Anthony Van Gorp, private investigator at Investigative Solutions & Consulting Services, Inc., explains for Arthur J. Gallagher Risk Management Services, Inc., that the first step to prevent fraud is researching your employees before you hire them. Due diligence is your best defense.
Four frightening fraud facts about the workforce
1. Fifty-six percent of employees admit they have lied to their supervisors.
2. Forty-one percent say they have falsified records.
3. Thirty-five percent have stolen from their employers.
4. Thirty-one percent abuse drugs or alcohol while on the job.
Employment screening is the best resource you have to preventing fraud within your company.
Twelve things to check in a potential hire’s employment history
1. Research where the candidate has previously worked, even if for just one day.
2. Use on-line background checks.
3. Have there been any work-related alcohol use problems? References are usually not allowed to share this information.
4. Have there been past violations of company policy?
5. Check records of recent use of illegal drugs and criminal behavior.
6. Verify candidate’s educational background.
7. Compare the resume your candidate submitted with any versions he or she may have posted on line – question discrepancies.
8. Use professional networking sites to compare information.
9. Examine address data on-line – do the geographic areas match the resume? Use regional information for further investigations.
10. Look for news articles, photographs, and additional employee history on-line.
11. Freedom of Information Act will provide criminal background data – but keep in mind an arrest is not a conviction. You may need to go to the specific courthouse for accurate records.
12. Look for violence, sexual offenses, predatory behavior, drug activity – an employer must know these things before hiring. (workersxzcompxzkit)
Remember the best defense is a good offense so you can hire in good faith that the candidate is representing themselves accurately.
Author Robert Elliott, executive vice president, Amaxx Risks Solutions, Inc. has worked successfully for 20 years with many industries to reduce Workers’ Compensation costs, including airlines, health care, manufacturing, printing/publishing, pharmaceuticals, retail, hospitality and manufacturing. He can be contacted at: Robert_Elliott@ReduceYourWorkersComp.com or 860-553-6604.
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Do not use this information without independent verification. All state laws vary. You should consult with your insurance broker about workers’ comp issues.
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