As a HR professional one of the major roles that you need to fulfill is of being a recruiter wherein you are always on the lookout for talented candidates that can work as an asset for your organization. But, the question is whether you can judge the character of a candidate in couple of meetings. What if the candidates that you hire are not the ones that you ideally wanted?
In an ideal recruiting world you would not have to deal with a situation of verifying the candidate’s information for employment purposes. But, we are living in a world where there are lies and deceits all around. It is a very difficult ask for you to know the candidate completely in handful of meetings.
Today, lots of organizations across the globe are conducting background checks on candidates before finalizing them. This trend is only going to increase in the coming times.
In this blog we listed down 100 odd statistics that you give you a clear picture of what happens if you don’t do background check on your employees. If you are someone not convinced about the need for background checks, read on.
False Information Provided in the Resume
In this highly competitive job market, candidates are getting desperate to get jobs. In order to be successful in this endeavor they take the shortcut by providing false information in their resume to get the desired designation. Naturally, organizations can ill-afford this kind of forgery. In order to select the right talent and avoid making the mistake of hiring the wrong candidate it is important for you to take the assistance from a professional background screening vendor that can help you in selecting the right candidate through proper background screening mechanism.
Statistics that highlight the current scenario of resume fraud in corporates
- The Wall Street Journal said that 34% of all application forms contain outright lies about experience, education and the ability to perform essential functions of the job. (Source: The Cedalius Group)
- College and University registrar’s report that at least 60% of the verifications they receive contain falsified information. (Source: The Cedalius Group)
- 11% of job applicants misrepresented why they left a former employer. (Source: Hubspot)
- It has been estimated that resume fraud costs employers approximately $ 600 billion annually. (Source: The Association of Certified Fraud Examiners)
- A third of the job prospects exaggerated their accomplished, and another third fudged on their employment chronologies. (Source: CorraGroup)
- 53% of all job applications contain inaccurate information. (Source: Society of Human Resources Management)
- In a survey conducted by CareerBuilder.com, 49% of the 3,100 hiring managers surveyed had caught a job applicant fabricating some part of his/her resume. (Source: CareerBuilder)
- 9% of job applicants falsely claimed they had a college degree, listed false employers, or identified jobs that didn’t exist. (Source: Hubspot)
- Nearly one-third of job applications listed dates of employment that were inaccurate by more than three months. (Source: Background Profiles)
- According to a recent study, 67% of job applications and resumes in the U.S. contain misrepresentations. (Source: American Psychological Association)
- Nearly half – 46 percent – of more than 1,000 workers and 300 senior managers reported they knew job applicants who misrepresented themselves and included false information on a resume. (Source: Office Team A Robert Half Company)
- About one-third of resumes have some degree of puffery. (Source: BankRate)
- Sixteen percent of executive resumes contain false academic claims and/or material omissions relating to educational experience. (Source: Business Week)
Prevalence of Illegal Drug Abuse by Employees in the Workplace
Drug abuse in the workplace is one of the biggest nuisance in the corporate world across the globe. It can result in productivity loss, absence from work, injuries and traffic accidents. You can limit this problem by conducting drug tests during the pre-employment stages. It is even possible for you to prepare a well-defined drug abuse policy that condemns the use of illegal or banned substances during work hours. If you still think that drug testing is not required, scroll below to look at some eye-opening statistics that will hopefully change your mind for the better.
Statistics Dealing with the Drug Abuse Problem Faced by Organization in the Workplace
- On-the-job drug and alcohol abuse costs the U.S. economy $60 billion annually. (Source: Semantic Scholar)
- About 23 million Americans suffer from alcohol and drug problems. Seventy-Five percent are employed, but only twenty percent of them seek help for their problems. (Source: Open Society Foundations)
- Drug abusers cost American businesses $128.6 in lost productivity in 2002. (Source: U.S. Department of Health and Human Services)
- Drug and Alcohol Abusers are involved in approximately 20-25% of workplace accidents. (Source: Workplace Prevention Programmes)
- They are three times more likely to report for work late and five times or likely to file a worker’s compensation claim. (Source: WORKPLACE PREVENTION PROGRAMMES)
- More than 75% of substance abusers are employed. (Source: Business Group Health)
- In 2007, 8.4% of those employed full-time were current illicit drug users, and 8.8% reported heavy alcohol use. (Source: Business Group Health)
- Up to 40% of industrial fatalities and 47% of industrial injuries can be linked to alcohol use and alcoholism. (Source: Business Group Health)
- Substance abusers are at least 33% less productive and cost their employers $ 7,000 annually. (Source: MedDirect)
- Substance abusers are 2.5 times more likely to be absent 8+ days a year. (Source: NANTUCKET BUILDER’S ASSOCIATION)
- Americans consume 60 percent of the world’s production of illegal drugs: 23 million use marijuana at least four times a week; 18 million abuse alcohol; 6 million regularly use cocaine; and 2 million use heroin. (Source: American Council on Drug Education)
- More than 70 percent of substance abusers hold jobs; one worker in four, ages 18 to 34, used drugs in the past year; and one in three knows of drug sales in the workplace. (Source: American Council on Drug Education)
- Workers reporting past-month illicit drug use or dependence on or abuse of alcohol or illicit drugs were also more likely to have missed more than two days of work due to illness or injury in the past month (Source: Business Group Health)
White Collar Crime / Fraud committed by Employees in the Workplace
There has been an increase in the number of white collar crime cases involving employees in the workplace on a global basis. This can result in loss for your organization if you select a candidate who is prone to committing fraud/crime. One way to eliminate this endeavor is by conducting criminal background checks on the candidates during the pre-employment period so that you are able to make the right hiring decision by scrutinizing the criminal past of the candidate and then selecting the right ones with a clean past.
Statistics Showcasing the Growing Nuisance of White Collar Crime / Fraud in Workplaces on a Global Scale
- Fraud and abuse costs U.S. organizations more than $400 billion annually. (Source: Association of Certified Fraud Examiners)
- The average organization loses more than $9 per day per employee to fraud and abuse. (Source: Association of Certified Fraud Examiners)
- The average organization loses about 6% of its total annual revenue to fraud and abuse committed by its own employees. (Source: Association of Certified Fraud Examiners)
- The median loss caused by males is about $185,000; by females, about $48,000. (Source: Association of Certified Fraud Examiners)
- The typical perpetrator is a college-educated white male. (Source: Association of Certified Fraud Examiners)
- Men commit nearly 75% of the offenses. (Source: Association of Certified Fraud Examiners)
- Median losses caused by men are nearly four times those caused by women. (Source: Association of Certified Fraud Examiners)
- Losses caused by managers are four times those caused by employees. (Source: Association of Certified Fraud Examiners)
- Median losses caused by executives are 16 times those of their employees. (Source: Association of Certified Fraud Examiners)
- The most costly abuses occur in organizations with less than 100 employees. (Source: Association of Certified Fraud Examiners)
- The education industry experiences the lowest median losses. (Source: Association of Certified Fraud Examiners)
- The highest media losses occur in the real estate financing sector. (Source: Association of Certified Fraud Examiners)
- Occupational fraud and abuses fall into three main categories: asset misappropriation, fraudulent statements, and bribery and corruption. (Source: Association of Certified Fraud Examiners)
- Identity theft reached a record high 15.4 million victims in 2016. (Source: National Retail Federation Security Survey, 2008)
- Occupational fraud cases caused a total loss of more than $6.3 billion and the median loss from a single case of occupational fraud was $150,000. (Source: ACFE)
- Employee theft in the United States accounted for 43 percent of lost revenue – about $18 billion. (Source: Global Retail Theft Barometer)
- 65 million people in the United States – more than one in four adults – are estimated to have criminal records. (Source: NELP)
- Nearly 80% of the workforce admit they would or at least would consider stealing from their employers. (Source: Awareness Technologies)
- Employee theft costs businesses between $60 and $120 Billion, annually. (Source: CNBC)
- 49% of the employees steal for greed, 43% steal out of vindictiveness, and 8% claim they steal out of need. (Source: The Dark Side of Behaviour at Work by Adrian Furnham, John Taylor)
- Employee theft is the cause of 30% of business failures. (Source: Association of Certified Fraud Examiners )
- According to one survey, a business can lose to theft up to 20% of every dollar earned. (Source: Corra Group)
- In 2008, the majority of retail shrinkage was due to employee theft at $15.9 billion, which represented almost half of losses. (Source: National Retail Federation Security Survey, 2008)
- In 2008, the average employee theft case was $2,672. (Source: National Retail Federation Security Survey, 2008)
- 30% of all business failures are caused by employee theft. (Source: American Management Association and US Chamber of Commerce)
- In 2007, one in every 28.2 employees was apprehended for theft from their employer. (Source: Jack Hayes International, Inc., 2007)
- The FBI calls employee theft the fastest growing crime in America. 55% of perpetrators of employee theft are managers. ( Source: American Society of Employers)
- 75% of all employees steal at least once. (Source: U.S. Chamber of Commerce)
- 14.7% of all applicants admit to theft of merchandise from an employer. (Source: Trak-1)
- 4.4% of all applicants admit to theft of cash from an employer. (Source: Trak-1)
- Average employee embezzlement is over $125,000. (Source: Trak-1)
- 95% of all companies are victims of theft, and yet only 10% ever discover it. (Source: Trak-1)
- Over 40% of individuals with criminal records committed an offense in a state other than where they were applying to volunteer, meaning that a state-only search would not have found relevant criminal records. (Source: Trak-1)
- 30% of business failures are caused by employee theft. (Source: Hill & Hamilton)
The Role of Workplace Violence in Disrupting the Functionality of an Organization
Workplace violence is one of the most challenging topics dealt by the HR department in an organization. When the employees in an organization take aggression and violent acts as a means to vent out their frustration the organization ends up losing a lot. It can result in decreased productivity, legal expenses and loss of company reputation. To successfully prevent violent behavior in workplace it is imperative for you to hire only trustworthy employees. A great way to start doing this exercise is by opting for background checks on candidates before they join the organization.
Problems caused by Workplace Violence Globally
- Violence in the Workplace is estimated to cost businesses more than $36 Billion, annually. (Source: No Work Violence)
- Violence in the workplace accounts for 17 percent of all occupational fatalities, making it the second leading cause of job related fatalities, right behind traffic deaths. (Source: Work Safe)
- 40% of working women who die from job-related injuries, die of murder. (Source: Denverite)
- 2% of workplace violence results from shootings and stabbings. (Source: Freight Wave)
- Workplace violence is the main concern of corporate security directors at Fortune 1000 companies. (Source: Securitas)
- Each year tens of thousands of violent threats are made in the workplace, leading to thousands of workers being attacked and injured. (Source: Osha)
- Each year more than two million Americans become victims of work related violence. (Source: Osha)
- 8% of the rapes, 7% of the robberies, and 16% of assaults all occurred in the workplace. (Source: U. S. Department of Justice National Crime Victimization Survey)
- Crime victimizations in the workplace resulted in nearly 900,000 lost work days. (Source: Corra Group)
- There are 6 million threats of violence and 2 million workplace assaults each year. 13 people die due to workplace violence every week. (Source: Mediate)
- The most common effects of workplace violence incidents on employees include decreased morale, decreased sense of safety, decreased productivity, decreased trust among co-workers and increased stress and depression. (Source: SHRM)
- Up to 5% of American workplaces experience a workplace violence episode annually. (SHRM)
- FBI Studies estimate nearly 355,000 businesses will experience a workplace violence episode in any given year. (Source: SHRM)
- 13% of the 5,840 workplace fatalities that happened in 2006 were the result of assaults and violent acts. (Source: U.S. Bureau of Labor Statistics, 2008)
- There were 11,613 workplace homicide victims between 1992 and 2006, averaging just under 800 homicides per year. (Source: Bureau of Labor Statistics’ Census of Fatal Occupational Injuries, 1992-2006)
- Of those establishments reporting an incident of workplace violence in the previous 12 months, 21% reported that the incident affected the fear level of their employees and employee morale. (Source: Bureau of Labor Statistics, Survey of Workplace Violence Prevention, 2005)
- Every year, nearly 2 million U.S. workers will become victims of workplace violence. (Source: Osha)
- The healthcare industry makes up 9% of the U.S. workforce, yet healthcare professionals experience more workplace violence injuries than all other industries combined. (Source: Rave Mobile Safety)
- Out of all 7 possible causes of death at the workplace, homicides make up 9%. (Source: Rave Mobile Safety)
- The third leading cause of death for workers in the healthcare and professional services industries (education, law and media) is due to workplace violence. (Source: Rave Mobility Safety)
- More on education: 44% of teachers reported being physically attacked while at school within one year. (Source: Rave Mobility Safety)
- For women, workplace violence is the second leading cause of death while on the job. (Source: Osha)
- In 2014, almost 16,000 workers experienced workplace violence and 69% were in the healthcare and social assistance industry. (Source: Rave Mobile Safety)
- 30,000 rape or sexual assaults occur to women at work each year. (Source: Rave Mobile Safety)
- As of 2013, 19% or most workplace violence injuries occurred in California and Texas. (Source: Rave Mobile Safety)
- Workplace violence incidents have tripled in the last decade and currently makes up the fastest growing category of murder in the US. (Source: Risk and Insurance)
- Workplace violence is the second leading cause of death for women in the workplace. (Source: Osha)
- 2 million workers in America are victims of workplace violence each year. (Source: Osha)
- In the period 2000-2015, over 1,000 active shooter casualties occurred in the workplace. (Source: Tal Global)
- 409 workers in private industry and government were workplace homicide victims in 2014. (Source: Tal Global)
- Of those victims who died from workplace violence, 83% were male, 49% were white, and 32% were working in a retail establishment. (Source: Tal Global)
- The rate of “sales and related occupations” workplace deaths due to homicide was 45%, with an even higher figure of 48% for their supervisors. (Source: Tal Global)
- The rate of “retail sales workers” workplace deaths due to homicide was 57%. (Source: Tal Global)
- The rate of “food preparation and serving-related occupations” workplace deaths due to homicide was 28%, with an almost equal figure for their supervisors at 22%. (Source: Tal Global)
- The rate of “office and administrative support occupations” workplace deaths due to homicide was 21%. (Source: Tal Global)
- The rate of “personal care and service occupations” workplace deaths due to homicide was 21%. (Source: Tal Global)
- The rate of “health technologists and technicians” workplace deaths due to homicide was 17%. (Source: Tal Global)
- The rate of “operations specialties managers” workplace deaths due to homicide was 14%. (Source: Tal Global)
- Workplace violence accounted for 17.8% of all simple assaults, and 12.9% of all aggravated assaults. (Source: Tal Global)
- 15,980 workers in the private industry experienced trauma from nonfatal workplace violence in 2014. These incidents required days away from work. (Source: Tal Global)
References
http://cdn2.hubspot.net/hub/282326/file-405226236-pdf/Documents/7KeysToSelectingTopTalent.pdf
http://www.acfe.com/uploadedFiles/ACFE_Website/Content/documents/2002RttN.pdf
http://www.corragroup.com/FAQ.html
http://www.safeguardcertify.com/blog/tag/shrm/
https://backgroundprofiles.com/statistics/
http://www.amof.info/ind-articles.htm#BANKRATE
https://pdfs.semanticscholar.org/d0a0/952be6cdea9027f28e20be172c14c9f487e9.pdf
https://www.opensocietyfoundations.org/sites/default/files/data-summary-20101123.pdf
https://www.businessgrouphealth.org/pub/?id=f3151957-2354-d714-5191-c11a80a07294
https://www.gomeddirect.com/downloads/test-or-not-to-test.pdf
http://www.dronet.org/avanzate/veneto/sospsico/upload/art040.pdf
https://s3-us-west-2.amazonaws.com/acfepublic/2018-report-to-the-nations.pdf
https://www.nelp.org/wp-content/uploads/2015/03/65_Million_Need_Not_Apply.pdf?nocdn=1
http://talglobal.com/workplace-violence-statistics-profile-best-practices/
http://talglobal.com/workplace-violence-2017-trends/
cFIRST Think Tank is the team that researches and produces content for cFirst. This team comprises of seasoned content and digital design professionals and background screening industry veterans. Together we produce insightful blogs, infographics and reports meant for HR and background screening professionals.
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