Page 16 - WBG August 2024

FEATURE Why is nobody talking

about employment fraud?

Abstract

Purpose – A hinderance to businesses across the UK, employment fraud and absenteeism are
phenomenons that need to be addressed. Fraud is a topic that remains largely unexplored for the
HR profession, and covert surveillance emerges as a brilliant and effective solution to tackle the
challenges that hundreds of businesses face when trying to clamp down on employment fraud.
Design/methodology/approach – This study provides insight for HR professionals as to how
employee surveillance can be harnessed safely to help tackle employment fraud and absenteeism,
whilst unlocking a productive and healthy environment.

Findings – Public sector organisations face a particularly significant challenge when grappling with
absenteeism, with absence rates nearly double that of the private sector. A key focal point of this
research revolves around the startling fact that absence rates in the public sector are alarmingly
high. Still, robust investigations into these matters are seldom conducted, leaving the door wide Roger Bescoby
open for fraudulent activities to persist. Covert surveillance offers a proactive approach to identify is based at the
and address the root causes of almost endemic absenteeism, ensuring a healthier and more efficient Conflict International,
workplace. London, UK.
Originality/value – By embracing the power of covert surveillance, businesses not only protect their
legitimate interests but also contribute to a workplace environment that thrives on transparency,
honesty and loyalty. This study effectively outlines how HR professionals can effectively deploy
covert surveillance to ensure they are staying within the guidelines of the law, whilst still clamping
down on bad actors and protecting their bottomline.
Keywords Performance, Human resource management
Paper type Viewpoint

In the intricate world of human resources (HR) a silent menace The figures are stark, with absenteeism recently reported to
is lurking in the shadows and eating into profits. A hinderance to cost UK businesses about £32bn per annum. The average
businesses across the UK, employment fraud is a phenomenon worker in the UK takes an average of ten unscheduled days
that needs to be addressed. Despite its prevalence, the topic of off, which is about twice as much as the USA and Asia-Pacific.
employment fraud remains largely unexplored, leaving both Absenteeism is a malaise for British business and it is an issue
public and private organisations vulnerable to the detrimental that is said to be worsening, with the cost-of-living crisis cited as a
consequences of unauthorised absence, dishonesty and disloyalty driving factor behind employment fraud in the latest Fraudscape
in the workplace. report. The economic costs are running rampant, but absenteeism
is an issue that has remained largely undiscussed publicly by
Whilst the term “employment fraud” may conjure up images of HR leaders.
white-collar workers sneaking, stealing and trading company
secrets or valuable information for their own benefit, the reality is The underused and game-changing tool
often far simpler. In fact, the most common and overlooked type For the HR profession, covert surveillance emerges as a brilliant
of employment fraud is absenteeism. Sometimes seen as a and effective solution to tackle the challenge of employment
victimless crime, it often spreads through a business like wildfire fraud. Yet, it is a tool that remains criminally underused. The unsung
once the ethos of “everybody does it” sets in. It is fraud, plain and hero in the fight against employment fraud has the ability to swiftly
simple. expose unauthorised absence, dishonesty and disloyalty in ways
that traditional methods often fall short.
From our conversations with our corporate clients, we know that the
costs incurred as a result of employment fraud are being discussed Public sector organisations face a particularly significant challenge
in boardrooms across the UK, as CEOs, MDs and FDs grapple when grappling with absenteeism, with absence rates nearly double
with the financial repercussions of unscrupulous activities within that of the private sector. A key focal point of our own research
their workforce. Inactivity has allowed this issue to creep up the revolves around the startling fact that absence rates in the public
boardroom agenda, and HR professionals have a responsibility to sector are alarmingly high. A case in point lies in NHS absence rates,
do more to implement a clampdown. It should not lie with the FDs which impacts upon care, productivity and waiting lists but also
and CEOs to enact action to address employment fraud. poses a significant financial burden on taxpayers.
14 W.A.D Beyond Global