Human Factors in Risk Management and Employment Practice
Research has identified that over 70% of employers encounter serious fraudulent claims in job applications and that 50% of UK employers routinely lose money dismissing someone for misrepresenting themselves. In essence, if you don’t know your people, the risks faced by your organisation are unknown. Understanding the complex relationships between an employee’s personality, aptitude and past relevant history, and the organisation’s operational and cultural environment, is key to enabling effective damage prevention and protection strategies.
In 2012, according to the Centre for Retail Research, of the 9.2 million crimes surveyed in the UK occurring in the retail sector, employee theft and fraud accounted for over 35% of all retail crime. A study of 23 large US retail companies by loss-prevention firm Jack L. Hayes International showed that over 70,000 dishonest employees were caught in 2012 and more than $50 million recovered. Theft of physical property is just one threat faced by an organisation – the loss of intellectual property and reputation are potentially more damaging.
Incomplete or ineffective employee selection and/or a lack of HR and risk management policies and processes can lead to the introduction of personnel into an organisation who can pose as great a threat to a company by their actions or inactions, as any fire, flood, cyber attack or other disaster. Legal compliance, due diligence, fraud, and corruption are other areas of organisational risk within which the behaviours and actions of employees can make the difference between success and failure.
Screening companies commonly provide background checks that rely on having access to databases. Background screening checks will only tell you so much – the lack of a record may not signify the absence of criminal or other inappropriate behaviour. A polygraph examination is an effective tool to aid screening, internal investigations and in many cases can act as a deterrent to criminal behaviour. A polygraph examination can confirm facts about past behaviours or actions whilst personality and aptitude/ability testing can provide insight. Our examiners conduct tests discreetly, professionally and in a confident manner to support risk management and selection processes.