A new hire that is a wrong fit is not only bad for business—disrupting operations, straining internal resources, and affecting team morale—but it can also be a costly mistake. Background screening is a critical step in hiring, ensuring you bring the right talent into your organisation. However, many companies make common background screening missteps that can lead to inaccurate assessments or missed red flags.
With the introduction of the Complementarity Assessment Framework (COMPASS) in Singapore, which is designed to regulate and streamline the hiring of foreign workers, background screening has become even more essential.
Why avoiding screening errors is crucial for your business
In today’s competitive environment, businesses can’t afford to make mistakes when hiring talent. One study puts the cost of a bad hire at 30 per cent of the hire’s first year salary and this does not include hidden costs like draining resources, lost productivity and the cost of training. This can lead to increased turnover rates as other employees may leave due to dissatisfaction with team dynamics influenced by a misaligned candidate.
In this blog, we’ll explore some of the most frequent background screening blunders and offer practical solutions to help you enhance your process and make more informed hiring decisions. Employers must also be careful to manage the entire process properly with compliance in mind and to ensure their candidates’ rates information is protected. By becoming aware of these common oversights and making simple adjustments, you can improve your hiring process and reduce the risks of an ill-fitting employee.
Mistake #1: Employment history verification errors
Errors in verifying work passes and employment history happen frequently during background screening. These oversights can occur when employers fail to properly validate a candidate’s legal right to work or inaccurately verify their past employment. This can lead to compliance issues, legal consequences, and potentially hiring someone who is not qualified for the role.
Mistake #2: Failing to customise background checks based on position
Different roles may require different types of background checks. For instance, positions involving financial responsibilities should include credit checks, while those in healthcare or childcare should prioritise criminal background checks and professional licensing verification.
Mistake #3: Mishandling of personal data
This can occur when sensitive information, such as criminal records or credit reports, is not stored securely or is shared with unauthorised individuals. In Singapore, the Personal Data Protection Act (PDPA) offers baseline protection and noncompliance can result in severe legal and reputational consequences. Mishandling personal data not only violates privacy laws but can also damage your company’s reputation and trust with candidates.
Mistake #4: Inadequate communication with candidates
Not informing candidates about the background check process or updating them during the process can lead to distrust and confusion. When candidates are left uncertain, it can cause disengagement and impact their overall experience. To ensure a smooth transition from application to hire, employers must maintain a positive relationship throughout the screening process.
Mistake #5: Incomplete international qualification verification
In today’s global workforce, many candidates have education or certifications from institutions abroad. In fact, Singapore’s COMPASS enforces strict guidelines for verifying educational certificates. Failing to fully or properly verify these qualifications can result in hiring decisions based on inaccurate information or even the rejection of a foreign employment pass, particularly in Singapore.
Mistake #6: Cross-cultural screening challenges
Cross-cultural screening can present unique challenges when hiring. Misunderstandings or biases during the screening process can lead to inaccurate assessments of a candidate’s qualifications, work experience, or character. It’s important to recognise that certain certifications or job experiences may be interpreted differently across cultures.
Safeguard your hiring process for long-term success
In an environment where businesses are under increasing pressure to make the right hiring decisions, avoiding common background screening pitfalls is essential. Mishandling personal data, inadequate communication with candidates, incomplete international qualification verification, and cross-cultural challenges are just a few of the pitfalls that can undermine the hiring process and lead to costly mistakes.
To mitigate these risks, it’s important to take a proactive approach by implementing robust processes, investing in secure data management systems, and ensuring your screening practices align with both local regulations and international standards. By customising checks for each role, training your team on cultural awareness, and leveraging reliable screening partners, you can significantly reduce the chances of making a bad hire.
A streamlined and accurate background screening process not only protects your company from compliance issues but also ensures that you hire the right talent, driving long-term success. So, make sure your hiring practices are up to par and take the necessary steps to protect your business and reputation.
Ready to streamline your background screening process and stay compliant? Download our MOM Employment Pass Best Practice Guide today to learn essential tips and best practices for verifying work passes and employment history. Download the Guide.
