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2015 Annual Screening Report
Employee Background Screening
in South Africa 2015.
Statistics
Trends
Insights & Advice
Table of Contents
Report Introduction 3
Criminal Record Checks (AFIS) 4
Fraud Checks (SAFPS) 6
Credit Checking 7
ID Verification 8
Qualification Verification 9
Psychometric & Competency Based Assessment 10
Global Screening Trends 11
2015 Top Report Findings 12
EMPS Annual Screening Report 2015 2
CopyrightCopyright © 2016 EMPS (Pty) Ltd. All other trademarks are the property of their respective owners. Reproduction and distribution of this publication in any form without prior written
permission is prohibited.
EMPS (Pty) Ltd prepared these materials for information purposes only. These materials are not suitable for,
and should not be construed as, legal advice.
EMPS Annual Screening Report 2015 3
Established in 1981, EMPS is South Africa’s oldest premier screening and vetting company.
EMPS offers a full range of solutions to ensure that our clients employ the right person for
the job.
Annually, EMPS releases an Annual Screening Report. This 2015 Annual Employment
Screening Report highlights statistics, trends and insights into the employee background
checks and brings you best practice and advice that is integral for both recruitment and
human resources professionals making critical hiring decisions. This report is an analysis
of all checks conducted by EMPS from January 2015 to December 2015.
The results of this report strongly confirm that background checks remain a crucial
component of the hiring process, helping to protect employers, their employees and their
customers. Screening job candidates before you hire them is extremely important for a
number of reasons. In order to prevent the potential for negligent hiring lawsuits, crime in
the workplace, and workplace violence, employment background checks are a vital step in
the hiring process.
For more information email info@emps.co.za
Report IntroductionReport Introduction
EMPS Annual Screening Report 2015 4
Criminal Record Checks(AFIS)Criminal Record Checks(AFIS)
Statistics
3,20%
3,30%
3,40%
7%
10%
11,50%
20%
21%
0% 5% 10% 15% 20% 25%
Fraud
Housebreaking
Malicious damage to property
Driving under the influence
Drugs and drug related offences
Road Traffice Offences
Assault
Theft
Top 80% of Criminal Records 2015
11,00%11,50%
10,70% 11,80% 11,80%
13,66%
12,80%
9,77%
17,54%
13,22%
9,02%
14,38%
8%
9%
10%
11%
12%
13%
14%
15%
16%
17%
18%
2011 2012 2013 2014 2015
Applicants With A Criminal Record 2015
- Meter taxi
- Merchandising
- Government- Courier- Parastatal
- Overall average
- Retail
- Cleaning
2015
Industry Highlights
EMPS Annual Screening Report 2015 5
Insight and advice
Criminal Record; 96,17%
No criminal record; 3,83%
Possible Illicit Activity Checks 2015
AFIS criminal record checks take 24-48 hours
for an initial result which can be a clear result
or a possible record result. If an individual has a
possible record, the detailed report then takes
a further 4-8 weeks. However in 3,83% of cases
in 2015, the result came back with no criminal
record. EMPS advises clients to wait for the
final outcome before making a decision.
Criminal Record Checks(AFIS)Criminal Record Checks(AFIS)
TrendsRepeat Offenders 2015
1 Offence; 64%
2 Offences; 19%
3 Offences; 7,6%
4 Offences; 3,4%
5 Offences; 2%
6 Offences; 1,4%
7 or more; 2,6%
For the 3rd
year running
over 35% of
applicants
have more
than 1
criminal
record
Further, if an applicant has a criminal record it does not mean that they should be declined a job. We
advise clients to look at the record and decide if it is relevant to the position applied for. The client
should also take into account how old the record is.
EMPS Annual Screening Report 2015 6
Insight and advice
WHY DO A FRAUD CHECK IF YOU ALREADY DOING A CRIMINAL RECORD CHECK?
Generally the types of fraud that are listed on the SAFPS database are not prosecuted criminally as it
happens too often and it is too much of a process for the company against whom the fraud has been
committed. The South African Fraud Prevention Services database houses shared data from SA businesses
who are members and data includes;
Fraud Check (SAFPS)Fraud Check (SAFPS)
South Africa has the highest fraud rate
globally, with one in three South African
businesses experiencing economic crime.
While the global average is at 37%, South Africa’s economic fraud rate clocks in at 69%
according to Sarel Snyman, a certified fraud examiner.
“These frightening statistics indicate that security measures need to be a top priority,”
Statistics
of job applicants screened in 2015 are listed
with the South African Fraud Prevention
Service for committing a FRAUD.
Up 0,5% from 2014
Trends
False name and ID
Credit card fraud
Forged documents
Employment application/ CV fraud
Insurance Fraud
Internet fraud
Credit application fraud
EMPS Annual Screening Report 2015 7
Insi
gh
t a
nd
ad
vic
e
The National Credit Act Amendment 19 of 2014
(NCAA) which came into effect on 13 March
2015 stipulates a consumer credit record may
only be accessed by an employment agency,
recruitment consultant, staffing company or
employer when:
•They certify that the request for consumer
credit information relates to a position requiring
honesty in the handling of cash or finances
•There is a job description in place that
stipulates the requirement of trust and honesty
in the handling of cash or finances
•Specific and informed consent of the consumer
is obtained prior to the request being made.
Credit CheckingCredit Checking
Companies are moving to a multi-bureau credit check in order
to mitigate their risk even further as the data differs from
bureau to bureau.
Statistics
Trends
More than 15% of job applicants screened in 2015
had a negative credit listing.
0%
10%
20%
15,75%16,23%
12,63%13,64%
Negative Credit Records by Bureau 2015
Transunion Experian XDS Compuscan
Application: A credit check must be
relevant to the position for which the person is
applying.
Transparency: The results of any credit
check performed MUST be shared with the job
applicant/ person checked. In addition, the
person must be informed of the reasons, if
any, of the consequences of a credit check.
Permission; The candidate MUST be
informed of the intention to perform the
check, the reasons for performing the check;
and MUST give you permission, at this stage in
writing, to perform the credit check.
EMPS Annual Screening Report 2015 8
The process of ID verification is one of confirming that the name, surname and
ID number are a match according to home affairs data. The process does not
confirm that the photo is in fact the correct photo for that ID number. We hope
that this additional feature will be available in the near future.
Insight and advice
ID VerificationID Verification
SMART ID CARDS SET TO REDUCE FRAUD;The new smart ID cards being rolled out by the Department will bring new levels of security
to South African identity documentation. The cards are secured using PKI digital certificates,
and the chip in each contains sufficient space to allow for the storage of identity information,
driver's licence details, and other information relevant to state services. The secure cards will
ensure that citizens can vote securely (and eliminate election fraud), and help protect social
grants. http://www.itweb.co.za/index.php?option=com_content&view=article&id=70399
5,81%
0,04%
3,21%
0,07%
0,04%
0% 1% 2% 3% 4% 5% 6%
Surname does not match ID
ID verified as deceased
ID not yet verified
ID never issued
ID verified but not surname
Reasons for unverified ID documents
Sta
tistics
Trends
EMPS Annual Screening Report 2015 9
Insight and advice
Qualification VerificationQualification Verification
In 2015 we saw some of the first cases in the history of South Africa where
individuals were prosecuted criminally for misrepresenting their qualifications.
Statistics
Trends
19,48%
18,78%
19,02%
15,96%
14,56%
9,70%
5,88%
10,02%
10,19%
9,84%
8,43%
12,34%
4,8%
2,9%
1,6%
1,9%
1,8%
4,8%
6,8%
0,7%
0,4%
0,0%
1,0%
3,48%
0% 5% 10% 15% 20% 25% 30%
PRE 1992 Matric- DOE
Academic SA- Certificate
Academic Global
Trade Certificate Verification
Academic SA- Diploma
POST 1992 Matric- Umalusi
Professional Association Membership SA
Academic SA- Degree
Academic SA- Honours
Academic SA- Doctorate
Academic SA- Masters
Overall
Negative result Fraudulent result
The value of supporting documents; the process of certificate and qualification verification has evolved rapidly over
the past number of years. With the increase in CV fraud and more specifically qualification fraud, institutions are
becoming more and more prescriptive in their verification processes and require copy certificates more regularly. A
well co-ordinated recruitment process should request all applicants supporting documents upfront, in order to speed
up and ensure efficient verification. These documents include consent to perform the screening checks required, all
copy certificates- certified, certified copy of applicants ID and drivers licence.
EMPS Annual Screening Report 2015 10
Insig
ht a
nd
ad
vice
Psychometric and Competency Based
Assessment
Psychometric and Competency Based
Assessment
Statistics Trends
86% of business leaders know
that their organisations’
future depends on the
effectiveness of their
leadership pipelines.
Only 13% are
confident in their plans.
Psychometrics and Competency Assessments are
going through an historically exciting period of
Development. Usage is increasing globally,
giving us access to new approaches to human measurement. The use of
assessments in pre-employment screening to assess aptitude, honesty,
personality, leadership, etc. is not only valuable in ensuring
organisational and team fit but for developing talent and internal human
resources.
While ability is important, there is a need to also understand the soft
stuff such as the ability to work well in a team or communicate well or
manage stress. Tests are different across levels and the most critical
element in testing is to measure competence at the right level.
Psychometric testing is now used by over 80% of the Fortune 500
companies in the USA and by over 75% of the Times Top 100 companies
in the UK. Information technology companies, financial institutions,
management consultancies, local authorities, the civil service, police
forces, fire services and the armed forces all make extensive use of use
psychometric testing.
1
Government Oversight and Enforcement of
Accuracy in Background Check Industry to
Increase in 2016
The SA Background Check industry has largely been ungoverned over the
past number of years. There is no specific focus on this industry at
present. However, due to the nature of the services offered the industry
does fall within the scope of The National Credit Act and Protection of
Personal information Act.
2FCRA Lawsuits Will Continue to Increase in Target
Rich Background Screening Environment in 2016
The National Credit Act is the equivalent of the Fair Credit Reporting Act.
The NCA certainly is having an impact on background screening through
its control over the use of credit information for employee screening
purposes but our environment certainly isn’t as big on lawsuits as the US.
3Background Check Industry Will Continue to Both
Expand and Consolidate Simultaneously in 2016
The background screening industry in South Africa is still very much in an
exponential growth phase. The popularity of employee screening is still
growing annually and the increase from government side is due to high
incidence/awareness of CV fraud in the government sector.
4
Employers and Human Resources Will Be
Bombarded with Meaningless Marketing Buzz
around Supposed Disruptive Technology in 2016
Given the fact that background screening in South Africa requires service
providers to have thee most up-to-date technology in order to be able to
offer criminal record (AFIS) checks- this has limited the ability of fly-by
night solutions to come to market.
5
Background Screening Firms, Human Resources,
and Employers Will Be Focused on Legal
Compliance and Accuracy in 2016
This is most certainly a focus for background screening companies and
their clients as we look to comply with requirements of POPI.
6
Domestic Terrorist Attacks Will Put Social Media
Background Checks in the National Spotlight in
2016
Social media checks are still new and growing for South African
recruiters. We need to be aware of legalities and pitfalls around using
social media screening as we are still in infant stages of doing this.
7
Ban the Box Movement May Reach Tipping Point
But Could Also Inadvertently Do More Harm than
Good in 2016
This is a current and important think that South African business needs to
be aware of- just because a person ticks the box and has a criminal
record- doesn’t mean they should not be considered.
8
Applicant Tracking Solutions Will Review
Integrations with Screening Partners to Address
Emerging Legal Risks in 2016
Applicant tracking systems are growing and becoming more popular, our
biggest challenge is the storage of applicant data and compliance with
the NCA and POPI.
9Job Opportunities for Ex-Offenders with Criminal
Records Should Increase in 2016
Ex-offenders need access to the job market in SA in order for them to
rehabilitate and education of SA business could go a long way to reduce
many social ills.
10
Privacy Concerns Will Loom Large Between EU
and US in Terms of International Background
Checks in 2016
This is the reason that POPI has become such an important piece of
legislation for South Africa. If we wish to do business across borders in
the future we will need to comply as a country.
EMPS Annual Screening Report 2015 11
Local Insight and Advice
Global Screening Global Screening
International Trends
International trends taken from Employment Screening Resources® (ESR) Founder and CEO Attorney Lester Rosen for the 9th annual ESR Top Ten
Background Check Trends for 2016.
EMPS Annual Screening Report 2015 12
“ How do you choose the right provider for your company? ”There are several key factors to consider when making your decision. For a well-rounded search, consider
the following:
✓ Demonstrated expertise
✓ Legal compliance & client education
✓ Consumer protection & information security
✓ Quality & accuracy
✓ Product evaluation
2015 Top Report Findings2015 Top Report Findings
• 11,8% of job applicants have a criminal record
• 21% of criminal records are for theft related convictions
• Over 35% of individuals who have a conviction are repeat offenders
• In 3,8% of cases, a person with a possible illicit result could still come back with no record
• 1% of job applicants have been listed on the SAFPS database for a fraud related offence
• Over 15% of job applicants have a negative credit record
• 9% of ID documents cannot be verified for some reason
• 15,8% of qualifications were unverifiable for some reason
• 3,48% of unverified qualifications were confirmed fraudulent
Statistics
Be sure….
✓ Ask how long they have been doing background screening
✓ Ask for references from current clients
✓ Check they are affiliated with relevant bodies like AFISwitch, SAFPS and NAPBS
• Candidate experience extends into screening: The candidate experience has become increasingly more
important.
• Regulations: it is more important than ever for employers to be well versed in employment and labour law.
As they relate to the background screening process in particular, these laws are becoming increasingly more
complex
• Ongoing screening: We foresee a greater emphasis on ongoing screening in coming years as employers strive
to create a more secure and safe work environment.
• Globalization of screening: Screening is becoming an increasingly worldwide phenomenon as employers have
to consider the international component of their labour force.
Trends
Insight and advice
Recommended