Articles

Due Diligence – A Macro Perspective

Company X runs a billion-dollar business in Malaysia. The services Company X provide is a modern-day necessity for every single individual on this planet earth today… Yes! Company X runs a Telecommunication Service!

The business is so lucrative that competition to stay on top of the industry is so intense. Manipulation and sabotage is a norm for owners within this industry. The big players are challenged by new players mushrooming continuously within the industry. And if “clean competition” does not work towards their benefit, they dare to resort towards manipulation and sabotages. Company X was a victim of sabotage within its industry.

Generally, to enjoy an uninterrupted telecommunication service, these telecommunication companies need to set up sufficient cell towers. The primary function of a cell tower is to elevate antennas that transmit and receive radio frequency (RF) signals from mobile phones and devices. The wires that run from the antennas to the base station equipment are typically located at ground level, in sealed telecom equipment cabinets. But in many instances, especially in Malaysia, this equipment’s are easily stolen or damaged – which explains the poor reception, users encounter with any telecommunication service providers in Malaysia. The decision made by Company X to conduct a due diligence on their problem, enabled the company to investigate, assess and get to the root of this problem.

In the context of definition, due diligence is an action that refers to a research conducted on certain “areas of interest” to confirm, clarify and proof all allegations, facts or truths. Due diligence can be used to analyse any “areas of interest”, including Surveillance, Merger and Acquisition (M&A), Partnership, Investment, Awarding of Contracts, or simply for the sake of gathering General Information. A well-conducted due diligence identifies specific details beyond the micro perspective of the subject being investigated.

In the case of Company X, no doubt the direct culprits were identified and captured, but the bigger picture was focused on the socio-economy status of the people of this country. Ground equipment were stolen and sold for a minimum price, merely to afford a small amount of money to purchase drugs! This discovery indirectly led the due diligence activity to investigate further on the statistics of drug addicts in this country. According to the Home Ministry in Malaysia, between January 2010 and February 2016, there were a total of 131,841 drug addicts registered in Malaysia.

This indeed is an alarming figure, knowing that most of them are aged between 19 to 40 years old – all of whom should be engaged in some form of employment in Malaysia. It further increases the risks of employers employing such individuals, whom might be drug addicts, but the employers may have no clue whatsoever about their endangering habit. What shocked Company X was that some of the culprits captured in their case were their own ex-employees, and were drug addicts themselves.

Further probing could even proof the fact that employees with drug issues, would also not hesitate to commit minor fraud or serious crime within the vicinity of their workplace. Fraud such as petty thefts to serious scams can occur if the company is tied up to work with such employees.

Obviously, there’s the temptation to sit back and smile… but there’s so much at stake, that we must do our due diligence (RALPH NEAS).

About Venovox

The core research entity of everything intelligence and beyond. We specialise in pre & post employment screening, due diligence and investigation. For expert advice, speak to our analysts:

USA

Venovox LLC
1168 Silver Street,
Union City,
California 94587

Phone : (858) 239 4566

Asia Pacific

Venovox Sdn Bhd
No.100-6-029, Blok J, Jaya One,
72A, Jalan Universiti
46200 Petaling Jaya,
Selangor,
Malaysia

Phone : (03) 7931 9595

Guns Are A Point Of Pride For Many Americans

“It’s going to happen again. There will be another mass shooting in America.”

It’s tragic to even write about it, what more experiencing a tragedy related to guns. America has a deep and enduring connection to guns. Guns are a point of pride for many Americans, whether for hunting, sport shooting or personal protection, most gun owners relate its need to freedom. However, the results of gun-related violence have shaken the nation badly. Some say guns are just tools like knives and are as dangerous as cars.

Six and seven year olds were killed at Sandy Hook Elementary School in Newtown, Connecticut, where a gunman killed 20 children, six Teachers, and himself in 2012. Since then, there have been more than 1,600 mass shootings. Recent reporting is the Marjory Stoneman Douglas High School shooting in Parkland, Florida, which killed 17 people. (more…)

Why Are Companies Permitted To Conduct Background Screening?

There are many reasons why organizations have to run an individual’s background verification. Rationally, there are some lawful reasons that they can check your experience and utilize that data to dismiss or acknowledge your application.

Background checks are allowed on the following grounds:

• To decide whether you’re legitimately qualified to work in the nation (e.g., citizenship status or you have a lawful work visa)
• To check criminal history for certain types of position (Example: police force, childcare)
• Financial history for a few kinds of job positions (Especially if it concerns financial/banking industry)
• To guarantee you meet certain wellbeing/medical prerequisites for the work in a few situations
• To guarantee you’re a correct fit for the activity, in view of your skills, past work history, work habits, and identity. (more…)

What Comes Up In A Background Check?

A common question is “What comes up in a background check?” Listed below are some of the red flags raised, that employers should be aware of:

Criminal Record Check:

• Wanted by the Police
• Caught and Charged in Court
• Caught, Pending Investigation
• Diversion in Process
• No Further Action

(more…)

Honest Strategies For Employees At Getting Ahead Instead Of Lying In Their Resumes

Companies are growing increasingly savvy in ferreting out resume cheaters through more comprehensive background checks conducted both during pre- and post-hire. Instead of lying in the resume, employees can resort to more ethical strategies to address issues they are facing.

JOB-HOPPING

Combine two or more similar positions under one heading.
For example:
– Sales Representative
– ABC Company and DEF Company (02/07 – 04/09)

Use your cover letter to explain work history with a positive spin on your circumstances. Also, do indicate your interest in a long-term position. (more…)

Fake Diplomas And Degrees Are A Billion-dollar Industry…

Why is Education Background Verification Important?

A survey specializing in job screening and selection, which was conducted on 2.6 million job applicants by Avert Inc., revealed that 41% of applicants lied about their education background. This is quite an alarming figure given that the ranking of a job position is highly dependent on an individual’s education background. When an applicant falsifies his/her education background, the person would most likely underperform; leading to poor performance of the organization. Such cases have been recorded in many multinational companies. (more…)

The Common Mistakes Done by Candidates

Employment and job seeking is an amalgamation that co-exist in any organization. As long as corporation exist, candidates will apply for jobs, and employers will screen their resumes for a possible hire.

In reality, HR Managers have seen thousands of resumes, and at times, the most inappropriate and bizarre resumes with outrages mistakes beyond one’s imagination. At times, these HR Managers have sat through a series of interviews which does not make sense and may even appear ‘meaningless’. It is a common known factor that body language is also measured during interviews. (more…)

Personal Data Protection Act (PDPA)

Ever since the Personal Data Protection Act (PDPA) was introduced in Malaysia in 2010, all companies handling sensitive third party information are required to obtain a consent prior to using their information. Venovox in particular, shows, up-most concern over this issue and ensures that a consent is obtained before proceeding with any of our searches.

Well, this transparency has led to one particular potential candidate, who is keen to apply for a position in a multinational company, to seek an ostensible clarification about our service. The potential candidate was concerned about the potential background check which might be conducted on him/her and highlighted that he/she did not list an employer’s particulars with whom he/she had worked for a period of less than 1 year in the resume. The candidate was rather concerned over this matter and questioned if this could negate the offer! (more…)

Case Study – Banking

A prominent bank, with approximately 1,000 applicants per year, needed to reduce costs in their pre-employment screening process and decided to outsource their screening to Venovox. Venovox was able to help the bank to consolidate nation-wide hiring and cut back on inefficiencies.

Our statistics showed that nearly 5% of the bank’s applicants were untruthful in their educational claims, and that the number rose during economic crisis. Venovox’s analysis also revealed that over one third of job applicants had an unsavoury work history, and that by the end of 2014, 22% of the bank’s applicants had something to hide in regards to their work experience.

As a result of partnering with Venovox, the bank saw increased accuracy coupled with speedy completion of files, which resulted in savings and better hires.

Some Statistics From 2014

Sometimes words can’t do justice to the story of Employment Screening. The statistics below derived from our 2014 internal data describe, in further detail, the kinds of workplace risks Venovox will help you avoid.

2014 Statistics:

False Information

63% of all job applications contain inaccurate information.

In a survey conducted by Venovox.com, 69% of the 340 hiring managers surveyed had caught a job applicant fabricating some part of his/her resume.

56% of all application forms contain outright lies about experience, education, and ability to perform essential functions on the job.

27% of job applicants falsely claimed they had a college degree, listed false employers, or identified jobs that didn’t exist.

18% of job applicants misrepresented why they left a former employer.