'Background checks really add the peace of mind that organisations are hiring someone who they say they are'
The growing use of artificial intelligence among jobseekers has paved the way for AI-generated resumes with false information, underscoring the need for organisations to implement efficient background checking processes.
Luke Maddison, chief marketing officer of Referoo, said the rise of AI-generated resumes brings about another layer of complexity for HR leaders.
"A well-presented CV now is almost the norm because people are running it through an AI tool, so you get into the stage where you can't rely on that alone, rather they're becoming quite uniform," Maddison told HRD.
"So, background checks are becoming more and more important and more and more prevalent because it's now the way of assessing the candidate's information, assessing the veracity of their information," he said.
Maddison made the remarks after recent findings from Remote — which surveyed more than 4,100 businesses in 10 countries, including Australia — revealed that 73% of organisations received AI-generated resumes in the past six months that contained false information.
According to Maddison, an efficient background check process is important to validate a potential employee in the world of AI.
"Putting them through the process is really a good check and balance for an organisation," he said. "So, AI itself is not the problem, it's just that it becomes more important to do those checks in a world where AI might be more prevalent."
Maddison warned that neglecting background checks in the world of AI may have "far-reaching" consequences for productivity and culture in an organisation.
"We all know the cost of a bad hire or someone that has misrepresented their skills," he said.
Data from Remote revealed that 65% of recruiters are already reporting a surge in under-qualified applicants, an issue for 74% of its respondents.
There have also been instances where employees are caught lying in their resumes - a policeman in Victoria was caught in 2022 for lying about being a detective inspector in the United Kingdom, as well as being a graduate of a non-existent university.
"Not doing comprehensive checks puts you in an interesting situation where you could be hiring someone that doesn't have the skills they've represented to have, or that doesn't have the right cultural fit to your organisation," Maddison said.
“Background checks really add the peace of mind that organisations are hiring someone who they say they are and they have no skeletons in the closet,."
Carrying out background checks among applicants can be daunting, especially amid the surge of AI-generated resumes received by organisations.
"With candidate experience being so important in a really tight labour market, having it all integrated into one workflow, into one technology integration is absolutely crucial," Maddison said.
"You want to ensure that it is not onerous on your staff, keep it as efficient as possible."
He also advised adjusting background checks to the kind of role needed in the organisation.
"Understand how to tailor the check to the role and your business, specific business requirements," Maddison said. "Each role needs a slightly different set up of checks, so really understand what information you need and then ensure you keep that consistently across those roles."
Maddison said HR leaders who want to learn more about the issue should come to the upcoming National HR Summit on April 1 and 2, where Referoo is an event partner.
"I'd encourage people to actually come to that and hear from industry experts and some of our clients as to how they're doing in that process," Maddison said.
According to Maddison, attendees of the summit can get a real understanding of the opportunities and challenges that exist around background checking, particularly from a compliance perspective.
"I hope they get a sense of how a really streamlined technology solution can help them not only be more efficient, but provide a winning candidate experience," he said.
Maddison added that industry events like the HR summit also connect professionals together in a space where they can talk about challenges and opportunities in their field.
"From our side of things, I think it's a great way of connecting the industry professionals to the information they need to both enhance their careers and improve the way their organisations operate their HR or recruitment," he said.
"I think it's a great place to get all of that information in place, while having the opportunity to network with others in the profession."
