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Selecting Employees

Chapter 20


Background Investigations and Reference Checks

Former Employers

Sources of Information

Commercial Credit Rating Companies

Written References

Background investigations
Accuracy of the application form because people usually exaggerate about their qualifications and experience. Contact previous employer. Contact the references. Check the credit history (Credit cards record will show the payment habits of the person) Some agencies can also provide the information on payment.

Background investigations cont How good he or she is as a team member. Verifying the educational qualification. Verifying the work experience Legal status (Pakistani or foreign national, some foreign nationals are not allowed to work in Pakistan) Criminal record ( court record, driving license etc)

Why we are concerned about the investigations?

Usually people exaggerate their educational qualifications and work experience to get the job. To know the actual position. Uncover the damaging background (person may terminated on the basis of some serious matter) For the purpose of documentation (for future reference, if the person decides to go to court, against the organization, due to any problem)

Who will perform the investigation?

HR staff (cheaper) This is internal investigation, carried out by the HR staff of the organization and it is less costly. Any agency (costly) This investigation is done by a third party on the request of the organization .These agencies charge for their services and it is more expensive.

Conditional job offer

After completing the investigations, the actual hiring decision is made by offering a conditional job offer. Offer is made by the HR department But the offer is subject to the clearance of Medical test.


Medical Test
Next phase after extending the conditional job offer. Complete examination of the candidate to check his fitness pertaining to the job. For example vision, hearing, height and other tests. After passing the medical test, then permanent job offer is made to the candidate. Notification is issued by the organization regarding this appointment.

Nationality of the candidates

Due to the working of multi-national companies, the person can be hired from: a. From Parent Country Nationals (PCN) b. From Host Country Nationals (HCN) c. From Third Country Nationals (TCN)


Parent Country Nationals

Advantages Better organizational control and co-ordination Best place to work (feeling at home) The employee can take care of his/her family and can contribute more for the organization. No language problem Disadvantage Compensation for parent country nationals is usually less.

Host Country Nationals

Advantages Language and other barriers are eliminated. Hiring costs are reduced. No work permit is required Diversity enhance the healthy competition Disadvantages Control and coordination of management reduces. Limits the opportunities for the parent country managers to get the overseas experience

Third Country Nationals

Advantages Compensation may be lower as compared to PCNs and HCNs (advantage for the organization) May be better informed about the host country as compared to PCNs Disadvantages The host government may resist the hiring of TCNs. May leave the job in the attraction of their country. 5-12

Teaching the corporate culture and philosophies about how to do the business. Assumptions New members always feel anxiety , therefore, it is better to make them familiar with the organization and its culture. It is an effort to make the person involved because nothing can happen in isolation. It influences the performance of the person because he is not working on Hit and Trial Method. The system is known to him.

Welcome party Job rotation On the job training.