HR Matters | Let the Employer Beware

A worrying number of organisations are failing to take the recommended steps when recruiting, and many have opened themselves up to the risk of hiring someone that either doesn’t have the skills they say they have to do the job, or worse. The impact of this can be costly in more ways than one.

Research carried out by global recruitment & HR services company, Randstad, amongst more than 1000 organisations across the Asia Pacific region in 2009, found that 26% suffered an incident with an employee because they had not checked their references properly. Many organisations did not get away lightly with this lapse in scrutiny. The research found that one in 10 of those that suffered an incident were the victim of fraud or theft and 14% claimed their corporate reputation was damaged. To make matters worse, half of all the incidents reported led to the termination of employment with the organisation, which meant going back to square one in the recruitment process.

An increasing number of people continue to provide incorrect or false information in their CVs and in the interviews. This problem shows little signs of easing in spite of the number of people being publicly exposed as a result of making false claims.

Research conducted in the UK in 2008 by a leading risk advisory firm revealed 50% of CVs submitted for job applications contained inaccuracies, a 10% increase on 2007. Whilst some were innocent mistakes which did not detract from the candidate’s ability to do the job, other ‘mistakes’ included incorrect employment and academic dates, fictitious professional qualifications, the omission of County Court Judgments and undeclared directorships.

Despite many organisations in the Asia Pacific region failing to take adequate steps to check the backgrounds of potential candidates, employers seem to be clear on what would have helped them avoid this incident occurring. Of those polled in the region, 62% said reference and employment checks were a key part in the recruitment process and 95% stated they conduct pre-employment checks. To supplement this, medical checks , education and employment checks were also cited as ways that would have helped them obtain all the information they needed before making the candidate an offer.

The mantra for any HR professional or manager who is responsible for recruiting should be simple – never go without proper reference checking and carefully evaluate your candidate before you make a decision. Due diligence will pay off, even when under pressure to recruit quickly. The time investment you make in thorough reference checking will pay off many times over in the long term.

As a matter of standard practice two independent references are recommended for each candidate. This may sound like common sense but it is surprising how many organisations fall at this first hurdle in reference checking. Ideally, one should be a character reference and the other should be from a past employer. If it’s possible to access a third or more referees then do so as the more references you have, the clearer the picture will be of your potential employee.

If the candidate needs to hold a particular qualification or licence to practice, it is wise to check with the relevant institution that they indeed hold the required qualification/license and that the licence is still valid.

In this digital world where information is at our finger tips, conducting an internet search through the major search engines and social networking sites can reveal more about the candidates than you ever thought would be revealed. This is simply the end of the road for many people when the protection of an organisation’s reputation and culture is paramount.

Understanding someone’s personality type and potential behaviour in the workplace is also gaining stronger validity in the recruitment process according to Randstad’s Asia Pacific research. Of the 37% of organisations who said they are using psychometric/personality testing more frequently, two thirds said that it was beneficial in helping to make the right hiring decisions; 41% said it provided an idea of the candidates’ fit with the team dynamics and the work environment; 40% said it allowed them to measure the candidates’ cultural fit, and 38% said that it reduced the number of poor hiring decisions.

As well as utilising character and employment references, a good way to evaluate the right person for an organisation and predict future job performance is to simulate theactual work environment using assessment centre methodology. While no crystal ball, assessment centres are an increasingly sought after option for employers wanting to make the right hiring decision the first time. Almost a ‘try before you buy’ approach to human capital, assessment centres simulate the actual work environment for the job candidate, to best analyse and assess the skills and competencies of the job applicant against the requirements of the position. Organisations are finding that the results deliver a clear and focused overview of an individual’s current ability, future potential and how the individual is linked with the organisation’s current needs and future business objectives.

As the market continues to tighten, an increasing number of organisations are also offering contract work rather than permanent opportunities to potential candidates. This allows employers greater flexibility over staffing levels and they can assess how a contractor performs before potentially making them a permanent offer.

The temptation to hire as soon as you think you have found the perfect candidate for your organisation can be great in today’s marketplace. Nine times out of ten your instincts will be right. But it can take just one hasty appointment to cost your business dearly. It’s vitally important to remember that the duty of care rests solely with the employer. Conducting thorough background and employment checks on each and every potential employee is one of the most important professional decisions you can make.