Discrepancies in employment verification rising across key sectors: Report
Oct 08, 2024
New Delhi [India], October 8 : Discrepancies in employment verification across key sectors are rising, revealed the latest report put out by background verification and authentication solutions firm AuthBridge.
In the analysis, AuthBridge reported a notable 44 per cent spike in employment verification discrepancies across six major sectors, from 2020-21 to 2023-24.
Companies are increasingly adopting rigorous employment verification processes. Background checks help reduce the risk of hiring individuals with falsified credentials, mandating due diligence on human resources.
AuthBridge, in their analysis, drew from millions of background checks conducted during this four-year period and presented crucial sector-specific insights.
It explored the growing adoption of digital verification methods and addressed emerging challenges like moonlighting and AI-powered checks, offering verification solutions.
"Background verification is now a cornerstone of modern HR practices. With the surge in remote work and digital onboarding, the importance of thorough background checks has never been more pronounced," said CEO of AuthBridge Ajay Trehan.
"By enabling informed decision-making, we empower companies to mitigate risks, enhance efficiency, and stay ahead in this era of transformation," said Ajay Trehan.
Key findings from the report include significant discrepancies across various sectors. For instance, the telecom sector witnessed a sharp rise in discrepancy rates, reaching 18.2 per cent. In the BFSI sector, discrepancy rates climbed to 10.4 per cent. The pharma sector saw a 50 per cent increase in discrepancy rates since 2020-21, reaching 17.1 per cent.
While the FMCG industry showed an overall decline in discrepancies, e-commerce--representing 17 per cent of FMCG consumption--faced increasing verification demands, particularly with the rise of gig workers.
According to AuthBridge, the gig economy saw a 12.5 per cent discrepancy rate in verifications, underscoring the need for thorough screening in high-demand sectors like logistics, e-commerce, and last-mile delivery.
