can there be any control mechanism to stop frauds done by HR

KalyaniJoshi · #1 (**permalink**) 06-02-2008, 07:24 PM

Case: There is a company which recruits directly by giving advertizement and also through a placement agency. If the recruitment is through placement agency company has to pay that agency and if it is direct the company need not pay. Now there is a HR manager who has floated his own Agency and he shows that the people who have applied directly are referred by the agency only and his company gets the benefit of referral. So what can be the preventive measure that can be taken for this case.

Shringarika Srivastava · #2 (**permalink**) 06-02-2008, 07:39 PM

Hi!

Very first step is to check whether the agency is registered or not and if yes then is that consultancy is registered under the name of the same manager. If yes then this is an offence of dual occupation which is punitive in nature.

If the company is not registered under his name, you can't do anything. This is what I know about this isuue.

Cheers!

Sheingarika.

lathasri · #3 (**permalink**) 06-02-2008, 07:49 PM

Kalyani, it really sounds alarming,

But there are no control mechnisms to stop frauds done by either HR or any other person.

There won't be any metrics to measure the frauds instead people are striving hard to measure the process itself though they carry lot of data in hand

, The only thing is we should make the people realise their role & responsibility towards the promises they do when they are offered the Job.
this is the matter of Behaviour which purely depends on the Individual traits & can never be changed or controlled by others.
But company has total right to sue the person for such illegal outcomes.

Regards

Srilatha

Sreeee_HR · #4 (**permalink**) 06-02-2008, 09:06 PM

Hi,

Another way to check for legality of the company is to ask for PAN number of the company and its owners before making payment.

Regards,
Sree

agw_deepak · #5 (**permalink**) 07-02-2008, 10:17 AM

HR Manager of my company was sacked for the same issue long time back.

If you can prove, that direct applicants are frequently taken as any xyz consultant referrals, HR Manager is guilty. Sack him immediately.

preetk · #6 (**permalink**) 07-02-2008, 11:07 AM

Hi

As far as you are getting the right candidate, then why do you worry about who runs the firm. Every HR person knows the fact about the double employment, and sure they will be running it in their family members name or friends name only.

Just forget it. Ultimately you need to get the right candidate as per the requirement.

Preet

Shringarika Srivastava · #7 (**permalink**) 07-02-2008, 12:25 PM

Hi All!

I agree with what Preet said that what matters it is that we are getting good people for our organization like this no matter how. But tell me one thing if the HR of the organization will start unethical practices how he would manage his people on the same. And where would the company be leading to. It is just a view of mine!

Cheers!

Shringarika

Shringarika Srivastava · #8 (**permalink**) 07-02-2008, 12:28 PM

Hi All!

I agree with what Preet said that what matters it is that we are getting good people for our organization like this no matter how. But tell me one thing if the HR of the organization will start unethical practices how he would manage his people on the same. And where would the company be leading to. It is just a view of mine!

Cheers!

Shringarika

knpk2008 · #9 (**permalink**) 07-02-2008, 02:56 PM

Hi all,

I agree with Shringarika. If this is allowed tomorrow some one else will follow him. A Purchase Manager will say so long as you get quality material at market price what I will do you is not your concern.

An effective system of Internal Audit will easily unearth such practice. Company internal policy manual should have clearly spelt procedures for hiring new staff. Proper documentation must be maintained for both recruitments thru' Ads as well as thru' placement agents. In fact when a Company spends money for recruitment Ad's a cost benefit analysis should be made and this should be made part of the MIS sent by HR to CEO. If cost benefit anaysis showes high percentage of negative returns from recruitment Ad's the HR head will automatically get exposed.

P.Kumar

V.Bala · #10 (**permalink**) 07-02-2008, 03:53 PM

It is sickening to note that HR head himself is indulging in such practices. HR is supposed to be the torch bearer of the Organizational Values from which emanates the Culture. I could very well imagine what culture the organisation will have.

You will see every functional head having his/her own agencies and siphon the money. All employees would soon come to known of these and soon talk of the town.
God bless the Company and the CEO!!!. If it is Public limited company the BODs too.

Bala

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