2015 Annual Screening Report
Employee Background Screening
in South Africa 2015.
Statistics
Trends
Insights & Advice
Table of Contents
Report Introduction
3
Criminal Record Checks (AFIS)
4
Fraud Checks (SAFPS)
6
Credit Checking
7
ID Verification
8
Qualification Verification
9
Psychometric & Competency Based Assessment
10
Global Screening Trends
11
2015 Top Report Findings
12
Copyright
Copyright © 2016 EMPS (Pty) Ltd. All other trademarks are the property of their respective
owners. Reproduction and distribution of this publication in any form without prior written
permission is prohibited
.
EMPS (Pty) Ltd prepared these materials for information purposes only. These materials are not suitable for, and should not be construed as, legal advice
.
Established in 1981, EMPS is South Africa’s oldest premier screening and vetting company.
EMPS offers a full range of solutions to ensure that our clients employ the right person for
the job.
Annually, EMPS releases an Annual Screening Report. This 2015 Annual Employment
Screening Report highlights statistics, trends and insights into the employee background
checks and brings you best practice and advice that is integral for both recruitment and
human resources professionals making critical hiring decisions. This report is an analysis
of all checks conducted by EMPS from January 2015 to December 2015.
The results of this report strongly confirm that background checks remain a crucial
component of the hiring process, helping to protect employers, their employees and their
customers. Screening job candidates before you hire them is extremely important for a
number of reasons. In order to prevent the potential for negligent hiring lawsuits, crime in
the workplace, and workplace violence, employment background checks are a vital step in
the hiring process.
For more information email
[email protected]
Report Introduction
Report Introduction
Criminal Record Checks(AFIS)
Criminal Record Checks(AFIS)
Statistics
3,20%
3,30%
3,40%
7%
10%
11,50%
20%
21%
0%
5%
10%
15%
20%
25%
Fraud
Housebreaking
Malicious damage to property
Driving under the influence
Drugs and drug related offences
Road Traffice Offences
Assault
Theft
Top 80% of Criminal Records 2015
11,00%
11,50%
10,70%
11,80%
11,80%
13,66%
12,80%
9,77%
17,54%
13,22%
9,02%
14,38%
8%
9%
10%
11%
12%
13%
14%
15%
16%
17%
18%
2011
2012
2013
2014
2015
Applicants With A Criminal Record 2015
- Meter taxi - Merchandising - Government - Courier - Parastatal - Overall average - Retail - Cleaning
2015
Industry Highlights
Insight and advice
Criminal Record; 96,17%
No criminal record; 3,83%
Possible Illicit
Activity Checks 2015
AFIS criminal record checks take 24-48 hours
for an initial result which can be a clear result
or a possible record result. If an individual has a
possible record, the detailed report then takes
a further 4-8 weeks. However in 3,83% of cases
in 2015, the result came back with no criminal
record. EMPS advises clients to wait for the
final outcome before making a decision.
Criminal Record Checks(AFIS)
Criminal Record Checks(AFIS)
Trends
Repeat Offenders 2015
1 Offence; 64%
2 Offences; 19%
3 Offences; 7,6%
4 Offences; 3,4%
5 Offences; 2%
6 Offences; 1,4%
7 or more; 2,6%
For the 3
rdyear running
over 35% of
applicants
have more
than 1
criminal
record
Further, if an applicant has a criminal record it does not mean that they should be declined a job. We
advise clients to look at the record and decide if it is relevant to the position applied for. The client
should also take into account how old the record is.
Insight and advice
WHY DO A FRAUD CHECK IF YOU ALREADY DOING A CRIMINAL RECORD CHECK?
Generally the types of fraud that are listed on the SAFPS database are not prosecuted criminally as it
happens too often and it is too much of a process for the company against whom the fraud has been
committed. The South African Fraud Prevention Services database houses shared data from SA businesses
who are members and data includes;
Fraud Check (SAFPS)
Fraud Check (SAFPS)
South Africa has the highest fraud rate
globally, with one in three South African
businesses experiencing economic crime.
While the global average is at 37%, South Africa’s economic fraud rate clocks in at 69%
according to Sarel Snyman, a certified fraud examiner.
“These frightening statistics indicate that security measures need to be a top priority,”
Statistics
of job applicants screened in 2015 are listed
with the South African Fraud Prevention
Service for committing a FRAUD.
Up 0,5% from 2014
Trends
False name and ID
Credit card fraud
Forged documents
Employment application/ CV fraud
Insurance Fraud
Internet fraud
In
si
g
h
t
a
n
d
a
d
v
ic
e
The National Credit Act Amendment 19 of 2014
(NCAA) which came into effect on 13 March
2015 stipulates a consumer credit record may
only be accessed by an employment agency,
recruitment consultant, staffing company or
employer when:
•They certify that the request for consumer
credit information relates to a position requiring
honesty in the handling of cash or finances
•There is a job description in place that
stipulates the requirement of trust and honesty
in the handling of cash or finances
•Specific and informed consent of the consumer
is obtained prior to the request being made.
Credit Checking
Credit Checking
Companies are moving to a multi-bureau credit check in order
to mitigate their risk even further as the data differs from
bureau to bureau.
Statistics
Trends
More than
15%
of job applicants screened in 2015
had a negative credit listing.
0%
10%
20%
15,75%
16,23%
12,63%
13,64%
Negative Credit Records by Bureau 2015
Transunion
Experian
XDS
Compuscan
Application:
A credit check must be
relevant to the position for which the person is
applying.
Transparency:
The results of any credit
check performed MUST be shared with the job
applicant/ person checked. In addition, the
person must be informed of the reasons, if
any, of the consequences of a credit check.
Permission;
The candidate MUST be
informed of the intention to perform the
check, the reasons for performing the check;
and MUST give you permission, at this stage in
writing, to perform the credit check.
The process of ID verification is one of confirming that the name, surname and
ID number are a match according to home affairs data. The process does not
confirm that the photo is in fact the correct photo for that ID number. We hope
that this additional feature will be available in the near future.
Insight and advice
ID Verification
ID Verification
SMART ID CARDS SET TO REDUCE FRAUD;
The new smart ID cards being rolled out by the Department will bring new levels of security
to South African identity documentation. The cards are secured using PKI digital certificates,
and the chip in each contains sufficient space to allow for the storage of identity information,
driver's licence details, and other information relevant to state services. The secure cards will
ensure that citizens can vote securely (and eliminate election fraud), and help protect social
grants.
http://www.itweb.co.za/index.php?option=com_content&view=article&id=70399 5,81% 0,04% 3,21% 0,07% 0,04% 0% 1% 2% 3% 4% 5% 6%Surname does not match ID ID verified as deceased ID not yet verified ID never issued ID verified but not surname
Reasons for unverified ID documents
S
ta
tis
tic
s
Trends
Insight and advice
Qualification Verification
Qualification Verification
In 2015 we saw some of the first cases in the history of South Africa where
individuals were
prosecuted criminally for misrepresenting their qualifications
.
Statistics
Trends
19,48% 18,78% 19,02% 15,96% 14,56% 9,70% 5,88% 10,02% 10,19% 9,84% 8,43% 12,34% 4,8% 2,9% 1,6% 1,9% 1,8% 4,8% 6,8% 0,7% 0,4% 0,0% 1,0% 3,48%0%
5%
10%
15%
20%
25%
30%
PRE 1992 Matric- DOE Academic SA- Certificate Academic Global Trade Certificate Verification Academic SA- Diploma POST 1992 Matric- Umalusi Professional Association Membership SA
Academic SA- Degree Academic SA- Honours Academic SA- Doctorate Academic SA- Masters Overall
Negative result
Fraudulent result
The value of supporting documents;
the process of certificate and qualification verification has evolved rapidly over
the past number of years. With the increase in CV fraud and more specifically qualification fraud, institutions are
becoming more and more prescriptive in their verification processes and require copy certificates more regularly. A
well co-ordinated recruitment process should request all applicants supporting documents upfront, in order to speed
up and ensure efficient verification. These documents include consent to perform the screening checks required, all
copy certificates- certified, certified copy of applicants ID and drivers licence.
In
sig
h
t a
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d
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Psychometric and Competency Based
Assessment
Psychometric and Competency Based
Assessment
Statistics
Trends
86%
of business leaders know
that their organisations’
future depends on the
effectiveness of their
leadership pipelines.
Only
13%
are
confident in their plans.
Psychometrics and Competency Assessments are
going through an historically exciting period of
Development. Usage is increasing globally,
giving us access to new approaches to human measurement. The use of
assessments in pre-employment screening to assess aptitude, honesty,
personality,
leadership,
etc.
is
not
only
valuable
in
ensuring
organisational and team fit but for developing talent and internal human
resources.
While ability is important, there is a need to also understand the soft
stuff such as the ability to work well in a team or communicate well or
manage stress. Tests are different across levels and the most critical
element in testing is to measure competence at the right level.
Psychometric testing is now used by over 80% of the Fortune 500
companies in the USA and by over 75% of the Times Top 100 companies
in the UK. Information technology companies, financial institutions,
management consultancies, local authorities, the civil service, police
forces, fire services and the armed forces all make extensive use of use
psychometric testing.
1
Government Oversight and Enforcement of Accuracy in Background Check Industry to Increase in 2016
The SA Background Check industry has largely been ungoverned over the past number of years. There is no specific focus on this industry at present. However, due to the nature of the services offered the industry does fall within the scope of The National Credit Act and Protection of Personal information Act.
2 FCRA Lawsuits Will Continue to Increase in Target Rich Background Screening Environment in 2016
The National Credit Act is the equivalent of the Fair Credit Reporting Act. The NCA certainly is having an impact on background screening through its control over the use of credit information for employee screening purposes but our environment certainly isn’t as big on lawsuits as the US.
3 Background Check Industry Will Continue to Both Expand and Consolidate Simultaneously in 2016
The background screening industry in South Africa is still very much in an exponential growth phase. The popularity of employee screening is still growing annually and the increase from government side is due to high incidence/awareness of CV fraud in the government sector.
4
Employers and Human Resources Will Be Bombarded with Meaningless Marketing Buzz around Supposed Disruptive Technology in 2016
Given the fact that background screening in South Africa requires service providers to have thee most up-to-date technology in order to be able to offer criminal record (AFIS) checks- this has limited the ability of fly-by night solutions to come to market.
5
Background Screening Firms, Human Resources, and Employers Will Be Focused on Legal Compliance and Accuracy in 2016
This is most certainly a focus for background screening companies and their clients as we look to comply with requirements of POPI.
6
Domestic Terrorist Attacks Will Put Social Media Background Checks in the National Spotlight in 2016
Social media checks are still new and growing for South African recruiters. We need to be aware of legalities and pitfalls around using social media screening as we are still in infant stages of doing this.
7
Ban the Box Movement May Reach Tipping Point But Could Also Inadvertently Do More Harm than Good in 2016
This is a current and important think that South African business needs to be aware of- just because a person ticks the box and has a criminal record- doesn’t mean they should not be considered.
8
Applicant Tracking Solutions Will Review Integrations with Screening Partners to Address Emerging Legal Risks in 2016
Applicant tracking systems are growing and becoming more popular, our biggest challenge is the storage of applicant data and compliance with the NCA and POPI.
9 Job Opportunities for Ex-Offenders with Criminal Records Should Increase in 2016
Ex-offenders need access to the job market in SA in order for them to rehabilitate and education of SA business could go a long way to reduce many social ills.
10
Privacy Concerns Will Loom Large Between EU and US in Terms of International Background Checks in 2016
This is the reason that POPI has become such an important piece of legislation for South Africa. If we wish to do business across borders in the future we will need to comply as a country.
Local Insight and Advice
Global Screening
Global Screening
International Trends
International trends taken from Employment Screening Resources® (ESR) Founder and CEO Attorney Lester Rosen for the 9th annual ESR Top Ten Background Check Trends for 2016.
