Handling of employee fraud.

[Findingnemo]

This is challenging for both small and big companies that is why there has to be a system in place that checks on itself with hierarchy, so cheating as an individual should not be possible unless everyone decides to go on the same page. But with the level of technology now we can almost automate the finances and only trust the few people to handle the real money.

Trust is one of the most important elements for a business because where there is no trust, it is difficult to achieve efficiency. Audit systems prevent many problems from arising. Even after problems arise, they can prevent them from escalating. The functioning of the audit mechanism is crucial, and this functioning leads to positive results for the future of the business.

A proper audit must be conducted. If the audit is far from being a true audit, it provides no benefit. Auditors play a vital role in this.

People always found a way to cheat the system, so there is no fool proof system and I guess it is possible only by monitoring everything firsthand. Recently I saw an article related to this issue, a supermarket manager was stealing money using a ghost employee means the person didn't exist but continue to pay the salary every month in the name of that non-existent person until one day someone decided to check and the manager get caught for stealing around 200K

[bhadz]

For smaller business setups, it's likely the owner that handles everything. From operations, to manpower and the background checking. And so, they don't have much time in checking the background of people that are applying for a job. Most likely, they take whose background is related to the position that they need. Or there will be times that it is someone who's a relative which makes the hiring process easier. But they learn it the hard way that it's hard to handle an employee who's related to them. But if they impose a "business is a business" mentality, they won't tolerate anyone who's made a mistake even that's their relative.

[Marykeller]

The very growth, success, and fall of a business starts within, by those handling and taking care of the day-to-day running of the business. Because the moment there is no proper audit, no good workforce, mismanagement, irregularities happening in the business, the downfall of the business is at the corner. The business won't excel as it ought to, leading to its crashes, as it will no longer have the finances that facilitate the running of the business smoothly

[CageMabok]

The very growth, success, and fall of a business starts within, by those handling and taking care of the day-to-day running of the business. Because the moment there is no proper audit, no good workforce, mismanagement, irregularities happening in the business, the downfall of the business is at the corner. The business won't excel as it ought to, leading to its crashes, as it will no longer have the finances that facilitate the running of the business smoothly

If you look at most businesses that fail after experiencing significant progress through various factors, these factors certainly stem from the beginning, before being influenced by external factors. Therefore, the primary factors that must be examined are those that originate within the business before examining external factors as additional influences that could hinder the business. Factors like those you mentioned are fundamental and must not be ignored by business owners to ensure their business continues to operate smoothly.

[sana54210]

Quality is not objective. I know we talk about it like it is. The very same HR department you're criticizing is ostensibly hiring based on quality too, their version of it. This includes things like cultural fit, did you make them feel safe during the interview? And even whether your ambition read confident or threatening. That distinction is completely subjective and almost never approached in an objective way.

And I'm not defending bad hiring. I'm saying the problem is more than nepotism. Meritocracy as a frame has failure modes of its own. When you say hire on quality you still have to have a common definition of quality. Thus, a system which can actually perceive it, and people whose own ego doesn't interfere with the evaluation. None of that is guaranteed. Very little of it is common. And this is why this suggestion about managers hiring their own teams is more important to me than you might think. Not just because managers are aware of the job. But because the cost falls on the managers. If I hire badly I live with it.

What's funny retrospectively, I think a lot of people know this. They know their organization hires badly, selectively, sometimes corruptly. They know who got in through which door. And they've come to terms with it through a particular kind of dissociation in which work is not something you invest in, but something you endure in order to survive. The fix should be to target a culture created by people who are not afraid to be uncomfortable. Who can hire someone better then them and feel proud of that rather then threatened. Those people exist. They're just not typically those running the process.

I would say even AI can make better hiring than HR these days, and it's not that easy to just quantify "felt safe" or "company culture". If one guy is graduating from Harvard with top of his class, and the other guy went to state college, no amount of culture or safe makes sense for that difference, you can try, you can say they are better fit, but it will just be simply wrong.

And as someone who has worked in many companies before, I can safely say that I have not seen a single HR person who did not think they own the company. They are hiring based on the fact that they are trying to be like the boss more than the boss, and try to give as little as possible while taking as much as possible. They just do it badly, hence why there is no need for HR and owners should handle all the hiring and firing and salary increases etc.

[Richbased]

The very growth, success, and fall of a business starts within, by those handling and taking care of the day-to-day running of the business. Because the moment there is no proper audit, no good workforce, mismanagement, irregularities happening in the business, the downfall of the business is at the corner. The business won't excel as it ought to, leading to its crashes, as it will no longer have the finances that facilitate the running of the business smoothly

The thing is just that if an employer treats his employees in a good manner, the urge to do their best comes naturally. Let us be realistic, most people reciprocate equal energy they are being given by their employer so if you are a business owner that is too harsh on your workers or delays their salaries when it's due, they will not be impressed to do their job effectively. A business owner who maintains a good relationship with his staffs will always explore because each one of them will be so devoted to their job and none of them will have any bad intentions, some of them can even present good business ideas on how you can grow and expand your business.

[Yeesha]

The very growth, success, and fall of a business starts within, by those handling and taking care of the day-to-day running of the business. Because the moment there is no proper audit, no good workforce, mismanagement, irregularities happening in the business, the downfall of the business is at the corner. The business won't excel as it ought to, leading to its crashes, as it will no longer have the finances that facilitate the running of the business smoothly

The thing is just that if an employer treats his employees in a good manner, the urge to do their best comes naturally. Let us be realistic, most people reciprocate equal energy they are being given by their employer so if you are a business owner that is too harsh on your workers or delays their salaries when it's due, they will not be impressed to do their job effectively. A business owner who maintains a good relationship with his staffs will always explore because each one of them will be so devoted to their job and none of them will have any bad intentions, some of them can even present good business ideas on how you can grow and expand your business.

Humans have the habit of wanting to feel among, and that's actually their nature. As a business owner if you listened to them, seek their advice and sometimes follow their positive opinions they will definitely feel being respected. You don't have to be so strict to the extent of restricting them from freedom of speech and expression of their minds and opinions. Everyone has a heart and can feel hurt, so it is very important to respect the feelings of others no matter who they are, because growth does not only depend on financial requirements or contributions, it also depends knowledge, skills, experience and sharing of positive ideas.

[Su-asa]

A lot of employers don't pay attention to details well enough and they end up making mistakes that leads to the fall of their business. I have a friend that runs a big phone plaza and even though he has workers that always show up to work he doesn't skip a day unless he's out of town. I asked him, why are you not taking a break and just allowing your workers lighten up the burden for you and his response was, whenever he leaves things for them even for a day without supervision something always goes wrong. Some employers fail to monitor what their employees are doing, this leads to the failure of the business.

[Unknown Op]

Its an understood thing that in business we don't avoid people entirely and also not totally trust on any body because its the demand for success in business. For every success story we need a group of trusted staff who helps in growing the business. So its not means that we trust blindly on daligation so give award on best performances and give the seats in merit and regularly defines the role of individuals may help to prevent from betrayal. So creates system in which transparency enriched with culture so the employees thinks and work like partners not as employee. Its very clears that when individuals give respect they obviously give it rewards. With these regulation owners should creat systems which designed in way that work in the absence of owners. Trust is much more important in business and its take time to built and requires consistent behavior so owners should be careful while hiring.

Your relatives are more dangerous for you because they know all facts of you and you should not hire the people who are very close to you because they will destroy you work. Always hire a people with their talent and ability to do work and if you will hire the employees on the basis of their family status and background you will be on road. Employees always feel jealous from the boss because they have no big facilities of life and they want all facilities of life which is not possible at that time. If people will try to collaboration with people they will fell happy and they will not try to damage any person. People are loving in a society in which they are watching a people who got success from the scratch and now they want to get up but that is not possible in a few days because you have to do more than 8 hours of work to be successful in the life.

[Bitcoin Smith]

If they are found to be the actual criminals, then reporting them to the police and taking legal action is the right way to handle it. And if lucky then you may recover the whole or part of the funds involved in this case.

Business isn't always about the product but having the right people with you, which also the workers, when the employer keeps them well-paid the productivity will likely to be higher and may not be involved in other shady activities. But have the necessary tools to oversee them and automate the money and transactions which is possible with the technology we have now.

[Abdulzuruku01]

Sometimes the biggest challenge that leads to business shutdown isn't from external competitions around the business environment but from within the workforce.

A business person who owns a company  must ensure to have internal control and structure in your organisation. With a functional internal control, employees display best practices, discipline and solemnity with how they dispose their jobs, resume and attend to work on time etc. Internal financial theft and misconduct are detected asap, then reducing the risk of collapse of the organisation from internally which are related with employee fraud.

The problems mostly come from the recruitment process, which affects the entire organization negatively. When the organization fails to recruit competent people, rather recruit unprofessional individuals, it will definitely affect organization.
Let me use some private hospitals in Nigeria as an  example.

In some hospitals in Nigeria, instead of medical directors to recruit the license nurses in the hospital, they will rather recruit a train personnel to work as a nurse just because they might not be able to pay registered nurses. How will you compare  the skills of someone who studies nursing with someone who learns skills without study? Once the patients are aware of this,they'll definitely distance there self from that hospital and which will definitely affect the hospital economy.

[Jubilee58]

Sometimes the biggest challenge that leads to business shutdown isn't from external competitions around the business environment but from within the workforce.

A business person who owns a company  must ensure to have internal control and structure in your organisation. With a functional internal control, employees display best practices, discipline and solemnity with how they dispose their jobs, resume and attend to work on time etc. Internal financial theft and misconduct are detected asap, then reducing the risk of collapse of the organisation from internally which are related with employee fraud.

Your points are very explicit. While functional, and internal control measures like regular, and proper auditing of workers, and departments are necessary to reduce or eradicate employees fraud, if you own a company, ensure that employees welfare is your topmost interest. When workers are well payed, and given all the required benefit they deserve, it reduces or eradicate employees crime rate, because no employee would like to loose his or her job. There are some companies where you see employees complaining of poor payment of salary, and ill treatment from the employer, the workers are not always happy, sometimes they owe them for months before payment. When you treat employees so badly, they will not be afraid of commiting fraud, and will aid to liquidate your company.

For a company to grow, and meet up with the employers goals and objectives, both the employer, and employees must be in alliance, the level of trust you bestow on them would be as a result of the good treatment you give to them. By the time you deviate from your own functions, and feel your company can thrive without them, that will mark the beginning of the failure of your company.
Remember, you employed some of these employees based on expertise, and once they withdraw their services as a result of employer ill treatment, the company will likely collapse.

[Versatile_choice]

The thing is just that if an employer treats his employees in a good manner, the urge to do their best comes naturally. Let us be realistic, most people reciprocate equal energy they are being given by their employer so if you are a business owner that is too harsh on your workers or delays their salaries when it's due, they will not be impressed to do their job effectively. A business owner who maintains a good relationship with his staffs will always explore because each one of them will be so devoted to their job and none of them will have any bad intentions, some of them can even present good business ideas on how you can grow and expand your business.

You're right about that, and of course I have seen employee suggesting/ bringing business idea to his employer. And his employer in the other hand don't know how to manage his income so the guy that was working for him discovered that he have not been making good use of his income, so due to the love he had for him then he start advising him and after that he brought out a very good business idea and the man accepted, you know if the man was rude to him I'm sure that the employee wouldn't have suggest anything to him so that's the advantages of treating people nicely.

[Davidvictorson]

Sometimes the biggest challenge that leads to business shutdown isn't from external competitions around the business environment but from within the workforce.

A business person who owns a company  must ensure to have internal control and structure in your organisation. With a functional internal control, employees display best practices, discipline and solemnity with how they dispose their jobs, resume and attend to work on time etc. Internal financial theft and misconduct are detected asap, then reducing the risk of collapse of the organisation from internally which are related with employee fraud.

What can employers do:
- Pay staff well, together with good allowances . Employees who are paid well would hardly think of defrauding the organization which they work for. G
- Build a strong organizational culture. Businesses with strong culture where employees see the organization their own and buy into the vision, mission, and culture of the organization would hardly think of fraud.
- Have monitoring systems in place. There should be a supervisor for the staff and a supervisor for the supervisor.
- Create a growth and non-toxic work place.

[Cookdata]

A lot of employers don't pay attention to details well enough and they end up making mistakes that leads to the fall of their business. I have a friend that runs a big phone plaza and even though he has workers that always show up to work he doesn't skip a day unless he's out of town. I asked him, why are you not taking a break and just allowing your workers lighten up the burden for you and his response was, whenever he leaves things for them even for a day without supervision something always goes wrong. Some employers fail to monitor what their employees are doing, this leads to the failure of the business.

Probably an uniform employer that is starting their business to the first time. The one with experience will not relent on what his or her employees are doing in his business. Over time, I have realized that you can't try business for the first time and get it 100%, you are going to face challenges and at most, you may fail. If you managed to bounce away from this face, there are many things you are going to learn that will help you sustain your business for years.

If you have a business that you take years to build, you will have experience with staffs because they will come and go, you will understand different kind of personalities, human behavior and characters, you will know how to set your standard and knows where and how to draw the line with each employee. If you don't know this as a business person, then I don't think you deserved a business, if you do then it wouldn't go far before it collapse.

[Muba20]

Sometimes the biggest challenge that leads to business shutdown isn't from external competitions around the business environment but from within the workforce.

A business person who owns a company  must ensure to have internal control and structure in your organisation. With a functional internal control, employees display best practices, discipline and solemnity with how they dispose their jobs, resume and attend to work on time etc. Internal financial theft and misconduct are detected asap, then reducing the risk of collapse of the organisation from internally which are related with employee fraud.

Not only skilled workers are needed to run an organization, but also honest and trustworthy employees who will not cause any harm to the organization, but they will try their best to keep the organization safe various complications. If trustworthy and honest employees are not available or the owner of the organization cannot assign someone to such a position, then not only will the organization suffer financial losses, but the organization will gradually face various losses. Moreover, if the internal problems of an organization cannot be solved, how will that organization survive in the market with other organizations? Therefore, for an organization to survive, it definitely needs skilled workers as well as trustworthy and honest employees who can save the organization.

[Stable090]

A business person who owns a company  must ensure to have internal control and structure in your organisation. With a functional internal control, employees display best practices, discipline and solemnity with how they dispose their jobs, resume and attend to work on time etc. Internal financial theft and misconduct are detected asap, then reducing the risk of collapse of the organisation from internally which are related with employee fraud.

If you own a business, you should properly supervise your employees, don’t just employ people and let them run your business anyhow, if you don’t supervise your employees, they might just end up killing your business, some might not really care about your business, all they care about is the money that you going to pay them, and they know even if they don’t perform so well, you going to pay them by month them, but if you are properly supervising your employees, anyone which is misbehaving will be sacked so early before he or she destroys your business.

[red4slash]

That is why before we focus on external things, we must improve the internal so that it is more organized and can develop because when we only focus on the external but do not pay attention to the internal from the start, we will look ready outside but fragile inside especially when there is no good connection between each other.

The selection of employees (if you are the boss) is also important because this requires strong integrity from the start and usually things like this will be difficult when there is nepotism in the business and assume that the closest person or family is completely trustworthy.
Transparency is important but it doesn't mean we have to be completely trusting because in business everything can become an enemy for several reasons, but on the one hand it doesn't mean we shouldn't be completely suspicious because the principle of trust is also important. Therefore  transparency and staying on the path of professionalism within the scope of work should be a priority in the end.
I am a business person and as much as possible I make professionalism apply no matter whether it is family or closest people when we deal with business then professionalism must still be maintained differently when outside of business I can be more flexible. It becomes effective because it does not mix personal affairs outside the business or company with the business or company affairs that we manage.

[Samlucky O]

Sometimes the biggest challenge that leads to business shutdown isn't from external competitions around the business environment but from within the workforce.

A business person who owns a company  must ensure to have internal control and structure in your organisation. With a functional internal control, employees display best practices, discipline and solemnity with how they dispose their jobs, resume and attend to work on time etc. Internal financial theft and misconduct are detected asap, then reducing the risk of collapse of the organisation from internally which are related with employee fraud.

Of a true most of the challenges we face in business today is not coming from outside but inside. That's why they said it can only be an internal rat, that will invite the external for a feast before something can be stolen. When you work on your business and monitor your employee performance then you will know if your business is progressing or not. The failure of Many businesses today is as a result of the CEO feeling relautant and  lazy without focusing on their business but rather entrusting it to an employee, believing they will do well in your absence without considering the outcome thereafter.

Business is good when you start it by yourself, develop a good relationship with customers, nurse it to an extent that people trust you and what you can do. Even if you entrust it to a new employee, you will be visiting their often to see if your employee is meeting up to the standard and demand you have set. it is as easy as that. Don't just open a new business and put people in position without you yourself making it stand. Don't expect others to do what you are soposed to do. Employee don have the zeal an passion you have, all what they are concerned is their salary but not the welfare of the company. It is your duty to do that, but when you fail that, your company fail.

[letteredhub]

Sometimes the biggest challenge that leads to business shutdown isn't from external competitions around the business environment but from within the workforce.

A business person who owns a company  must ensure to have internal control and structure in your organisation. With a functional internal control, employees display best practices, discipline and solemnity with how they dispose their jobs, resume and attend to work on time etc. Internal financial theft and misconduct are detected asap, then reducing the risk of collapse of the organisation from internally which are related with employee fraud.

What can employers do:
- Pay staff well, together with good allowances . Employees who are paid well would hardly think of defrauding the organization which they work for. G
- Build a strong organizational culture. Businesses with strong culture where employees see the organization their own and buy into the vision, mission, and culture of the organization would hardly think of fraud.
- Have monitoring systems in place. There should be a supervisor for the staff and a supervisor for the supervisor.
- Create a growth and non-toxic work place.

Many comments as I have being reading through do lays emphasis on improved welfare of workers particularly their salary and incentives included. But as much as that could go a long way in reducing employees theft and fraud in the organisation it's not a safety net as long as behavioural differences exists.
Organisation culture could actually go a long way in dealing with the attitudinal causes of employees fraud because most times it's more behavioural than it appears to be financially related since there are some staff that can never feel satisfied with what they earning but the staff are well oriented and granded with the organisation vision mission the aspect of welfare together would be deeply be effective in stopping employees fraud to the extend that even a monitoring system wouldn't do.