Getting Wise to Lies

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Employers' fears have sparked a boom in the background-screening industry. About 700 firms exist now, compared to only a handful 10 years ago. Analysts say revenues for the industry are growing 7% to 10% a year. Though exhaustive checks on CEO-level individuals can cost $10,000 or more, some companies offer basic vetting for as little as $10. HireRight of Irvine, Calif., screens 1 million résumés a year and says business has grown tenfold over the past five years: employers have grown so watchful, says David Nachman, the company's head of marketing and business development, that they now check the résumés of temporary staff and local hires in their offices overseas.

But guarding the henhouse does little good if the fox is already nestled inside. To unmask the deceivers among them, some employers are conducting checks upon promotion. Verified Person markets its ability to provide ongoing employee screening through automated criminal checks. With this increased vigilance comes a thorny new dilemma: figuring out whether every fib is really a fireable offense. Many bosses feel that a worker's track record on the job speaks more strongly than a stretched résumé, says John Challenger of the outplacement firm Challenger, Gray & Christmas. Rather than booting talented workers, Challenger suggests, employers should offer an amnesty period. "A moratorium would let anyone who needs to come clean," he says. And the culprit could always go back to school and finish that degree--maybe even on company time. •