Why HRMS is not Effective When It Comes to Handling BGV?

From our experience, acquiring a standard background verification (BGV) report from a third-party agency typically takes up to 14 days. While the exact time may vary depending on several factors, this timeline is generally consistent across most roles and industries.

When we compare this with data from Bamboo HR, which indicates that the average time-to-hire is 44 days, we can conclude that approximately 30% of the hiring process is spent on background verification.

This holds true if BGV is already considered as part of the hiring process. However, if not, this adds an additional 30% to the timeline, extending the timeline of the onboarding process to roughly two months.

Having established the imperative importance BGV plays in the complete hiring process, let us understand why general SaaS solutions like HRMS are often insufficient to effectively manage this process.

HRMS's Generalized Approach Falls Short When It Comes to a Process like BGV

HRMS is an all-purpose software that includes modules to manage processes like employee attendance, leaves, payroll, onboarding, training, and more.

However, there are specialized tools available in the market that focus on these processes in a more niche manner, addressing specific problems one at a time.

Applicant Tracking Systems (ATS) like Greenhouse, BambooHR, and payroll solutions like RazorpayX are prime examples, highlighting that HRMS’s internal modules are often not sufficient to handle the job effectively.

Similarly, in the case of BGV, most HRMS modules we encountered during our research either provide only basic functionality or offer no features at all.

For a company just starting out, HRMS is the ideal software to manage everything in one place. But as the company grows, every second, every penny, and every bit of effort becomes crucial - either contributing to growth or hindering it.

That is why larger companies often combine HRMS with other specialized tools, such as an ATS, payroll software, and more. At a certain scale of business, a generalized approach no longer serves the purpose

How CredCorp - BGV Control Hub, Along with HRMS, Is Your Best Bet

CredCorp is purposefully designed to address the management challenges employers face when collaborating with multiple BGV agencies for processing verification.

Once integrated with HRMS, CredCorp can automatically pull candidate data and initiate the verification process. With rule-based automated workflows, you can set the process in motion and let the verification run on autopilot.

Additionally, niche challenges such as insufficiency management - where the collected documents are insufficient and need to be recollected - can be handled with dedicated modules.

Features that HR managers and specialists have been asking for so long - from real-time activity tracking and one dashboard instead of multiple portals, to pre-formatted reports as per company policy and automated followups- CredCorp is packed with all.

That is why HRMS, when integrated with CredCorp, works like a charm for organizations that truly want to optimise the process.

Added Benefits: Faster Turnaround Times, Reduced Drop-Offs, and Substantial Cost Savings

In traditional setups, BGV agencies typically provide a portal to manage the workflow between the employer and themselves. These portals often offer basic functionality and add minimal value to the overall process.

From an employer's perspective, it does not make sense to onboard onto such a third-party platform. However, lacking a better alternative, they often do.

CredCorp changes the game by having agencies onboard onto their (employer’s) platform built for employers in mind, focusing on what benefits them most.

It connects candidates, HR teams, and all partnered BGV agencies, removing collaborative inefficiencies that are often the primary cause of delays. As a result, CredCorp users experience a 54% faster turnaround time and a 26% annual cost savings.

Why is this important? According to Robert Half, one of the world’s leading HR consulting and staffing firms, 86% of HR professionals reported losing good candidates within a year of taking their survey.

With CredCorp’s accelerated processes, this number is significantly reduced. Why? In the same report, Robert Half mentioned that 29% of candidate losses were due to delays in releasing the offer letter.

And did you know what is the primary reason behind delayed release of offer letters? Well! It’s an overly time-consuming BGV process.

Key Takeaways: The 60-Second Summary

• The average time-to-hire is 44 days while the average BGV turnaround time is 14 days, making up approximately 30% of the total hiring process. This highlights the importance of BGV in the overall hiring cycle.
• HRMS provides a generalized approach, with modules that cover various HR-related processes, from attendance management to payroll.
• Despite being an all-purpose solution, HRMS is often complemented by specialized software like ATS and dedicated payroll systems. This underscores the need for niche software to handle more complex processes.
• When it comes to BGV, the best practice for companies that have achieved a certain scale is to integrate HRMS with a specialized BGV platform like CredCorp. This combination helps optimize processes, saving time and resources.
• CredCorp can reduce BGV turnaround time by 54%, resulting in a 26% annual cost savings. Additionally, it can lower drop-off rates, as delayed offer letters (often caused by delayed BGV) are a primary reason for candidates dropping out of the hiring process.