Mumbai: Banking, financial services and insurance, or BFSI, has emerged as the sector with the highest number of discrepancies in the resumes of job candidates, according to the consulting firm KPMG.
KPMG estimates show that 25.95% of resumes submitted to BFSI companies in 2016 contained discrepancies, up from 15.61% in 2014. These discrepancies related mainly to misstating job experience, educational credentials and references.
According to First Advantage, a global background screening company, the BFSI sector had the highest number of discrepancies in the resumes of job candidates in each of the four quarters of calendar year 2016.
Out of every 100 discrepancy cases verified by First Advantage, 40 were from the BFSI sector in the fourth quarter, as per the company’s estimates.
Dinesh Anand, partner and leader-forensic services, PwC India, attributes the high number of discrepancies to growth in business and the changing regulatory landscape in the BFSI sector.
“The number of background checks being conducted at entry level is increasing and we are witnessing a surge in discrepancies--normally in the areas of fake education or employment certificates,” he said.
BFSI, which clocked a 54% increase in online hiring in January 2017, led all monitored industry sectors by way of long-term growth expectations.
The annual growth momentum in online hiring in the BFSI sector has seen a consistent rise—the year-on-year growth rate in October, November and December 2016 was 26%, 28% and 40%, respectively, according to the Monster Employment Index.
“BFSI sector now enfolds the emerging non-banking financial companies, payment wallets, fintech players under its ambit. With the changing regulatory environment and an emphasized accent on governance, know your employee (KYE) has become an important tool to mitigate risks. The hiring impetus, especially from tier II-III cities has increased these discrepancy percentages,” said Maneesha Garg, partner – forensic services, at KPMG in India.
Employers in the BFSI sector mostly customize the screening processes depending on the profile/designation of the person, said Purushotam Savlani, managing director and senior vice president, First Advantage.
“The reason for the rise in the discrepancy rate in the BFSI sector over the last three years is not because the job applicants are misrepresenting their credentials more but because of the strict background screening process that is enabling the recruiters to identify more lies,” said Savlani.
Maximum discrepancies are witnessed at the associate level (employees in 22-30 years age bracket) in the sector, shows data from First Advantage. For instance, 55.23% discrepancies in the BFSI sector, as per the fourth quarter study of the company, were at the associate level, followed by 25.51% in the middle management level, which comprises employees in the age bracket of 31-40 years, according to the study.