A Chandigarh-based startup, Praper Media, claims to have incurred losses exceeding Rs 2 lakh over a period of four months due to an employee who allegedly provided false information regarding their salary and work experience. The company's Chief Business Officer, Ashutosh Gupta, detailed the incident on LinkedIn, highlighting financial setbacks and operational disruptions.
The core of the issue appears to stem from discrepancies between the candidate's claimed previous salary and actual earnings, alongside claims of being fired rather than resigning from a prior role. This has prompted the startup to implement mandatory background verification for all future hires.
Financial and Operational Impact
The reported financial cost to Praper Media is itemized as follows:
Salary Paid: ₹1.35 lakh for three months of employment.
Training Investment: ₹40,000 for training the employee.
Replacement Hiring: ₹25,000 spent to find a new candidate.
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These direct financial outflows aggregate to over ₹2 lakh. Beyond these costs, the company states that client work experienced delays, team morale was affected, and overall productivity decreased during the four months the employee was with the company.
Candidate's Alleged Misrepresentations
According to Ashutosh Gupta, the candidate presented several false claims:
Previous Salary: The employee stated they earned ₹40,000 per month at their previous organization. However, investigations by Praper Media allegedly revealed the actual salary was ₹25,000. The startup had offered the candidate ₹45,000.
Reason for Departure: The candidate allegedly claimed to have resigned from their previous job. Gupta stated that the employee was, in fact, fired due to performance issues.
Company's Response and Policy Change
The incident has led Praper Media to re-evaluate its hiring protocols. Ashutosh Gupta explained that the company, being smaller at the time of the hiring, relied heavily on interviews and personal assessment rather than formal background checks.
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Following this experience, Praper Media has made background verification a mandatory step in its hiring process for all candidates, without exception. This change is intended to prevent similar financial and operational disruptions in the future.
Circumstantial Evidence and Further Questions
Did the company conduct any form of reference check beyond the interview stage prior to this incident?
Were there specific performance indicators that were unmet by the candidate during their tenure, leading to the claim of being fired rather than resigning?
What specific training was provided, and why was it deemed ineffective or not transferred effectively to the role?
Expert Analysis
While the specific sources quoted do not include external experts offering analysis on this particular incident, the general practice of employee misrepresentation on resumes is a known issue in the hiring landscape. Such practices can lead to significant financial losses for employers due to recruitment costs, training expenses, lost productivity, and potential damage to client relationships. The decision by Praper Media to implement mandatory background checks is a common risk mitigation strategy employed by organizations to address these concerns.
Conclusion
Praper Media reports a financial loss exceeding Rs 2 lakh and a four-month operational setback attributed to hiring an individual whose resume allegedly contained fabricated information about past salary and employment status. The company claims the employee was fired, contrary to the candidate's reported assertion of resignation. In response, Praper Media has instituted a mandatory background verification policy for all new hires. The direct financial impact is broken down into salary, training, and replacement costs, with additional qualitative impacts on client work, team morale, and productivity also noted.
Sources Used
The Indian Express: ‘Lied about everything on resume’: Startup founder shares how one fake hire cost him Rs 2 lakh
The Financial Express: ‘Lied about everything’: Startup loses Rs 2 lakh after hiring candidate with fake resume - What happened next? - Trending News
Hindustan Times: Startup founder shares how hiring a candidate with fake resume led to ₹2 lakh loss: 'We skipped one step'
NDTV: How A Fake Resume Cost A Startup Rs 2 Lakh And Changed Its Hiring Policy: "He Lied About Everything"
India Today: Chandigarh startup founder claims Rs 2 lakh loss linked to fake resume hire
The Daily Jagran: Fake Resume Allegation Costs Startup Rs 2 Lakh Loss; Founder Makes Background Checks Mandatory | Viral Post
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