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CV fraud rises with the unemployment rate

24 Apr 2009

The greatest pull-back in markets since the great depression of the 1930s put new appointments on hold and initiated a programme of retrenchments in South Africa and abroad. A recovery from this situation in the short term seems unlikely, but as employment opportunities become scarcer, so some applicants are dishonestly boosting their CVs in order to better their chances of landing the job.

In a country with an already high and steadily increasing unemployment rate, there is now fierce competition among job applicants for a few scarce job openings and this seems to bring out the creative liar in some job applicants.

EMPS, South Africa's oldest background verifications company, has conducted its own ongoing research into background screening patterns, candidate applications and business recruitment processes over the past number of years which show a definite pattern in times of recession.

Definite increase

Each and every time the economy takes a knock there is a definite increase in fraudulent information on applicant CVs and written job application forms. Nearly 35% of CV's have some type of lie during times of economic prosperity/ stability, but the percentages rise to over 50% during times of economic hardship.

It becomes common practice for job applicants who perceive their credentials to be short of required standards to try and enhance their chances by adding a few additional extras to their profile. The amazing thing is how often they get away with it. So, as unemployment climbs, job seekers are tempted to exaggerate their credentials even more.

Companies looking to hire in today's troubled times need to protect themselves from fraud by insisting on background checks for all potential new hires. Skimping on the background checks can have disastrous results but statistics show many companies do it anyway.

Background check

Further research done by EMPS in the pre-employment industry also reveals that that only about 50% of companies hiring today will contract with a background checking company to screen potential employees. About 25% will screen potential employees internally, and 25% will do no background checking at all. Those who screen internally frequently only contact references potentially missing criminal records or other areas of concern.

Now more than ever, companies need to verify employees really have the credentials (valid qualifications, identification documentation, drivers license etc) they are listing on their CV's and applications. Conducting background checks can easily be done for under R200, a small cost, when you consider the risk involved with one bad appointment.