As companies increasingly prioritize trust and transparency in their hiring processes, the demand for rigorous employment verification has grown significantly.
AuthBridge, a leading provider of digital-first background verification and authentication solutions, recently released its Annual Trends Report for 2024.
The report sheds light on a notable 44% spike in employment verification discrepancies across six key sectors, revealing critical insights into talent acquisition, risk management, and operational efficiency.
Key Findings on Employment Verification: Sector-Wise
The discrepancy rate in Telecom sector is 18.2%. This sector witnessed a sharp rise in discrepancy rates, indicating increased vulnerability to identity fraud.
Employers must adopt robust verification processes to mitigate risks.
The discrepancy rate in BFSI (Banking, Financial Services, and Insurance) Sector is 10.4%. Financial institutions face challenges in employment verification due to falsified credentials.
Ensuring accurate background checks is crucial to maintaining trust and minimizing fraud.
In the Pharma Sector this employment verification discrepancy rate has reached 17.1%. The pharma industry saw a 50% increase in discrepancy rates since FY2021.
Fraudulent qualifications pose a significant risk, emphasizing the need for thorough verification.
While the FMCG industry showed an overall decline in discrepancies, e-commerce (representing 17% of FMCG consumption) faced increasing verification demands.
The rise of gig workers necessitates robust background checks.
Challenges and Solutions
The report highlights the growing adoption of digital verification methods and addresses emerging challenges, including moonlighting and AI-powered checks.
Organizations must adapt to this evolving landscape by leveraging technology for efficient and accurate verification processes.
Companies must identify and address vulnerabilities to prevent identity fraud. Using actionable intelligence from discrepancy data to refine hiring practices is also a preferred method.
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