Why should a company do background checks when evaluating potential hires?
A recent survey reported in an Australian national newspaper (available here) found that of 1000 respondents 21% had deceived their employer to get the job. You might think that lying to get a job is problematic - people are simply putting a huge 'spin' on their past in order to get the job.
Unfortunately for the hiring firm, the candidate who lied to get a job is more likely to lie to keep the job, lie to secure a bonus or pay-raise. Background checks help minimize, but certainly don't eliminate a firm making a very costly hiring mistake.
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