In the current competitive job market, companies are constantly striving to attract top talent while prioritizing safety and security in the workplace.
As a result, identity verification has become an integral part of the hiring process.
Employers can reduce the risk of fraud and ensure safety by verifying candidates’ identities.
Understanding the Difference: Identity Verification vs. Background Screening
Before delving into the significance of identity verification, it’s essential to differentiate it from background screening. Many people mistakenly assume that identity verification is included in a routine criminal background check.
However, at the beginning of the process, a criminal background check relies on candidates providing accurate identifying information, such as their Social Security number, name, and date of birth. Unfortunately, errors in this information can go undetected, leading to incorrect background check results.
To address this issue, incorporating an identity verification step early in the hiring process, even before Form I-9, allows employers to conduct a more accurate search with the correct identity information. This proactive approach helps protect against rising identity fraud, which resulted in fraud losses of over $5.8 billion in 2021 and ensures that candidates represent themselves truthfully.
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The Different Methods of Identity Verification
Various identity verification solutions are available to employers to establish candidate authenticity. These solutions encompass a range of approaches, including:
- Telecom and Device Verification: This method involves verifying a candidate’s identity through their telecom provider or device, ensuring that the information provided aligns with the associated phone number or device.
- Document and Facial Recognition: By utilizing advanced technology, employers can verify a candidate’s identity by scanning and facial recognition, comparing the information provided to official documents and facial features.
- Biographic Data: This method involves verifying a candidate’s identity by cross-referencing their personal information, such as their full name, date of birth, and address, with reliable databases.
- Live Video Chat ID Proofing: Employers can conduct live video chats with candidates to verify their identity in real-time, ensuring they are the individuals they claim to be.
- Portable Identity: With portable digital identity solutions, individuals can go through the verification process once and reuse it in various instances, such as government applications, business forms, and employment. This approach reduces friction while maintaining a high level of security.
Safeguarding Against Workplace Fraud
Fraudulent activity in the workplace poses significant risks to companies and can have severe consequences. By implementing robust identity verification measures, employers can protect themselves from various forms of fraud. Some examples include:
- Hiding Criminal Records: Candidates may attempt to conceal their criminal records to secure a job. Through thorough identity verification, employers can uncover hidden information and make informed decisions.
- Impersonation: In some cases, candidates might hire someone else to represent them during interviews or assessments. By verifying identities, employers can prevent individuals from misrepresenting themselves.
- Unauthorized Access: Candidates may falsely claim to be someone else while hiring to gain access to a company’s proprietary systems, customer information, or software. Identity verification helps prevent unauthorized access, safeguarding the company and its clients.
The Benefits of Investing in Identity Verification
Organizations invest in technology improvements as hiring practices evolve to streamline the candidate experience and automate the hiring process.
According to a recent survey, 89% of HR and staffing professionals invest in new technology to achieve these goals. Identity verification plays a crucial role in enhancing the candidate experience and optimizing the hiring process in several ways:
- Minimizing Manual Data Collection: By incorporating identity verification, employers can minimize the need for manual data collection from candidates, saving time and effort.
- Accelerating the Screening Process: Identity verification expedites screening, reducing the chances of candidates dropping out due to lengthy procedures.
- Remote Verification: With the shift towards remote work, identity verification allows employers to complete the verification process remotely, providing convenience to both candidates and employers.
- Improved Resource Allocation: By automating time-consuming tasks associated with identity verification, HR staff can focus on creating a positive candidate experience and engaging with potential hires.
The Evolving Landscape: Automation Meets Verification
Identity verification transforms a transactional, one-time process into a network-based, portable digital identity. This shift offers the promise of a reusable digital identity, where individuals can go through the verification process once and reuse it for various purposes, such as government applications, business forms, and employment.
This streamlined approach eliminates friction without compromising security. An analogy for this concept is using digital wallets to apply for jobs, similar to having TSA PreCheck for expedited airport security.
Once candidates’ information is verified, they can choose which data to share with potential employers, government agencies, and businesses. This empowers individuals to control their information while adhering to privacy-preserving principles.
Extending Beyond Hiring: The Wider Applications of Digital Identity
Digital identity verification is not limited to hiring; it has broader implications for personal tasks and transactions. Individuals are becoming increasingly familiar with digital identity verification in various aspects, such as opening a bank account or booking an Airbnb.
The average time required for candidates to complete the identity verification process is significantly reduced, with pre-verified candidates taking an average of 30 seconds and new candidates taking 90 seconds.
As technology advances, organizations are adopting digital identity in their workflows, enabling the verification and storage of additional attributes on an individual’s digital wallet.
The evolution of hiring strategies and processes will keep pace with technological advancements, enhancing the candidate experience and ensuring efficient and secure identity verification.
Conclusion
Identity verification is a crucial aspect of background checks during the hiring process that assists employers in creating a safe and secure work environment while also attracting top talent. By employing rigorous identity verification procedures; businesses may protect themselves against fraudulent activities, ensure the accuracy of background checks, and improve the candidate experience.
With the advancement of technology, digital identity verification has become a secure and efficient approach to identifying individuals. This empowers people to have control over their information. In today’s rapidly evolving hiring landscape, identity verification is essential for organizations seeking to optimize recruitment processes and effectively engage with candidates.
