Most organisations manage some of their risks via an insurance policy and risk retention. However, this is a reactive strategy when it comes to risk. If you are one of these organisations, then you are missing the riskiest part of the equation: people risk.
People risk IS…
- having the wrong people in the right positions;
- the failure to understand brand;
- having a weak tone at the top that sets a little precedent;
- a leadership failure that trickles down;
- the uncontrollable side of what people do.
At CRI Group we see people risk as a hidden, budget-busting risk. We know that people and culture can influence (very negatively) your strategy. In other words, human capital can make — or break — your organisation. This risk directly affects your culture, brand, operational efficiency, and ultimately your profitability. In our view, effective leaders of people risk squash organisational inconsistency by living the brand.
Employee investigative analysis findings expose employee risk
Between February and March 2019, CRI Groups’ investigative analysis team found 3.6% of all requested degree checks to be fake. This is followed by the statistics from January-June 2020, indicating that claiming a fake degree occurred in nearly 2% of cases. Our investigative operations team also found this year that providing incorrect education degree details resulted in 2.33% of all checks. Overall, providing incorrect employment details is the most common red flag, as it was uncovered in about 4.5% of background screenings. Learn more statistics in our article, titled “Background Screening Red flags: Numbers Don’t Lie“.
With degree fraud becoming more common and sophisticated in style globally, comes an increased necessity for pre-employment degree checks to deter potential candidates from fabricating their level of experience and qualification, and to prevent the harmful consequences that employing such applicant’s can have on the company. With job seeking becoming more competitive, many employers are looking for degree level candidates to fill their positions and this means that for some candidates, falsely claiming the existence of their degree is an attractive idea. This can come in the form of referencing to their bogus degree in their CV, or potentially even buying a false certificate from a fake or real university under a site which creates these certificates later down the line if the candidate’s fraudulent activity is not initially flagged up.
Of course, using these websites with the purpose to deceive employers, rather than for “novelty use” which the websites so often claim is the purpose of their product, is a criminal offence and can result in 10 years in prison within the UK, under the Fraud Act of 2006. However, this seemingly hasn’t deterred the thousands of UK nationals who have purchased fake degree certificates with one person spending nearly £500,000 on the certificate. According to a study conducted in 2014, one in three employers do not verify the candidate’s degree qualification upon their hiring, meaning that people are hired into positions they are neither qualified nor educated in, so also pushing those who are degree standard out of the chance of reaching the position.
One fake degree holder in a sensitive position can ruin the organisation due to significant irreparable reputational damage. Our pre-employment background checks capability thus acts as an effective employee risk mitigation strategy, so protecting your company from the “human factor”.
Mitigating Employee Risk
Where there are people, there are risks. There are factors in employee-related risk management that are out of a company’s control. But just because you can’t prevent them from occurring doesn’t mean you can’t be prepared for them when they do occur. CRI Group has developed this playbook to help you understand how to mitigate employee risk. This playbook defines the risks, explains and identifies each and their impact. “Where there are people, there are risks: mitigating employee risk” provides actionable advice on how to take control within your organisation including information on background screening (pre-employment screening and post-employment background checks).
You secure their future. We secure their past.
How do you know the candidate you just offered a role to is the ideal candidate? Are you 100% sure you know that everything they’re telling you is the truth? 90%? They showed you a diploma, how do you know it’s not photoshopped? Did you follow the correct laws during your background checks process?
Mitigating employee risk is vital to avoid horror stories and taboo tales that occur within HR, your business or even your brand – simply investing in sufficient screening can save you time, money and heartbreak. CRI Group’s EmploySmart service provides in-depth background screening services of employees and candidates at all levels, from senior executives t
o shop-floor employees. Outsource your employee background screening to one of our experienced providers, trusted by the world’s largest corporations, and you will only ever have to look forward, never back.