The Importance of Verifying Education

It’s estimated that as many as half of all job applicants falsify their educational credentials. The problem is so widespread that two-thirds of college registrars report that they’ve been asked to verify falsified education credentials, including those obtained via diploma mills. That’s why education is among the top five items that the Society for Human Resources Management (SHRM) recommends that employers verify. Here's a sample of the alarming statistics:

• SHRM: More than 53% of job applicants falsify information on their resumes; one in four candidates misrepresents his educational attainment
• ADP Screening Index: 45% of employment, education and or credential reference checks reveal discrepancies in the applicant's information. 
• Wall Street Journal: 34% of all application forms contain misrepresentations about the applicants' experience, education, and ability to perform essential job functions. 
• Association of Certified Fraud Examiners: 41% of applicants lie about education

Such large numbers of job candidates willing to falsify their academic credentials increases the likelihood that employers who don't verify education will hire unqualified personnel. Hiring unqualified personnel, in turn, leads to higher employee turnover, forcing the organization to incur expensive recruiting and replacement costs. 

The Cost of Bad Hires
SHRM estimates that the cost to replace an $8 per hour employee is $3,500. Replacement costs escalate at higher salary levels: $7,000 to replace a salaried employee, $10,000 to replace a mid-level employee, and $40,000 to replace a senior executive, according to Recruiting Times. Additionally, the negative consequences to an employer can include lower employee morale and productivity, lost customers and sales, and greater exposure to theft and even lawsuits. It can also publicly damage an employer's reputation, as it did that of the organizations featured in our "Degree Fraud Hall of Shame."

Online education verification is one of the most inexpensive, easiest and fastest ways an employer can reduce the risk and cost of making bad hiring decisions. DegreeVerify is the nation's best single source for accurate degree data, providing instant access to the largest number of degree and attendance records.