Nabbing fibbers, fudgers, fabricators

I wish this was my headline, but it's one I recently saw on a handout taken from an article that appeared in a local Toronto newspaper in March/99.

The rest of the article reads:

"Weeding out applicants who fib, fudge and fabricate is big business for companies - some spend $100,000 on screening and checking - who want to ensure they get the right person for the job"

Then it starts:

"If Bill Clinton can get away with it, why not you?" and goes on to describe that stretcing the truth a little here, fudging a bit there, maybe embellishing your education history slightly, can all set the employer back up to $100,000 in an exhaustive recruitment, training and rehiring process.

The not-for-profit networking group, whose meeting I recently attended, is made up of professionals, many middle to senior management, looking for employment, contract consulting or whatever. The speaker was not a very welcome guest, but as Canadians, we do have a reputation as being 'oh so polite' and peace keepers, so we applauded. I refused, naturally. :-) Canadian yes, overly polite no.

Anyway, the speaker called himself a Reference Checker who has been in the resume busting business for over 20 years. Has anyone ever heard of such an animal. I think it could be the ideal business to get into. Very little, if any competition. But is there really a market for reference checkers? Sounds to me like a one man industry. He was quite a character. Wish some of you entreprepreneurial types could have been there. I think you would have all thrown eggs at the guy. I wanted to!!

Ths guy (Roger) (guess I shouldn't use his last name, eh?) claims he is hired by companies, didn't say what kinds, but he dropped names like Sprint, AT&T and the banks, to carry out reference checks on individuals who these employers are contemplating making a job offer to. One would think that companies would hire Roger when they are contemplating hiring a President, CEO , COO, or someone at a very senior level. But he claims, it could be someone in a junior role in the company as well. Makes me a bit suspicious of this!!

Continuing, he told us that he is capable, through a phone interview, to read between the lines and tell if your references are lying about your skills, and because he's been doing this for over 20 years he must know his stuff!! He is also very good at 'reading' resumes to determine fact from lie. Sounds like he might have a background as a private investigator or CIA?? But somehow, he didn't strike me as the type who could survive on the streets and get his hands dirty, if you know what I mean. In fact, he spoke oh so softly, the audience had great difficulty hearing him!! Bit whimpy looking too :-)

His company carried out a Reference Checking Survey in 1998 that shows a majority of Canadian employers believe reference-checking is essential but for some reason many prefer not to do it or don't do it properly.

Also, 93% of the employers have found exaggerations on resumes while 86% found outright misrepresentations. Some 84% say they have had to let an employee go for reasons that could have been detected by a thorough reference check before they were brought on board.

The major areas of exaggeration or deceptions are work responsibilities (45%) educatioon (22%) and work experience (21%).

The 77 companies involved in the nation-wide survey represented a cross-section of businesses in Canada, from small firms of six to national companies employing over 40,000. The firms were involved in manufacturing, retail, finance, insurance, publishing and hospitality. Now I would hardly call 77 companies a good yardstick to measure results. And how about the 'nation-wide' claim. Sorry, I'm too lazy to find how many companies are carrying on business in Canada but I know 77 is really really small. I am more likely to call this a mini, city-wide survey.

BUT folks, the above thus far is not really what angered some of the group. When Roger told us that part of the reference checking includes carrying out a credit check, this is when some in the room had lots of questions to ask. What about rights to privacy as individuals?

He was actually telling us that a poor or bad credit check is part and parcel of the service he provides when a company pays him to provide a reference check. So, e.g. as some in the audience asked, if I've recently had a divorce and I'm paying alimony and child support, this could potentially leave me with some fairly large credit card balances, and I could well have been in arrears at some point. So, does this mean that a potential employer will use this information in making a decision for/against me as the preferred candidate. Or how about a personal or business bankruptcy. How many people nowadays don't have a friend or haven't been through a personal or business bankruptcy? Does this make them an unfit candidate for a job? This information also remains on your file for several years, and could potentially jeopardize your chances for finding your next job or contract? He tried to dodge specifics on the credit checking issue and how it could be used against a preferred candidate, but it certainly leaves a lot of doubt and concern on the part of those seeking any kind of employment or contract with a company who would use this kind of service.

As we exchanged information after Roger's presentation, we were all in agreement that people like Roger should never be asked to return as a guest speaker. And the consensus was not favourable towards people in his profession who are really not in touch with reality.

There were several examples given of where e.g. older individuals with degress, may knock a few years off the year they graduated, simply because this is one sure sign that reveals one's age. In a work force, where the demographics are changing, many companies are favouring the younger graduates over the older ones because they can also pay less. So, this is one instance where I see it as survival of the fittest. If you have to knock a few years off your resume because you'll be considered over qualified, then I will do it. If Roger and Co. find out, then I'll have to explain to Mr. Employer. But, issues like this, do make me and others very concerned. So, welcome to reality, Elizabeth.

Regards,

Eliz.

Hi Elizabeth,

Heheh, great heading from the Toronto newspaper...! Sometimes these newspaper editors get quite creative.... :)

I was lucky and got to go to Toronto a couple of years ago, though it was only for a couple days.... I was visiting someone (Aephraim Steinberg) in the physics department at the University of Toronto.... I quite liked Toronto (I was there in the summer)....

Thanks for that interesting story.... I can't think of how a *personal* credit check could really be relevant to someone's capabilities of doing a job, that seems a bit strange to me....

I guess Roger though found a demand for something and decided to fill it (despite how unpopular it's probably made him!).... No matter how strange what your offering may be, if there's a demand for it and you let people know you're there and there aren't too many competitors, you'll probably find customers!

It's this kind of background checking stuff which REALLY makes me keen for having my own business and being my own boss. Not because I'm too worried about background checks etc., but because in an employer/employee situation, the employer generally has all the power (though on the other hand, they're also generally the ones taking the risk)..... It doesn't sit well with my tendency to prefer my own independence.... :)

I've read that many people who start their own businesses tend to have this kind of independence streak.... Some people are happy working for a boss, while others aren't so happy.... Striking out on your own, while there are risks, can also be exciting.... :)

Thank you Elizabeth! :)

Dien Rice

Hey Elizabeth,

Way back when I got my very first job out of college they even did a credit check. That was back when dinosaurs roamed the Earth....1984 if my memory can go back that far!

In 87 I worked for a company where my counterpart sales rep faked his degree from Georgetown. That was highly amusing to observe. We had to supply our transcripts and diploma upon hire. Somehow he lasted about six months.

Simply amazing.

JULIE

Hi Julie, nice to hear from you. I though perhaps you were taking a fall break.

No, I never knew about the credit check thing for job hiring. I thought I knew everything, (ha ha) but I guess this one caught me off guard. Fortunately, I have an excellent rating (when I last checked!) but I know a lot of people who through personal circumstances don't. So, this is what disturbed me.

I can understand some circumstances where a credit check would be necessary for someone in a position of authority, or dealing with clients' accounts, as in a brokerage house, bank or financial institution, having responsibility over large sums of money. But if you never have access to the company financial systems or confidential records, I don't see the value of running a credit check on this kind of employee.

Anyway, needless to say, some of the men and women who attended the presentation, were very shocked. And as I mentioned, the audience were made up of both senior to middle mgmt. types. So, perhaps the practice, while customary in the US, is not as routine in Canada, or else, one would think, some of the audience would have been aware of it.

Anyway, we learn something new every day, or at least we should!!

> Way back when I got my very first job out of
> college they even did a credit check. That
> was back when dinosaurs roamed the
> Earth....1984 if my memory can go back that
> far!

Hah, hah, your first job was in 1984. So, mine was in the early '70s. What does that make me?? For lack of better word, pre-dinosaur? But everyone tells me I look 10 years younger than my age. No laughing alllowed!!

This is amusing. I have a sister who is 10 years my junior. Side by side, she's often mistaken for being older or around the same age. So, this makes me feel good. I've got my mother's genes. She died at 68, but never had a wrinkle in all those years. Hollywood, eat your heart out!!

Regards,

Eliz.

> Hi Julie, nice to hear from you. I though
> perhaps you were taking a fall break.

****Hey Elizabeth!

I have been busy...busy...busy! and distracted...thanks for noticing!
> Hah, hah, your first job was in 1984. So,
> mine was in the early '70s. What does that
> make me?? For lack of better word,
> pre-dinosaur? But everyone tells me I look
> 10 years younger than my age. No laughing
> alllowed!!

****Well, that was somewhat of a joke after I posted above about getting carded on Friday night. Me mistaken for 21? Actually, it was probably because he wondered if I was 30 or not. It was great for my ego though!

>I've got
> my mother's genes. She died at 68, but never
> had a wrinkle in all those years. Hollywood,
> eat your heart out!!

***We could ALL learn from her! Good to see you, Elizabeth!

With Purpose and Passion,

JULIE

Credit checks are the least of your worries... It sounds to me this fellow, if true, is more of a Private Investigator. And there are many of them, so don't count on a open marketplace in this business.

What you describe has been going on for years and years. Normally behind the "Curtain" though.

I've been involved in the Hiring and Firing of a few individuals and let me say the Fed's have their hands way in where it doesn't belong.

Don't you think when hiring for a Gov't position, certain laws, ethics and morals aren't violated??? But when it comes down to the average Joe hiring for his Mom & Pop operation his hands are effectively tied!

I know of one business owner who ran a MVR (Motor Vehicle Report) to be certain this individual was a safe driver for a driving position with the company.

The MVR came back horrendous! The individual wasn't hired. When the businessman was asked why... The individual was told it was because of his Driving Record.

Guess what??? This guy sued the business owner even though he voluntarily filled out the Job Application, including his Drivers License number.

Why did he win??? It wasn't disclosed on the Job Application, or to the applicant, the MVR would be checked. Nor did the applicant "Give Permission", to have his MVR checked! And this was for a Driving position!!! Sheesh!!!

Forunately for this this businessowner, he had enough Liabilty Insurance (and the right type) to pay for Defense costs and the judgement which was awarded to this applicant...

So for any of you hiring... This is what we tell our clients... Hand them a job application to take HOME and tell them to fill it out and bring it back with an Current MVR.

Don't even discuss job openings or availabilties with them! Most of you can not fathom the risks associated with Hiring and Firing employees anymore.

Last year we paid out over a couple hundred thousand dollars in Employee/Employer altercations and claims. Including Harassmnet, Workplace Hostility, Employee Benefit Errors. Most of them could have been avoided by having a set Problem Solving Procedure in place! :::hint::: :::hint:::

Just another reason, or many, to become a self-employed Marketer.

Success and Regards... Mike

Mike, thank you for sharing your thoughts on this.
Some of yours and Julie's comments have really sparked my interest in the subject matter.

I'll send a note out to a few of my HR friends and ask them what their practices are in their respective companies.

> Don't you think when hiring for a Gov't
> position, certain laws, ethics and morals
> aren't violated??? But when it comes down to
> the average Joe hiring for his Mom & Pop
> operation his hands are effectively tied!

Re the hiring for gov't jobs, I do recall now that I was once told that a thorough check, credit, criminal record, etc. would be done for a contract position that I had applied for with Revenue Canada, same as your IRS. But, this was understandable.

Regards,

Eliz.