How Employers Can Prevent Falling Victim to Resume Fraud
Entrepreneurs are always looking for talented employees to help them grow their business. Choosing the right candidates can dictate the success of your company, but a bad hire can result in loss of productivity and even loss of reputation. There is a lot of talent out there, but how can you ensure that the applicants are who they claim to be and have the educational qualification and experience that they present on their resume?
A resume is used by most organizations to recognize the applicant’s ability to fill a job position. Sadly, statistics reveal that nearly 40-50% of resumes contain one or more major misrepresentations. Resume fraud costs you valuable time and money. The cost of a bad hiring decision runs high. Consider the statistics below :
- The cost of replacing an employee ranges from 2-7 times his or her salary
- Hiring and training may cost up to 25-200% of the employee’s salary
- 80% of employee turnover is due to bad hiring decisions
When you hire someone who does not have an educational background as they claim or has a history of misrepresenting themselves, you are at risk of losing new business opportunities, wasting your hiring budget, and decreasing business productivity. Moreover, careless hiring practices can snowball into employment lawsuits and fines.
Conduct A Background Check
When you hire a candidate for a position, you may be entrusting the employee with your confidential business information, sensitive financial information, and possibly the company’s business assets. With a thorough resume verification policy in place, businesses can ensure that the claims a job candidate makes are truthful. It can also help uncover any misrepresentations made by the candidates during the hiring process.
How Do Background Checks Help?
Employers who conduct the best employee background check as a part of their recruitment process realize a number of critical benefits.
- Simply announcing to all candidates the intention to conduct a pre-employment screening will discourage them to reveal any fake details on their resume. Also, it will help to eliminate high-risk candidates with serious criminal offenses, which helps save time and money spent in the hiring process.
- Resume verifications can help you dramatically reduce labor turnover, as it will help you identify qualified employees. With accurate and objective information available to a hiring manager, they will be less likely to make the wrong hiring decision.
- A potential candidate that has been involved in an inappropriate or criminal activity, such as substance abuse, violent behavior, theft, dishonesty, reckless behavior, can cause workplace issues such as tardiness, violence, low productivity, absenteeism, embezzlement, and more. A thorough resume verification help employers determine whether an applicant is able to handle their job responsibly
- There is a high degree of risk in negligent hiring, which can leave organizations responsible for employees’ actions. Any disgraceful act by employees affects the company’s reputation and can lead to immeasurable damage. A company could prevent such incidents by knowing the employee’s past with verification of prior employment, education, criminal records, and other research tools available with a background check.
- The best employee background check helps an organization meet insurance company requirements, client requirements, or government regulations.
- An organization loses 5% of its annual income due to dishonest employees who exaggerate or provide false credentials on their resumes. Background check tools can reveal glaring problems in the applicant’s history and help you make a wise decision based on accurate information available. Remember that prior history is a good predictor of future performance.
The Bottom Line
Resume verification can help improve the quality of applicants, which leads to better productivity, lower employee turnover, and greater profits. With tools such as a license verification, education verification, criminal search, employment verification, drug tests, and identity verification’s, an employee background check can help reveal potential problem areas and rule out unqualified or untrustworthy candidates.