Common reasons are job candidates failing to do background check

Globally, one in 10 people who applied for a job last year had an unexplained gap in their CV (14%) or job history (10%).

Meanwhile, 9% of candidates failed to disclose that they or the company they were in had been sued.

In Singapore, the top three reasons why applicants’ background checks failed were due to their academic record (26%), failure to disclose significant financial problems or bankruptcy (23%) and inconsistencies in employment history (19%).

These include the results of a new report from Vermark, Global Background Checking and Applicant Screening HR Tech, which reveals the most common discrepancies by running an online background check on potential hiring in 2021.

The report highlights strong trends due to the shift towards global and remote recruitment, which has made the epidemic more common. National identity card checks, for example, were the sixth most common check worldwide last year, as employers wanted to verify that a candidate had the right to work in a particular country.

The data is based on a sample of more than 100,000 background checks conducted by businesses in 180 different countries in 2021, covering all sizes and across all sectors.

Background checks cover everything from academic achievement checks – which verify that a candidate has actually graduated from a university or college claiming to have joined – a ‘conflict of interest’ check, which considers whether a candidate’s existing business association may be problematic. .

Properly verifying potential new employers is vital for employers interested in maintaining their business reputation and avoiding costly miss-hires, especially when it comes to remote hiring firms to hire people they have never met in person.

In Singapore, a global talent hub, the government has a process in place to ensure that foreign talents qualify from a recognized institution to qualify for an employment pass. Also, in line with the requirements of the Ministry of Manpower, employers ensure that the qualifications of their candidates are genuine.

Academic achievement checks are therefore run regularly. The high inequality rate of 26% is probably due to globally recognized unqualified candidates or not joining the organization.

Which Czech job candidates were most likely to fail worldwide?

Check type % Of checks that returned inconsistencies
CV gap 14%
Employment gap 10%
Civil litigation 9%
Employment history 7%
Institutional achievement ৬%
Conflict of interest 5%
Professional Qualifications 3%
Adverse financial history 3%
Criminal record 2%

Globally, employment gaps or CV gap checks were the most common field for returning inconsistencies. Although background checks will highlight gaps of any length, employers will usually seek an explanation if a candidate’s unemployment period lasts three months or more.

As a result of the epidemic, more job applicants are likely to have gaps in their employment than ever before, and employers must ensure that they are responsible for it.

Employment history check – which looks at the beginning and end dates of previous employment, job titles and reasons for leaving – is another area that can return inconsistencies. Candidates will want to investigate any issues highlighting firms to ensure that they are not intentionally misrepresenting their level of experience and skills.

Which sector has the highest number of failed checks?

The top three sectors that experienced the most background testing in 2021 were Fintech and Financial Services, followed by HR, Staffing and Recruitment and Technology and Software.

Fintech and financial services companies run the highest number of checks when verifying potential employees – an average of seven – followed by six in the professional services business.

The top five checks per sector (worldwide) failed:

Fintech and financial services HR, stuffing and recruitment Technology and software Professional service
1 CV Gap (25%) Employment gap (19%) Academic Achievement (13%) CV Gap (15%)
2 Job history (14%) Job history (8%) Employment gap (6%) Professional Qualifications (12%)
3 Civil cases (13%) Civil cases (5%) Conflict of interest (4%) Academic Achievement (10%)
4 Conflict of interest (7%) Academic Achievement (5%) Job history (2%) Adverse Financial History (9%)
5 Crime record (6%) Global Approval (3%) Crime record (2%) Employment gap (5%)

Which check should be running in each sector?

The report reveals that companies are not conducting the most relevant checks for their sector.

For example, the most common checks conducted by businesses in the fintech and financial services sectors were global sanctions checks, criminal record checks, and adverse financial history checks.

However, the most frequently failed checks by candidates in this industry are CV Gap Check (25%), Employment History Check (14%), Civil Case Check (13%) and Conflict of Interest Check (7%).

It suggests that employers need to increase the number of potential rent-driven checks to cover these areas.

Worldwide, social media checks, which scan a candidate’s online activity to detect offensive or inappropriate behavior, account for only 0.02% of all checks. Similarly, unfavorable media checks, which would highlight a candidate’s negative coverage in the press, amounted to 0.71%.

However, both are valuable checks for employers who want to ensure that any new employees align with their brand culture and values ​​and avoid damaging reputation.

The epidemic has seen the work world change dramatically and HR teams have faced a number of new challenges. For example, remote hiring and onboarding have become more common, and with it, the risk of hiring has increased. For example, candidates who have never met their new boss may find it easy to fieb about their credentials, while companies rushing to fill vacancies may inadvertently ignore inconsistencies in their CVs.

But hiring dishonest or unsuitable candidates can have serious consequences for any business. So, by running multiple background checks quickly and efficiently and with as little intrusion as possible, no matter where they are worldwide, it has never been more important for veterinary candidates. Companies across all industries should note these results and consider expanding the scope of the background checks they run. While this will potentially increase costs in the short term, the long-term benefits are invaluable.

Daniel Callaghan, CEO and co-founder of Veremark

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