Stand tall – a great message to start 2016

A Shortlist Article prompted a discussion with Kris Flowers from Arthur J. Gallagher re insurance claims related to terminations and whether there are  any trends that can be seen in insurance data, as opposed to what is published in court rulings.

Kris commented that AJG “has observed that over the last 12 months there has been an increase in claims for termination, wrongful dismissal and bullying. Most claims are spread evenly across both the white collar & blue collar space and some have resulted in decent amounts paid to ex- employees. In saying that the ITCRA Members in our client pool have had the lowest number of claims across this space.

ITCRA Members include Management Liability Insurance (with AJG enhancements) in their overall insurance package and, along with quality risk management, seem comfortable with their protection levels.

The ITCRA Member claims that have occurred (almost nil) in this space, have been settled very quickly. The documentation presented to the insurer’s is usually spot on and has assisted with successfully defending the matter. This pattern of consistency has kept the claims cost down allowing ITCRA Members to benefit from even better insurance deals.”

Example PTM CertificateAs risk management and quality documentation are the cornerstone of the recently released Certex People and Talent Management Standard, which is supported by ITCRA,  I followed up Kris’s comments in a discussion with Dianne Gibert from Certex to understand what she saw as the key principles in this fraught area of people management.

Dianne re-iterated Kris’s point that “quality documentation and record keeping is key in any people management process but added that documentation can be first class but if it isn’t supported by robust policies, procedures and training then it can prove a nightmare, in difficult situations, where emotions are running high or decisions are challenged.”

Dianne also said that, “in working with various sectors to develop the People and Talent Management Standard she has come to realise that many companies often face unique risks in their people management strategies, particularly if an HR Resource is not part of the personnel structure.

Using resources such as the Standard to reference the key areas of managing talent, whether directly or through contract and recruitment partners, is proving to be a highly desirable risk mitigation investment”

ITCRA recognises this Standard because the core modules: Recruitment Management, Talent Management, Immigration Management, Privacy Management, Safety Management and Quality Management did not magically materialise, they are the result of more than twenty years of work with business across all sectors and of all sizes and structure – recruitment companies and their clients. Well documented complaints, incidents and/or subsequent litigation can quickly bring a business undone – as has been evidenced over recent years.

As the CEO of ITCRA I am thrilled to note that ITCRA Members have been the first to embrace the Standard, maybe because so many of the Members have quality and compliance as a business goal. The evidence is already clear that those who have completed modules under the Standard have not, in general, been found wanting – which would support the insurer’s comments about this sector BUT, I would hasten to add, there is never room for complacency.

A great positive message about our Members  – no better way to start 2016 in my view! Belated Happy New Year everyone.

Download a summary of the Standard here.




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