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Corporates may tighten norms to screen employees

Views 2 Views    Comments 0 Comments    Share Share    Posted 30-11-2008  
Corporates would have to make their ‘know-your employee’ (KYE) norms more stringent following the Mumbai terrorist attack.

Though major IT and financial service firms do a through background checking before they hire employees, others like hospitality sector seldom follow strict norms.
House keepers

Media reports indicated involvement of two employees in the house keeping department of the hotel in the terrorist attack of Taj Mahal Hotel.

However, the statement issued by Mr Raymond Bickson, CEO & Managing Director of the Indian Hotels Company Ltd, which owns the hotel said: “We have had no indications from them (the investigating authorities) that any employee or contractual staff of the hotel have been involved as part of this terrorist attack as is being reported by some media outfits.”
Incurring costs

A spokesperson for the Trident Oberoi said: “The terrorists that attacked The Oberoi Group’s hotels were at no point in employment of the hotels..”

According to experts, companies see background screening and checking of employees as additional cost and not as an investment in ensuring safety.
‘No screening’

Ninety per cent of all registered companies in India do not undertake background screening of their employees, said Mr Ashish Dehade, Managing Director (West Asia), First Advantage, which the country’s largest background screening agency.
Realising importance

“It is only when such drastic events happen that they realise the importance of verifying the credentials of their workforce. However, after few days the intent again dies down,” he said, adding that First Advantage has a market share of 85 per cent in India.

The city based company has just a ‘couple of clients’ in the hospitality industry, which do not include any third party service provider to the hospitality industry.
Only at clients’ request

“I still know of many major companies in sectors such as financial services, manufacturing and even IT who still do not go in for background checking. In fact, several IT companies go in for such verifications only if their clients request for it,” said Mr Dehade.

Source:
http://www.thehindubusinessline.com/2008/11/30/stories/2008113050840300.htm
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