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 People Wellness People Management People Safety & Security Third Party Risk People Risk Management Programme

Insurance against Bad Ethics People Risk People Wellness People Management People Safety & Security Third Party Risk People Risk Management Programme Executive HR Procurement Security / Loss Control

ETHICAL COMPANIES VIBRANT GOOD CLIENTS TOP TALENT SUCCESS!!!

Corporate Greed Smoke Screen

Common Denominator

Human Element WorkersDecision MakersShareholders Integrity VALUEVALUE VALUEVALUE

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 R to replace a salaried employee, R to replace a mid-level employee, and R 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

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 Local Government Municipal Systems Act

Third Party Risk

Temporary Staff Outsourced Labour SuppliersClientsContractors

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 Past employees Outsourced / temporary employees Key personnel in suppliers Potentials employees Fraud Prevention Database

Where are you right now?

Jenny Reid