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

EMPS Annual Screening Report 2015 2

CopyrightCopyright © 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.

EMPS Annual Screening Report 2015 3

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 info@emps.co.za

Report IntroductionReport Introduction

EMPS Annual Screening Report 2015 4

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

EMPS Annual Screening Report 2015 5

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)

TrendsRepeat 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 3rd

year 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.

EMPS Annual Screening Report 2015 6

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

Credit application fraud

EMPS Annual Screening Report 2015 7

Insi

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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 CheckingCredit 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.

EMPS Annual Screening Report 2015 8

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 VerificationID 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

Sta

tistics

Trends

EMPS Annual Screening Report 2015 9

Insight and advice

Qualification VerificationQualification 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.

EMPS Annual Screening Report 2015 10

Insig

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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.

2FCRA 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.

3Background 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.

9Job 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.

EMPS Annual Screening Report 2015 11

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.

EMPS Annual Screening Report 2015 12

“ How do you choose the right provider for your company? ”There are several key factors to consider when making your decision. For a well-rounded search, consider

the following:

✓ Demonstrated expertise

✓ Legal compliance & client education

✓ Consumer protection & information security

✓ Quality & accuracy

✓ Product evaluation

2015 Top Report Findings2015 Top Report Findings

• 11,8% of job applicants have a criminal record

• 21% of criminal records are for theft related convictions

• Over 35% of individuals who have a conviction are repeat offenders

• In 3,8% of cases, a person with a possible illicit result could still come back with no record

• 1% of job applicants have been listed on the SAFPS database for a fraud related offence

• Over 15% of job applicants have a negative credit record

• 9% of ID documents cannot be verified for some reason

• 15,8% of qualifications were unverifiable for some reason

• 3,48% of unverified qualifications were confirmed fraudulent

Statistics

Be sure….

✓ Ask how long they have been doing background screening

✓ Ask for references from current clients

✓ Check they are affiliated with relevant bodies like AFISwitch, SAFPS and NAPBS

• Candidate experience extends into screening: The candidate experience has become increasingly more

important.

• Regulations: it is more important than ever for employers to be well versed in employment and labour law.

As they relate to the background screening process in particular, these laws are becoming increasingly more

complex

• Ongoing screening: We foresee a greater emphasis on ongoing screening in coming years as employers strive

to create a more secure and safe work environment.

• Globalization of screening: Screening is becoming an increasingly worldwide phenomenon as employers have

to consider the international component of their labour force.

Trends

Insight and advice