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APAC Companies May Face Physical, Reputational or Financial Damage Due to Inadequate Employee Screening

Findings from 2016 HireRight APAC Employment Screening Benchmark Report

SINGAPORE, April 18, 2016 – HireRight, a leading provider of global employment background checks, today released findings from its 2016 HireRight APAC Employment Screening Benchmark Report, which drew attention to risks companies may face if they do not conduct adequate screening of candidates or rescreen existing employees.

More than half (59%) of the organisations surveyed have uncovered discrepancies throughout their employee screening process that would otherwise have been missed. Commonly uncovered problems include inflating salaries and job titles, falsifying educational qualifications, and making up reasons for resignations.

Importance of Rescreening Existing Employees

Most companies might assume background screening is only necessary for new hires. However, the report found that one of the most overlooked areas was rescreening of existing employees with four out of five (80%) companies stating they do not rescreen employees at promotion.

Some companies only initiate screening for senior employees which means people who work their way up the ladder might move into leadership positions without ever being background checked.

Steve Girdler, Managing Director of APAC and EMEA, HireRight, said, “Conducting background checks on candidates might be a norm for most organisations – but as they continue to gain increased access to talent pools across the world, potential threats grow too, making companies that much more susceptible to hiring risks and vulnerabilities. These threats appear both in terms of the authenticity of candidates and the potential threat they pose to a company’s employees, customers, intellectual property, and reputation.” 

Screening International Employees

Businesses are embracing the access to an enlarged talent pool that is provided by a progressively connected world, in light of the recent establishment of the ASEAN Economic Community (AEC), which aims to reduce business costs and allow for seamless travel within the 10-country grouping, increasing the scale of talent exchanges within the region.

Specifically to Singapore, almost one in four (23.9%) of the Professional, Managerial, Executive and Technical (PMET) workforce in 2015 were foreigners, according to the Ministry of Manpower[1].

However, despite this global workforce, less than half of organisations (42%) screen international candidates. This can pose a gap in an employer’s screening program as international moves can be a means by which candidates may try to escape negative records.

In addition, for locals who have been studying or working overseas before returning to their home country to work, only 29% of companies screen their international backgrounds, which can pose risks to organisations.

Additional Findings

  • Nearly two thirds (63%) of companies consider hiring, retaining and developing talent one of their most significant business challenges.
  • One in three (33%) of companies consider the use of technology and analytics to be one of their greatest challenges.

The 2016 HireRight APAC Employment Screening Benchmark Report is based on surveys conducted with more than 3,000 human resources, recruiting, compliance, and management professionals worldwide, with a sample size of close to 500 in Asia Pacific, to provide a view of the current hiring landscape, indicate market trends, and identify common gaps in employers’ screening and hiring processes. The full report can be downloaded here.  

About HireRight

HireRight delivers global background checks, drug testing, and employment verification services through an innovative platform to help companies hire the right candidates, so they can grow successfully and efficiently – no matter their size or where they operate. HireRight offers a comprehensive screening solution that can be tailored to the unique needs of the organization, giving enterprises peace of mind about their people and processes. HireRight’s platform can be integrated with existing HR platforms, making it easy to use and giving candidates the best possible experience. HireRight is headquartered in Irvine, Calif., with offices across the globe, including regional headquarters in London and Singapore. For more information, visit the company’s web site at www.hireright.com/apac.

[1] http://www.channelnewsasia.com/news/singapore/proportion-of-foreigners/2470000.html