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Background Screening IndexM A N AG E D I N T E G R I T Y E VA L UAT I O N ( PT Y ) LT D2015
BACKGROUND SCREENING CHALLENGES
• Informationavailability• Compliancerequirements*• Turnaroundtime• ITsecurity• Lackofindustryregulation
*ChallengesincludethecompliancetotheNationalCreditActAmendment19of2014(NCAA).TheProtectionofPersonalInformation(POPI)Actpromotesthemandatoryrequirementofobtainingconsentfromcandidatesbeforescreening.
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Executive Summary
2015 AT A GLANCE
ManagedIntegrityEvaluation(MIE)hasnotedasignificantincreaseindemandforbackgroundscreeningservicesinSouthAfricaandAfricaoverthelastfiveyears.
Thisincreaseisduetogrowingrecognitionofbackgroundscreening’sbenefitsforbusiness:
• Improvesqualityofhires;• Improvesstaffretention;• Mitigatesriskandreputationalharm;• Assistsinmanagingcosts;and• Uncoversdiscrepancies.
WhilebackgroundscreeninginAfricawashardlyvisibletwoyearsago,awarenessamongorganisationsoperatinginAfrica-aswellasthoserecruitingfromthecontinent-thattheserviceispossibleandresultedinmoreandmoreofthesecompa-niesvettingcandidatesacrosstheregion.
MIE TRANSACTIONS 2010 - 2015
DID YOU KNOW? Post-hire screening
• Hasincreasedindemandoverthepastdecade• Isessentialacrossallindustries• Isanecessityforpeopleworkinginthe financialsector• Frequencyofre-screeningisindustry dependant• Long-servingemployeesmayhavenever beenscreened• Employeesmayhaveacquiredacriminal recordafterbeingon-boarded
Managed In teg r i t y Eva luat ion (P t y ) L tdA l l r i gh ts reser ved .
Introduction
WHAT IS BACKGROUND SCREENING?
Alsoknownas‘backgroundchecks’,‘suitabilitychecks’and‘probitychecks’,backgroundscreening istheprocessofverifyingandauthenticatingvariouspersonalandconfidentialinformationofan individualororganisation.
Why do businesses utilise background screening?
• Peaceofmindthatanappropriatelyskilled andexperiencedcandidateischosentofill therelevantposition• Reducedtrainingandemployeedevelopmentcosts• Higherlevelsofproductivitywithinscreenedroles• ImprovedregulatoryandHRcompliance duringthehiringprocess• Riskandlitigationmitigation
Managed In teg r i t y Eva luat ion (P t y ) L tdA l l r i gh ts reser ved .
SCREENING TIP
Theprimaryobjectiveofbackgroundscreeningistoensurethatanorganisation’sworkforceishonest,appropriatelyqualified,skilledandexperienced-ultimatelyavoidingnegativefinancial,legalandproductivityimplications.
DID YOU KNOW?
Demandbybusinessesforbackgroundscreeninghasincreasedby11%overthelastfiveyears.
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Managed In teg r i t y Eva luat ion (P t y ) L tdA l l r i gh ts reser ved .
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Backgroundscreeningservicesaretypicallyrequiredbyin-countryorganisationsemployinglocalnationalsaswellasorganisationsfromaroundtheworldwhichemploycandidatesfromAfrica.
MIE’s African vetting services include:
• Creditchecks• Criminalchecks• Qualificationverification• Driverslicencechecks• Employmentreferenceverification• Mediasearch• Worldchecks
A
AfricaMIEoffersdetailedandspecific backgroundscreeningservices in15Africancountries (inadditiontoSouthAfrica).
EmploymentReferenceFAIS
IDLicence
QualificationCriminal
Credit
AFRICA CHECKS 2014-2015
BACKGROUND SCREENING CHALLENGES IN AFRICA
Africancountrieshavetheirown,uniquelegislation–orlackthereof.
Credit,labour,dataprivacyandfreedomofinformationlegislationdirectlyimpactsbackgroundscreeningcapabilities.Thispresentsachallengeforbusinesseswhicharerequiredtoensurethelegalityoftheirin-countryrecruitmentpractices.
Managed In teg r i t y Eva luat ion (P t y ) L tdA l l r i gh ts reser ved .
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SCREENING TIP
Africanqualificationscarryhighriskofbeingfraudulent,qualificationchecksarethereforevitalwhenoperatinginorrecruitingfromAfrica.
DID YOU KNOW?
Theavailabilityandreliabilityofdatapresentsamajorchallengewhenconducting backgroundchecksinAfrica.
CompaniesmakinguseofbackgroundscreeningservicesinAfricashouldnotonlyrelyonverifyingcandidate’squalifica-tions,butalsochecktheircreditandcriminalhistoryintheircountryoforigin.
Managed In teg r i t y Eva luat ion (P t y ) L tdA l l r i gh ts reser ved .
Increasingdemandbybusinessestoverifythequalificationsofpotentialandexistingstaffislargelyduetoincreasedawarenessoftheworldwidequalificationfraudepidemic–atrendwhichisrifeamongentryleveltoseniorexecutivelevelemployees.
ThemajorityofMIE’squalificationverificationsareprocessedthroughtheNationalQualifications Register(NQR®)whichisownedandoperatedbyMIE.Withadatabaseofover3.5milliongraduate recordsand24subscribingtertiaryinstitutions,NQR®verificationsarerenownedfortheiraccuracy.
In2015,MIEconductedatotalof478264
qualificationchecks.
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QualificationVerification
MAJOR VS. MINOR DISCREPANCIES
MIE’sresultshighlightthatacandidate’seducationalhistoryisthemostlikelytocontain discrepancieswhencomparedtoallotherbackgroundscreeningchecks.
Withagrowingcultureofdishonestyandoverstatementinthisregard,itisimportanttonotethe differencesbetweenminorandmajordiscrepancies.
Minordiscrepanciesincludenegativeresultssuchasacandidatecurrentlyintheprocessof completingtheirqualificationratherthanhavingbeenawardedtheirqualification.
Majordiscrepanciesontheotherhand,includefraudulentresults.Examplesoffraudulentresultsincludeacandidateforgingoralteringtheircertificatedeliberatelyorneverhavingbeenawardedthequalification.
DID YOU KNOW?
MIEhasfoundthatqualificationchecksarethemostrequestedbackgroundscreeningservice.
SCREENING TIP
InlinewiththerecentNationalCreditActAmendment(NCAA)19of2014inMarch2015,qualificationverificationscanonlybecarriedoutonindividualswhohavesuppliedwrittenconsent.
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Managed In teg r i t y Eva luat ion (P t y ) L tdA l l r i gh ts reser ved .
FRAUDULENT VS. NEGATIVE VS. CANCEL VS. POSITIVE
QUALIFICATIONS - 2015
QUALIFICATION RISK 2010-2015
International
African
NationalSecondaryDepartment
TertiaryCourse
NationalTertiary
NationalSecondaryUmalusi
NationalQualificationsRegister
Membership
QUALIFICATION BY CATEGORY DISCREPANCIES
Fraudulent2219
Positive402422
Negative33972
Cancel39651
2010 2011 2012 2013 2014 2015
18.20%
16.97%
16.42%
15.92%
15.64%
15.57%
Criminalrecordchecksprovideorganisationswiththeinsightandinformationtheyrequireregardingtheirpotentialandexistingemployees’criminalbackgrounds.
MIE’scriminalbackgroundchecksareconductedthroughtheSouthAfricanPoliceService’sAutomatedFingerprintIdentificationSystem(AFIS)-themostup-to-datecriminalrecorddatabase.
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SCREENING TIP
Toensureaccurateandlegalemployeevetting,useareputablebackgroundscreeningcompany.
DID YOU KNOW?
Expungentofone’scriminalrecordispossibleif:
• Ithasbeeninexistenceforaminimum of10yearswithnosubsequentconvictions• Youweregiventheoptionofpayingafine oflessthanR20000• Theoffenceisconsideredtobeofa trivialnatureorthepunishmentisno longerconstitutional• Ifyouweretoldthatpayingafinewould notresultinacriminalrecordandhave sincediscoveredtheexistenceofsucha record
In2015MIEconducted
582203criminalchecks
Criminal Checks
Itisimportantforcompanyleaderstoconsiderthepositiontheapplicantisapplyingforandtoweighuptheirpastcriminalbehaviourwiththejobathand.Ifanapplicantcommittedaminoroffence(suchasshop-lifting)anumberofyearsago,itisarguablethatthismaynotimpacthisorherabilitytoperformwellintheworkplaceenvironment.
Inthiscase,thehiringcompanycanplayacriticalroleinassistingtheindividualintheirrehabilitationprocess.Beingacceptedinthecommunitytotheextentthatoneisabletofindajob,lessensthepossibilityoftheindividualturningbacktocrimeasaformofincome.
Ontheotherhand,applicantswhohavearecenthistoryofwhitecollarfraudortheft,maynotbebestsuitedtoacareerinwhichtheyareresponsibleforlargesumsofmoney.
Managed In teg r i t y Eva luat ion (P t y ) L tdA l l r i gh ts reser ved .
CRIMINAL BY CATEGORY STATS
2015 CANDIDATES WHO DISCLOSED THEIR CRIMINAL RECORD VS. THOSE WHO DID NOT
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582 203CRIMINALCHECKSCONDUCTED 47 916
UNDISCLOSEDRECORDS
Managed In teg r i t y Eva luat ion (P t y ) L tdA l l r i gh ts reser ved .
Criminal bycategorystats
Pendingcriminalbycategorystats
ViolentCrimes
TheftOffences
CrimesagainstState
Narcotics WhitecollarCrimes
40%
35%
30%
25%
20%
15%
10&
5%
0
8%
Credit Checks
WHO SHOULD CONDUCT CREDIT CHECKS ON EMPLOYEES AND WHY?
Utilisingcredit(orBureau)checksenablesbusinesses toidentifyhowemployeesmanagebudgetsandfinances.Thisisparticularlyvitalforfinancial industrieswhoinvestagreatdealoftrustinemployeesresponsibleforhandinglargeamountsofmoney.
Withanincreaseincandidates’credithistoriesbeingfoundasunfavourable,itcanbearguedthatmoreindividualswhoarequalifiedtoworkinthefinancialindustrymaynotbesuitabletodoso.Financialdepartmentsandinstitutionsarethereforeathigherriskoffacingliabilityandunnecessaryfinanciallossesiftheydonotscreenpotentialandexistingemployees.
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SCREENING TIP
TheHRpoliciesoforganisationswhichrelatetovettingemployeesshouldbe reviewedonaregularbasis.
DID YOU KNOW?
MIEonlyconductscreditcheckson candidatesandemployeeswhomeetthelegalcriteriaforustodoso.
Managed In teg r i t y Eva luat ion (P t y ) L tdA l l r i gh ts reser ved .
2015 LEGISLATION CHANGES
MIEisaregisteredCreditBureauandisthereforerequiredtocomplywiththeregulationsassetoutintheNationalCreditActAmendment19of2014(NCAA)whichcameintoeffecton13March2015.InlinewiththerecentAmendment,aconsumercreditrecordmayonlybeaccessedbyanemploymentagency,recruitmentconsultant,staffingcompanyoremployerwhen:
• Theycertifythattherequestforconsumercreditinformationrelatestoapositionrequiring honestyinthehandlingofcashorfinances• Thereisajobdescriptioninplacethatstipulatestherequirementoftrustandhonestyinthe handlingofcashorfinances• Specificandinformedconsentoftheconsumerisobtainedpriortotherequestbeingmade.
Thevolumesbelowindicatedaninterestingtrend–duetotherecentAmendmenttotheCreditAct,MIEhasnotedadeclineinthenumberofrequestsreceivedtoconductcreditchecks.
CREDIT CHECKS
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Anycompanycollecting,storingandreportingoncertaincategoriesofpersonalinformationhastobearegisteredCreditBureauintermsoftheNationalCreditActNo.34of2005.
Managed In teg r i t y Eva luat ion (P t y ) L tdA l l r i gh ts reser ved .
PercentageRisk
Volume
650 000
600 000
550 000
500 000
450 000
400 000
350 000
300 000
0
2010 2011 2012 2013 2014 2015
35%
30%
25%
20%
15%
10%
5%
0
40%
Lookingaheadinto2016,MIEforecasts continuedgrowthindemandforbackgroundscreeningservices.
Afactorcontributingtothisgrowthisthatbusinesses areincreasinglyrecognisingthebenefitsofscreening theirexistingandpotentialemployees.Fromimproving thequalityofhires,touncoveringdiscrepancies,backgroundscreeningnotonlyensuresthatanorganisation’sworkforcestandardsareupheldbutalsomitigatesfinancialandreputationalrisk.
SOUTH AFRICA’S UNEMPLOYMENT RATE
Thejobmarketisbecomingincreasinglycompetitiveandjob-seekersarebecomingmoreandmoredesperateforemployment.Thisdesperationincreasestheriskofjob-seekerslyingabouttheirprofessional,criminalandacademichistories.
Whilestudentswereoutofclassprotestingfor#FeesMustFall,theymayhavemissedoutoncrucialtimeneededtopreparethemselvesfortheirfinalexaminations.Itisaconcernthatduetothislackofpreparation,thesestudentsmaynotperformtothelevelrequiredtoentertheircareerofchoiceandmayfindthemselvestakingextrememeasures(suchasmisrepresentingoroverstatingtheir qualifications)tosecureanopportunity.
Withthisinmind,backgroundscreeningwillbe vitalconsiderationforbusinesseshiringentrylevelemployeesin2016.
The 2016 Background Screening Landscape
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DID YOU KNOW?
MIEexpectsbackgroundscreeningto continuegrowinginAfricain2016.
SOUTH AFRICA’S UNEMPLOYMENT RATE
Managed In teg r i t y Eva luat ion (P t y ) L tdA l l r i gh ts reser ved .
2015-05-06 2015-07-29 2015-10-27 2016-02-10
**Q4forecast–source(www.ieconomics.com)
CHANGING BUSINESS NEEDS
Asthebusinessenvironmentisconstantlychang-ingandadaptingtonewtechnologicaltrends,theneedsoforganisationstomeetbusinessandstaffingobjectiveshaveevolved.MIEhas,inturn,developednewproductsandservicestofulfiltheseneeds.
Theindustryisbecomingmoreautomatedandelectronicbackgroundscreeningverificationswillsoonbecomethenorm.
MIE’selectronicCandidateCapturingSystem(eCCS)isthefirstofitskindinSouthAfricaandispoisedtochangethebackgroundscreeninglandscape.Theportalrequiresforclientorganisationstomakeascreeningrequest,therespectivecandidatethenreceivesalinkandisrequiredtocompletetheprocessonline.
AnothertrendunfortunatelyontheriseintheSouthAfricanbusinessenvironmentiscorruptionandprocurementfraud.Beinginthespotlightofacorruptionscandalexposescompaniestoincreasedcostsfromfinesorinvestigationsaswellasreputationaldamage.
Recentlydevelopedandintroducedtothemarket-asapossiblesolutiontomitigatesuchriskandcombatprocurementfraud-ZoomOut™,isasoftwareapplicationwhichfiltersthroughemployeeandvendorinfor-mation.Potentialconflictsofinterestorcorruptrelationshipswithinanorganisation’ssupply-chainisthenflaggedforattention.
Managed In teg r i t y Eva luat ion (P t y ) L tdA l l r i gh ts reser ved .
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Managed In teg r i t y Eva luat ion (P t y ) L tdA l l r i gh ts reser ved .
AFRICA
MIEexpectsbackgroundscreeningtocontinuegrowinginpopularityinAfricain2016withtechnologicaldevelopmentstransformingthewayvettingisconductedonthecontinent.
Inadditiontoexpandingit’slistofAfricancountriesinwhichMIEoffersscreeningservices,thecompanyaimstoaddanumberofinstitutionstotheAfricaQualificationsRegister(AQR).
Copyright
AllRightsReserved.Copyrightinallworksfoundinthisindex,includingbutnotlimitedto,text,imagesandgraphics,whichhavebeencreatedanddevelopedbyManagedIntegrityEvaluation(Proprietary)Limited(hereinafter“MIE”)shallvestinMIE,andnopartthereofmaybecopied,reproduced,distributed,disseminated,adapted,commerciallyexploited,publishedordisplayedinanyformorbyanymeanswithoutMIE’s expresswrittenpermission.Inadditionanyotherintellectualproperty,whetherregisteredornot,containedinthisindex,includingbutnotlimitedto,MIE’slogosandtrademarks,whichareproprietarytoMIEareandshallremainthepropertyofMIE.
About MIE
Establishedin1988astheveryfirstcommercialBackgroundScreeningcompanyinSouthAfrica,MIEwithstoodturbulentpoliticalandeconomictimestoemergeasSouthernAfrica’sBackgroundScreeningmarketleader.Conductingonly500backgroundchecksin1988,MIEembarkedonagrowingspreethatcontinuesunabatedtoday–completingover2.5milliontransactionsin2015.
KeytoMIE’ssuccesshasbeenthecompany’suncompromisingcommitmenttoprovidingafocused, cost-effectiveandhighqualityBackgroundScreeningservice.Havingaccumulatedawealth
ofknowledgeandexperience,MIEhasdefinedscreeningprocessinSouthernAfrica,andhasrevolutionisedthetechnologicalsystemsrequiredtobethemostreputableandtrustworthyvettingcompanyinSouthAfricaandAfricaalike.
TheEOHGroupacquiredMIEinNovember2014,signallinganeweraforthecompany.Thismergerbroughttheexpertiseofbothcompaniestogether,culminatingincontinuedgrowthandquality services.TheacquisitionresultedinMIEbecoming100%ownedbyEOHHoldingsLimited.
Managed In teg r i t y Eva luat ion (P t y ) L tdA l l r i gh ts reser ved .
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