Australia and New Zealand Trends Report 2016 · australia and new zealand trends report 2016 The purpose of this report is to categorize and the quantify the discrepancy trends found

Australia and New Zealand Trends Report 2016

TRENDS REPORT

INFORMATION YOU NEED. PEOPLE YOU CAN TRUST.

TRENDS REPORT

2AUSTRALIA AND NEW ZEALAND TRENDS REPORT 2016

TABLE OF CONTENTS

4 ANZ overall discrepancy remain high at 25%

5 Financial sector candidates incurred the highest discrepancy rates by 80%

6 Candidates from 31-35 age brackets got the highest discrepancies

6 ANZ employers conduct an average of five checks in 2015

7 External Case Study


Companies have to become more cautious and careful due to the recent surge in crime and fraud. First Advantage has found that, to

avoid any unwarranted and compromising situations, more companies in Asia Pacific are now screening their employees. Even though

the concept of background screening is relatively new in the region, it is picking up at a rapid pace. Accepting it as a hiring best practice,

more employers are making background screening an integral part of their recruitment process.

Unlike reference checks, background screening is a complex process that involves multiple stakeholders including education

institutes and former employers. In addition, companies will also have to understand local, national and international legislation

around anti-corruption, data privacy and consumer protection. These can quickly muddle the screening process, making it a

challenge to efficiently perform a background check, especially if the candidate has lived or worked in several countries.

With the objective of helping employers better manage recruitment risk, First Advantage, a leader in background reporting in Asia Pacific,

has developed the Employee Discrepancy Trends Report to share employment screening trends in the region.

First Advantage offers comprehensive screening programmes to more than 2,000 companies throughout the Asia Pacific. We have

deployed state-of-the-art technology to ensure accuracy and reduce the time needed for these background checks. Our customer base

includes the world’s largest financial services organisations, retailers, IT companies, BPO, manufacturing, pharmaceutical companies and

many others.

To help companies better understand what is happening at the macro and micro level within this prolific region, this report compiles our

deep understanding of localised cultures and compliance requirements with detailed screening statistics gathered from our vast Asian

customer base. It highlights fresh trends that employers can use to fine-tune their existing screening practices and benchmark their

current programme results against others in the region. The report covers Japan, Korea, China, Hong Kong, Malaysia, the Philippines,

Singapore, Australia and New Zealand.

We continue to encourage our users to review this report as a background screening health check and a useful guide to make better

hiring decisions.

Erik Schmit

Executive Vice President, Managing Director Asia Pacific

First Advantage

Foreword

Globalisation and technological advancements has transformed the world into a small place.

Multinational companies have leveraged this to optimally expand their footprints across the globe.

Most of them are looking at developing countries because of the available pool of young, educated

candidates. Job seekers too are moving across borders in search of more sophisticated roles and greater

opportunities. While the benefits to employers are clear, this trend is not without its shortcomings.


The 2015 Australia and New Zealand Trends Report aims to provide key findings

in the country’s background screening discrepancy rates as categorized into two

groups: Overall discrepancy rates by Type of Checks and by Segments.

This year, additional research on discrepancy was done across age bracket to give

our clients and other organizations a better view of the candidates being hired.

Other findings include average checks requested by employers.

ANZ overall discrepancy remain high at 25%

The overall candidate discrepancy rate in Australia and New Zealand is seen at 25%,

the highest discrepancy rate in Asia Pacific region.

Employment and educational verification checks are still the most requested checks

by employers in the country.

In 2015, employment discrepancy had made up the biggest chunk of the overall

discrepancy rate in the country with an increase from 63% in 2014 to 65% in 2015.

Employment discrepancy rates in the country remain high in three consecutive

years. This, however, is due to number of candidates declaring discrepancy in

dates of employment, discrepancy in job title, reason for leaving, no records of

employment, discrepancy in last salary and negative feedback.

DISCREPANCY RATES

Overall Discrepancy (%)

ANZ overall discrepancy remain high at 25%

24.72%


DISCREPANCY RATES

Financial sector candidates incurred the highest discrepancy rates by 80%

Candidates from financial sectors registered the highest discrepancy rates in Australia

and New Zealand in 2015. Rigorous background checks are conducted by financial

institutions across all level of employees. Financial institutions, across the globe, which

are regulated and governed by the Federal Deposit Insurance Corporation (FDIC), are

highly encouraged to engage in pre-employment background screening.

Candidates from the Information Technology (7%) and Professional Services (5%)

made fewer resume discrepancies. Consumer Products and Manufacturing had the

lowest candidate discrepancy results.

An estimated 55% of job applicants embellish their CVs

At least 69% of the consumers are more likely to trust organization who are known to do background screening

APAC consumer survey reveals

Most Common Discrepancy in Australia and New Zealand

Financial Related: 2.25%Criminal: 2.72%Database: 10.22%Education: 19.65%Employment: 65.16%

55%

69%

Discrepancy by Segments

Financials: 79.76%Healthcare: 1.67%Energy: 2.52%Information Technology: 6.85%Professional Services: 5.10%Manufacturing: 0.27%Consumer Products: 1.36%Others: 2.47%


DISCREPANCY RATES

Candidates from 31-35 age bracket got the highest CV discrepancies in ANZ

Majority of the candidates with discrepancies in their CVs were from the age of 31-35

which accounted 25% of the overall discrepancy by age in the country.

Those ages 26-30 reached a discrepancy rate of 19%.

ANZ employers conducted an average of five checks in 2015

Australia and New Zealand employers conduct an average of five checks in every

background screening requests in 2015 from the four average checks conducted in

2014.

Employment and Education verifications are the most preferred checks in the country.

Candidates from 31-35age bracket got the highestCV discrepancies in ANZ

Discrepancy by Age

15-20: 0%21-25: 9%26-30: 19%31-35: 25%36-40: 18%41-45: 11%46-50: 9%51-55: 5%56-60: 3%61-Above: 1%


CASE STUDIES

Butcher, Steve, “Disgraced Myer executive Andrew Flanagan who faked CV ripped off other companies.” The Age, Victoria. Fairfax Media.

Web. 7 August 2015.

http://www.theage.com.au/victoria/disgraced-myer-executive-andrew-flanagan-who-faked-cv-ripped-off-other-companies-20150807-

gitvxq.html

Francis, Hannah, “Telstra’s sacked CTO Vish Nandlall passed himself off as a doctor.” The Sydney Morning Herald. Fairfax Media. Web. 3

June 2016.

http://www.smh.com.au/technology/technology-news/telstras-sacked-cto-vish-nandlall-passed-himself-off-as-a-doctor-20160602-

gpaisi.html

Ricciuti, Mike, “Lotus CEO Papows resigns.” C|Net. CBS Interactive Inc.. Web. 2 January 2002.

http://www.cnet.com/news/lotus-ceo-papows-resigns/

Kane, Margaret, “Veritas CFO leaves on MBA lie.” C|Net. CBS Interactive Inc.. Web. 3 October 2002.

http://www.cnet.com/news/veritas-cfo-leaves-on-mba-lie/

As the trusted partner of over 45,000 organizations worldwide, we at First Advantage provide

easy-to-understand background screening results so you can confidently make decisions about

prospective employees, vendors and renters. Not only does this safeguard your brand, but you

also arrive at dramatically better background insights – insights you can rely on.

It’s time to partner with First Advantage. Now in 27 locations, 13 countries and conducting over

54 million international background screens on 16.8 million applicants annually. Trusted Knowledge.

Exceptional People.FADV.com

© First Advantage 2015 FA071916_RP_AUSTRALIA_AND_NEW_ZEALAND_TRENDS_REPORT_2016

First Advantage Corporate Global HQand Operational Center

First AdvantageOperational Centers

First AdvantageOffices

Countries First AdvantageConducts Screenings

Countries First AdvantageConducts Limited Screening

Within Asia Pacific Region:

Call +65 6534 3262

Email [email protected]

Visit fadv.com/apac

Outside Asia Pacific Region:

Call +1 844.717.0510

Email [email protected]

Visit fadv.com

We can help. For more information, contact First Advantage today:

AUSTRALIA AND NEW ZEALAND TRENDS REPORT 2016

The purpose of this report is to categorize and the quantify the discrepancy trends found while conducting background screening on current and potential employees in Asia Pacific. First Advantage presents this report to provide employers throught Asia Pacific a glimpse into the trends observed in background screening results of organizations country-wide and to help employers benchmark their current background screening practices against their peers and adopt the industry best practices. DisclaimerThis report is for informational purposes only and should not be relied upon for any particular purpose. First Advantage assumes no responsibility for errors, ommissions or inaccuracies in the information contained herein or for interpretations thereof.Copyright © 2015 First Advantage. All Rights Reserved.First Advantage does not provide legal advice or services and its research findings should not be construed or used as such.

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Australia and New Zealand Trends Report 2016 · australia and new zealand trends report 2016 The purpose of this report is to categorize and the quantify the discrepancy trends found