Failures in employee background check and it's cost

Hi Friends,

Recently I come across through a news article where a person at General Manager Level at IBM was accused to secure job through fake certificates and also reaching to such a senior level position. more surprising was that on the basis of those fake certificates, he managed to get admission into Executive Post Graduate Management Programme of IIM Kozhikode.

Reference: http://timesofindia.indiatimes.com/city/bangalore/Harassed-wife-exposes-husbands-job-scam/articleshow/14919527.cms

This is a real, serious and not new and known to everybody issue. I can bet there are many such employees who are employed in a bog organisation with such fake degrees. However, this has attracted me on certain serious issue and points:

1. How efficient is IBM's background checking system?
2. How efficient is IIM's background screening system?
3. Was that person really performing in his professional life? If not, how he reached to such high level position?
4. Is HR department really serious to protect company and providing right manpower?

Let's discuss about it:

1. How efficient is IBM's background checking system?
Somebody produced fake certificate, worked for a long with the organisation but HR department failed to recognize that he has submitted a fake certificate. It shows a high carelessness in HR department. I do not know what has happened in the HR department after this news broke out.  R Nandan was working as a general manager and were drawing almost 24 lakhs p.a. as a salary as the TOI reports. Lapse on background verification should not be taken lightly at any level and this was the case of a candidate at senior management level. Today, doing background verification is very easy. With the help of RTI, you can simply write an application with Rs. 10 stamp/ DD/ cash to the concerned board and university (and some university has system of verification by paying prescribed fee). It shows either the HR has not updated itself on such facility or did not applied proper due diligence and finally the organisation paid a big price. It has brought bad repute to the organisation and I believe, HR is the brand ambassador of any company on behalf of its human resources policy and act of it's employees.


 2. How efficient is IIM's background screening system?
The most shocking was IIM's failure. Being an organisation of such repute, they did no take pain to verify academic record of a student before admitting. It shown commercial mentality of such institutes. They should have sent the certificates to the concerned institute to ascertain its authenticity (as University of Mumbai does for every application it receives, for all students). This has put question on reputation of such highly important institutes.


3. Was that person really performing in his professional life? If not, how he reached to such high level position?
This is most important and burning question for HR professionals and business managers that Mr. R Nandan (The accused in this matter) was really a performer in the job  when he even could not complete his Diploma (forget about graduation). If he was performing then does this means that most of the HR professionals who are still sticking to the academic "performance" while shortlisitng and hiring candidate should stop doing so (I personally and professionally believe that academic performance has nothing to do with the professional achievement. A person academically high performer may or may not be a high performer in his or her professional role). So here, HR has to do in depth research about it. There will be time also when we may stop considering academic "qualification" while appointing somebody in the job. 
If he was not a performer, then a serious question is that how he got promotion in his job (he spent almost 3 years in every company he joined), how he became able to sustain his job?, How he got promotion and such high package? This indicates failure of the HR as well as his reporting head on measuring proper performance. The best reason is known to all of his employers only. I am sure the HR department and his reporting head must have got sacking after this incidence or at least a warning memo.

4. Is HR department really serious to protect company and providing right manpower?
In this case, I believe a big NO. HR department did not do the verification properly, HR department did not check his credential in the best possible manner. All this has started from the goof up right from the beginning- recruitment process. The cost, that organisation has incurred in into crores for a wrong manpower.

HR department really need to align themselves with the business need and need to handle the delicate human resources. This is a big lesson for all of us.

11 comments:

  1. What fictional character from the popular media would you consider an effective leader and why?
    http://www.humancapitalonline.com/

    ReplyDelete
    Replies
    1. Sorry, I could not understand purpose and meaning of your this comment, please elaborate?

      Delete
  2. Why is the HR blamed for everything..the Author here seems to be a person who keeps blaming others & no where has he provided a solution to this issue. If you can not provide a solution, you have no right to accuse. & Hr is always a easy target. Most organizations have tie up with third part who do teh back ground verification; HR cannot go to each & every employees college & verify. So the first blame goes to these agencies who do the checks.

    ReplyDelete
    Replies
    1. Hi,
      I have said the practical things and being an HR if I have courage to blame self for failure, I do not think anything is wrong in it. First of all, you cannot rely on background screening agencies completely. I have never relied upon them (at least after responding to several such calls for my ex employees in the organisations where I have worked). Background screening is a very careful and intelligence gathering task. Sorry, I defer your view. HR can absolutely send every certificate for verification and it is not the rocket science, it is just a simple process. Even if HR want to outsource it, HR can clearly laid down the process what verification he/she needs to do. Further, it is not only about academic background screening, it is 360 degree background screening.

      Delete
    2. Yes , Still in few of the IBM chennai employees, having fake degree certificates. So, right person may not get a chance.. job opportunity is purely luck in this case in IBM.

      Delete
  3. Hi, You never came to this solution and never write this post if his wife never disclosed this information, she harassed by him thats why some peoples may provoke to his wife to take this step, however this is not your matter how he earned money and how he got that position - he may not complete his education for financial issues but he proved that he is good at his job so he is there in that position, there is so many peoples done duel Masters and phd but not capable to do any work sitting idle at home - education nothing do with job - job need knowledge, fast leaning and solution provide to give best result to the company. HR nothing to do with that, I am not HR though and why background screening company check those things where that guy doing well in his career. Sorry - this post not meaning. No point at all.

    ReplyDelete
    Replies
    1. Hi,
      Either you have perceived my writing wrongly or you are also jumping to conclusion about his performance.
      Truth is always hidden till it is revealed, thats true. As the same case happened with Satyam. Till it was not revealed, it was believed that Satyam is a top performing IT company in India. But when the truth revealed, it was a hollow organisation.
      About being good in job, I must say by my experience in corporate that there are people who get the position and increment in the company but one day they are busted as incompetent, incapable (I am not saying it about all people, such people are very few in numbers and always in minority).
      Second,
      I never said that a person holding masters or Ph.D always proved to be a successful professional or leader. Alongwith qualification, many factors are responsible there.
      Background screening matters a lot. Being an HR, I have witnessed the bad impact of failure in background screening. Without background screening, how will you identify the truthness about the performance?
      If I say, as an HR, I controlled attrition and brought down from 33% to market standard of 16%, will you offer me a job stating "sir, you are performer"
      If I show that I was in a same orgnisation for 10 years and promoted from executive to GM, will you rely on that blindly (experience and relieving letter also can be faked)

      Comments are welcome but please first understand the science behind it and go through the content carefully.

      Delete
  4. What about IBM lying about the experience of its own employees to their clients. If you google ERP (and SAP) project failures, one of the reasons for failure is that companies like IBM, Accenture send too many freshers out on projects, showing them as experienced professionals with 3-6 years of experience in implementing ERP. These projects become training grounds for inexperienced employees, and clients become guinea pigs.
    Why not talk about how IBM knowingly lies about the experience of their employees? Why only talk about employees lying about experience to IBM?

    ReplyDelete
    Replies
    1. If you are an employee or ex employee or vendor of IBM, you should turn as a whistle blower and expose

      This is not the matter of this discussion here

      Delete
  5. If the overall graduation percentage criteria differs from the percentage mentioned in the resume while hiring.Whether it becomes problem to the hired freshers candidate or not?

    ReplyDelete
    Replies
    1. if your hiring is based on the percentage you got in your academy, then its a problem. Otherwise not

      Delete

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