The Facts About Verifying Employment and Education Histories on Applicants: Lies, Liability, and Leverage.

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March 2009
 
Lies
 
Marilee Jones was forced to resign on April 27, 2007 as Dean of Admissions of the Massachusetts Institute of Technology (MIT), after the school confirmed she had lied about graduating from college.
 
Ms. Jones first changed her resume in 1979. This was before she was hired for a junior position in the Admissions office.  She claimed that she had received a degree from Albany Medical College and Rensselaer Polytechnic Institute.  In 1997 she was promoted to the Dean of Admissions at MIT and was an active board member of The College Admission Counseling Commission on Standardized Testing.  Ms. Jones was in charge of determining the best candidates to attend MIT, but did not have the necessary education to support her role in that capacity.

How many candidates for the school were denied entrance due to her lack of education?  Interestingly enough, Jones and many other individuals that have had prominent positions in the marketplace have been caught lying on their resumes.
 
According to the FBI, nearly half a million people in the U.S. falsely claim to have college degrees. Did you know that 50 percent of all resumes may be fraudulent or lacking vital information?  Out of these problem resumes, the top most common lies are:
 
1.)     Hiding Employment Gaps by changing dates
2.)     Lying about academic degrees
3.)     Omitting or adjusting graduation dates to appear younger
4.)     Exaggerating performance numbers
5.)     Increasing previous salary
6.)     Inflated job title
7.)     Exaggerated or non-existent technical ability
8.)     Claiming language fluency
9.)     Providing fake addresses to show that they live closer to employer
10.)   Inflating grade point averages
11.)   Omitting past employment
12.)   Providing fraudulent references
13.)   Misrepresenting military records
 
 
In a recent audit of 82 Profiles completed, we determined a difference in dates (3 months or more) were at the top at 61 percent, additional information found that was not previously mentioned was at 55 percent, 9 percent of the education histories were proven to have different information, 7 percent were unable to verify information with an employer, 5 percent were not eligible for rehire, and finally overall attendance and performance problems were at 1 percent each.
 
Liability
 
According to the National Institute for Occupational Safety and Health (NIOSH), nonfatal workplace assaults result in more than 876,000 lost workdays and $16 million in lost wages annually, and even more assaults may not even be reported due to the victimization of an employee's co-workers. Employers may be liable for workplace violence and the cost to them could be exorbitant.
 
While many previous employers have strict polices about releasing the information, most States have laws that potentially render a previous employer liable for damages if they fail to disclose negative information on a former employee, and if that employee then causes harm to an individual at the new job.  By using a properly worded authorization form with the applicant's signature, a former and prospective employer can be protected from liability.
 
There are many states that have laws that protect former and prospective employers from civil liability in regards to verifying an employee's job performance. These states include: Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Michigan, Montana, Nebraska, Nevada, New Mexico, North Carolina, North Dakota, Ohio, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Texas, Utah, Virginia, Wisconsin, Wyoming, Washington, and West Virginia.
 
Negligent hire cases go hand in hand with an employer's civil liability. Negligent hiring is generally found where the employee, who actually caused the injury, had a reputation on record that showed his behavior previously but it was not discovered because the employer did not search diligently enough.  Hence the need for a more complete background check that includes education and employment history verifications.
 
Leverage
 
There are many benefits to verifying the information on an applicant's resume. Information obtained from reference checking can help both employers and applicants understand the applicant's strengths and weaknesses. It can be used to identify initial training experiences and provide opportunities for the new hire. Reference checks can help compile a more accurate picture of the applicant's accomplishments and honesty by verifying the information from an outside source. Some long-term benefits include: reducing the number of bad hires, saving money on the cost of recruiting and hiring a replacement employee, improve employee morale by increasing confidence in the hiring manager's judgment and commitment to the workplace, and reducing an employer's civil liability.
 
 
Final Thought
 
Hiring new employees to your company is a necessary fact. If you hire the wrong employee, the result can end up being a financial catastrophe. Judicious employers should not only check an applicant's criminal record, but also incorporate contacting personal references, verifying education, and employment histories into their new hire process.
 
Another benefit of conducting applicant reference checks demonstrates that honesty, fairness, and equal treatment is a base organizational value of the employer, and can help determine the developmental needs of applicants for future training purposes.
 
Start protecting your business from the liars today by contacting us at 1-800-969-4300 Ext# 46 or visiting us at www.hrprofile.com.
 
 
Sources:
 
U.S. Merit Systems Protection Board, September 2005. Reference Checking in Federal Hiring: Making the Call. PDF. (Online)
http://www.mspb.gov/netsearch/viewdocs.aspx?docnumber=224106&version=224325&application=ACROBAT
 
David Balovich, August 18, 2005. Verifying Job Application (Without Getting Sued) Article (Online) 
http://www.creditworthy.com/3jm/articles/cw81805.html
 
Christopher Marquet , Marquet International, Resume Liars Club Webpage (Online)
http://www.marquetinternational.com/liars.htm
 
Christopher Marquet and Lisa JB Peterson , Marquet International. Resume Fraud: The Top Ten Lies. Article/PDF (Online)
http://www.marquetinternational.com/pdf/Resume Fraud-Top Ten Lies.pdf
 
Keith Weinstein and Daniel Golden, April 27, 2007. MIT Admissions Dean Lied on Resume in 1979, Quits. Article (Online)
http://online.wsj.com/article/SB117760330348583547.html?mod=home_whats_news_us
 
Kate DuBose Tomassi, May 23, 2006. Most Common Resume Lies. Article (Online)
http://www.forbes.com/workspecial/2006/05/20/resume-lies-work_cx_kdt_06work_0523lies.html
 
National Institute for Occupational Safety and Health (NIOSH), June 1997. Violence in the workplace. Article (Online)
http://www.cdc.gov/niosh/violfs.html
 
Bradley & Gmelich, 2007. Employer Liability for an Employee's Bad Acts. Article (Online)
http://smallbusiness.findlaw.com/business-operations/insurance/liability-employee-acts.html

 

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