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‘Boris’ bosses could cost UK £2 billion

~ British businesses must learn from cases of Ray Lewis, Lee McQueen and Azeem Rafiq, says NorthgateArinso ~

July 08, 2008

Boris Johnson, Alan Sugar and Martyn Moxon (Yorkshire cricket director) have shown this week the risks of not checking the references of potential employees. According to NorthgateArinso, the global HR services and solutions company, the public embarrassment they have suffered sends a clear warning to UK employers to take background checks seriously, or suffer the consequences.

NorthgateArinso has estimated that UK businesses waste £2 billion every year recruiting employees who have omitted important information from CVs - to say nothing of the PR disaster it can cause. Failing to follow up references, not confirming the right to work in the UK and not checking qualification claims are the three most common employer oversights.

According to MORI, 33 per cent of organisations claim they don’t have time to check employee references. In the same survey, 7.5 million people in the UK admitted to having potentially misleading information on their CVs.

“Three high profile cases in one week confirm the fact that thorough reference checking is essential,” said George Elkington, director of business development at NorthgateArinso PeopleChecking. “People will always want to paint themselves in the best light on their CVs, but when this becomes a lie the employer is the one at risk – as Sir Alan, Boris and Moxon have found out too late.”

“The cost of a good background check could be just £50 – very low compared to the cost of recruiting the wrong person, the embarrassment it can cause and the damage the individual may do to the business,” Elkington concluded.

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Executive quote

“Three high profile cases in one week confirm the fact that thorough reference checking is essential,” said George Elkington, director of business development at NorthgateArinso PeopleChecking. “People will always want to paint themselves in the best light on their CVs, but when this becomes a lie the employer is the one at risk – as Sir Alan, Boris and Moxon have found out too late.”

“The cost of a good background check could be just £50 – very low compared to the cost of recruiting the wrong person, the embarrassment it can cause and the damage the individual may do to the business,” Elkington concluded.

About the company

NOTES TO EDITORS
About NorthgateArinso PeopleChecking
NorthgateArinso has recently launched PeopleChecking, a service that enables employers to make thorough checks of CVs and candidate references. NorthgateArinso PeopleChecking can (with the permission of the candidate) verify employment history, academic qualifications and professional memberships, as well as financial and criminal records and driving licence endorsements. This allows employers to avoid the cost of recruitment errors and time-consuming reference checks, for as little as £50.

PeopleChecking saves employers’ time by using web-based systems and workflow technology to streamline the referencing process. The service is based on NorthgateArinso’s technology platform, and has been launched following the company’s acquisition of AST Check, completed last month.

About NorthgateArinso
www.northgatearinso.co.uk

NorthgateArinso is a leading global Human Resources software & services provider offering innovative HR business solutions to employers of all sizes, including Global Fortune 500 companies and many Public Sector organisations. We help HR executives optimise their HR service delivery through smarter process and more efficient technology, supporting key HR areas like workforce administration, payroll, benefits, recruitment, learning, and talent management.

Our 4,500 employees are dedicated to HR excellence through strategic business consulting, outsourcing services, systems integration and best-of-breed software solutions. We are one of the 5 largest HR service providers world wide and have offices in 31 countries on 5 continents.

The Northgate Group is owned by private equity company Kohlberg Kravis Roberts (KKR) and currently employs over 6,500 staff and operates in 46 countries across 5 continents.

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