Background checks and more: How IT companies are detecting moonlighting

IT firms are increasingly resorting to background verification firms for additional checks on employees for moonlighting, says report

As workers around the globe warm up to moonlighting, IT firms are gearing up to the challenge of identifying which of their employees are pursuing a secondary gig and whether that work is in direct conflict with the employee's primary job. But it's proving to be a challenge.

How do you determine whether an employee is working for your competitor outside office hours or whether their work raises ethical questions? To overcome this challenge, IT firms are increasingly resorting to background verification firms for additional employee checks.

According to a report in The Economic Times, one of three IT companies now asks background verification firms for a check for moonlighting or dual employment among new joinees and existing employees.

These verification firms scan through freelance websites – such as freelancer.com and fivver.com – to see whether any of their client's current or potential employees have a presence there. Besides, they also regularly check the Employees Provident Fund Organisation (EPFO) portal for signs of moonlighting.

These firms say their research shows that nearly 8 per cent of people engage in parallel assignments.

"There is a significant increase in the number of clients asking for moonlighting checks," Ashok Hariharan, chief executive at tech-based identity verification firm IDfy told ET. "Today, one out of three of our technology clients wants some level of check for moonlighting or dual employment."

"We have various ways of figuring it (moonlighting) out," Sandeep Kalra, chief executive of Persistent Systems, told ET, adding that even using Microsoft Outlook can allow them to do so.

They also look for how many meetings employees attend and how far they are accessible.

Hariharan added that bank account statement analysis could also reveal inward payments. However, this practice is rare.

Ajay Trehan, the founder of AuthBridge, told ET that they use proprietary algorithms and technology to verify dual employment using employees' UAN and Form 26AS.

While companies are coming up with newer ways to find whether any of their employees is moonlighting, there is a debate on whether this is an unhealthy practice.

Some argue that moonlighting helps a person get some additional income and a break from the monotony of their regular job. Others say it compromises the integrity of their primary employment.

Last month, Infosys allowed external gigs with the prior consent of managers, subject to certain conditions. But Wipro laid off several employees for moonlighting.