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TIP TUESDAY: 5 Lies to Watch For When Hiring

A survey from Right Management reports that the cost of a bad hire can range from one to five times the salary of the individual. According to background screening leader HireRight, job seekers very often exaggerate, falsify credentials and outright lie on their job applications, especially in today’s competitive job market.

Thus, the chances of hiring the wrong person escalate. The prevalence of candidates lying on job applications and resumes, if not outright fraud, at the very least provides reason for small businesses to conduct comprehensive background checks.

Here are five of the most popular lies told by job candidates that employers should watch out for:

1. Exaggerating dates of past employment

As many as 34 percent of all resumes include discrepancies related to previous employment. Candidates often stretch the truth to cover gaps in their work history they may not want to explain — like the job seeker who extended his employment dates to cover a six month jail sentence! Sometimes discrepancies are honest mistakes, but employers should always verify employment dates.

2. Falsifying the degree or credential earned

There is roughly a 20 percent discrepancy rate in education qualifications provided by candidates. Often a resume will tout a degree when a candidate only took some classes, or exaggerate a major so the candidate appears more qualified for the job. Other candidates forge diplomas, claim degrees earned by family members or purchase degrees from diploma mills. The latter can be very difficult to identify, but knowledgeable background checking firms compile detailed databases of known diploma mills so frauds can be identified.

3. Inflating salary or title

It’s hardly surprising that a candidate might exaggerate these important facts to get a better job or a higher salary. That’s why companies typically contact previous employers to verify positions held by the candidate. Salary verification can be more difficult since many companies will not reveal this information. In such cases, asking the candidate for previous W-2 forms as proof is a wise step.

4. Concealing a criminal record

The most serious reason companies must perform background checks is to maintain a safe workplace. Roughly 11 percent of all background checks return a criminal record. Disturbingly, criminals are most attracted to companies where they know they will not be checked, therefore smaller businesses may be a target. Criminal applicants often try to avoid detection through nondisclosure or by changing details such as the spelling of their names or dates of birth.

5. Hiding a drug habit

Since 42 percent of Americans admit to using an illegal drug in their lifetime, screening candidates for drug use is a wise idea for small businesses. Drug users go to great lengths to beat these tests — such as adulterating urine samples — but today’s drug tests are increasingly sophisticated and can identify true positives and negatives despite the attempts of those trying to cover up drug use.

{by John Reese, HireRight, as featured in business know-how online}

TIP TUESDAY: Contract, In-Office, Remote – Which is the Best Hiring Solution for Your Company?

Bringing on talent as your business grows is a big step, and depending on your needs, there are several options to consider. According to CareerBuilder’s 2017 midyear hiring forecast, 40 percent of employers said they planned to hire regular full-time employees this year, while half of all employers anticipate adding temporary or contract workers. So how do you determine the best hiring solution for your company?

Contract workers are ideal for boosting talent for short-term projects that require a very specific set of skills. The pros are simplicity and flexibility. Hiring contract workers is a less complicated and less expensive process than hiring an employee. With freelancers, it’s just a matter of drawing up a contract, and they can begin immediately—no need for lengthy onboarding, and because they are not on staff, you don’t have to provide a benefits package. Other than filling out a 1099-MISC form at the end of the year that specifies how much you paid that person, you also don’t have to worry about withholding or paying FICA taxes. Because contractors don’t require the same investment of time and money as hired employees, there is a lot less pressure should you decide to cut ties or work with someone else.

The cons are less control and potential IRS issues. Unlike your own employees, contract workers are self-employed, therefore you don’t have the authority to dictate work hours. You also cannot expect to have 9-5 access to them since they likely have other clients. Other than project specifications and a deadline, you don’t have much authority.

If you hire freelancers and become the subject of an audit from the IRS or the Department of Labor, you’ll have to be prepared to prove they were not, in fact, your employees. Do yourself a favor and review the IRS guidelines on how to determine whether the individuals providing services are employees or independent contractors.

In-office hires work well for companies that need someone to provide long-term value and wear several hats. The pros include engagement, longevity and onsite management. Employees who are part of your team become invested in the success of the company. Unlike contractors who have their own business, your employee’s success is directly related to the success of the business overall. Plus, by providing a competitive salary and growth opportunities, you can retain your best talent.

People who work for your company are essentially subject to your workplace rules. You set the work hours, the training programs, the productivity expectations, and can require that the person only work for you.

The con is risk. Recruiting and onboarding a new employee is a big time and money investment, and if it doesn’t work out, you have to start from scratch. Plus, a hire gone badly can negatively affect the morale of other staffers.

Remote employees add talent without using up office real estate. The pros are saving money, boosting productivity and hiring from a larger talent pool. According to a recent survey, nearly six out of 10 employers say allowing some staffers to telecommute provides cost savings. Telecommuters at Compaq, Best Buy, British Telecom and Dow Chemical have all shown to be as much as 45 percent more productive. Without the distractions that sometimes happen in an office, focused remote workers can get more done. When you’re not limited by geography, you can stretch your talent search to find employees who more closely match the roles you need to fill.

The cons include employees being tougher to supervise and feeling disconnected. Culture is such an important part of business success, and that can be difficult to cultivate for the portion of your workforce who works remotely. To help staffers feel a sense of camaraderie, you’ll have to be more proactive about planning in-person functions and meetings. Despite the productivity potential, if your remote workers aren’t self-motivated, it can be hard to manage them from afar. Plus, certain types of jobs might benefit from face-to-face brainstorming and collaboration.

Deciding which type of hiring solution is right for you comes down to your needs—if it’s a short- or long-term project, your physical office space and your budget. The good news is that you can decide on a case-by-case basis, and build a hybrid workforce that is optimized for efficiency.

Call us at The Hire Solution, 630-953-7370 to talk about your needs and how to choose the right talent for the job.

WORKFACT WEDNESDAY: Resumes, Recruiting & HR

Whether looking for a new job, need help with your resume or are ready to build your team, you can appreciate some of these fun facts as they relate to recruiting and human resources.

  • 79% of candidates are likely to use social media in their job search
  • 65% of recruiters use Facebook in recruiting
  • 18% search for jobs from a restroom
  • 30% search for new jobs while at work
  • 38% search during their commute
  • 41% of job seekers search for jobs while in bed
  • 93% of companies use LinkedIn for recruiting
  • 89% of recruiters have hired someone through LinkedIn
  • 70% of candidates use a mobile device to find jobs
  • Average time spent by recruiters looking at a resume: 5 to 7 seconds
  • 76% of resumes are discarded for an unprofessional email address
  • More than 90% of resumes are now posted online or sent via email

TIP TUESDAY: Corporate Culture Key to Attracting and Retaining Top Tech Talent, Says Survey

More than any other concern as it relates to hiring and retention, finding and hiring top tech talent keeps executives up at night—more than keeping the team they have in place and more than staying competitive with regard to salary and bonuses. According to the Harris Allied Tech Hiring and Retention Survey for 2017, half of all executives report that this is their biggest worry and that number has continued to grow by 11% in the last 3 years alone.

So what are executives doing to attract top tech talent? While being able to offer excellent compensation and benefit packages were most often cited as important recruiting tactics, being able to attract new employees with an amazing corporate culture or a company’s unique industry position ranked as the next most important strategies. An environment that is creative, inspiring, and fun (63.4%); being industry-leading and innovative (54.8%); and having the chance to work on interesting projects (51.6%) were cited most often as contributing to an exceptional corporate culture.

Corporate culture also plays a critical role in employee attrition. Nearly 26% of survey respondents said that people left their company for more exciting opportunities and the chance to work with new technology; another 16.7% said they thought it was because their corporate culture was very challenging. Competitive compensation and benefits packages always play a role, too, with another 19.2% citing that as a reason people had left the firm.

So what do executives feel they should be doing, or doing better, to attract and retain top tech talent? Of the 120 executives surveyed, the answers were fairly evenly split among improving professional development opportunities, increasing employee compensation, improving corporate culture and employee morale, and improving benefits, vacation, and paid time off (PTO) time.

Among the other key findings of the Harris Allied Tech Hiring and Retention Survey are:

  • Social media plays an important role in a company’s recruitment strategy, said 86.7% of those surveyed.
  • Offering both competitive compensation packages and outstanding benefits packages were cited most often as important (ranging from slightly to extremely) as a recruitment strategy. Offering employees the opportunity to telecommute came in as a close second.
  • On 2016 year-end bonuses, 35% said that their bonuses would be 1% to 5% higher than last year’s.
  • Nearly one-third of respondents said their hiring plan for 2017 would grow by 10% to 15%. But another 27.5% said their plan was still being worked on as of the end of Q4. Another 18.3% plan to hiring aggressively, citing 15% growth or more in their hiring plan for 2017.
  • User experience design and web development projects were cited most often as driving corporate hiring needs in 2017. Software application developers/architects were the roles that employers expect to recruit most aggressively for in 2017.

WORKFACT WEDNESDAY: 82% of Job Seekers Are Frustrated With Automated Recruiting

by Aliah D. Wright for SHRM online

A new report reveals that 82 percent of job seekers are frustrated with an overly automated recruiting experience. It’s especially true for candidates who apply for jobs online and never hear back from potential employers about the status of their applications.

Randstad US, based in Atlanta and one of the largest national staffing and HR service organizations, released the report in August. About 1,200 respondents from the U.S. were surveyed by . While most candidates found value in technology, they said they are frustrated when it supplants the human aspect of the recruiting process.

The report also found:

  • 95 percent said technology should be used to assist the recruiting experience, not replace it.
  • 87 percent said technology has made looking for a job more impersonal.
  • 82 percent said the ideal interaction with a company is one where innovative technologies are used behind the scenes and come second to personal, human interaction.

“The findings reinforce what we’ve believed for quite some time, that successful talent acquisition lies at the intersection of technology and human touch,” said Randstad North America CEO Linda Galipeau. “If done correctly, the right combination of personal interaction with the power of today’s intelligent machines can create an experience that is inherently more human.”

You can read more at SHRM online.