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Why Businessman Need Background Check in Indonesia?

Why Businessman Need Background Check in Indonesia? Review by Michal Wasserbauer on 24. 5. 2016 Company Registration in Indonesia, Market Research in Indonesia, Work Permit in Indonesia, Product Registration in Indonesia, Local Partner Selection in Indonesia, Trade Mission in Indonesia, Company Formation in Indonesia, Company Establishment in Indonesia, Company Set Up in Indonesia, Payroll Outsourcing in Indonesia, Tax Reporting in Indonesia, Medical Product Registration in Indonesia, Medical Device Registration in Indonesia, Cosmetic Registration in Indonesia, Food Supplement Registration in Indonesia.
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When you are running and develop your business in Indonesia, it is very important that your company is supported by workers with experience and proven practices, have a good track record and assumed not bring troubles to your company in the future.

Surely an organization / company has a goal to be achieved. Achievement of these objectives can be achieved by utilizing existing resources. If a company wants to advanced, then the thing to be fixed first is its human resources. Because the most valuable assets of the company is its employees. In this situation, a background checks and due diligence investigation on employees in Indonesia is an effective way to discover potential issues that might affect your business later on.

Through background checking, all applicants are screened and selected. With trustworthy employees, the business could be save from the backfire of hiring bad employees that will incur the future losses of petty and major crimes and bad reputation from scamming employees.

Background checks and due diligence investigation are not expressly regulated by Indonesian employment laws, and certain background checks are subject to the consent of the applicant in practice. The most common background checks involve those on an applicant’s educational credentials, criminal background check, character reference check and so on.

Any checks undertaken must be appropriate and proportionate to the position being applied for and must not discriminate or discourage people from applying. There are specific points to note in relation to particular background checks in Indonesia:

  • Education Check
  • Criminal Background Check
  • Previous Employment History
  • Identity and Address Check
  • Credit Check
  • Character Reference Check

Education Check

The practice of conducting effective education background verifications for prospective employees has exploded in the workforce over the last 15 years. The costs of not performing a proper degree check can be costly for employers due to unqualified workers and resume fraud.

Criminal Background Check

Involve checking the past criminal history to see if there have been any criminal activities in the past. This information can be procured from either the public courtrooms or the police department. Driving records should also be checked of people who are being considered for hiring in positions where they have to drive a vehicle. These records provide important information such as his driving license details, any accidents the person may have been involved in, or if the individual has even been caught for driving under the influence, etc. Background checks also include social security number checks, previous employment checks.

Identity and Address Check

Registered personal address of the person is checked. Current and previous address can also be checked in case of any ambiguity. Address check is used by businesses to ensure that users or customers provide information that is associated with the identity of a real person.
The service may verify the authenticity of physical identity documents such as a driver’s license or passport, called documentary verification, or may verify identity information against authoritative sources such as a credit bureau or government data, called non-documentary verification.

Previous Employment Check

Employment History Verifications are conducted by contacting previous employers to verify an applicant’s job title, tenure, and salary claims. We ask about the applicant’s reasons for leaving and eligibility for rehire. We also ask if there are problem areas that a prospective employer should be made aware of. Work History Verification are an important part of a thorough background check.

Credit Check

Are done on people that are seeking employment in the financial positions. The Fair Credit Reporting Act requires proper credit checks prior to employing people. It becomes all the more important if the position requires dealing with huge amounts of money.

There are two types of credit checks – one is the consumer credit reports and the other, being investigative consumer credit reports. An analytical credit report consists of a written report as well as interviews with close people such as their neighbors and friends. Other background checks include social security number check.

Advantages of Background Checks in Indonesia

Following are the major advantages of background checks in Indonesia:

  • Enhance productivity
  • Lower employee turnover
  • Protect assets and better control employee theft
  • Ensure employees? sense of security and peace of mind
  • Avoid workplace accidents
  • Limit insurance cost increases
  • Control absenteeism
  • Contain healthcare costs