The truth about hiring

It’s no secret some job seekers bend the truth to package themselves favourably, while employers rely on background checks to get the straight goods. But the logic behind these methods may be misguided, recent studies find.

According to a global survey of more than 300 Korn/Ferry International recruitment consultants, the information that executive candidates fabricate most frequently is their reason for leaving a prior job. But candidates shouldn’t feel compelled to lie even if they’ve been laid off, says Robert Damon, president, North America for Korn/Ferry. “Downsizing and restructuring have lost much of their stigma and are becoming more accepted by employers. It’s best to be straightforward about the situation,” he says.

The survey also asked recruiters what types of candidate background checks clients are requesting. Education and employment verification were most popular at 83% and 77%, respectively. But a significant number (26%) also cited credit history checks, a screening measure that assumes employees with good credit are more conscientious and less likely to steal or be fired.

Problem is, credit history has no validity in predicting job performance or turnover, according to a study by Eastern Kentucky University psychology professors Jerry Palmer and Laura Koppes. They examined the credit reports and job performance appraisals of 178 employees working in financial services and found no correlation.

“At least one individual with a high number of 30-day late payments got ‘outstanding’ on his performance review,” says Palmer. “Others had excellent credit, but their performance was not good.” Furthermore, none of the negative indicators on the credit reports, such as late payments or repossessions, related to employees who quit or were fired, he says.