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Small businesses at risk of false references

09 May 2014 #Employment

A survey 1,800 small firms  conducted by the Federation of Small Businesses and BBC1`s Fake Britain reveals that 17% had discovered job candidates with fraudulent references. The survey found that fraudulent references are most common for entry level positions and mid-level positions, although 12 per cent were for management positions and two per cent were for director level positions. It is of particular concern that are websites that offer to provide applicants with fake references, something very few small business owners are aware of, based on the survey results.

Mike Cherry, National Policy Chairman, Federation of Small Businesses, said, “"To see the scale of fraudulent referencing taking place is shocking, as getting the wrong candidate can have a catastrophic impact on smaller companies.

According to a separate survey by Spring Personnel, almost one in five new employees fail to get past their probation period or has their time on trial extended because of doubts about their ability to do the job or fit in to the workplace. Poor performance was cited as the most common reason for not confirming employees in position. Absence and lateness were also common reasons.

The research also revealed that 60 per cent of companies have a probationary period failure rate of 10 per cent, and that almost 80 per cent of companies are willing to give staff another chance by extending probation periods.

Clarkslegal, specialist Employment lawyers in London, Reading and throughout the Thames Valley.
For further information about this or any other Employment matter please contact Clarkslegal's employment team by email at by telephone 020 7539 8000 (London office), 0118 958 5321 (Reading office) or by completing the form on this page.
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