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Ethical Hiring and Employee Fraud

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Ethical Hiring and Employee Fraud

According to the labor department, 88,000 jobs were created in March 2013. This is good news for the economy and the unemployed, and businesses that are hiring will need to begin reviewing résumés.

Job history and background checks typically accompany the résumé review process. Background checks serve to support your ethics and compliance program and weed out folks that would likely punch holes in your ethical fabric if and when they commit employee fraud.

Remember Scott Thompson, former Yahoo! CEO? After embellishing his education on his résumé, he was fired after four months of employment. The already beleaguered organization did not benefit from this press. Unfortunately, this type of behavior is an increasingly common form of employee fraud.

According to a study cited by Jon D. Bible of Texas State University-San Marcos, 46 percent of resumes include inconsistencies in job candidates’ employment and educational histories. Employers aren’t completely helpless though. In fact, they leave the door wide open for résumé fraud: other studies showed that just 68 percent of employers check job histories and only 42 percent check educational backgrounds.

A harmless omission? Perhaps, but once you open the doors of your organization to unverified and potentially unscrupulous individuals, you are rolling out the welcome mat for employee fraud, and you’re endangering the ethical culture you’ve worked so hard to establish.

This is disconcerting news, but employers should use this opportunity to improve the due diligence in their hiring process. They can start by reaffirming a commitment to instituting an ethical culture, which begins with the new hire process. Executives can’t preach about “Tone from the Top” when their actions are not in line with the greater good of the organization. It’s never too late to change.

Once you’ve gone through all the necessary steps in the hiring process, you may find yourself still on the fence about hiring someone. Maybe something feels wrong and you can’t put your finger on it? You may be right to listen to your instincts, considering we are lied to as many as 200 times on a given day, according to some statistics. So just how do you spot a lie? The answer may surprise you.

About the Author

Cindy Knezevich, VP, Marketing Operations. Cindy is responsible for creating and executing The Network’s marketing strategy, including demand generation, public relations, social media, web marketing and analyst relations. Connect with Cindy on LinkedIn

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