If there’s an underlying message in First Advantage’s latest study on background checks in the Asia Pacific region, it’s to tread carefully.
I received a copy of the firm’s 2014 Background Screening Trends Report for Asia Pacific the other day, analyzing 2 million of its background checks it conducted in the region. Among the findings: a 6.5 percent increase in candidates misrepresenting their curriculum vitae. Digging deeper into the data, Australia and New Zealand (27 percent) consistently recorded a higher discrepancy rate across Asia Pacific, followed by Singapore and Hong Kong (19 percent and 16 percent, respectively).
As has been the case in prior years, the discrepancy rate in China continued to be lowest among the lot, at around 9 percent in Q4.
So where are the discrepancies occurring? In terms of employment discrepancies, 54 percent concerned employment history. The three most common education-related gaps in the region were graduation dates with a variance of more than six months (6 percent), graduation dates with a variance of less than six months (5 percent) and unconfirmed degree (3 percent).
The research also revealed that employers are beefing up their screening efforts and increasing their number of background checks, with 67 percent of all cases subjected to at least five checks in 2014, compared to 42 percent in 2013.
Mathew Glasner, South Asia managing director for First Advantage, found the lower discrepancies in the less mature and higher risk markets like Malaysia, China and the Philippines particularly interesting. “This is driven by fewer checks per screen than we typically find in the more mature markets,” he said. “In the Philippines, for example, our customers conducted, on average, only 3.5 checks per screen and uncovered only 12.8 percent discrepancies compared to Australia, where they conduct, on average, 5.2 checks per screen and uncover 26.94 percent discrepancies. This behavior is counterintuitive when you consider the risk associated with hiring into these emerging and higher risk markets.”
Among the other trends Glasner is spotting: increasing usage in the region of infinity screening—or the rechecking of existing employees’ backgrounds. “The ongoing screening of staff represents a real opportunity to mitigate fraud, financial crime and reputational risk,” he said.
It goes without saying, of course: These findings should bode well for First Advantage and other background checkers with operations in the region.Twitter It!