The strongest salary negotiation tool a job applicant has is his or her prior salary history. Even if it strains the budget, a potential employer may be loathe to extend an offer to the ideal candidate that pays less than that individual earned previously. Job applicants are aware of this fact, and less scrupulous candidates may take advantage of it.

It may seem like a small white lie, but, when an applicant intentionally inflates his or her salary history, it can be rather costly – for both employer and employee.

Employers may end up hiring someone they think is perfect for the job, when, in reality, their selected candidate is anything but. Not only is the employer paying more for the individual than they should be, but the ethics of any candidate that would lie on his or her resume are undoubtedly questionable. Is that the type of person you’d like to hire?

Additionally, on top of job placement ad costs, interview costs, training costs, and salaries, firing an employee and beginning the process anew to re-fill the position because of a resume lie can cost an employer more than twice what it should have.

Employees don’t always realize the cost to themselves either. When an employer finds out that an individual has intentionally misrepresented the facts on his or her resume, the employer is likely to give that employee the boot – and rightfully so. What may seem like a tiny little salary inflation is ultimately a lie. And no employer wants to willingly hire a liar. Employees whose ethics don’t preclude something as simple as lying on a resume ultimately erode at the good name of the employer.

For now, resume lies, including inflated salary claims, don’t promise to abate. Employers have to be proactive about developing a sound pre-employment screening process that includes diligently questioning applicants about previous employment. When in doubt, is it not out of the question to require that the applicant produce documentation of a previous compensation such as W-2’s.

Ultimately, verification is an employer’s best weapon against resume fraud. Performing thorough background checks that include salary history and previous employment documentation can save employers a significant amount of time and money.