All companies are candidates for embezzlement.  Let’s face it, human’s work at companies, interface with companies, program computer software for companies and humans are fallible.

They can lie, cheat, steal and commit all types of anti-social and criminal behavior if the right triggers are set into motion.  Many times these triggers are hidden from company view, because they happen away from the workplace.  They are environmental, genetic, organic or inorganic.  In other words, you just never what may cause a previously trustworthy and loyal employee to turn to the dark side.

So, have you wondered how susceptible your company is to embezzlement?  Have you probed your company to see if you have an average level, a low level or a high level of probability that your company can be victimized?

Having a low or high level doesn’t mean you have been a victim of embezzlement, or for that matter will be a victim.  What it does mean is that embezzlement at your company maybe harder or easier to accomplish.

The ideal is impervious to embezzlement, but this ideal is impractical.  The next best solution is to get as close to that ideal as is possible, but you have to be open to seeing the pitfalls.

Think about it….

Whether it’s living large, over-zealous work habits or an in-flexible attitude to change, they the Embezzler will always let their hands slip. Embezzler Embezzler Embezzler

Take a potential client we had some time back.  The business wasn’t doing as well as it had, even adjusted for market conditions.  So a partner reached out to us.  He knew he needed help, as did all the other partners.

We learned during our interview that they had no real inventory system, which included not knowing what anything actually cost.  They had employee issues.  They had internal control issues. Let’s just say they had issues, all which we could fix with time and effort.  All which would have increased top-line revenues and the bottom line.

Icing on the cake is that they were discussing exit strategies that were anticipated in five to ten years.  Thus making positive steps necessary now so they could sell their company at a multiple that was respectable based on a value that was real.

So they needed help!  Hopefully we would receive the contract, but even if a competitor won the account, they would receive the help they truly needed.

Our problem was we were just unable to move the client along in the sales cycle.  Calls weren’t being returned and when e-mails were answered by one of the partners they were crass, nasty, derogatory and condescending.

The issues normally associated with a difficult sale were absent.  This particular partner was contesting money as an issue, staffing, busy season, benefits or any of the normal issues that we as Consultants confront as arguments against going forward (no matter how ridiculous they are in respect to the achievement that could be attained, they have some validity). There wasn’t the game playing of an overworked/overwhelmed individual caught up in fire-fighting unable to see the forest through the trees.

This partner was just out and out objecting to the process (not just us). No other issues were raised, although plenty of obtuse questions.

When I spoke to a friend who is a highly respected forensic accountant his first response was embezzlement.  I hadn’t thought of it in that respect.

His feeling was those who go against the grain for reasons that are illogical and for non-value items are trying to hide something, and in his opinion, it is usually fraud and/or embezzlement.   He went on to tell me some allegorical stories to prove his point.

We stopped pitching this client and will never know if our collective assessment was correct, bit we saved ourselves plenty of sleepless nights. It always pays to expend energy on what can be a success, rather than a failure.

Do you have employees, partners or vendors that behave in a manner that may actually be hiding improprieties?  Maybe you should investigate before it’s too late!

I was talking to a friend of mine who’s been out of W2 employment about two years.  Not that he’s sat home for two years, but he’s not been fully employed.

He’s done consulting work, networking events and sent out more resumes (thank goodness they are basically electronic these days) than a ream or reams could produce.

Interviews, he’s had more than his share, but he’s come in number two multiple times.  Unfortunately in the employment game, that’s as good as coming in last, it doesn’t pay the bills.

He recently told me he was talking to a “good” recruiter who told him he was damaged goods.  If this is a “good” recruiter, what is a bad recruiter?

Why was that statement so bad?!

1.   Talk about crushing an ego
2.   The reason was because he did consulting stints (no he should starve)
3.   He’s old (no he has 30 years of progressively increasing responsibility and experience)
4.   He didn’t have this or that on his resume (I though recruiters were supposed to guide the employer into creating a job spec that meets the needs, and one that is not pie in the sky)

Every story on unemployment talks about the negative psychological impact it has on the individual and that individual’s family.  Maybe there should be a mandated ethical standard that these so-called recruiters need to operate within, because that person definitely went over the line.

I know my friend will find a home and that home will be better for finding him.  He’ll apply those 30 years of knowledge to problems and improve the top, middle and bottom lines for his employer.  He’ll also recoup the drain in cash that has occurred so maybe he’ll one-day be able to retire.

As for that “good” recruiter; maybe that person should be on the other side of the desk….for several years.

As for that “good” recruiter; maybe that person should be on the other side of the desk….for several years.  Take a look at the Code of Ethics from the National Association of Executive Recruiters (http://www.naer.org/code-of-ethics/); I’m sorry but where is the ethical standards vis a vis dealing with both potential candidates and those of the client companies?

A telling example of an industry in need of state and congressional oversight (and that is a real buzz killer!).

If you are like all small business, health care costs are killing you; literally.  The never ending double digit increases are sucking the lifeblood out of your business.

A company of 20 people could be incurring a bill of over $15,000 per month that’s $180,000 per year.  How many productive employees could you hire for that amount?  How many employees can you give merit raises, how many advertising campaigns, trade shows, and the list of possibilities goes on and on.

There are several fancy new hip ways to save money on health care and I’ll leave you to discuss with your Insurance professional, but I’m going to suggest two ways; both unpopular but in this day and age both worth a second and third look.

1.  Employee cost sharing
2.  Catastrophic Health Insurance vs. traditional Health Insurance.
3.  HRA’s
4.  High Deductibles

Employee cost sharing is becoming more and more popular as businesses find they can no longer burden the entire cost.  Sharing costs is a company by company decision, but I’ve seen 25% of the single rate to 25% of the entire rate per employee to 100% for employee and 0% for additional family members.

Whatever is decided, look at your own demographics, your industry and local competitors and then businesses in general in your area.  Make your decision based on all three parameters, so when the employees gripe, you have comparatives.

Catastrophic Health Insurance can save you and your employees’ great amounts of money, but it isn’t for everyone.  It’s health insurance that covers that accident or illness that brings you over a magically very high deductible.  But; that deductible could be what you would have paid anyway…

Let me explain.  Let’s say you spend for a single person $750 a month on insurance.  That’s $9,000 per year.  We’ll say you have an HMO, so there is no or limited out-of-pocket and you have to use the plan’s hospitals and doctors.

If your employees are healthy, they probably don’t need and don’t spend a large amount of money on doctors, drugs, etc.  What if you could spend $375 per month, but have a deductible of $4,500.  If a major catastrophe occurs, after you pay $4,500 the insurance kicks in the same as with the normal plan.

In all likelihood, you’re going save $4,500 per year.

Think about it?