HB Employment Screening Handbook

Transcription

1 HB Employment Screening Handbook HB

2 HB Handbook Employment screening handbook First published as HB COPYRIGHT Standards Australia All rights are reserved. No part of this work may be reproduced or copied in any form or by any means, electronic or mechanical, including photocopying, without the written permission of the publisher. Published by Standards Australia, GPO Box 476, Sydney, NSW 2001, Australia ISBN

3 HB Preface This Handbook was prepared by the following authors for the Standards Australia Committee MB-009, Human Resources and Employment: Mr Gavin Love Dr Carl Gibson Mr Guy Underwood International Association of Emergency Managers La Trobe University RISQ The objective of this Handbook is to provide a broad framework and core processes that should be included in an employment screening process, project or program of work. Together with the Standard (AS Employment Screening) this Handbook outlines a base line for the conduct of employment screening along with a number of generally accepted practices. Some organizations may choose to implement more detailed employment screening measures. Regardless of what level of employment screening is implemented, it should be based on a thorough understanding of the organization and the risks that the organization has to manage. It is intended that this Handbook can be used by any size or type of organization from large multinationals to small businesses, not-forprofit agencies and government agencies that has identified the requirement for, and merit of, developing effective employment screening processes. However, some recommendations may be more appropriate to some types of organization, rather than others. A thorough employment screening process is considered to be a highly effective way of minimizing and guarding against some potential risks and ensuring that the appropriate person is selected for a position. The objective of the screening process is to reduce the risk of a potential breach and to ensure the integrity, identity and credentials of people within an organization. The field of employment screening is rapidly evolving and as such this Handbook cannot cover all aspects and variant approaches to it. The authors have endeavoured to provide an overview of generally accepted practices to inform the understanding of the processes. As such no warranty is provided or implied as to the accuracy or practical applicability of the contents of this Handbook to any organization or individual. This Handbook is consistent with the framework outlined in AS/NZS 4360:2004, Risk Management and AS , Employment Screening. Key Sections of AS have been reproduced within this Handbook (contained within shaded boxes ) and are accompanied by commentary which provides additional detail and practical advice on the implementation of the Standard s principles. Further practical guidance is provided through the use of a hypothetical case study contained within non-shaded boxes in each of the key sections.

4 3 HB Employment screening plays a critical role as part of an organization s risk management process in providing a fundamental assessment and mitigation process for certain types of risk. It is a reality that even the best processes cannot completely eliminate risk however this Handbook, used in conjunction with AS , provides a framework for reducing significantly the risks associated with employment screening. Users of this Handbook and Standard should also consider their position regarding legal liability attaching to the employment screening process, in particular developing processes that ensure as far as possible that: 1 They act with honesty, frankness and fairness in their dealings with applicants. 2 Information has been verified. 3 Opinions are based on accurate facts. 4 References provided are balanced. 5 The applicant is aware of: the purpose for which information is collected, and the organizations or types of organizations to which the organization usually discloses such information. 6 The applicant consents to the use or disclosure of the information. The authors would like to acknowledge the contribution of the Australian Securities and Investments Commission (ASIC) for its assistance in the development of this Handbook. Special consideration is also extended to the other members of the working party responsible for the Employment Screening Standard who have provided freely of their advice and encouragement during the preparation of this Handbook, namely Nigel Parameter and Glen Thomas. The authors would also like to extend their appreciation to all of those others that have contributed to the review of the various drafts of this handbook. Disclaimer: This Handbook provides general guidance only and should not be relied upon as legal advice. It does not attempt to consider all the issues relevant to appointing or employing individuals. Seeking legal advice is the responsibility of each organization, as each case will depend on specific facts and/or circumstances.

5 HB Contents Page Executive summary Scope and general Scope Introduction Entrusted person Employment screening overview Basic requirements Employment screening: the go or no go decision Developing an employment risk landscape Developing and presenting the business case for employment screening Employment screening The process Overview of the employment screening process Employment screening risk assessment Developing the employment screening program Temporary employees, contractors and consultants Communication The basics of communication Engagement Records and documentation Records and documentation Privacy Ethics Further issues People employed in screening Right of review APPENDICES A Understanding the organization Establishing the context B Employment screening policy C 100 Points Formula example D Bibliography... 67

6 5 HB Executive summary An organization s ability to prosper and succeed relies on the trustworthiness and honesty of its employees. The illegal, unethical or negligent activities of a single employee can result in major financial, reputational, performance or safety related harm to the organization. Society is facing an increasing risk from individuals using fraudulent and deceptive means to gain employment, advancement or other benefits to which they are not entitled. Employment screening provides a critical role in managing this growing area of risk for an organization and in protecting its most important asset its people. Traditional views of employment screening have focussed on the pre-employment phase or recruitment of a prospective employee, rather than addressing employment screening as a holistic process related to both the individual (throughout their tenure of employment) and the changing nature of the organization. Generally there has not been a strong focus on the internal risks an organization faces, particularly those created by changing employment circumstances (such as promotions, changes of duties, foreshadowed terminations, etc.) or the impacts of changing personal circumstances (family business interests, unmanaged debts, etc.). An organization should ensure that people entrusted with organizational information or resources are eligible to have access to that information; have had their identity established; are suitable to have access to that information; and are willing to comply with the standards that safeguard their organization s resources against misuse. Effective employment screening should enable the employer to make prudent decisions on hiring, promotion and changes of duties that are based an informed understanding of a candidate s background and credentials. Such employment screening should also verify compliance with any legislative requirements that may exist such as citizenship, work visas, disqualifications, etc. Employment screening should be established as a proactive risk treatment that promotes a safe working environment and that protects the organization s reputation and other assets (including people, property and information). A range of approaches to employment screening have been adopted in the past by different organizations. Some approaches have limited screening to only the most senior staff, while others approaches have adopted employment screening at all levels of the organization. The rigour of employment screening has also varied from an often cursory referee check, to a comprehensive background and records review. There is no right or wrong approach; the level of employment screening adopted needs to match the context that the organization operates within and the risks created by the role to which the person is to be appointed.

7 HB In adopting any approach to employment screening it is also important to consider the issues that may arise if the level of employment screening is to be increased at any time in the future. The need to manage such future issues may well create design considerations that need to be managed now. A comprehensive and coordinated employment screening process is not an activity that should be conducted in isolation to other risk management processes that operate within an organization. To ensure that employment screening is integrated into normal business processes, it is important that all areas of the organization and its stakeholders are aware of the implementation and operation of employment screening policies and practices.

8 7 HB Scope and general The following statement of scope is reproduced from AS SCOPE This Standard has been developed to form a basis for industry or organizational specific screening policies and procedures. It applies equally to organizations in both the private and public sector. Employment screening, for the purpose of this Standard, is the process of verifying, with the consent of the individual, the identity, integrity and credentials of an entrusted person and should apply to any individual that is, or will be, entrusted with resources and/or assets. Other recruitment activities such as talent matching is beyond the scope of this Standard. 2 OBJECTIVES A thorough employment screening process is an integral component of risk management and is itself an effective way of minimizing and guarding against a range of potential risks. The objective of the employment screening process is to ensure the integrity, identity and credentials of personnel within an organization, and to provide assurance that people entrusted within an organization are worthy of that trust. 3 LEGISLATION AND REGULATION This Standard is complimentary to various Commonwealth, State and Territory legislation and negotiations which impact upon employment screening. When employment screening deals with reference to identified positions of trust and care, this Standard is subject to any overriding statute and or regulations. 4 CONSENT Employment screening should be conducted within the confines of relevant legislation and with the informed consent of the entrusted person. 5 REFERENCED STANDARDS AS/NZS 4360 Risk management 5.1 Relationship with other Standards This Standard should be read, construed and applied in conjunction with the following Australian Standards: AS 8001 AS ISO Corporate governance Fraud and corruption control Records management Standards Australia

9 HB DEFINITIONS For the purposes of this Standard the definitions below apply. 6.1 Chief Executive Officer The most senior person responsible for the day-to-day running of the organization. 6.2 Credentials Anything which is the basis for the belief or trust of others in a person s abilities. 6.3 Entrusted person Any individual that is, or is targeted to be, employed within an organization that is, or will be, entrusted with resources and/or assets. 6.4 Identity To recognize or establish as being a particular person. 6.5 Informed consent Consent provided following the provision of information relating to the conduct and requirements of the screening process. 6.6 Integrity Soundness of principle and character. 6.7 Organization A group of people, such as a company, government department or authority or charitable body or other group of individuals, working together towards specified goals. 6.8 Probity The level of integrity necessary to ensure the conscientious and honest conduct of one s working relationships and activities. 6.9 Shall Indicates that a statement is mandatory Should Indicates a recommendation. Commentary 1.1 Scope This Handbook sets out a broad framework and core processes for inclusion in an organization s employment screening. It is based upon the principles outlined in AS , Employment Screening. This Handbook is intended to be used in conjunction with this document. Standards Australia

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