Highest number of discrepancy cases are in the BFSI sector followed by the IT sector
INDIA, 28th June, 2016 – First Advantage, a Symphony Technology Group (STG) company and the leading global provider of screening analytics and identity solutions, announced the release of their trends report in India, “First Advantage Background Screening Trends Report: India” for the for the first quarter of 2016.
With increased competition, penetration of MNCs mandate global norms to be imposed. Employers are now required to embrace thorough background screening practices and carry out thorough checks not only at lower executive level but even with more senior hires.
An employer who would have been content to hire an individual for a new position based on a requisite number of years work experience in an industry, is now looking at the authenticity of the claims made on the CV. Background screening has matured to a level where the nature of projects and leadership claims come into consideration and are required to be verified.
The reason for such scrutiny is an increased awareness amongst employers that when screened for key differentiators, they have to include a more stringent criterion because the pressure has increased on the employers and recruiters. The correct screening process, while might take longer, is an investment that would return in greater dividends to the employer brand, company’s productivity and longevity.
Reckoning the threat posed by workplace misconduct, both multinational and Indian companies have incorporated stringent hiring process to safeguard the organisation and avert unwarranted situations. Such a recognition is heightened in environments where employees have access to sensitive data such as the BFSI sector.
To help the employers understand the discrepancy trend in India, First Advantage created the report: “First Advantage Background Screening Trends Report: India.” Their latest study reveals key macro and micro level trends, and also provides the insight to organizations to hone their existing practices and fine-tune their existing screening practices.
The report is based on data collected from background verifications and reference checks conducted by First Advantage across India. The results of the report are segmented under critical discrepancy types (employment, education, financial-related, address, and database) that examine the discrepancy breakdown by verticals, states, regions, industry, age, gender and the like.
KEY FINDINGS FROM THE REPORT INCLUDE:
- A study of the Case Level Quarterly Discrepancy Analysis for Q1-16 shows that the discrepancy percentage has risen to 12.0 per cent [which goes to say that out of every 100 candidates who were screened by First Advantage – 12 candidates were found to have discrepancies in one or more than one component].
- The discrepancy versus veriﬁed percentage for 2011, 2012 and 2013 was at 10 per cent. In 2014 it had risen to 10.5 per cent. In 2015 it has further risen to 11.6 per cent.
- Case Level Discrepancy across industrial sectors like Retail, Telecommunication, Manufacturing, ITES/BPO and FMCG have shown a rise in Q1-16 in comparison to Q4-15.
- Out of the total occurrences of discrepancies a huge chunk of them have occurred in the Employment Component, followed by Address Component and Education Component.
- Discrepancy rates for Employment and Address checks are very high in the Southern zone and Education checks are very high in the Northern zone in India.
- City-wise Bengalooru leads in Employment related discrepancies, Hyderabad leads in Address related discrepancies & Namchi leads in Education related discrepancies.
- Highest number of discrepancies have been observed in the Associate level employees and in that too – the age bracket > = 22 to 30 years has the biggest chunk of discrepant cases at 43.1 per cent.
- Out of every 100 Education Discrepancies identified, 65 are from the Graduate level.
- BFSI , FMCG and Travel & Hospitality shows a high discrepancy trend in >= 41 to 50 years age bracket
- In Q1-16, discrepancies related to Employment, Address and Education components were at 59.5 per cent, 11.4 per cent and 5.3 per cent respectively
- In the Employment discrepancy checks, Males form the biggest chunk at 81 per cent [which means out of every 100 Employment discrepancy checks, 81 are Males and 19 are Females].
- Discrepancy rates for Employment and Address checks are very high in the Southern zone
- Discrepancy rates for Education checks are very high in the Northern zone
- In Q1-16, State-wise discrepancies, Karnataka state leads at 22 per cent followed by Maharashtra at 19 per cent and Andhra Pradesh is at 12 per cent.
“With the increasing competition amongst multiple players, the pressure has never been far greater to make informed decisions in recruitment. In the coming quarters, employers are looking for best hiring and screening practices that will not just do the task at hand but bring incremental value to the company,” said Purushotam Savlani, Managing Director and SVP, First Advantage India. He further added, “The objective of this report is to familiarize the employers with the hindrances to making effective hiring decisions and optimize their needs with that of the talent pool. The findings of the report paves the way to enable effective background check so that employers can optimize their recruitment practices”.