As technology advances, so too does the landscape for economic crime. The 2016 Global Economic Crime Survey conducted by Pricewaterhouse Coopers (PwC) found that 33% of organisations have experienced economic crime. Of this number, almost 50% of the incidents were committed by internal parties. A comparison of Australian to Global organisations revealed significant variation that should be of concern to local agencies. In the past 24 months, 52% of Australian respondents experienced economic crime.
For Australian Organisations, the most common economic crimes experienced include theft, procurement fraud, bribery and corruption, cybercrime and accounting fraud.
Internal crime can cause severe damage to an organisations employee morale, productivity, culture and reputation, especially when theft or client information is impacted.
A 2017 survey conducted by Lawyers Weekly and InfoTrack found that many Australian firms aren’t performing police and background checks before employment, leaving themselves open to internal crime.
The findings from the PwC Survey and the Lawyers Weekly/InfoTrack Survey indicate that many Australian organisations (note: not just limited to Lawyers!) may not have adequately considered the cost and impact of economic internal crime, and how to deploy their resources best.
As the first point of action in preventing corruption and misconduct in the economic work space, it is necessary that organisations conduct a pre-employment screening when recruiting a candidate. Hiring the wrong employee can have harsh consequences for business, ranging from continued recruitment and training costs due to poor fit or performance, to fraud, harm to reputation and even litigation. Therefore, verifying an applicant’s background helps you to spot potential pitfalls prior to making a job offer and saves time in the long run.
Here are some of our top tips for diligent employee screening:
Ask the right questions at interview
When advertising for a position, it’s important that all facets of the advert align with the position itself. The job ad should match the job description, and questions asked at interview should reflect this as well.
Details to be addressed in a job description should include:
- Task – What tasks are required in the job?
- Competency – Is the candidate qualified? Can they work to a deadline?
- Job Style – Is the position rigid/flexible/routine?
- Knowledge
- Experience
Success in creating a clear and concise job description demonstrates to potential employees that your business is diligent and well-aligned.
As an employer, it’s also important to take the time to understand what motivates a candidate to want the position (money/career progression/values). During interview, ask your candidates what would stop them from taking the position. If there is an honest lack of hesitation, you can generally be confident that the candidate has the potential to be a good fit for your business.
Compare a candidate’s CV with LinkedIn and check references
It’s important that candidates don’t underestimate how much information is public. When completing a pre-employment screening, always compare a candidate’s CV to what can be seen on LinkedIn. Information to cross-check should include: University attended, previous employment dates, job titles and qualifications.
The importance of comparing a candidate’s CV to what can be seen online was reinforced in the results of the Lawyer’s Weekly/InfoTrack Survey, where it was revealed that 38% of respondents had experienced deception in the hiring process.
Asking for the most relevant reference is also helpful in ensuring that only correct information is offered during the pre-employment phase.
Complete a national police check
A National Police Check involves checking the police history of an applicant. The National Police Check Search itself involves identifying and releasing any relevant Australian Federal Police (AFP) information subject to relevant spent convictions, non-disclosure legislation and information release policies. Each of these Police Checks can only be undertaken with the consent of the person being checked.
Carrying out Police Checks shows due diligence and care from an organisation. It exemplifies that the company values their reputation, team culture and clients.
If a potential employee has a criminal record, they are legally obligated to let their potential employer know. However, if the crime isn’t related and won’t impact the job, employers can’t exclude the candidate.
When considering companies to conduct Police Checks for a potential employee, keep the following in mind:
- The company must be accredited by the Australian Criminal Intelligence Commission (ACIC).
- Have a fast turnaround, so you don’t miss out on top talent!
- Have an easy-to-use interface, so that you aren’t wasting time.
- As you’re dealing with sensitive documents, you’ll want to find a reputable and trusted provider to conduct the Police Check for you.
At InfoTrack, we offer a premium police check service and are ACIC accredited.
