Small Businesses Say Job Seekers Lie Frequently on Their Resumes, Making it Harder to Find Qualified Workers

Alexandria, Va. (August 29, 2007) — Every hiring manager knows some people fudge their resumes to get a job.

In fact, say almost a third of the small businesses in a recent survey, up to half the resumes they receive are inaccurate.

"Checking the resume is only the first step in what should be a rigorous look at each candidate's background," said Milan P. Yager, executive vice president of the National Association of Professional Employer Organizations, the trade association that conducted the survey. "No matter how much you want or need to hire someone, you must carefully check their credentials and background. There's too much at stake."

Screening candidates is a booming business these days. Traditionally only large companies with security needs, such as defense contractors or banks, used rigorous background checks. Now smaller businesses are doing it, too, as much to make sure the candidate is suitable for the job as for security reasons.

Replacing a worker who didn't fit and who left or had to be fired can cost more than the employee's yearly salary, say experts. Especially for small businesses, with fewer resources and thinner benches, hiring an unsuitable employee is a costly mistake.

Recruiters at professional employer organizations, where small businesses outsource many of their human-resources chores, suggest requiring applicants complete a detailed job application that asks about legal and disciplinary actions. Also: Always ask for references and make sure to check them. Recruiters with PEOs said they have even seen fairly elaborate ruses, such as reference letters faked by the job applicant.

NAPEO surveyed 352 small and medium-sized businesses across the nation earlier this month on how they recruit and retain workers. Almost a quarter said more than half contain misspellings or grammatical errors.

Turnover is a big problem for these companies. Forty percent said their turnover exceeded 10 percent iin the last year.

Courtesy of NAPEO

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