The latest PricewaterhouseCoopers Global Economic Crime Survey shows a near 40% rise in fraud. Reporting organisation are suffering an average loss of £1.2 million, according to the report, and it is primarily disengaged staff who are getting away with the goods.
Fraud is probably one of the most dramatic of what researchers call counterproductive work behaviour (CWB) but it is costing UK organisations millions of pounds.
According to the PWC survey, one out of every two companies worldwide reported losses through economic crime from 2005 – 2007 and 88 % of reporting organisations said it had damaged their brand and affected staff motivation. Worryingly UK organisations consistently underestimate the level of fraud – only 17% believe that they will be victims but 48% actually are.
But the picture of disengaged staff defrauding their organisations goes beyond just financial fraud. A second tier of CWB shows itself through harassment complaints or bouts of verbal abuse at work. When organisations count the cost of other destructive behaviour staff — such as taking unauthorised absences, having excessive breaks, or just delivering poor quality work — the costs are even higher. By the time staff are deliberately damaging company property, their lack of satisfaction is so low, they can see their own stealing as justified.
What can you do to prevent fraud and other CWB? Well a good employee involvement and communications programme gives you a chance to regularly test how staff are feeling and where their greatest discontent lies. If, from this, you see a pattern of dissatisfaction you will need to take visible action to fix issues raised by staff and discuss longer term employee involvement programmes directly with them. If things have already reached identified fraud or theft, then current recommendations for responding are:
Fraud is probably one of the most dramatic of what researchers call counterproductive work behaviour (CWB) but it is costing UK organisations millions of pounds.
According to the PWC survey, one out of every two companies worldwide reported losses through economic crime from 2005 – 2007 and 88 % of reporting organisations said it had damaged their brand and affected staff motivation. Worryingly UK organisations consistently underestimate the level of fraud – only 17% believe that they will be victims but 48% actually are.
But the picture of disengaged staff defrauding their organisations goes beyond just financial fraud. A second tier of CWB shows itself through harassment complaints or bouts of verbal abuse at work. When organisations count the cost of other destructive behaviour staff — such as taking unauthorised absences, having excessive breaks, or just delivering poor quality work — the costs are even higher. By the time staff are deliberately damaging company property, their lack of satisfaction is so low, they can see their own stealing as justified.
What can you do to prevent fraud and other CWB? Well a good employee involvement and communications programme gives you a chance to regularly test how staff are feeling and where their greatest discontent lies. If, from this, you see a pattern of dissatisfaction you will need to take visible action to fix issues raised by staff and discuss longer term employee involvement programmes directly with them. If things have already reached identified fraud or theft, then current recommendations for responding are:
- delivering rapid, focussed and appropriate punishment
- offering opportunities to work colleagues who do not get involved in CWB even when provoked
- providing communications skills training for people who typically fly off the handle at the slightest provocation
- using humour and empathy to create a happier mood in the organisation
