Chapter 15

Personnel Policies for Internal Security

Goal: To acquaint students with practices designed to identify the dishonest employee, and security's role in this process.

Objectives: 

• Present the basics of personnel screening and their application in security measures to protect the company from dishonest employees.
• Explain how internal theft can be minimized through effective personnel policies.
• Identify and explain specific procedural controls that can affect the extent and severity of internal theft.

 Lecture:

This chapter teaches us never to be too trustworthy of potential employees, and to adequately screen every potential employee thoroughly. While we can't totally eliminate the bad apple, we can start in the Personnel (Human Resources) office where bad risks can be screened out to our best ability. Employment history and reference checking areas absolutely essential, as is an employer's knowledge of the staggering amount of legislation protecting the potential employee. The employer must be aware of some key legislation-The Civil Rights Act of 1964 and The Privacy Act of 1973, the latter being a far-reaching law covering pre-employment and background checks. In addition, the passage of the Americans with Disabilities Act (ADA) in 1990 signed into law the most sweeping changes in civil rights law since 1964. The first line of defense for the business is hiring well: pre-employment screening (while we call this pre-employment in my company we do the checks after the job is offered.  If we find a problem or learn that the applicant lied on his/her application, we usually let them go) should include an application, resume, intellectual/psychological test, a thorough background check including references and a personal interview. These must be thorough, for the employer today is faced with several trends working against him/her: a shrinking pool of qualified workers; diminished employee loyalty; increasing workplace theft and drug use, and a growing number of vicarious liability and negligent hiring suits.

Remember this: screening doesn't stop at hiring.  Good management and good security demand that employees (all employees, including the top) need to be continuously screened for behavior that may indicate a problem: things such as tardiness, absenteeism, working alone and secretively, indebtedness, dependency (drug/alcohol).  These things need to be looked into and dealt with promptly.  Example: the normally good employee starts an affair, comes in late and ill-prepared for work, is spending lots of money - new cars, flashy jewelry, heading to Vegas with his new "pal"; all these signs point to potential problems.  We're not talking "morals police."  The affair itself is not the issue.  The issue is that it is costing him money, probably more than he earns.  He has to get it somewhere - maybe it's from the employer.

Here are some points to know or think about:

Honesty, ethical behavior- these days there seems to be concern about the honesty and ethical behavior of senior management, more so than before all the scandals hit the news about the Enron, WorldCom, religious leaders, Martha Stewart, etc.  It has become a time for soul-searching and reform.  Companies need codes of ethics and they must be enforced.  If a little fudging on time cards or ignoring a little inside theft is allowed, things will soon get out of hand. 

Hiring honest, good employees is difficult and takes time and money.  At the very least, Security or HR has to conduct background checks that address criminal records, credit records, education, work history.  But be careful to comply with laws such as the Fair Credit Reporting Act and the laws regarding Equal Employment Opportunity.  See the table on pages 275 and 276.   You really need to be aware of what you can and can't ask.  Also, see the table on pages 277-279.  Look at all the questions you CAN'T ask!! Work with your HR and Legal departments!

What about the polygraph as a background investigation tool?  Generally, it can't be used.  This is because of the Employee Polygraph Protection Act of 1988.

Understand the basics of the Americans with Disabilities Act (ADA).  Do you think a blind person would be able to be rejected for a job as a security officer?

Do any of you work for a company that does drug screening?  Under what circumstances are tests done?  After you read the chapter, do you think your company is compliant with the laws?

On page 290 there is a discussion about Employee Assistance Programs or EAPs.  These are often valuable resources for companies and employees, especially when it comes to counseling for employees who have a drug, alcohol, or other problem in which counseling may help.  Most companies will try to support an employee who comes forward with a problem and who wants help.  But in most companies, this service is not provided if the employee just got caught for the second time under the influence at work.  Too late!!!

Assignment: look over the tables 15.1 and 15.2 in this chapter and be familiar with the various laws and questions that relate to background investigations.

Question 1: You are interviewing a applicant for a security officer position.  May you ask the candidate if he has ever been arrested?  Yes? Or, no?  If no, what may you ask about his criminal record?

Question 2: You are interviewing a candidate for a security officer position. She mentions to you that she just got married.  You ask, "Are you planning to have kids?"  Was that a question allowed under current laws?  Yes or no?