A seemingly innocuous hiring decision has metamorphosed into a cautionary narrative for numerous startup executives.
Ashutosh Gupta, Chief Business Officer at Praper Media, recounted in a LinkedIn post how his company incurred a staggering loss exceeding Rs 2 lakh after onboarding a candidate who allegedly fabricated crucial details on his resume
Gupta articulated: “We hired someone who lied about everything on their resume. By the time we discovered the truth, we’d lost 2 lakhs.”
Chronicle of the Hiring Process
Gupta illuminated that this incident transpired during a phase when the company was relatively nascent and did not prioritise meticulous background checks. He acknowledged that in those formative days, the team relied predominantly on interviews and their gut instincts.
As he recounted, background verifications seemed extraneous back then; if an individual excelled in the interview and exuded confidence, they were deemed fit for hire.
The candidate, referred to as Chirag in Gupta’s narrative, represented himself as possessing three years of experience, claiming to have been earning a salary of Rs 40,000 at his former agency.
Consequently, the startup extended an offer of Rs 45,000, perceived as a reasonable advancement. Gupta succinctly encapsulated this transition, stating, “Said he was making ₹40K at their last agency. We offered ₹45K. Deal done.”
Emergence of Performance Anomalies
Complications arose approximately two months into the tenure. Gupta recounted that this employee was tasked with editing a reaction video—a task typically managed by junior editors, who complete three of such assignments daily.
In this instance, however, the endeavour spanned two days, ultimately yielding unusable results. He articulated the predicament: “We assigned him a reaction video edit. Standard work. Our junior editors handle 3 per day. He took 2 DAYS. And the output was unusable.”
For an individual who had asserted three years of experience and a Rs 40,000 salary, the performance was incongruous. Gupta remarked, “For someone who claimed 3 years of experience and ₹40K salary at their last agency? That made no sense.”
Insights from Background Verification
The company made the prudent decision to reach out to the prior employer, unearthing revelations that transformed the narrative. Gupta meticulously outlined the discrepancies: “Lie #1: He was making ₹25K, not ₹40K. So we’d given him an 80% raise. Lie #2:
He wasn’t ‘resigned.’ He was fired. For performance issues. Lie #3: The ‘manager’ we called? Their friend. Glowing a fake review.” What commenced as minor inconsistencies escalated into what Gupta characterised as a complete falsification of facts.
Following the financial implications, he transparently calculated the losses: “Rs 1.35 lakh in salary over three months. Rs 40,000 worth of training time. Rs 25,000 spent on hiring a replacement.”
Moreover, Gupta highlighted the ancillary repercussions, such as delays in client projects, diminishing team morale, and leadership’s time diverted from other essential tasks. His conclusion was stark: “Total: ₹2L+ and 4 months lost. All because we skipped one step.”
Revamping Hiring Policies
In the wake of this ordeal, Praper Media reassessed its hiring strategies. Gupta unequivocally stated, “So now every hire gets background verification. No exceptions.”
The revamped protocol includes formal communication with the previous employer’s HR department, contacting former managers through official channels rather than personal numbers provided by applicants, cross-referencing LinkedIn profiles, and substantively verifying salary documentation.
He additionally warned that some candidates may attempt to manipulate the verification process. “People try to bypass with fake numbers and photoshopped slips.
We catch them 90% of the time,” Gupta asserted. He advised fellow founders to initiate verifications proactively rather than waiting for a misstep.
Source link: Economictimes.indiatimes.com.
