Take these precautions to protect your business against employee fraud.
While a good employee can be your company’s biggest asset, a bad employee can be its biggest liability. While you might not like to think about it, an employee’s fraudulent activity could damage your business operations considerably. So, what can you do to prevent a bad egg from taking advantage of your business? Here are some of the precautions you should take to protect your business against employee fraud.
- Establish a Code of Conduct
A code of conduct is a statement that your company will not tolerate unethical or illegal behavior towards anyone, including customers, suppliers, employees, management, and so on. Generally, they also spell out guidelines for employees and detail the repercussions they might face for failing to adhere to the standards issued within the code. By creating a code of conduct for your business, you can set the standards according to which you want your company to operate. When your expectations are clear, you will have a much easier time keeping your employees honest.
- Organize a System of Checks and Balances
As a business owner, it’s your responsibility to ensure that your employees are conducting themselves appropriately. While it’s natural to want to trust your employees, it’s important to remember that your workers are not your friends or family and that you can really only trust them up to a point. This is why you need to check their work on a regular basis to ensure that they are not stealing from you or engaged in other fraudulent activities. Dedicating yourself to ensuing the quality of their work will ensure that your business does not suffer from a single employee’s criminal activities.
- Maintain Strict Hiring Practices
Most of the time, businesses can avoid employee fraud by adhering to stricter hiring policies. For instance, when you are looking for a new employee, you should run a full background check and actually follow up with the references the employee supplies. Oftentimes, a little bit of investigating will reveal if an employee has a history of dishonesty. This, in turn, could save you from hiring a potentially dangerous employee.
These are some of the steps that you should take to protect your business against employee fraud. Want another way to keep your business safe? Then make sure you have the right business insurance protections in place. For assistance with your commercial coverage needs, contact
the experts at Fuller Insurance Agency
in Southern California. Our dedicated team is ready to get you the coverage that you need today.