Making the Right Hire: Verifications Help Decrease Risk
The cost of making the wrong hire can be extremely detrimental to an employer. The actual cost can be more than the salary, benefits and training expense related to that employee, and can also include potential damages from litigation, injuries, headline risk, internal fraud, theft and embezzlement which can be enough to put a company out of business. In fact, the median loss to a business caused by a single case of occupational fraud is $150,000, according to the 2016 Global Fraud Study from the Association of Certified Fraud Examiners, with the typical employer losing 5% of its revenues each year to fraudulent activity by its employees.
To further complicate hiring decisions, employers today also face a rise in fraudulent documents including diplomas, resumes and pay stubs provided during the application process. Technology is enabling the ease of creation and the access to these fraudulent documents through numerous online listings and blog posts. A quick online search will yield over ten willing companies on the first page alone, created for the sole purpose of educating job seekers on how to essentially cheat the system in order to land the job they want, while using fraudulent job history, references or other credentials. Unfortunately, the days of taking an applicant’s word as truth are gone; the details must be verified.
The results from the 2016 HireRight Employment Screening Benchmark Report even further underscore the need for verifications through the hiring process. The annual Benchmark Report, which surveys several thousand human resource professionals, reports that 88% of employers responded they had uncovered a misrepresentation on a resume and 84% reported verifying such details as employment and education uncovered issues that would not have been found otherwise. In order to protect their organization and its valuable assets, employers must verify the facts through a primary source.
The Bottom Line
The need for income and employment verifications continues to increase based on employers looking to make informed hiring decisions, the ever-changing financial landscape, regulatory lending requirements, and growing Government benefit enrollment rates. Employees are also encountering more life events and financial choices requiring verification of income and employment as part of the application, qualification and decision process. Employers that focus on secure, compliant and efficient verification processes not only protect themselves from potential litigation risk, but also provide what can be a significant benefit to their employees by enabling their access to new employment, credit and benefits they need, when they need it.
To learn more about how Equifax Workforce Solutions can help you manage your income and employment verifications, please contact Pete Krieshok at 314.214.7325 or firstname.lastname@example.org.
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