Hey, business leaders! Running an organization is not the only thing you need to be to play the boss. You’ve got to know the risks and stay ahead of them. But think beyond external threats because you may face risks from your own employees, right?
Employee fraud is a dire concern as it can cost businesses big money and hurt their reputation. Yes, that’s true! An Association of Certified Fraud Examiners study shows that organizations lose an average of 5% of their annual revenue to fraud. That’s a lot of dough, boss!
Are small businesses at as much risk as the biggies? Yes, they are! Is there anything you can do to protect your business from dishonest employees? Of course, you can do it by being vigilant and proactive. Here’s some key advice you can follow as a savvy business leader. Let’s get to it!
Screen new hires carefully
Listen up, boss! You should be cautious about who you let through that door. After all, you don’t want to hire shady people who may steal from your business. It’s essential to do your due diligence and potentially screen employees carefully.
It needn’t be a lot of work, provided you ramp up your recruitment process. First things first, always check references. Don’t be apprehensive about asking some tough questions during the interviews. Next, run a background check on candidates before closing positions. If you’re hiring people who’ll handle money or sensitive information, consider doing a credit check as well.
Set a good example
Business leadership is like walking a tightrope. If you want employees to be honest and ethical, set a good example for them. You can’t expect them to stick with the rules if you aren’t willing to do it. So work hard to demonstrate the values you want your employees to emulate.
Be honest in your business dealings. And when it comes to ethics, never cut corners or take shortcuts. Always do things the right way, even if it costs a little more or takes a little longer. It’ll create a culture of integrity and honesty within your company.
Create clear policies and procedures
Do you have proper policies and procedures to prevent fraud and internal threats? Are they good enough to keep employees from going the wrong way? Do your team members take them seriously? Answer these questions to understand how ready your organization is to deal with internal threats.
Develop clear policies and procedures for handling finances, confidential information, and sensitive matters. Make sure your people know what’s expected of them when it comes to integrity and ethics. In fact, they should be on the same page from day one, so include these policies and procedures in the onboarding process.
Monitor employee activity
This one is a no-brainer because unscrupulous people have countless opportunities to break through the best defenses. The best you can do as a business leader is to stay a step ahead of employee activities. Keep a close watch on team members to ensure they aren’t engaging in any unethical behavior.
It could include reviewing financial records, monitoring email and internet usage, and conducting surprise audits. You can dig deeper if you suspect someone of pilfering business data and secrets. Why not hire a hacker for mobile phone if you think someone’s taking undue advantage of your BYOD policy? Remember, the boss, you shouldn’t get complacent with security, no matter how much you rely on your team members.
Provide training and education
Not all employees are dishonest, but they may not be smart enough to spot fraud. At times, people go wrong because they hardly understand the consequences of unethical behavior. Either way, your business may lose money, data, or sensitive information. The risk is too big, isn’t it?
But savvy leaders manage things strategically by investing in their teams. Why not build a team that’s more aware and educated? Provide regular training and education on security-related topics to help people stay informed and vigilant. Training also helps people stay motivated and engaged.
Encourage whistleblowing
Are you a leader who encourages your team members to be vocal? Well, you should do it because it can save your business from dishonest employees. Create a culture where people feel comfortable reporting any suspicious behavior of co-workers.
Encourage whistleblowing in the organization so that people speak up freely if they notice anything out of the ordinary. Ensure they know there won’t be any retaliation for reporting issues. People feel safe while pointing out problems, so more of them will likely come forward.
Have a response plan in place
Don’t assume that your business is safe from dishonest employees; no matter how you must trust your team members. Fraud or unethical behavior may happen at any time in any organization. Why not have strategies to address them? Smart move, isn’t it?
Have a strategic response plan to deal with dishonest people and unethical actions. Ideally, it includes procedures for reporting incidents, investigating them, and taking appropriate disciplinary action against the guilty people. Most importantly, take a zero-tolerance stance in such cases.
Regularly review and update your policies
Smart leaders never take a set-and-forget approach to policies and procedures. In fact, it is the worst way to deal with internal threats and dishonest workers. Regularly review and update your policies to ensure they’re effective and up-to-date with current trends and industry standards.
Ensure that your employees know these changes and understand the reasoning behind them. They’ll be comfortable embracing the new rules if you do your bit to help them adapt. Be a great leader, and stay ahead with timely updates.
Wrapping Up
Alright, a boss, that’s a wrap! You can do a lot to keep your business safe from the fraudsters within. And you needn’t be a genius or a detective to do it. All you have to do is to be proactive and foresee the threats. By following these tips, you can stay ahead of any dishonest employees and keep your organization running smoothly in the long run. So go forth, boss, and keep crushing it!