Managing Systemic Risk In Recruitment

Overview -The HR process and risk:

The process known as ‘on-boarding’ is the translation of a member of the public to an employee and covers the elements that span from first contact through to employment and ongoing review. Each time; deficiencies, holes, gaps and margins for error are introduced and the company’s risk envelope gets bigger. Any seasoned HR professional knows that the goal is ‘risk management’ as’ risk elimination’ is simply not possible.

Areas of systemic risk:

Systemic risks are those that feature in a business process that increase the surface area of risk on a per candidate basis. As the business risk grows the risk envelope also grows exponentially. The upside of systemic risk is that you can dissect the risk into individual steps in the process. Each one of these steps can be likened to the carriages of a train. The task in hand is picking up each carriage one by one and moving it from the old track to the new one.

Process improvement:

Having a flexible business system means that you can develop the modules of your application to suit your business case and as your business case evolves you can adapt your ‘in place solution’ around the dynamics of your responsibilities. Some important phases in the process are:

  • Pre contact – does your process / brand publish clear guidelines of what are the risk management steps in the on boarding phase?
  • Candidate job application – does the applicant receive or acknowledge access to your process and policies? (privacy, OH&S, spam, etc)
  • Screening questionnaires – does the candidate submit information on themselves that is able to be correlated with other candidates and read and understood by hiring managers and recruiters?
  • Screening qualification – does the hiring manager or recruiter go through the screening results with the candidate to qualify and validate the candidates responses?
  • Interview process – are clear instructions given to the candidate about what the company process and expectations are in terms of risk and process? Remember a “star” candidate who is not aware of and complicit in your risk management processes is not worth the risk.
  • Candidate testing and evaluation – is interview feedback and job requirements used to drive the reference checking and testing phase of the process?
  • Candidate Compliance Verification – - does the system capture the appropriate compliance documentation, expiry dates and have a mechanism for flagging candidate, search filtering and blocking activity based on non-compliance?
  • Candidate induction – Once the prior steps are complete the candidate is induction ready. If a candidate fails at risk mitigation measures then they are not worth the expense of induction (for the company or the candidate)

Moving from a process to a cycle, risk minimisation does not stop at the candidate on boarding process. That is just one vector. The workplace is a dynamic environment and new sites, jobs and tasks regularly present. A company adept at managing risk will have processes for cataloguing work sites and jobs which will entail a corresponding knowledge resource being created in their business solution.

The key linkage between coal face processes (the ones that the day to day activities of the business employ) and the risk management system is essential. Working with casual risk casual employees present significant challenges to the risk management process as they are often allocated to different work sites and roles as the needs of the business dictate. Even if they are always working in the same role they might be required for different shifts with different supervisors.

Many of us look at our work place as a desk and a coffee cup with “the boss” in his/her corner office. It is easy to accept our mundane stability and relative safety as the norm. One of the areas that even the best risk managers overlook is the monitoring of individual casual employee’s different jobs, shifts and tasks. It may be that an employee might have consistent performance across many different jobs and sites but may be unsuitable or not competent and others. It is essential that the business system does distinguish between the roles that individual casuals are able to perform so that they can be allocated safely.

Ideally the process of matching them to certain jobs can be blocked on the basis of information captured in the business system. On boarding staff is a costly and involved process. Done well it will minimise risk and provide a significant return on investment. It is however crucial that this investment is not lost – a business system cannot differentiate between individuals, jobs and risk in an accurate and structured fashion.

Risk and RecruitOnline:

All of the processes that have been touched upon above exist within the core of RecruitOnline and can be used to maximise the benefit of your on boarding process from a risk minimisation and process efficiency point of view. If you want to know more then please contact us.