Protecting your business against fraud and misconduct

As the business world becomes more diverse and expands across national boundaries, concerns about security and integrity in the workplace have never been higher. Stakeholder expectations for ethical business operations continue to rise, placing more responsibility on organisations to employ people who have high ethical standards.

To safeguard their organisations, many organisations incorporate background screening checks into their recruitment process. While the benefits of these are clear, there are legal ramifications which arise when a criminal record is revealed.  Refusing to employ an individual because they have a criminal record is against the law in Australia.

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Put your money where your mouth is when it comes to employee ethics

A recent study by the Chartered Institute of Personnel and Development has revealed that organisations may not be doing enough to promote and protect their values within the organisation. The study found that 40% of employees believe that their unethical colleagues not only go un-reprimanded, but are also frequently rewarded and promoted for their bad behaviour.  In addition, only 29% of respondents had a good understanding of their organisation’s values and 15% had no awareness of them.

It’s not all bad news, though, with almost three-quarters (73%) reporting that it is at least somewhat important to them that organisations to have well defined values which guide employee behaviour.

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Work safety needs a human touch

Most organisational occupational health and safety (OHS) interventions focus on controlling employee procedures and the physical work environment in an effort to maximise workplace safety.  While such efforts are important, they do not take into account the human factors related to work safety, such as individual and group attitudes and the influence of management.

Recent research involving members of the RightPeople team has found that there is an important interaction between management attitudes, work pressure and individual attitudes in determining whether an employee will follow safety procedures.

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Fraud and misconduct prevention

Fraud and misconduct “grey areas” in the workplace

Yesterday’s Human Capital Australia magazine outlined a recent decision by Fair Work Australia (FWA) and the implications for dealing with fraud and misconduct in the workplace. 

A supermarket store manager was dismissed for taking groceries without paying, however the dismissal was overturned by FWA and he was awarded more than $15,000 in compensation as the matter was not properly investigated.  The manager claimed that he intended to pay for the groceries at a later stage and in the absence of an appropriate investigation  there was inadequate proof that this was not the case.

In his judgement Commissioner Ian Cambridge said that a “proper, comprehensive and balanced” consideration should have been provided before dismissing the employee.  A warning or dismissal with a notice period may have been a more suitable response.  The supermarket should have undertaken a thorough investigation to determine whether misconduct had occurred and to ensure their rights and the rights of the employee were protected.

This ruling has a number of important implications for employers.  The main implication relates to properly investigating alleged misconduct.  Another important implication is that employers should be careful about who they employ in the first place.

The old adage “prevention is better than cure” has never been more appropriate.  Dealing with misconduct once it has occurred can be fraught with difficulty, as this case highlights.  It is much easier to try to create a workplace where misconduct is unlikely to occur.

RightPeople has a range of psychometric tests designed to identify people who are most and least likely to engage in unethical and illegal behaviour within organisations.  These tests look at attitudes, behaviours and other risk factors associated with wrongdoing.  It’s called the Risk Management Profile (RMP).  Specifically, the RMP identifies integrity, honesty, poor impulse control, stress tolerance and conscientiousness.   Used in combination with our personality inventory it can be an invaluable tool for safeguarding your workplace against fraud and misconduct.

Contact us to find out more.

Assessment in Organisations – Current Status, Trends and Emerging Issues

Meta-analyses have revealed that the most valid predictors of job performance are ability measures (cognitive or intelligence tests) and personality assessments, particularly the “Big 5” personality traits, followed by structured job interviews.  Together, ability tests and measures of conscientiousness or integrity provide an adjusted validity of 0.65 (Ones, Viswesveran, & Schmidt, 1993; Ones & Viswesveran, 1998).  The combination of these measures also helps to reduce the impact of issues such as cultural differences in performance on ability tests and measurement error (Bartram, 2004).

In terms of ‘post-hire’ testing, research has shown that 360 degree feedback systems are one of the most popular and fast-growing types of assessments used in organisations.  These systems have evolved as globalisation and the increased pace of change in organisations have resulted in a need for flexible measures of organisational performance that assess a range of competencies rather than specific job skills (Bartram, 2004).

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BIG FIVE AND ACADEMIC ACHIEVEMENT

Evidence for the Relationship between the Big 5 and Academic Achievement

Many different personality traits have been linked to academic performance. Since the Five Factor Model, or “Big 5”, has enjoyed prominence in the personality literature (Digman, 1990), as well as being recognised by the economics literature (Borghans et al., 2008), we believe it is valuable to organise the findings of the research regarding personality and performance around the Big 5 framework. Here we review these findings, one factor at a time.

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RightPeople’s Time Management Research

Published in the Sydney Morning Herald.

Out of Time?

Researchers at the University of Sydney’s Department of Psychology have found that being a good time manager is closely related to how conscientious a person is, and that this may be a personality trait rather than a skill one can acquire. Good time managers are also likely to be early birds, and slightly more prone to worrying.

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Personality Assessment – The Five Factor Model

This paper examines and summarises the big five-factor model, a tool used for studying personality.

One of the long-held goals of psychology has been to establish a model that can conveniently describe human personality, with the intent to use this model in improving the general understanding of personality.

Currently, a handful of models have risen to prominence, and have thus far stood the test of time.

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