Private vs. Public Companies: Diverging Paths in Workplace Incident Reporting

TL;DR

Private companies lead in Reports per 100 Employees and substantiation rates, indicating a more proactive approach to compliance.

NAVEX's 2025 Benchmark Report analyzes internal reporting data to provide insights for compliance officers and executives.

The report helps organizations understand cultural health, operational risks, and improve workplace civility, ultimately fostering transparent and safer environments.

Insider Trading and Political Activity saw significant increases while Product Quality and Safety declined, reflecting dynamic shifts in reporting trends.

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Private vs. Public Companies: Diverging Paths in Workplace Incident Reporting

The 2025 Whistleblowing & Incident Management Benchmark Report by NAVEX has shed light on the contrasting approaches private and public companies take towards internal incident reporting. With data from over 4,000 organizations representing nearly 69 million employees, the report reveals that private companies not only have a higher reporting rate of 1.80 reports per 100 employees compared to 1.10 in public companies but also show a greater tendency to substantiate these reports, with a 50% substantiation rate versus 43% for public entities.

Workplace civility emerged as the most significant reporting category, accounting for nearly 18% of all incidents. Carrie Penman, Chief Risk and Compliance Officer at NAVEX, pointed out the direct impact of workplace incivility on organizational culture, productivity, and employee retention, underscoring the importance of addressing these issues promptly and effectively.

The report also uncovered differences in how organizations respond to substantiated reports. Private companies were more likely to terminate employment following a substantiated case, whereas public companies tended to opt for disciplinary actions. Additionally, private companies reported a higher percentage of business integrity issues, making up 21% of total reports compared to 18% in public companies.

Among other key findings, the report noted a record-high overall substantiation rate of 46%, indicating an improvement in the effectiveness of compliance programs. There has also been a noticeable shift in reporting channels, with web and digital forms now being more commonly used than traditional hotline methods. Despite an increase in retaliation reporting rates from 2.84% to 3.08%, the substantiation rate for these claims remains low at 18%.

This comprehensive analysis underscores the evolving nature of workplace reporting and the critical need for robust, transparent compliance mechanisms across different types of organizational structures. The findings have significant implications for HR vendors and professionals, highlighting the importance of adapting compliance and reporting strategies to meet the unique needs of private and public sector organizations.

Curated from News Direct

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Human Resources Editorial Team

Human Resources Editorial Team

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