Screening candidates from overseas or verifying a diploma from a non-English-speaking country? This can be indeed tricky. In-house HR teams often lack access to the tools and language expertise necessary to handle global screening cases effectively. Outsourced providers have a broader reach, with direct access to international education registries, watchlists, and language translation support.
Making the right choice for your business
Choosing between in-house and outsourced background screening is not a one-size-fits-all decision.
For smaller companies that occasionally hire and deal only with local candidates, handling checks internally may be manageable at first, especially when the process is limited to reference calls or verifying local education. However, even in these cases, HR teams must understand the guidelines and legal obligations under Singapore’s PDPA.
On the other hand, organisations operating in highly regulated sectors, hiring foreign professionals, or managing high volumes of recruitment will likely find that outsourcing is much more effective.
Accessing global, trusted databases, ensuring MOM compliance, and delivering consistent turnaround times without overloading internal teams often makes outsourcing a more attractive option. This provides HR teams with a sense of security and confidence in their screening process.
Final thoughts on background screening strategy
Both in-house and outsourced screening can be effective, depending on your specific requirements. The right choice depends on your company’s size, risk profile and posture, and internal. Get in touch today for a consultation on our comprehensive and reliable background screening services.
