IT Companies Increase Scrutiny as Moonlighting Trends Rise
Amidst a backdrop of low salary increases and an unpredictable job market, the IT industry is experiencing a notable uptick in moonlighting verifications. Companies are increasingly scrutinizing overlapping employment, which indicates concurrent roles or undisclosed prior engagements. This heightened vigilance is leading to automatic flagging of discrepancies for client review, with the ultimate decision on risk or policy breaches resting with the clients based on their internal guidelines.
Surge in Employment Verifications
Background verification firm OnGrid has reported a significant rise in screening activities. In the first half of this year alone, OnGrid processed 23,000 employment verifications, which is already 87% of the total 26,000 verifications conducted throughout the previous year. A major factor driving this increase is the focus on employment history checks, which are often employed to identify instances of moonlighting. In the first six months of 2023, these checks flagged 2,900 cases, a notable rise from the 2,201 cases identified in all of 2022. OnGrid utilizes Universal Account Numbers (UANs), employment timelines, and personal records to detect overlapping jobs and undisclosed roles, highlighting the growing concern over dual employment in the sector.
Changing Work Dynamics Post-Pandemic
Manav Jain, the chief business officer at OnGrid, noted that the rise of remote, hybrid, and freelance work models following the pandemic has contributed to an increase in moonlighting cases. The flexibility offered by these arrangements has made it easier for professionals to take on secondary jobs. Economic pressures are also prompting many to seek additional income sources for job security. During the pandemic, many employees found themselves less engaged during regular work hours, and without effective monitoring tools, some began to take on extra work, leading to a habitual pattern of moonlighting.
Rahul Maheshwari, a former Google employee and founder of the edtech platform Linux Socials, shared that numerous professionals are turning to teaching as a side gig to navigate job uncertainties. He mentioned that many individuals work as freelancers, taking on teaching assignments without going through the Provident Fund (PF) route. Currently, Maheshwari has around 20 professionals from leading multinational corporations who are also instructors on his platform, many of whom are seeking stability in the current job market.
Prevalence of Dual Employment
According to background verification firm AuthBridge, approximately 5 out of every 100 candidates engage in dual employment, with nearly 90% of these cases originating from the IT services sector, particularly in states like Telangana, Karnataka, and Tamil Nadu. In one notable instance, a developer was found to be simultaneously employed at five different companies, including two direct competitors. AuthBridge uncovered this overlap through scrutiny of PF records and Form 26AS, emphasizing the importance of thorough background checks in the industry.
The shift to remote work during the COVID-19 pandemic has further fueled the rise in multi-employment cases. OnGrid reported a striking case where one candidate had joined 50 companies within a single year, with a record of working for 141 employers over seven years. In 2021 alone, this individual added 21 more employers and was on the payroll of 10 companies simultaneously, including full-time roles at major corporations, startups, and established MNCs. This trend has raised alarms, leading to actions such as Wipro’s decision in 2022 to terminate 300 employees for working with direct competitors while still employed by the company.
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