I have recently been made aware of cash shortfalls at the tills in our small store. It is not a high-tech operation and the five staff I employ at the counters are all long-serving and, I believe, trustworthy. However, as only they and myself and the owner have access to the tills, I can only assume it is one of the five. How can I get to the bottom of this?
LC, Sharjah
Dishonest behaviour and theft in particular can be a very upsetting experience for a company or organisation, and it is more prevalent than many would imagine. A published estimate is that one in four employees steal something from work, with another source suggesting up to 46 per cent of employees have stolen from their companies. Employee theft is defined as any stealing, use or misuse of an employer's assets without permission. These assets include money, time, supplies, company property as well as information. Apart from more serious theft like money, even small items like office supplies can cumulatively have a devastating effect on a company.
Although no less disturbing, your experience of theft is a microcosm of a broader global issue of eroding business ethics, where according to a report by the Global Economic Crime Survey in 2014, it found global economic crime to be a major concern for organisations of all sizes, across all regions and in virtually every sector.
_________
Read more:
Workplace Doctor: Upwards management requires a tactful approach
Workplace doctor: Favourtism perception a delicate issue to be handled with care
_________
The high profile corporate corruption cases of Enron, Worldcom, Lehman Brothers and Bernie Madoff, are unfortunately not misdeeds from a darker era. The same is the case of alleged financial misrepresentation by the world's second-largest furniture maker, Steinhoff, which has wiped off nearly €10 billion (Dh43.56bn) in shareholder value and caused the company stock to drop 93 per cent this month.
Creating an ethical culture and enforcing ethical behaviour is the function of upper management. The time to avoid the results of unethical behaviour is before it occurs, not after.
Companies with a strong ethical identity tend to maintain a higher degree of stakeholder satisfaction and financial results, according to the Ethical Investment Research Service.
Unfortunately, unethical behaviour is not the sole domain of the private sector as worldwide, numerous public sector leaders stand accused of violating the oath of office.
In times of economic constraints people are more likely to get desperate and make compromised ethical decisions. It may also be a counter-productive work behaviour stemming from an employee's low satisfaction, a potential conflict or a sense that they are being unfairly compensated.
Regrettably, it could equally be as simple as an opportunity that has presented itself with a perceived low risk of being caught.
So, how may you get to the bottom of this? As you are unsure of who the culprit may be, it is important to gain the necessary evidence before you confront anyone. Firstly, start to create a record. Note the exact time and date you first noticed cash missing. Record the names of the employees who worked at the time of the theft. If you have access to video surveillance, review the footage for any proof. Note the start and final totals for each till and look for inconsistencies in your records.
Investigate "no sale" or "refund" transactions closely as these are most often used in till theft. Conduct one on one interviews with your staff, explaining you have been made aware of this situation and you would like their help and support to resolve it. This may also allow the space for staff to offer information or details of what they have noticed.
Doctor’s prescription:
To deal with this effectively, consider the evidence you have, the severity of the theft, the company policy and the legal implications. Two options are available: a disciplinary followed by dismissal; or as it is a criminal offence, getting the police involved. Theft is considered a serious crime in the UAE and the punishment can range from a fine to a jail sentence. Similarly, it is important to follow a fair and reasonable process in conjunction with the HR department to avoid possible legal consequences associated with dismissal.
Yolande Basson is an executive coach and consultant at Ashridge Executive Education – Middle East
The White Lotus: Season three
Creator: Mike White
Starring: Walton Goggins, Jason Isaacs, Natasha Rothwell
Rating: 4.5/5
Election pledges on migration
CDU: "Now is the time to control the German borders and enforce strict border rejections"
SPD: "Border closures and blanket rejections at internal borders contradict the spirit of a common area of freedom"
Company%20profile
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The specs
Engine: 3-litre twin-turbo V6
Power: 400hp
Torque: 475Nm
Transmission: 9-speed automatic
Price: From Dh215,900
On sale: Now
The specs: 2019 BMW X4
Price, base / as tested: Dh276,675 / Dh346,800
Engine: 3.0-litre turbocharged in-line six-cylinder
Transmission: Eight-speed automatic
Power: 354hp @ 5,500rpm
Torque: 500Nm @ 1,550rpm
Fuel economy, combined: 9.0L / 100km
Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
The specs
Engine: 2.0-litre 4-cylinder turbo
Power: 240hp at 5,500rpm
Torque: 390Nm at 3,000rpm
Transmission: eight-speed auto
Price: from Dh122,745
On sale: now
Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”
Company name: Farmin
Date started: March 2019
Founder: Dr Ali Al Hammadi
Based: Abu Dhabi
Sector: AgriTech
Initial investment: None to date
Partners/Incubators: UAE Space Agency/Krypto Labs
At a glance
Global events: Much of the UK’s economic woes were blamed on “increased global uncertainty”, which can be interpreted as the economic impact of the Ukraine war and the uncertainty over Donald Trump’s tariffs.
Growth forecasts: Cut for 2025 from 2 per cent to 1 per cent. The OBR watchdog also estimated inflation will average 3.2 per cent this year
Welfare: Universal credit health element cut by 50 per cent and frozen for new claimants, building on cuts to the disability and incapacity bill set out earlier this month
Spending cuts: Overall day-to day-spending across government cut by £6.1bn in 2029-30
Tax evasion: Steps to crack down on tax evasion to raise “£6.5bn per year” for the public purse
Defence: New high-tech weaponry, upgrading HM Naval Base in Portsmouth
Housing: Housebuilding to reach its highest in 40 years, with planning reforms helping generate an extra £3.4bn for public finances
COMPANY%20PROFILE
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