Businesses invest heavily in finding qualified, trustworthy employees. And while we’d all like to fully trust everyone that works for us, the fact is that employee fraud is always a possibility. On CommPRO.biz, fraud expert Dan Draz explains why you can’t pull the wool over your eyes with employee trust:
Most people trust their employees to “do the right thing,” some even trust their employees without ever verifying their functional job related activities (blind trust) and that’s usually where most internal problems begin. We all know that trust is earned but that doesn’t negate management’s obligation to verify job related performance or financial transactions. Simply put, employment related trust should never be absolute.
Even long term employees are not beyond fraud, abuse or inappropriate conduct as defined by your employee handbook or Code of Business Conduct. It might surprise you to know that the average embezzler is likely to have worked for your company for 7-10 years.
The Trust Takeaway
What does employee trust have to do with any of these areas? Plenty. Oftentimes, the errant trust we place in employees manifests itself in the “they would never do that” attitude. This mentality is contrary to the administration of robust internal controls which detect inappropriate activities in the workplace. The failure to overcome the trust mentality is usually costly as many companies have found out the hard way.
Today, I’m challenging the entire employee trust notion as a contributor to corporate risk, revenue loss and decreased productivity (ROI). Without putting too much effort into it I can easily come up with 10 internal vulnerability areas (there are certainly more) where issues often arise and your company is more than likely experiencing several of these at the very moment.
Visit CommPRO.biz to find out how employee trust can be a contributor to corporate risk, revenue loss, and decreased productivity.