It almost seems a long time ago, but November and December had a great series of holidays that, for some, were leveraged into a week or two of time off. From the conversations that I have had with strangers in elevators, not a single person wished they could have just stayed in the office and worked. The only gripe was the weather (for those of us in the Northeast). Everyone needs time off to recharge and those who tell us otherwise are lying to themselves or to us.
However, for those bosses who don’t care about whether or not their workers are worn out, just as long as they show up, there is a reason to give time off that benefits them – security. You would not believe how many stories I have come across, of fraud perpetrated by employees who rarely took time off and , if they did, it was only ever for a couple of days at a time. The bosses loved them because they were so diligent and always there when anything was needed. It also turned out that these same employees were diligently stealing from their employers. because they were always in the office, they were able to make sure that people didn’t poke around in their work too much. Because they were always in, they were able to steer people away if anyone seemed to be getting close to discovering their scheme. Because they were always the face in the office, they were able to gain the trust of their employers. In this way, they were able to keep watch over their fraud schemes and keep them going on for a long time. I have lost count of the number of times I have heard about how shocked people were when a fraudster was exposed because of how diligent and ever-present that person was.
In theory, it is an admirable thing to have a worker who so loves coming into work that they won’t even take paid time off. However, when you think about it, why wouldn’t someone want to take time off that they are being paid to take? I don’t know about you but I do not have conversations where employees go on about how much they prefer being at work over spending time with loved ones, how much they love their daily commute and wouldn’t trade it for anything, or how they wish that weekends and days off would be abolished so they could spend more time at work. With this in mind, employees who do not want to take time off should be viewed with skepticism.
It is important that employers take advantage of the time off given, in order to perform fraud prevention and detection activities. This is mostly achieved by having another employee do the work of the vacationing employee. This is particularly important if the employee has a financial role or access to assets. A few examples of tasks that should be performed in an employee’s absence are:
- reconciling the bank accounts;
- receiving and opening mail, especially correspondence from banks and vendors
- receiving and processing inventory;
- disbursing checks.
Nobody likes to do someone else’s work, and that is a plus for a fraudster. But, doing someone else’s work has gotten many a fraudster caught (and often highlights errors and weaknesses). Bank reconciliations have been found to contain fictitious reconciling items. Checking the mail has revealed bank accounts that employees secretly opened and used to divert company funds for their own benefit. A check of vendor statements and payments has revealed payments being made to fake vendors. A lot of benefits are gained by employers when they give their workers time off and use that time to have their peers do the vacationers’ work. Several authorities, including the Federal Deposit Insurance Corporation (FDIC) and the SEC recommend that banks and investment advisors, among others, adopt mandatory two-week vacation policies as a safeguard against fraud. This is an approach that other types of businesses should also consider adopting. Several companies have adopted this policy of a two consecutive weeks off. This gives sufficient time to have other employees perform the tasks of their vacationing colleagues.
There is another benefit to having others do the work of their coworkers, either when that employee is on vacation or by rotating tasks. This is increases the number of employees with knowledge of processes, with all the peculiarities a company will have that are not in the company manuals. I recently read a piece on TheInnerAuditor website about the dangers and risks involved when knowledge is held by one individual in a company. Invariably that person’s work is never checked (who would know how to) and no one ever knows when this special person makes an error or, even worse, is committing fraud. In addition to this, should this person quit, retire or fall ill, the company will find that has no idea how to do certain things or even where to find the information required for the task. This is because it has been easier to rely on this one brain trust than to learn what the trust knows. And the brain trust enjoys the power and authority given to them because they are always the smartest person in the room. I have written before about how notes on systems and processes may not include every single piece of information. Having others cycle through tasks is the best way to be sure that others know how to perform the tasks and that more than one person knows what is going on.
So, bosses, go ahead, give your employees a break, a real break. They will be happier and likely more productive for it and it will benefit your company. it will improve your chances of detecting and deterring fraud and it will help prevent errors. Finally, it will make sure that you don’t have to depend on one person to keep the business running.
And, workers, tell your bosses to give you lots of time off and remind them to, please, have someone do your work while you’re away. Assure them that you are not doing this for yourself. No, this is part of you looking out for their business.