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| | The Human Resources: Recruiting, Hiring, and Staffing Network is not currently active and cannot accept new posts | | Another Issue for HR Consideration? | Views: 935 | | Oct 24, 2007 11:20 am | | Another Issue for HR Consideration? | # | 
Jo Verde | | Hi All,
Saw this article today and thought it might be of interest.Again reinforces the requirement for HR to be aware of all the issues.Whether we agree or disagree in concept, the reality of possible cost to the business is there. Regards, Jo
Explosion in fraud leads to call for culture change to support whistleblowers.....22 October 2007
Human resources (HR) experts have warned that companies must develop an anti-fraud culture in the workplace so that whistleblowers feel safe to come forward.
The warning follows the annual Global Economic Crime Survey by business consultancy PricewaterhouseCoopers, which revealed that the average cost to UK businesses affected by fraud had doubled to £1.75m in the past year.
The survey found a 21% increase in the implementation of whistleblowing systems, but half of the 5,400 respondents said they were effective, and only 3% of serious incidents were detected by such systems.
Research last month by accountancy firm BDO Stoy Hayward found that employee fraud costs UK businesses £4m a day, with the biggest scams including bogus invoices, manipulated accounts and ghost workers on the payroll.
Stuart Little, commercial litigation partner at Shoosmiths Solicitors, said recruitment and IT were the most vulnerable sectors.
Jon Ingham, director of HR consultancy Strategic Dynamics, said: "The right internal procedures and controls will help to manage the problem, but if people are going to engage in fraudulent activities, they will soon find other means of doing this once one activity is controlled. The key is to create a work culture in which whistleblowers are happy to come forward."
The Chartered Institute of Personnel and Development added that it was important for employees to feel that confidentiality would be respected during whistleblowing procedures.
Senior Director
JeMM Consultants
www.jemmconsultants.comPrivate Reply to Jo Verde | | Oct 29, 2007 3:24 pm | | re: Another Issue for HR Consideration? | # | 
Alex Terblanche | | Hi All
I found the article very interesting and it immediately reminded me of a psychometric instrument which I came across recently.
The instrument measures integrity of applicants for white collar positions. Based on the research done locally by one of South Africa's leading research psychologists, it desciminated with 90% accuracy between those candidates who have been successfully convicted of fraudulent activities and a control group within one of our largest Finacial Institutions. This organisation and a growing number of other organisations are now utilizing this instrument as part of their selection assessment battery.
If you are interested in obtaining more information on this, I can assist by pointing you in the right direction.
AlexPrivate Reply to Alex Terblanche | | Oct 29, 2007 5:01 pm | | re: re: Another Issue for HR Consideration? | # |
Jo Verde | | Alex would you be referring to KyKo?
Cheers,
JoPrivate Reply to Jo Verde | | |
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