A recent CRI Group survey of business leaders finds that enhanced regulatory compliance, ensuring quality hires and maintaining workplace safety and security were considered the top benefits of conducting background checks. Key considerations for engaging a background screening service include cost, turnaround time and compliance with local and international regulations.
Statistics show that organisations that don’t perform thorough, comprehensive pre-employment background checks play a risky game with their business security. According to popular employment site CareerBuilder.com, “Fifty-eight per cent of hiring managers said they’d caught a lie on a resume; one-third (33 per cent) of these employers have seen an increase in resume embellishments post-recession.” This statistic is equally concerning: An estimated 34 per cent of all job applications contain outright lies about experience, education, and ability to perform essential functions on the job (Wall Street Journal, 2016).
Combine those stats with the knowledge that company insiders often commit fraud and other criminal acts, and you’ve got a recipe for disaster among organisations that skip background checks or only do the bare minimum when it comes to pre-employment screening. It’s against this backdrop that CRI Group sought to gauge some of the most important considerations business leaders have regarding hiring and background checks. Among the key findings:
More than 75%of organisations conduct some sort of background checks
That’s good news. But it also means that nearly a quarter of companies don’t do any pre-employment screening, which should concern their business leaders and their employees. Having screened employees means having a safer, more secure work environment.
Around 70% of respondents have found less than 15 fraudulent CVs in their career.
A few candidates marked 15-30 or even 30-45 fake CVs found during their careers. This happens about half their working time – the frequency level of spotting red flags is 46 (when ‘100 =always’, and ‘0=never’).
Stretching employment dates is the most commonly seen form of resume fraud
Survey respondents also cited enhancing job titles and responsibilities, faking credentials, fabricating reasons for leaving the previous job, and unexplained gaps and periods of “self-employment” as the other top methods of deception that they’ve seen during the hiring process.
Financial services, insurance, investments, and banking positions are high risk.
Nearly half of survey respondents said they considered such positions to be in the most critical need of background checks, followed closely by government relations and administration, healthcare and medical devices, telecommunications, information technology and services. Experts also note that even in organisations outside of those industries, some positions are more sensitive than others. For example, a CFO at a semiconductor company may be well-placed to commit fraud.
Previous employment verification and criminal history are top needs for employers.
Survey respondents were asked to choose the three types of checks they would most like to implement, barring budget concerns. Those two led the list, followed by academic verification, name/DOB/identity checks, address verification and pre-employment credit checks. The good news is that CRI Group’s background checks and pre-employment and post-employment screening services offer all of those and more – including civil litigation checks and bankruptcy searches.
There are many benefits to background checks.
Most survey respondents noted enhanced regulatory compliance, ensuring quality hires and maintaining workplace safety and security as key benefits. But they also said that background checks could improve the company’s culture and ethics as well as personnel competency while reducing financial loss, employee turnover and workplace accidents.
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CRI Group’s employment background screening services EmploySmart™ expose vulnerabilities and threats within your organisation and significantly reduce the business’s potential and financial crime, fraud, and malpractice from occurring within your workplace.
CRI Group provides full in-depth background screening services of employees and candidates at all levels, from senior executives through to shop-floor employees.
- Address Verification (Physical Verification)
- Identity Verification
- Previous Employment Verification
- Education and Credential Verification
- Reference Check
- Local Language Media Check
- Credit Verification and Financial History (where publicly available)
- Compliance and Regulatory Check
- Civil Litigation Record Check
- Bankruptcy Record Check
- International Criminal Record Check
- Integrity Due Diligence
The survey results are heartening because they do show that business leaders today are thinking about background checks as an important part of their business process, and in most cases, they are implementing some sort of screening. However, it is always important to be evaluating those processes and making sure the organisation is being as thorough and comprehensive in those checks as possible – and monitoring the results.
There is no reason for taking unnecessary risks with your business, assets, investments, and reputation. Conducting a thorough pre-employment background check is critical with every new hire, and a third party best conducts such a process with experts in this field and access to the most up-to-date resources. Growing your business and hiring new employees should be something to celebrate – when it is done properly, without risk and uncertainty.