'Discrepancy rate in industry seen dropping'


The report is based on regional employment background checks conducted by First Advantage from January to March 2009. Discrepancy rates are determined based on the differences discovered between job applicant provided data and data uncovered by the company conducting the background check.  Significant observations for this report include:

*The overall discrepancy rate has declined slightly to 26 per cent in the first quarter of 2009 from 27 per cent in the fourth quarter of 2008 and 28per cent in Q3-08. The discrepancy rates were 25 per cent in the second quarter of 2008 and 28 per cent in the first quarter of 2008.

*The overall employment-related discrepancy rate has remained stable while the overall education-related discrepancy rate has fallen from 29 per cent in the first quarter of 2008 to 20 per cent in the first quarter of 2009. The remainder of the discrepancies were with information related to address, employment data and criminal checks, in that order.

*Rates for the IT/ ITeS industry have stayed consistent; however, we have seen a dip in the number of new ITeS companies adopting screening practices.

*The overall trend in employment-related discrepancies clearly highlights an increase in discrepancies related to the type of companies worked for (“suspect companies” – companies which exist for the purpose of providing false employment verification) and the nature of past employment (on contract or otherwise).

*The trends report shows that the spread of “suspect companies” is moving beyond the “traditional hubs” like Hyderabad and Bangalore with Mumbai and Chennai also now contributing substantially to this list.

*“Nature of employment” or “employment status” related discrepancies came mostly from small and medium IT and ITeS companies.

*Of all the discrepancies/misrepresentations recorded in the first quarter of 2009, 20 per cent are related to past educational data.

*In the first quarter of 2009, Logistics, Healthcare and Pharma sectors had the highest rate of increase in education-related discrepancy rates compared to other sectors.

*The greatest percentage of discrepancies for educational qualifications were related to institutions in Northern India at 51 per cent (an increase over the fourth quarter of 2008), followed by Western India at 27 per cent and Southern India at 13 per cent.

*Muzzafarpur topped the city list for education-related discrepancies, while New Delhi led the list in the fourth quarter of 2008, followed by Mumbai and Hyderabad.

*39 per cent of criminal discrepancies were recorded in Western India followed by Northern India (26 per cent). The Western region, consisting of the states of Maharashtra, Gujarat and Goa, continues to have the largest share of criminal history discrepancies consistently for two quarters.

Ashish Dehade, Managing Director (West Asia) of First Advantage, said, “We are pleased to release the Background Screening Trends report for the first quarter of  2009. Our continuing goal for the report is to deliver insight into background screening trends, helping employers throughout India make informed hiring decisions.  Our chief objective is to add value to and help continuously improve our clients’ risk mitigation strategies.”

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