A Lie-Detector Test for Resumes In a tough economy, job seekers can be tempted to fudge facts or outright lie on their resumes. Here's how to catch them in the act.

By Brian Patrick Eha

Opinions expressed by Entrepreneur contributors are their own.

A Lie-Detector Test for Resumes

The furor over new Yahoo CEO Scott Thompson's inaccurate resume is shining a spotlight on inadequate employee vetting. Thompson, the third Yahoo CEO in the past year, claimed to have a computer science degree, which he doesn't, along with his actual degree in accounting.

If Yahoo, one of the world's largest technology companies, with $1.22 billion in revenue in the first quarter of 2012, can be misled, what's to stop your potential hires from lying on their resumes?

If your business doesn't have a dedicated human-resources department, you can still vet potential employees. What's key is to slow down and think through your choice of applicants, according to John Challenger, CEO of outplacement consulting firm Challenger, Gray & Christmas.

"Sometimes when you're in a hurry to make the decision, you're not thorough in your process," he says. Here's more advice on resume lie-detecting from Challenger:

1. Conduct multiple interviews.
Interview multiple people for a single position, and call promising candidates back for a second, or even a third, interview. Although this is time-consuming for both of you, it's a valuable way to gain insight into the person you're thinking of hiring.

And when you interview someone, try to have other managers in the room. It's important to get feedback from colleagues about potential hires. Another manager's gut instinct could save you from making a potentially costly mistake.

2. Do a background check.
Internet search tools and social networks are good resources for checking on applicants. After all, Thompson's resume offense was caught by a Google search. But it's wise to do a background check on each new hire.

Companies such as IntelliCorp provide employee-screening services for small and midsize businesses. IntelliCorp's packages range from $1,595 to $7,495, according to Kelly Ansboury, the company's director of business development and marketing.

Decide first how wide and deep you want to go, and then choose a service that meets your needs. As a minimum measure, Challenger recommends checking potential employees' criminal records and citizenship status. Looking into their credit history or asking them to submit to a drug test are further steps you can take.

3. Seek out employment and character references.
Challenger advises interviewing candidates who have been recommended by people you trust. But even then, you should still conduct your own background check on the person. With a candidate who doesn't have a personal recommendation, you should search out personal references. Go beyond those listed on his resume. Reach out to former co-workers or others who can verify the applicant's employment history and give you insight into the person's character.

Although it's necessary to take precautions when adding someone to your company, Challenger said, lying on resumes is uncommon, especially in our age of information transparency.

"With high unemployment, some people feel like their only way to find a job when they've been out of work for a long time is to take action they know is wrong," he said. "But most people -- whether it's out of their sense of integrity or their fear of being caught -- they don't take the risk."

Brian Patrick Eha is a freelance journalist and former assistant editor at Entrepreneur.com. He is writing a book about the global phenomenon of Bitcoin for Portfolio, an imprint of Penguin Random House. It will be published in 2015.

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Business Ideas

70 Small Business Ideas to Start in 2025

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2025.

Business News

Starbucks Is Looking to Remove Seed Oils From Some of Its Food Products

The coffee giant is also launching a new egg bite made with avocado oil.

Business News

Barbara Corcoran Did 'Crazy Things' to Retain Employees, From Hot Air Balloon Rides to a Free Bentley: 'We Had No Turnover'

Corcoran sold her brokerage firm, The Corcoran Group, for close to $70 million in 2001.

Business News

Microsoft, OpenAI, and Anthropic Pour $23 Million into an AI Training Center for Teachers

The hub will train teachers to use AI for tasks like generating lesson plans.

Growing a Business

How to Turn Summer Travel into More Business and Less Taxes

When you pursue business opportunities in the places you love to visit, you can make your summer profitable and fun.

Business News

Wimbledon Player Begs Morgan Stanley to Give His 'Lucky Charm' Sister More Time Off Work

Ben Shelton, ranked No. 10 in the world, is playing in the quarter-final round on Wednesday.