NAVEX Global’s 2018 Hotline & Incident Management Benchmark Report takes anonymized data collected from the world’s largest and most comprehensive database of reports. The report provides expert analysis of data that ethics and compliance professionals can use to make informed decisions about their program practices.

As we prepare the benchmark report for release, three early findings have surfaced as key indicators of whistleblower hotline and incident management programs this year.

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1. The Overall Report Volume Remained at the Highest Level Recorded to Date

Report Volume remained at the 2016 median of 1.4 reports per 100 employees which is the highest level we have recorded in these reports. This tells us that organizations should be prepared with sufficient resources and tools to respond to these consistently higher levels of reporting.

We also found that organizations are recording more cases than just those received via their hotline and web intake in their incident management systems. This presumably has contributed to the higher volume of reports as people grow more comfortable with traditional reporting channels as well as have increased access to a variety of reporting options.

2. Previous Improvements in Case Closure Time Lost Ground

While in 2016 we saw some improvement in Case Closure Time, in 2017, some of this improvement slipped. Case Closure Time in 2017 was a median of 44 days (up from 42 days in 2016) which is well above the best practice rates of 30-32 days. Case Closure Time is a key quality metric for programs. Cases that take too long to resolve and address send a message to employees that their issue is not being taken seriously. With a median of 44 days, this means that half the cases in the database are taking longer than 44 days to close. This could be an indicator of insufficient resources and potentially increased legal oversight of matters raised.

3. Anonymous Reports Continue on a Slow but Steady Decline

In 2017, 56 percent of the reports were anonymous. We have seen an ongoing decrease in the rate of Anonymous Reports from the 2009 peak rate of 65 percent. A lower rate of anonymous reporting is an indicator of trust in the system and the people who manage it. This decline is also likely reflecting the increase in documentation of reports from “All Other Methods” where the organization is more likely to know the reporter’s name.

With just these three data points, we are starting to see some evolution within internal whistleblower hotline and incident management programs. Program trust indicated by the downward trend of anonymous reports, shows us that incident management efforts are resonating with employees. This is reinforced by the consistency of high year-over-year report volumes. As compliance professionals, we need to capitalize on this opportunity by working to reduce case closure times and ensure the reporting process for whistleblowers is accessible, informative and comfortable. This will reassure internal reporters that they are key to the health and performance of their organizations.

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