The smaller the business, the bigger the fall
White collar crime is not only a corporate concern
Contributed by The Orange
Many entrepreneurs are under the mistaken impression that white collar crime, such as fraud, is exclusively reserved for large corporate companies. Despite fewer employees and smaller revenues, small businesses are more susceptible to falling prey to the criminal activities committed by those they employ. Fraud and corruption are rife across the continent and while big corporates have the capacity to bear the brunt of such cases, for small and medium enterprises it is a very different story. Incidents of fraud could force small and medium businesses to shut down.
Jenny Reid of iFacts, one of the original South African employee screening companies, says that it is possible for companies, even small to medium enterprises, to institute safeguard procedures that will reduce the possibility of employees committing crimes. Below, iFacts provides small to medium business owners with a few tips on how to prevent fraud and corruption within the working environment.
1. Hire trustworthy personnel
Ensure that thorough background checks and screening processes are in place. Checking a potential employee’s criminal record, credit history, qualifications, ID number and driver’s license will reduce the possibility of bringing questionable individuals into your business unit.
2. Company policies & procedures
Many small to medium businesses don’t implement policies and procedures and manage issues as and when they arise. Ensuring that your employees, whether it is one or 25, are familiar with your business policies and procedures from the get-go, will prevent damaging incidents from occurring.
3. Authorization procedures
Employees must understand what their job description, responsibilities and reporting procedures entail. The absence of such procedures makes it easy to commit fraud and crime.
4. Set an example
Managers should lead by example. Employees will willingly follow managers who do so. Create an ethics statement and instil these values within the workplace.
5. Training
Provide your employees with relevant training and encourage them to explore external channels to seek further knowledge. This will create empowerment and job satisfaction.
6. A little extra
Never forget that personnel are a company’s greatest asset. Nurturing your staff can only be deemed an investment. Offering incentives and wellness assistance such as nutritional, exercise, lifestyle and personal financial advice will instil a feeling of value, creating loyal, honest and productive employees.
Prevention is one of the most cost-effective means to reduce the criminal costs of doing business. Employees at all levels might commit crimes against their employers. Small to medium enterprises can and need to prevent criminal activity to limit its impact on their profitability.
A recent development in application of an employee recruitment policy is the introduction of employee screening. However, in addition to employee screening companies should employ programmes that encourage ethical, honest, loyal and productive employees. iFacts t/a The Orange is able to provide programmes to assist with this.
Contact: Jenny Reid
Phone: +27 82 600 8225
www.orangebusinessboost.co.za
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