Landmine employees: a case study on how to detect ticking time bomb employees

By Richard Hoffmann, ECOVIS Beijing China

Many companies face complications when investing and starting their business in China. Structures might turn out to be inefficient, tax issues complicate fast growth or employees terminate earlier than expected.

By presenting you some of our latest case studies, ECOVIS Beijing China will provide a deeper insight  into how small problems with big impact can be solved easily.

Employee Background Check 

The Company:

A manufacturing fortune 500 company

The Issue:

The company was insecure about which person to employ as their new General Manager. They had to choose one out of three candidates they had interviewed before.

Hiring and especially terminating labor contracts in China can be difficult and extremely expensive. Also, fluctuation rates in China are enormously high.  Therefore research on candidates’ backgrounds becomes increasingly more important for companies operating in China to keep HR costs low.

The Solution:

ECOVIS Beijing China conducted a research on the company’s candidates’ background. Previous employers were asked to answer several questions covering questions on the length of the candidate’s working period, on his over-all performance, his relationship to colleagues and similar questions.

We found out that one of the candidates actually lied in the interviews: Instead of having worked for 5 years for his previous employer, he had stayed for only 3 months before the company had to find a new employee. Moreover, it was reported that the candidate had problems to work together with colleagues and showed a lack of communication towards superiors.

The company’s benefit:

By checking the candidate’s background, the company was saved from high employment and termination costs that would have arisen if the company had found the candidate not suitable due to a lack of professional experience, communication skills or honesty.

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