2019

Analysis of findings MEXICO EDITION

Invisible employeesA SCREENING CHALLENGE

FOR BPOs

ADVANCINGSECURECONTRACTINGIN LATIN AMERICA

www.multilatin.com • +52 (55) 5511 3237 • info@multilatin.com

We cross-check fi ndingsto mitigate your risks.

MULTILATINYOUR LEADER FORBACKGROUNDSCREENING

More preventionand security forLatin Americawith MultiLatin

GROWTH is the key word to understanding 2018, the 7th year of operations for MultiLatin. We opened a regional corporate office in Mexico City to enhance security and continue providing our clients with the best service possible. The review and screening of third parties, a growing practice among our clients, has incorporated the challenges of new global and local legislation on data protection and has set a trend in screening during 2018.

The analysis in our report has always been grounded in “what companies consider as risk”. This year, we have incorporated an explanation of the main findings based on a reference framework of external risks.

Once again, I would like to express my thanks to our valued team of analysts who lead MultiLatin’s operation across than 32 countries and territories in Latin America and the Caribbean. My thanks also goes out to each of our clients, with whom we face the challenge of protecting their reputation by advancing secure contracting.

David RobillardPRESIDENT

MultiLatin Background Screening

2019 1

UNDER SCRUTINY FROM OUR ANALYSTSTHE MOST RELEVANT RED FLAGS IN MEXICO

PROFESSIONAL SERVICES: Increase in lies about academic records

Our analysts rank Mexico as the country in Latin America where the percentage of candidates in the professional services sector who lie about their academic record is highest, 100 of every thousand candidates.

BPO/IT SECTOR:High risk for lies about working experience

The trend toward outsourcing services is increasing in Mexico. Our analysts´ findings of inconsistencies in employment records in this sector are growing. This indicates a real risk that the candidates of these suppliers may not have the experience they claim.

LOGISTICS SECTOR:Increase in cases of employees with criminal records

The number of criminal record findings in Mexico's logistics sector is double that of Panama or Brazil. Although the percentage does not seem high (1.02%), the incidence rate is. According to Canacar (the National Chamber of Cargo Transport, for the acronym in Spanish), the direct costs of insecurity in the sector rose to 43.7 billion pesos in 2018.

PROFESSIONAL SERVICES:Warning of increase in probability of candidates with criminal records

Going against the overall trend across business sectors in Mexico is the situation of the professional services sector, which has experienced a significant increase in candidates with criminal records. Compared to 2017, the probability of uncovering these cases in the sector nearly tripled.

43.7 BILLION PESOS LOST DUE

TO INSECURITY

100OF EVERY THOUSAND

20192

In our analysis, we have sought to infer the average probability that candidates lie in each screening category. We have analyzed MultiLatin's findings in 2018 to calculate the proportion of inconsistencies with respect to each industry and the average risk index.

The probability of finding inconsistencies in the candidate's background in 2018 increased compared to 2017.

UNDERSTANDING CONTRACTING RISKHEATMAP ANALYSIS OF FINDINGS IN MEXICO

High implication | Medium implication | Low implication

2019 3

Industries

Screening Category FinancialServices

Infrastructure and Mining BPO/IT Professional

ServicesTransportation

and Logistics

Identity 0.01% 0.23% 3.27% 0.57% 0.98%

Academic 3.50% 3.57% 4.17% 10.36% 5.88%

Employment 7.12% 12.21% 22.24% 14.59% 13.19%

Criminal Litigation 1.07% 1.30% 0.99% 1.18% 1.02%

Civil Litigation 1.59% 3.74% 5.61% 2.02% 3.17%

Labor Litigation 0.45% 1.12% 2.36% 0.12% 1.01%

Credit History 19.44% 17.48% 20.80% 23.91% 18.28%

Press, Social Media and Watch Lists 0.31% 0.52% 0.32% 0.17% 0.32%

Drug Testing 0.98% 0.63% 0.01% 1.95% 0.98%

Our team of analysts points out that the greatest impact was in the BPO/IT, Financial Services and Professional Services industries. They also saw a significant increase in the volume of screenings, which reveals the interest from these sectors in increasing their level of due diligence in hiring employees. These sectors are especially sensitive about taking care when handling information of both their candidates and the company itself.

IMPLEMENT YOURCORPORATE BACKGROUND CHECKPROGRAM

SCOPE OF THE BACKGROUND CHECK

A good Corporate Background Check Program requires understanding the risk exposure the company faces in its contracting processes, based on its sector and the different levels of employees. Drawing from the company's risk matrix, MultiLatin will be able to recommend the relevant scope for candidate screening.

CANDIDATE CONSENT

The first stage of a Corporate Background Check Program is obtaining consent from the candidate to begin the screening process. The candidate must be notified that their information will be protected and used only for the purpose of screening, in compliance with their ARCO* rights.

UPLOAD INFORMATION TO CRITERIA

CRITERIA, our Background Check technology platform, gives candidates a user-friendly and secure environment for sharing data. Our clients can monitor the process from the start, to the report delivery, and finally, when information is eliminated.

REPORT ON FINDINGS

MultiLatin understands the urgency from HR areas, but also the information quality they require. A low UTV (Unable to Verify) rate and efficient delivery time are the main KPIs that measure the value of our reports.

ANALYTICS

CONTRACTING RISK INDEX is MultiLatin's tool for analysis and continuous improvement. We provide you with a tailored report on the risk trends that your company faces, based on annual results from your Corporate Background Check Program.

2019 2019 54

*ARCO Rights refers to the right of the owner of personal data to access, rectification, cancellation or opposition to the handling of their personal data.

MultiLatin is at the forefront of screening and compliance processes in the hiring of employees and has developed a deep and extensive knowledge in this field in Latin America and the Caribbean. We are proud to endorse this work that facilitates the growth of business in the region”

Fernando Ortega AmievaCHAIRMAN LOCKTON MÉXICO

“

220of every

thousand

190of every

thousand

110of every

thousand

BPO/ITEmployment

Around 220 of every 1,000 candidates in the

BPO/IT sector in Mexico had in-consistencies in their employment history. This represents a high degree of risk for companies that outsource services.

FINANCIAL SERVICES SECTORCredit History

Close to 190 candidates of every 1,000 showed inconsistencies in their credit

histories. The perceived risk for the sector in this screening category is medium to high. Ensuring the trustworthiness of employees is highly

relevant for the sector, as they handle the capital of both

clients and company.

PROFESSIONAL SERVICESAcademic

Around 110 job candidates of every 1,000 in the professional services sector showed incon-sistencies in their academic history. The perceived risk related to employees with in-consistencies in their academic curriculum is relevant, as they may be responsible for advising international companies on strategic issues.

A greater use of technology streamlines the workflow, from gathering candidate information to delivering results.

MultiLatin has reduced the rate of data gaps related to identity by more than 30%. Criteria, our Screening platform, processes all verifications: the time needed to capture in information is faster, the client can monitor the process, and the elimination of homonyms almost nullifies the margin of error.

CONTRACTING RISK INDEX prepared and certified by Lockton Mexico

-30%

20196

Identity

Academic

Employment

Criminal Litigation

Civil Litigation

Labor Litigation

Credit History

Press, Social Media & Watch Lists

Drug Testing

0% 5% 10% 20% 25%15%20172018

Comparison of findings 2017 -2018

Screening technology tailored to your needs

SIMPLE, SECURE AND EFFICIENTPrivacy by design

+52 (55) 5511 3237 • www.multilatin.com • info@multilatin.com

REQUEST A DEMO

According to our team of analysts, the probability of finding inconsistencies in employment history doubled in 2018.

LABOR LITIGATION

The possibility of identifying candidates with labor litigation history grew by 172% in 2018.

CREDIT HISTORY

The possibility of finding a history of non-payment of debts in

outsourcing candidates grew by more than 20%. This could pose a special risk for companies that

serve the financial services sector.

EMPLOYMENT HISTORY

CASE OF FICTITIOUS DEGREEMultiLatin verifi ed that former student Roberto “X” altered reference information for his degree in order to prove his academic qualifi cation and better compete for a position in a technology company. By cross-referencing the data provided by him with that found in the university, MultiLatin discovered that the reference number belonged to another student; therefore, the degree presented was fi ctitious.

CASE OF FALSIFICATION OF EMPLOYMENT RECORDCarlos “X” wanted to attain, at all costs, a position in the Information Technology area of an important Food and Beverage company in Mexico. In his CV he claimed to have experience as a director in the technology area of an international company. MultiLatin confirmed that his role in the organization was Coordinator, without any major responsibility, and that he had exaggerated his professional experience.

CASE OF ACQUITTAL OF A CRIME The team of analysts at MultiLatin conducted a thorough background screening on Francisco “X”, who was in charge of managing the website of a technology service provider. After a thorough investigation, MultiLatin verified a media report determining that Francisco had not committed a crime related to child pornography. A third party had used the same web server to commit the crime in an encrypted mode.

Candidate in the BPO / TI sector

Candidate in the FOOD AND BEVERAGES sector

Candidate in theBPO/TI sector

CASE

#1

CASE

#2

CASE

#3

BUSINESS PROCESS OUTSOURCINGContracting risk is increasing

CROSS-CHECKOF INFORMATION

Through the lens of our analystsaauug

100100 of every

thousand

210of every

thousand

2017 2018172%

20%

20198

An outstanding issue in prevention within the BPO industry is to increase safeguards to reputation and security by screening so-called "invisible employees". Who are they and why are Background Check Programs useful for this purpose?

An analysis of screenings MultiLatin conducted in 2018 reveals a growing trend in outsourcing of services, which affects strategic sectors of the economy such as technology, finance

INVISIBLE EMPLOYEES:Check the background of suppliers' employees

and safeguard your reputation

REINFORCE YOUR BEST PRACTICES

Align the screening scope of your suppliers with those of your company

Choose a reliable Background Check provider

Analyze your risk findings annually to improve your degree of care

1 2 3

This includes the level of risk exposure of your company in the hiring processes of your employees. In this way, you can confi rm that the scree-ning process meets the same standard.

Make sure your Background Check provider is an expert in local and international laws on data protection, and confi rm that the entire handling of its screening process is encrypted.

Know the analysis of your company’s risk findings. This will allow you to better understand the degree of risk you face in your hiring processess and you will be able to take more effective preventive measures.

and logistics. The call for bids to obtain these contracts includes the certification levels of the supplier and the service experience offered. However, care and prevention practices are still weak in terms of reputation and security.

So-called "invisible employees" are those who become part of the supplier's outsourced team, handling confidential information belonging to clients and employees and even having access to physical facilities in an implant scheme.

ADVANCING SECURE CONTRACTING

2019 9

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MultiLatin provides Background Screening for job candidates and Compliance Due Diligence in Latin America and the Caribbean.

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