More companies doing background checks for employment pass applicants

Published on TheBusinessTimes, Dated: Monday, February 26, 2024

By: Tessa Oh

MORE companies are checking the educational qualifications of their foreign hires, with a “significant increase in demand for background screening services since the new assessment framework for Employment Passes (EPs) kicked in last year. Yet, the added cost means that some firms still avoid the verification process where possible, background-screening companies told The Business Times.

Since Sep 1 last year, new EP applicants must score at least 40 points under the Complementarity Assessment Framework (Compass). There are four foundational criteria, with a possible zero, 10 or 20 points to be scored. To pass, candidates need not score points in all four criteria: they could do so just by scoring full marks in two out of four, for instance. To score points under the “qualifications” criterion, however, employers must submit proof of the EP applicant’s qualifications – and must do so through one of 12 specified background-screening companies.

Since Compass came into effect, these companies have seen an overall surge in demand for their services. Demand for HireRight’s services has more than doubled since last September, said senior vice-president and managing director for Apac Ko Hui Yen. First Advantage has observed “significant interest” for screening services in light of Compass, with more than 500 enquiries from Singapore employers since September, said commercial director Caryn Chan. The company now has more than 100 clients wanting checks conducted for Compass purposes, and has screened about 700 candidates since the requirements were introduced-though it declined to reveal how this compares with pre Compass figures.

More SMEs doing checks

Some screening companies noted a jump in requests from small and medium-sized enterprises (SMEs), many of which did not have proc esses in place for background checks prior to the new requirements. This is in contrast to large multinationals, such as those in the financial sector, which had such practices before Compass due to sectoral regulations or obligations from other jurisdictions. “(Background checks) were already happening. But it’s just SMEs that have jumped on it with this new requirement,” said Kannan Chettiar, chief executive officer of Avvanz. He estimates that demand from SMEs has doubled since the introduction of Compass. But, SME employers are more likely to do only the bare minimum required by the authorities, said screening firms.

They noted that some firms take a more “strategic approach” to their background checks, doing these for selected candidates only. This is because, unlike large companies, SMEs may not have at budget set aside to screen every foreign candidate. “(For) SMEs, it is a bit of costs versus benefit versus security. (If not for the requirements), they may not even prioritise doing a check. They will just take the risk,” said Chettiar. Some SMEs such as those in engineering or consultancy may hire workers temporarily on a seasonal or project basis, noted Mervyn Ho, general manager at RMI.

"Ultimately, the decision to verify qualifications often hinges on the individual company's policies, priorities, and understanding of the role background checks play in hiring and maintaining a secure workforce."

Fiona Cher, Director of Government Services for Asia at Veremark

For them, it might not be worth coughing up a few thousand dollars to do checks on employees who are needed for only a short stint, he added. Said Fiona Cher, director of government services for Asia at Veremark: “In such cases, these companies may opt to skip the verification process, particularly if they can meet the required Compass points through other candidate or firmwide attributes without relying on qualifications.” Another approach is to run background checks only on candidates applying for certain roles, said Cher.

Ultimately, the decision to verify qualifications often hinges on the individual company’s policies, priorities, and understanding of the role that background checks play in hiring and maintaining a secure workforce,” she added. With cases of fraudulent degrees making headlines over the years, screening companies have also encountered employers who request to screen candidates from only a certain nationality or background. “It does happen quite often… (But) for us, apart from taking customers’ instructions, we do try to educate them that they cannot pick and choose based on race, nationality or religion,” said RMI’s Ho.

Checks for locals too

As more employers begin to see the benefits of background checks, some are starting to screen their local hires too. “Once (the companies) are ex- posed to this requirement, especially for the first time, then they do see other potential issues and would like to extend the relationship,” said RMI’s Ho.

As more employers begin to see the benefits of background checks, some are starting to screen their local hires too. “Once (the companies) are ex- posed to this requirement, especially for the first time, then they do see other potential issues and would like to extend the relationship,” said RMI’s Ho. Avvanz’s Chettiar has observed a similar trend. He noted: “After they get the mandatory checks done, we will tell them that we can conduct other checks as well… and, as we educate them in the process, they will ask us to do checks on local hires to make sure everyone is calibrated to the same level of security, not just a few.” “So it’s a process, because they need to build the budget slowly. Mandatory things first; then the checks are rolled out to include locals, and then the clients’ regional offices as well,” he added.