Importance of Employee Background Checks

By: Khem Raj

Industry statistics clearly demonstrate that resume fraud is as high as 40%.
In other words, 2 out of every 5 resumes an employer receives have some level of fraud. Examples of resume fraud can be as simple as claiming to have worked at a job for a longer period than is accurate, or they can be outright distortions such as an overstatement of title or inaccurate claims of promotion, i.e. claiming to have been a manager when the position was really a clerk. In more extreme instances, some applicants go so far as to make up jobs and credentials entirely.


If a company never does any Background Checks on their employees, then most likely that company will
hire someone with a criminal record. Statistics, such as the ADP, show that
as much as ten percent of the applicants who are screened have criminal records. According to a 2000 survey by the American Management Association, 43 percent of responding members test prospective employees in job skills, psychological fitness, and/or basic math and literacy competencies.
Screening programs generally also include some combination of reference and credit checks, verification of employment, investigations into any criminal activity (where allowed by law), and physical/drug testing.
After all, the time to ensure an employee is trustworthy and qualified is during the hiring
process, rather than on the job. Screening programs can assist in ensuring a proper fit between employer and employee. "A pre-employment test that costs less than $10 can sometimes save a company the thousands it costs to replace a bad match, or the legal fees to defend against liability lawsuits for negligence in hiring a troubled or troublesome employee," wrote Gilbert Nicholson in Workforce

Careers and Job Hunting
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