News Archive
Complacency
It’s not your customers you need to be afraid of stealing off you, it’s your employees. Those that you trust the most could potentially be ripping you off.
According to the Association of Certified Fraud Examiners (2012), detected thefts committed by a person in a management role happens 37% of the time. The average length of time before a theft is detected is 2 years, and the median amount stolen is $175,000. Pure luck in stumbling across theft happens in nearly 20% of cases. And the annual revenues lost to fraud is 7%.
Having good systems in every part of your business is essential, but more critical around the financial numbers, not only to minimise loss but also to provide certainty for your employees, if they know there are strong controls and monitoring in place it gives them confidence to handle accounts and cash.
Here are 7 easy steps to minimise loss:
- If you are handling cash, 3 reconciliations are a must.
- Implementing a monthly check on all creditor payments (people you owe). Use an exception report that records abnormal activity in accounts.
- Monitoring and reconciling of all credit notes with strict management controls in place.
- Checks on all wage payments, looking out for fictitious names with real amounts often being paid into the same account.
- Undertake random stock takes on inventory especially high value items.
- Watch for people who will only deal with one cashier that could be a red flag to indicate discounting for friends or having mate’s rates which puts 2 businesses at risk.
- That person who is so “loyal” as to not take holidays may be covering up an intricate web of fraud that could be unravelled in their absence.
- Take an active interest in all facets of the day to day financials in your business - it may pay dividends.
Choosing the Right People
If only we could fast forward on some hiring decisions and see some of the potential issues that rear their head and start to cause problems in the workplace and among your customers. According to Blessing White's Global Engagement Survey (2011), the Australia and New Zealand statistics show that 36% of workers were engaged and 23% nearly engaged.
That leaves a significant 41% of people that are disengaged and drifting. What are the key lessons from statistics like this?
These are my personal observations:
- Only a small percentage of NZ business are using behavioural profiling tools, those that do are seeing real benefits and are able to minimise poor hiring decisions. Let’s face it, the temptation to hire someone we like and get along with really well is alluring, but is it the best move for the business? Putting the right people in the right place doing the right things is the smartest initiative that pays the biggest dividends and is an immediate stress release for the business owner.
- Your team is your greatest asset, long before your customers. Choose the right people, love them and look after them. if you do that, they will in turn show the same affection to your customers.
