Technology MNC - Address staff attrition and people risks
Apr 26, 2017
Who: A Global Technology company
- Staff turnover more than 20%. Target was maximum 15%.
- Caught a number of cases whereby the performance was not in line with the background presented in the resume. About 20% of the resumes had discrepancies i.e. In a batch of 10 joiners, at least 2 of them had some form of discrepancy with respect to education (Fake certificate, Course not completed, Degree from a degree mill) and previous employment details (Title, Join date, Leave date, Salary)
- Specific people risk related incidents occurred Eg) Staff caught in a petty cash theft was later found to be bankrupt and had a prior criminal background too.
- Recommendation: Thorough background checks based on role-specific risks.
- Avvanz's revolutionary ScreenGlobal Platform allowed for easy ordering of checks within a minute. The Talent Acquisition executives based in multiple countries were able to view, select and order checks using the hybrid platform (alacarte + package flexibility). The Head of Talent Acquisition for Asia now has an overall dashboard view of the cases by country to make informed decisions. The real-time Background Check reports delivered by Avvanz in less than 15 days, quickened the entire recruitment process with complete assurance on risk mitigation.
- Gallup study which showed that background checked candidates tend to stay in the company beyond 12 months, actually proved correct for this Global Technology company. The drop in staff attrition led to a reduction in costs in the following areas: Recruiting, Onboarding, Training of new employees and Loss in productivity due to time taken to fill a role.
- Losses attributed to wrong hires including legal and security fees and reputational damages were drastically reduced.
- The values extracted in avoiding losses due to wrong hires and reducing staff turnover versus the actual costs of background screening generated returns of investment that exceeded 200%.