Article: How to minimize organizational risk with resume screening

#TAL'18

How to minimize organizational risk with resume screening

Screening of resume is a crucial factor in minimizing organizational risk. Steve Girdler, Managing Director, APAC and EMEA, HireRight, throws light on the same.
How to minimize organizational risk with resume screening

With growing technological advances, the need for trained, self-aware and agile employees has increased tremendously. With the rise in demand comes the need for supply. However, it is very crucial to examine the resumes and interests of the candidates who apply for any job. Any person who gets appointed to an organization does not only become part of the company but has access to critical data. If data falls in the wrong hand, it can not only hamper the brand image.  

In the Talent Acquisition League organized by People Matters, Steve Girdler, Managing Director, EMEA, and APAC, HireRight stated, "1 in 6 candidates hired in India had discrepancies in their resumes."

Steve and team had conducted research and stated, "India is one of the fastest growing economies, and 85% of our survey expected their workforce to grow in India, and 50% expect to grow by 6%." It is imperative to acquire the right kind of talent for the right job to have complete success with the task assigned. A task can be completed with efficiency and delivers job satisfaction only when the right people are hired for jobs based on experience and passion.

Steve states, “People are less truthful about their career experiences and education to acquire the job or to get what they want." 

In his session on minimizing organizational risks, Steve beautifully explains the six significant concerns that an organization needs to take into consideration while screening resumes and appointing people for any role.

Reputational Risk

Firms with strong reputations attract better employees and are perceived as providing more value. Their customers are loyal and buy broader ranges of products and services. Companies with a great brand image will deliver sustained earnings and future growth; they have higher price-earnings multiples and market values and lower costs of capital. 

As per hbr.org in an economy where 70% to 80% of the market value comes from hard-to-assess intangible assets such as brand equity, intellectual capital, and goodwill, organizations are especially vulnerable to anything that damages their reputations. It is very critical to hire employees who have proper knowledge and passion for building the organization and have a sense of belonging.

Asset Risk

After an employee is hired, they have access to most of the company’s assets and critical information. It's essential to have a workforce that is loyal towards their companies. Resume screening helps you understand if there are any job discrepancies or criminal records. Companies hold data on employees, clients, plans, and proposition. These data are critical assets and hold insights about the company and its employees and can be misused to hamper and disrupt work environment. 

Financial Risk

In a presentation shown by Steve, 15% employees had a criminal conviction. It is not necessary that these activities might have a grave impact but companies should follow thorough verification process to identify any activities that could hamper operational risk, credit risk, and market risk. Some companies hold the details of customers’ credit cards, and if these are obtained by unauthorized personnel there can be a drastic outcome which will damage you and your business.

Compliance risk

One of the major concerns is compliance as they can lead to legal actions and penalties. Most companies follow stringent agreements and ensure their workforce is well aware of the policies that need to be practiced. It is essential to have a workforce that practice and supports the compliances and not bend them for one's benefits.

Performance risk

A lot of capital is invested in hiring and training new candidates, and it can be quite a task to access people if they are right for the job. However, it is crucial to have a strategic interview in a place that helps you understand an interviewee’s interest and passion for working with the organization. It becomes difficult and expensive to hire executives and train them now and then. Hence, it is essential to explain your requirement and expectations and understand if the employee would be able to deliver the same output with regards to their experience and knowledge.

Safety

Everybody prefers to work in an environment that makes them feel safe and at home. Steve states that employees are more productive when they feel safe and sure that they are taken care off. It is important to ensure the safety of not only the business, assets, finances or data but also your employees and the surrounding. 

"Senior level executives resumes are not screened and do not go through the same level of rigorous interview process posing grave threat to organizations" states Steve. While it is vital to achieving targets and right talent for the right job it is imperative to have the correct and accurate information about the candidate's knowledge, experience, and general information. Steve signs off stating, “Screening resumes is just verifying if the details provided are accurate and not dwelling on anybody's private life."

 

Image Credits: Employement.co.uk

Topics: TAL 2018, Talent Acquisition

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