Because of the slight chance that the background check was slightly wrong, you should discuss the findings with this applicant. If he says the check was wrong, he needs to provide documentation to support his assertion. The real question is what to do if the background check is accurate.
Granted that this applicant looked good, there is far more to consider than his superficial appearance. In the areas of honesty, integrity, and ethics, he does not look so good. In fact, he probably would not have come across so well if he had been honest about his work background.
A job interview is essentially a sales call in which an applicant is trying to sell his or her labor. As such, an interview provides a particularly excellent opportunity to evaluate sales applicants. When placed in a real sales situation, this applicant had no problem lying to you. Is there any reason to think that he won’t do this with your customers? Is this the kind of person that you want on your sales team? He has already shown that he cannot be trusted. In all honesty, you should trust your co-workers on this one.
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