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How to Hire Honest Employees

By Dennis McCafferty on 2010-11-02


Lying on a resume. Being deceitful to a boss. Stealing proprietary data/intellectual property. Embezzling company funds. All of these behaviors are, unfortunately, a workplace reality. In fact, many employees have no reservation about stealing electronic assets when they leave a job. Even more scary, data theft now outpaces the stealing of tangible assets in the workplace. Wouldn't it be great if you could prevent such incidents simply by hiring the most honest job candidates you can find? With the right tactics, this is possible, according to Denis Collins, author of Essentials of Business Ethics (Wiley/Available now). In his book, Collins outlines an extensive series of steps that CIOs and other managers can take to spot potential resume fibs and other character weaknesses that raise red flags. Managers need to “redesign the hiring process to help screen for employees who suffer from 'selective integrity,' ” Collins says. “After an employer fires someone for theft, the natural question they ask is, 'How'd we even hire that guy?' Well, by changing your hiring practices, you can reduce the number of times you ever have to ask yourself that question again.” Collins is a tenured professor of business at Edgewood College in Madison, WI, specializing in business ethics. Here are revealing statistics and advice for CIOs from his book:

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Honest Employees?75 percent of all employees steal from work in some way.

Honest Employees?44 percent of resumes contain lies about work history, according to ADP Screening and Selection Services.

Honest Employees?41 percent of resumes contain lies about educational background, ADP reports.

Honest Employees?23 percent of resumes contain information that fabricates licensing/credentials of the applicant.

Spot Resume DiscrepanciesAre there “too good to be true” claims, such as a major project accomplishment from someone with relatively little experience and training?

Be a Good “Lie Detector.”Ask detailed questions about discrepancies: How was the accomplishment achieved? What steps did you take to ensure success? Deceitful applicants will produce vague or nervous responses, or resort to outright evasion.

Exaggerating or Lying?There's a big difference between over-selling one's accomplishments and outright lying. Determine your comfort zone and be willing to indulge a bit of "experience inflation" in the interview process if an applicant is otherwise of high appeal.

Do Your Due DiligenceIs the applicant slow to produce references? Is the reference a co-worker or indirect supervisor? If a “direct report” is missing, ask why.

Talk to SubordinatesIf you're hiring someone for a managerial role, request subordinate references. Ask former employees whether they'd want to keep working for this manager.

Traits that Indirectly Speak to IntegrityA candidate who's considered highly conscientious about deadlines, company mission, etc., is more likely to maintain high ethical standards than one who isn't.

Wary References?Be mindful that some employment references may be afraid of getting sued. They may feel legally obligated to say only “nice” things. In asking about the candidate's ethical compass, note whether there is any hesitancy or vagueness in responses.

Use a Variety of Background Checks Whether conducted in-house or outsourced, a background check can turn up much about an employee's integrity. Was a college workshop described as a “course work”? Was an unaccredited “degree/certification” shop billed as a legit institution?

Google is Your Best Friend.Internet searches can potentially reveal a candidate “bragging” about “pulling one over” on the boss.

Consider Credit ChecksNo, financial difficulty in challenging times doesn't forewarn a future of corporate-secret stealing and embezzlement. But, an extensive history of bounced checks and other fiscal irresponsibility can speak to greater character issues.

Be Ethical YourselfAs hiring manager, you convey a “message” during the interview process. Make honesty, integrity part of the conversation.

Share Ideas About EthicsAsk open-ended questions about how the candidate feels about cheating, deception. This can often be an engaging — and revealing — conversation.

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