Applicant fraud in a competitive job market poses a wide variety of issues for today’s employers. Because of this, organizations’ should sharpen hiring practices to spot this fraudulent activity - from simple employment date adjustments that might reveal untrustworthy tendencies, to false credential presentations that can bestow legal implications and harm. By way of an example case study, we reveal key learnings surrounding the magnitude of applicant fraud, the importance of verifying qualifications and certifications, and possible repercussions from hiring deceitful applicants.
Our example case discusses job applicants during tight economies who embellish resumes and applications in hopes of increasing the likelihood of landing a job
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A 2017 survey by Harris Poll on behalf of CareerBuilder - encompassing over 2,500 U.S. employers - reveals that 75% of Human Resource (HR) managers have caught lies on résumés (CareerBuilder, 2017). Moreover, HireRight’s 2017 benchmarking survey of over 4,000 HR managers reveals an 85% fraud detection rate (Maurer, 2017). With these recent polls, we can see that today’s measure of applicant fraud is astonishing high. Yet, there are a wide variety of ways applicants lie. For example, job experience, job duties, employment dates, and education are the most common form of applicant lies (Passy, 2017). Understanding that applicant fraud is widespread, strong hiring processes that detect fraud is of utmost importance for today’s employers, especially concerning qualifications and …show more content…
For example, Challenger (as cited in Maurer, 2017) asserts that because executive level employees have “access to sensitive company information and the greatest ability to commit fraud”, validating executive level candidates’ credentials is imperative, because “bad hires at the top of the company” pose enormous legal liability and reputation harm (para.13). When organizations ensure their key authorities and specialists have the appropriate academic and professional credentials, it facilitates quality service and output, strengthens societal trust, reinforces brand name, and maintains company
The use of criminal record databases by employers has greatly increased since the 1990s when the information first became relevant (Appelbaum, 2015). The biggest rise in background searches began after the terrorist attacks in New York City on September 11, 2001. Mr. Uggen, a criminologist at the University of Minnesota, states that there is a problem with criminal background checks considering most employers have no idea what they should be looking for. With every business owner having different concerns about potential applicants, “we haven’t really figured out what a disqualifying offense should be for particular activities (Appelbaum,
whether or not these are the type of people we want working at our company” (180). Through these experiences it is evident that Wall Street neglects to acknowledge the individual smartness and judge a person’s smartness based on the institution they attend. By learning the small particularities of people’s experiences it becomes clear that smallness does not play a role in deciding a person’s fate in Wall Street. The smallness is simply unacknowledged which restricts the most deserved people from a position in investment banking. When Ho dives into the roots of the recruiting process, she finds that the investment bankers choose people by judging a book by its cover. The majority of investment bankers on Wall Street are white males, with a select few minorities and women. Naturally at recruitment events for future employee prospects, they search for the people who have dashing appearances, intimate performances and a “wow” factor. Wall Street's idea of “smartness” is coming off as smart and not actually possessing intelligence. These actions create a bias system where people are not properly interviewed for a position on Wall Street that they deserve but may never have the opportunity to
Ulinski, Michael. "AN ANALYSIS OF SMALL COMPANY FRAUDS AND." American Society of Behavioral Society. Dept of Business, Pace University. 05 Feb. 2008.
Combating fraud in the private sector is a difficult task. Trying to combat fraud in the public sector is daunting. In 1999 15.7% of the American workforce were employed by a government entity (federal, state, and local).[1] Mirroring society, government will have its share of perpetrators. The difference from the private sector is in the scope of the fraud committed, the loss of the public trust, the blaring headlines from news media, and difficulty in making necessary changes to combat the problems.
Employment Fraud — A borrower misrepresents his or her income by either claiming employment by a non-existent company or a higher position in a real company.
It may be disappointing to realize we are the kind of person who we do not like in others; however, it is more disconcerting to realize we are not the kind of person that we believe we should be or are. We think we are smart, optimistic, popular or possess greatness, but later we perceive that we are not that good. Unwittingly, and without rational thought, “Wall Street smartness is, in a sense, ‘generic’ and it is precisely this notion of elitism so pervasive as to be commonplace, smartness so sweeping as to become generic, that reinforces Wall Street’s claims of extraordinariness” (Ho 184). Wall Street does not realize the negative influence of focusing only on credentials. In fact, they do not care. This hiring process has become a tradition for them. Even though they may overlook potentially qualified employees, they do not want to recognize that their system is imperfect; it is easier to blame inadequate candidates, claiming that they should have studied harder to get into a better university. If Wall Street insists their system works, they will continue to lose opportunities to groom talent. Being rejected by Wall Street is not the time to implement a defensive “immune system” to console oneself. It is the chance to recognize our status and to be who we want to be. We face our shortcomings, admit that we still need to work harder or change in order to be the person we want to be. Even though this is
Hanson, J. R. (n.d.). Fraud or confusion? RDH Magazine, 19(4). Retrieved 3 15, 2014, from http://www.rdhmag.com/articles/print/volume-19/issue-4/feature/fraud-or-confusion.html
Anyone who disagrees with this assessment already has a job. You can afford to be high and mighty when you aren't the one making the decisions or under a time crunch. We brought up the example of a person misspelling coffee on an application. The manager decided that this person was not going to be hired. The point was made that spelling has nothing to do with the ability of the applicant to serve coffee. This point may be correct in an ideal world. But imagine that you were the owner of the coffee shop and your profits depended on the competency of the people you hired. Without having prior knowledge of the caliber of the worker, are you going to hire this person? Of course not. You are going to hire someone who has presented themselves, through language, as someone worthy of the job.
1. Was the employer negligent in how it conducted its performance appraisals? Explain. The term performance appraisal is defined in the textbook as, “Providing welcome recognition of accomplishments and needed feedback on how to improve performance.”
Therefore, according to Hirschi and Gottfredson (1987), the behavior can be attributed to personality traits. Personality measures can be used by HR staffing to detect corruption in this case, as they “tend to categorize individuals by what they are like” (Akkermans, 2014, p.748). To counteract the low validity often paired to personality tests, it is recommendable to obtain information from people other than the job applicant and threaten to run cross-checks between self-rating and other people (Akkermans, 2014,
Friedman, S.. (2009, April). Tough Times Prompt Spike In Employee Theft, Chubb Warns. National Underwriter. P & C, 113(16), 10. Retrieved October 14, 2010, from ABI/INFORM Global. (Document ID: 1709736101).
ABSTRACT: The quantity of accounting fraud cases keeps on rising. Fraud is a consistent thing that will reliably be around, and in a bigger number of routes than just a single. An extensive apportionment of organizations out there fighting fraud, either from within the organization, or from outside the organization. Knowing how to manage this is essential for an organization to be productive over an extended period of time. The investigation regarding the matter of accounting fraud will utilize sources from the web and the DeVry School Library.
...s, many future problems can be reduced and hence help in improving the organization profits. Therefore, we can see that filtering the employees’ recruiting process is essential. Because good employees can bring up a good organization, at the same time good organization generate good profit and able to produce good GDP to our country as well and hence we can hedge against budget deficit that which will eventually lead to debt crisis.
Now, two years later sitting in front of his computer screen, filling out yet another job application he was filled with self-doubt, hopelessness and desperation. He knew it was probably just a waste of time. Most employers would never read past the application section that he was staring at with dread. The words leapt off the screen and taunted him, “Have you ever been convicted of a crime?” To answer yes was almost a certain disqualification. To lie would not only be dishonest but could lead to later termination. He felt so desperate, but what more could he do?