It's estimated that as many as half of all job applicants falsify their educational credentials. What's more, industry experts cite academic fraud as the most common lie on resumes.
What Are The Risks?
The risks of not verifying applicants' education credentials include:
- Greater recruiting and replacement costs
- Increased employee turnover
- Compromised business performance
- Embarrassment and negative impact to your organization's reputation
- Declining market value
- Lost customers and revenue
- Civil and criminal liability
By The Numbers
- Association of Certified Fraud Examiners: 41% of applicants lie about education. It is estimated that resume fraud costs employers approximately $600 billion annually.
- ADP Screening Index: 45% of employment, education and/or credential reference checks reveal discrepancies in the applicant's information.
- Wall Street Journal: 34% of all application forms contain misrepresentations about the applicants' experience, education, and ability to perform essential job functions.
- CareerBuilder: 49% of the 3,100 hiring managers surveyed caught a job applicant fabricating some part of his/her resume.
- American Psychological Association: According to a recent study, 67% of job applicants' resumes in the U.S. contain misrepresentations.
Recruiting: Industry Facts
It costs $7,000 to replace a salaried employee, $10,000 to replace a mid-level employee and $40,000 to replace a senior executive (Source: Recruiting Times).
2011 ADP Screening Index
46% of candidates processed through reference checking came back with information indifference (slide 29).
36% of the time companies discovered falsified information, it was after the employee was hired.