PEOPLE RISK MANAGEMENT
Jenny Reid
Director
The problem with human resources
Is that they are human, with all that entails.
Truthfully, the human condition is by and large good.
Most people are honest, sincere, responsible
And prepared to work hard for a fair shake.
But there are others that give people a bad name.
These are the ones that lie, cheat and steal.
They are the businessman’s worst nightmare
For the damage they can cause.
These are the people you don’t want working for you.
Insurance against Bad Ethics
People
Risk
Third Party
Risk
People
Safety &
Security
People Risk
Management
Programme
People
Wellness
People
Management
Insurance against Bad Ethics
People
Risk
Third Party
Risk
People
Safety &
Security
People Risk
Management
Programme
People
Wellness
People
Management
ETHICAL COMPANIES
TOP TALENT
VIBRANT
GOOD
CLIENTS
SUCCESS!!!
Corporate Greed Smoke Screen
Common Denominator
Human Element
Workers
V
A
L
U
E
Decision Makers
Shareholders
Integrity
Corporate Image
People
Risk
WHAT DOES
A BAD HIRE
COST YOUR
COMPANY?
Cost of Bad Hires
• 44% of retail shrinkage was due to
employee theft
*Source: National Retail Federation Security Survey
• 30% of all business failures are caused
by employee theft.
*Source: American Management Association and US
Chamber of Commerce
• The FBI calls employee theft the fastest
growing crime in America. 55% of
perpetrators of employee theft are
managers.
*Source: American Society of Employers
False Information
•
It costs R70 000 to replace a
salaried employee, R100 000 to
replace a mid-level employee, and
R400 000 to replace a senior
executive.
*Source: Recruiting Times
•
The U.S. Department of Labor
estimates that the average cost of
a bad hiring decision can equal
30% of the first year’s potential
earnings.
*Source: U.S. Department of Labor
False Information
•
9% of job applicants falsely claimed they
had a college degree, listed false
employers, or identified jobs that didn't exist.
*Source: Resume Inflation: Two Wrongs May Mean No Rights, by
Barbara Kat Repa, Nolo.com
•
11% of job applicants misrepresented why
they left a former employer.
*Source: Resume Inflation: Two Wrongs May Mean No Rights, by
Barbara Kat Repa, Nolo.com
•
1/3 job applications listed dates of
employment that were inaccurate by more
than three months.
*Source: Resume Inflation: Two Wrongs May Mean No Rights, by
Barbara Kat Repa, Nolo.com
False Information
•
53% of all job applications contain
inaccurate information.
*Source: Source: Society of Human Resources
Management
•
49% of hiring managers had
caught a job applicant fabricating
some part of his/her resume.
*Source: CareerBuilder.com Survey,
•
34% of application forms contain
outright lies about experience,
education, and ability to perform
essential functions on the job.
*Source: Wall Street Journal
Local Government Municipal Systems Act
• Selection must be competence based to
ensure the effective performance by
muncipalities of their functions
• How do we measure competence?
Local Government Municipal Systems Act
Potential Employee :
• Must be a SA citizen or permanent resident
• Possess relevant qualifications, competence
& experience
• Must disclose contactable references
• Must be registered with the relevant industry
body
• Must disclose disciplinary records or
dismissal
Local Government Municipal Systems Act
Misrepresentation = Disciplinary action
At what cost?
Local Government Municipal Systems Act
Municipality must compile & maintain
records of all applications
Panel members for interview must disclose
their interests
Local Government Municipal Systems Act
Regulations for dismissed persons
Third Party Risk
Temporary
Staff
Contractors
Clients
Outsourced
Labour
Suppliers
Etenders.co.za
BENEFITS?
• Single point of entry to view, search and identify government
tender opportunities;
• Improve competitiveness in the tender process by making it
easier to identify to access tender information and documents;
• Increase transparency in relation to the tender awards
published on the eTender portal;
• First step to digitalising interaction between South African
business and government;
• Reduce and hopefully eliminate duplication of costs and effort
associated with traditional tender publications;
• Provide a free service to departments, business and public in
accessing tender information and opportunities.
Etenders.co.za
Great news!
Where is the verification process?
FRAUD PREVENTION DATABASE
Existing
employees
Potentials
employees
Key
personnel
in suppliers
Fraud
Prevention
Database
Past
employees
Outsourced
/ temporary
employees
Where are you right now?
Jenny Reid
+27 82 600 8225
jenny@ifacts.co.za
www.ifacts.co.za