Home Blog COVID-19 in Indonesia: Why Employee Background Check is More Important than Ever Secretarial Services COVID-19 in Indonesia: Why Employee Background Check is More Important than Ever InCorp Editorial Team 13 July 2020 4 minutes reading time Table of Contents Why Employee Background Check is More Important than Ever amid COVID-19 Crisis What should You Check when Performing an Employee Background Check? Why Partner with Cekindo to Conduct a Background Check in Indonesia COVID-19 crisis may change the way you perform an employee background check in Indonesia. But, one thing for sure, you must not remove it from your recruitment process. As COVID-19 moves from a health crisis to an economic crisis, it is understandable that entrepreneurs and organisations feel powerless and terrified at the destruction of the business they have built. They are concerned about the welfare of their organisations and their people. All business leaders understand the severity and disruption caused by the crisis and do not know where they need to focus their efforts. During this difficult time, getting people back to work is vital, and doing a background check in Indonesia is ever more important to verify your potential hire’s information. Cekindo is going to tell you why in this article. Why Employee Background Check is More Important than Ever amid COVID-19 Crisis 1. A Bad Hire is Expensive This is true regardless of situation (during normal time or a crisis), a bad hire happens most of the time and many businesses face high costs for bringing bad apples on board. According to CareerBuilder, for each bad hire, a company will lose approximately US$14,900. The amount will be even more if you consider all the money and resources related to lost productivity, training, recruitment, and even legal expenses for issues arise from negligent hiring. You can avoid all this by engaging with a professional who can help you customise your employee background screening strategy based on your requirements. 2. The Labour Market is More Competitive For many years before COVID-19, there were more jobs than unemployed people. However, now the situation has reversed. Millions of people were unemployed in just one month between March and April. Thus, employers can now find their perfect hires from the large pool of candidates all of a sudden. There is another issue coming from this seemingly good problem though. Now that many people are eagerly looking for a job, job seekers may exaggerate the information in their resume to make them stand out. It, of course, poses a challenge to companies trying to find a good candidate but not sure if they are the real deal. Therefore, smart employers need a more adequate method – a background check – to verify candidates’ qualifications and other critical background details. 3. You Do This for Legal Compliance You may be required by law to run a background check on your employees, depending on the type of your industries and business activities. Don’t try to cut costs and skip this part of the law. It says that it’s one of the compulsory steps for your hiring due to your business type. The consequences of non-compliance may be severe and even detrimental. 4. It is Your Responsibility to Ensure a Safe Workforce As a responsible employer, you will need to keep your employees’ spirits up and ensure a positive, safe workplace during this challenging time. This can only be possible when the people you hire are a culture fit; and who is not one of the toxic employees that can bring the morale down in the workplace. Doing a background check on your employees can be a great way to maintain the desired workplace and help your company get through this pandemic. What should You Check when Performing an Employee Background Check? There are many different types of employee background checks in Indonesia, but here are the few major types you need to put your focus on: Education verification Reference check Drug test and screening Criminal history investigation Work history and past employment check Sexual offender registry check Credit and financial background Driving record identification Social media and internet check Professional certificate and license confirmation Why Partner with Cekindo to Conduct a Background Check in Indonesia Cekindo is a highly-recognized agency that specialises in a background check in Indonesia. Within the background check and due diligence industry, we are a service leader and a symbol of professionalism. We have a large dedicated team of specialists who can advise the best background checks for the roles you’re recruiting. After we have carried out a proven suite of background checks, you will receive clear and detailed reports. Talk to one of our experts about our solutions to a background check in Indonesia. Read Full Bio Verified by Daris Salam COO Indonesia at InCorp Indonesia With more than 10 years of expertise in accounting and finance, Daris Salam dedicates his knowledge to consistently improving the performance of InCorp Indonesia and maintaining clients and partnerships. Frequently Asked Questions What are the standard regulations regarding employment in Indonesia? The standard regulations state: Minimum salary of IDR 3.9 mil for the Jakarta region 12-day annual leave (minimum) BPJS coverage Holiday allowance Can an individual or a business organization be a shareholder in a PMA company, and is there a minimum number required? A limited liability corporation is required by Indonesian company law to have two or more shareholders, who may be either a legal entity or an individual. The foreign investor must find a second shareholder to own shares in the PMA firm for investments that are 100% open, which could be an affiliated party. Is there limited responsibility for shareholders in a PMA company? In a PMA Company in Indonesia, shareholders typically have limited liability, meaning they’re not personally liable for agreements or losses beyond their shareholding, except in certain circumstances. Liability may extend if the company isn’t properly established or if shareholders exploit the company in bad faith, engage in unlawful acts, or deplete company assets to the detriment of creditors. Get in touch with us. 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