How to Do a Company Background Check 4 Foolproof Ways You Must Know

Are you trying to check a company’s background? There are valid reasons for you to do so. After all, companies do not hesitate to conduct background checks on their potential employees during the hiring process, so why should you?

A background check lets you know whether a company that has offered an opportunity to you is legitimate. In Malaysia, there are various reports of jobseekers falling victim to job scams that lure them with promises of high pay through fake online ads or unsolicited text messages. These scammers take advantage of people in vulnerable positions as these talents search for jobs with attractive prospects. Hence, it is best to know which ones are the real deal and which ones aren’t.

Scams are not the only reason to conduct a company background check. You could also do this to know whether you are not walking into a landmine of problems that may arise. While the organisation may be legal on paper, it could also face various internal troubles that could jeopardise your job (just after getting the role after a period of job seeking) or make a difficult and toxic environment to be in. Have you heard of stories of employees leaving the company? That could also be another reason to look even deeper into your potential employer.

Doing a background check on a potential employer removes the mystery and lets you know what you will be working with. Hopefully, it will also lead you to find a rewarding and positive workplace.

Here are ways to do a background check on a company and find out whether there is smoke behind the mirror.

How to Check a Company Background

1. Check If They Are Locally Registered

Naturally, all legitimate companies need to be legally registered. In Malaysia, they would have to be listed under the Companies Commission of Malaysia (SSM), which is the agency responsible for all businesses and business-related matters.

Verifying whether a company is registered helps you, at the very least, know that the organisation is operating legally. It is also the first step towards obtaining other information about its status, legal history, and even credit history. Have they been embroiled in big financial ordeals?

Fortunately, verifying a company’s legitimacy in Malaysia is a quick, simple, and easy process that can be done in minutes. First, go to the SSM website and scroll to their e-Search page. There, you can key in the company’s registration number and click on “Search Now.” Then, the search results will show you whether the company exists. It will also provide information about the organisation, such as whether it is active or inactive.

2. Visit the Company Website

This may sound like a no-brainer, but one way to find out whether a company is legit is by visiting the company website. It is standard practice for organisations to have a company website; unless the business is a mom-and-pop retail store, simply having social media pages will not do.

Visiting the company website gives you insight into a lot of important information – including the organisation’s history, vision and mission, organisational structure, and even its culture. Most companies will flaunt their awards and recognitions if they have any – another clue for you to cross-reference and find out whether they are real claims or otherwise.

A website can also clue you into whether the company you’re looking into exists or not. Are there parts of the website in placeholder text (aka “Loren ipsum”)? Does the About page yield any real or interesting information about the organisation? The Contact Us page should also contain its registered company address and contact details. Are they valid? These should match the information found on the SSM website. At the very least, the listed contact details should be working with someone to receive calls properly during business hours.

Another tip: You can be more confident about a company listed on JobStreet. JobStreet screens and vets the organisations that post ads or connects with jobseekers for potential opportunities, making you more at ease when dealing with a legit business.

3. Check Out Other Sources

Have you proven that your potential employer is at least legally registered? You can also take other steps to ensure a company’s legitimacy by checking out other relevant sources. Depending on the nature of its industry and founding, the company may also be listed under other respective associations such as Chambers of Commerce and other accredited trade organisations.

While not required, this is another layer that adds to the credibility of the company as it means it has passed rigorous vetting standards by these chambers to be accepted as a member and regularly deals with other well-established companies and businesses.

Features in reputable news outlets and publications can also give you a better idea of whether a company is in good standing. Conversely, if the organisation is embroiled in reports of financial or legal troubles, that could be a potential red flag.

That said, if there is something published on an obscure website or a publication with no known journalistic practices, regardless if the article paints the company positively or negatively, then be a little more cautious about what you read online.

4. Consult With People Who Have History With the Organisation

It’s time to maximise your network. Find out if someone you know (or someone you know who knows someone) has any past or present ties to the organisation. Let them know that an offer or opportunity has come along your way and you would like to know more about what you could potentially be dealing with. They can then give you some insight into the company's reality and whether they have any insider information on the organisation's standing and its workplace culture and ethics.

Remember to be more critical in receiving and weighing other people’s opinions. No matter how good their intentions are, a past disgruntled employee may have their own biased view that may not be the case for you. This is when you start weighing the information you have collected, from checking on a company’s background, so that you can come up with your own conclusions.

If you cannot find someone you know who is associated with the company, relax. You can also read up on Company Reviews on JobStreet. This webpage offers the information you need to decide, from providing more context behind the workplace environment to revealing how they treat their employees. Once again, however, some critical judgment is requested. Use these reviews to analyse how people think and what people truly want.

Running a background check on a company you might work with is only fair. After all, working with this organisation would define your career, and you would want to know that you are in good hands while working with the company, even if you part ways after some time.

The holidays are here, which means it’s high time to take a serious look at your career prospects for the coming year. For more information on finding out whether a company is a real deal, as well as searching for the right workplace that suits you, visit the Career Resources page. Ready to #SEEKBetter jobs?