Ready to Work!Pre-employment Screening WithinA Talent Acquisition Strategy

Presented by: Wayne TollemacheExecutive Managing Director - Asia Pacific

Disclaimer: Ownership and proprietary rights as well as cop yrights under applicable laws to the whole or any part of the d ocument are held by FirstAdvantage PTE Limited. This work cannot be used, sold, trans ferred, adapted, abridged, copied or reproduced in whole or in part, in any manner orform, or in any media, without the prior written consent of Fi rst Advantage PTE Limited. While every precaution has been t aken in the preparation ofthis document, First Advantage PTE Limited assumes no respo nsibility for errors or omissions. All information and feat ures described herein aresubject to change without notice.

Agenda

� The Challenge � The Solution � The Benefit� The Challenge � The Solution � The Benefit

To find, hire and retain the right employees in a timely and cost efficient manner

Reduce the time, cost and risk associated with candidate recruiting

Savings and growth on all fronts

© 2011 First Advantage2

The Challenge

The challenge…

…“It is the limitation in the Human Resources –…“It is the limitation in the Human Resources –not unreliable or inadequate sources of capital – that has become the biggest constraint in most globalization efforts.”

Bartlett and Ghoshal

© 2011 First Advantage4

Challenge Faced By HR Professionals

finding candidates with the…

© 2011 First Advantage

...in a timely and cost efficient manner!

Name: Mr. XProfession: HR ManagerCompany: A MNC firm based in APAC

�Able to recruit talent

�Faster

�Easier

© 2011 First Advantage

Why is he so happy?6

�Cost Effectively

Top Strategies Pertaining toTalent Acquisition

© 2011 First Advantage7

(Source: Aberdeen Group, August 2010)

HR talent acquisition challenges

� Demand Vs. Supply

� Finding and retaining the talent base

� Increase in web-based technologies…

� Making recruitment simpler and yet more challenging

� Poor forecasting from operations

� Lack of trained and experienced manpower

© 2011 First Advantage

� Lack of trained and experienced manpower

� Reducing time & cost per hire

8

Every HR Manager wants to be Mr. X!

The Statistics

5 Common CV Lies

Asia Pacific Discrepancy Chart

Total Discrepancy: APAC vs. KOREA

In the News

Most Popular Checks

© 2011 First Advantage

Most Popular Checks

5 Common CV Lies

1. Education

� Degree Fraud – Fake college/university certificates available online.� Degree Fraud – Fake college/university certificates available online.

2. Stretching dates to cover employment gaps

� From covering frequent short-term job hopping to criminal jail terms

3. Enhancing job titles & descriptions

� Job titles such as “Manager” changed to “Executive” or “Assistant” changed to “Senior”

4. Exaggerating salaries

© 2011 First Advantage

� In order to command more from prospective employer

5. Getting fake references

� Getting friends or relatives to provide references or professional “referencing agencies” available online

10

An estimated 18-20% of CVs have misrepresentations across APAC

Examples of Fake Certificate

© 2011 First Advantage11

Asia Pacific Discrepancy Chart

© 2011 First Advantage12

(Source: First Advantage Asia Pacific, 2010)

Total Discrepancy: APAC vs. KOREA

Criminal

Asia Pacific

Employment66.42%

Education15.25%

Database1.33%

Address16.97%

Criminal0.03%

Others1.1%

Directorship 2.2% Credit

5.6%

Criminal 10.1%

Korea

© 2011 First Advantage13

10.1%

Employment 36.0%

Education 45%

Source: First Advantage Global Screening Trend Report (The 1st half of 2011)

Source: First Advantage Korea (The 1st half of 2011)

In the News� China

� 200 pilots falsify resumes – SEP 2010� 200 pilots falsify resumes – SEP 2010

� Australia

� Engineer bribed recruiter – AUG 2010

� 32% of job applicants stretch the truth – MAY 2010

� Australia charges Singaporean on false medical qualifications – FEB 2010

� India

� Wedding detectives: Pre-nuptial investigation a must-have – JUL 2010

© 2011 First Advantage

� USA

� Harvard students fabricated recommendation letters & transcripts – MAY 2010

� SINGAPORE

� The Singapore Land Authority (SLA) has been hit by a S$12 million fraud case involving two of its senior staff.- Sept 2010

14

Examples of What Can Be Found In Asia

© 2011 First Advantage15

Most popular checks in the region

� Top four checks carried out in 2011

EducationDatabase

Employment

DatabaseEmployment

Education

EducationEmploymentReference

DatabaseEmployment

Education

EmploymentCriminal

Education

© 2011 First Advantage

EmploymentProfessional

EducationProfessional

ReferenceCredit

EducationProfessional

EducationAddress

2011

The Solution

Evolution of Background Screening Industry

In-house model

High turn around time

Emergence of specialists in the

One stop shop for all Talent acquisition

Emergence of contributory database

Ultimate industry maturity stage

Works on revenue sharing

B2B and B2CAutomation & Self Service

Talent Acquisition

Background Screening

Reference Checks

One Stop ShopManual Multiple Platforms Reduced Platforms

© 2011 First Advantage18

High turn around time

No dedicated teams for conducting these check

Reference check = Background check

specialists in the background screening market

Standardization of services

Usage of technology to reduce TAT and cost

Talent acquisition needs

Scalable and can meet the emerging needs of the client

Higher workforce visibility and analytics

contributory database

Automation reduces cost to serve

Companies driving to reduce costs

Industry consolidation

Instant verification

Works on revenue sharing model

Financial institutions, landlords and employers starts benefiting from the automated services

Transactional low cost model

Background Screening

Risk to � Do not take the CV at face value: Background

Screening to be a mandatory part of the recruitment

Liability due to

negligent hiring

Identity & other data

theft

Legal & contractual compliance

Fraud prevention

Risk to reputation

Your organization

Screening to be a mandatory part of the recruitment process

� A reference check is NOT a ‘Background check’

� Background verification form to allow no scope for omitting information

� Credible Background Screening services provider with experience, requisite technology

© 2011 First Advantage

Concerns over

workplace violence

19

provider experience, requisite technology and the network to resolve complex screening issues in a legal, ethical and overt manner

� Conflict of interest when recruitment team or agency is involved in screening candidates

What Can be Checked In APAC?

� Top Educational Qualification checks

� Credit checkschecks

� Professional Qualification checks

� Employment Details check

� Employment Performance checks

� Conflict of Interest check

� Media search (includes social sites)

� Criminal checks

� Identity checks

� Global dataset search

© 2011 First Advantage

� Litigation checks

� Bankruptcy checks

20

� Global dataset search

Know WHO you are hiring

Integrated Talent Acquisition Process Overview

Create a requisition

Approvalprocess

Post the requisition

Review applications

Candidatesapply

Conduct online

assessment

Create Create anConduct

© 2011 First Advantage21

Createinterviews

Create anoffer

Conduct background

check

Hireemployee

Make an offerOn boarding

The Benefit

Cost of recruitment failure per employee (CEO Level)

© 2011 First Advantage23

Average annual salary Cost of recruitment failure*

Data Source: Analysis of Brad Smart Research Center, 2004 (Unit: USD)

Cost of recruitment failure*: Cost for termination, opportunity cost for business, Indirect loss caused by employee, etc

Graph Source: Kim & Chang CTD Center, 2011

Cost of Hiring per employee in KOREA

Average cost: KRW 1,152,000 1,152,000

1,885,000

1,567,000

1,400,000

1,600,000

1,800,000

2,000,000

1,152,000

898,000

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

Large Firm Middle Firm Small Firm

27,500,00030,000,000

Cost of Loss per employee turnover in KOREA

KRW (원) (Source: incruit, 2009)

© 2011 First Advantage24 (Source: saramin, 2010)

19,510,000 18,740,000

17,000,000

12,500,000

0

5,000,000

10,000,000

15,000,000

20,000,000

25,000,000

Large Firm Small & Medium Firm

Foreign affiliated Firm

Public Firm

Average cost: KRW 19,510,000

KRW (원)

Organizational benefits

� Mitigate compliance risks

Workforce visibility and analytics� Workforce visibility and analytics

� Raise the bar for talent

� Scalability

� Integrate various talent acquisition milestones

© 2011 First Advantage25

� Streamline communication

� Ensure standard operation procedures are followed

FIRST ADVANTAGE

Helping you recruit qualified,

ready-to-work candidates

with the...

© 2011 First Advantage

Background Screening | Automated Skills & Behavioral Assessments | Applicant Tracking Systems

www.FADVAsia.com

Ready to Work!Pre-employment Screening WithinA Talent Acquisition Strategy

Presented by: Wayne TollemacheExecutive Managing Director – Asia Pacific

Disclaimer: Ownership and proprietary rights as well as cop yrights under applicable laws to the whole or any part of the d ocument are held by FirstAdvantage PTE Limited. This work cannot be used, sold, trans ferred, adapted, abridged, copied or reproduced in whole or in part, in any manner orform, or in any media, without the prior written consent of Fi rst Advantage PTE Limited. While every precaution has been t aken in the preparation ofthis document, First Advantage PTE Limited assumes no respo nsibility for errors or omissions. All information and feat ures described herein aresubject to change without notice.