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Management Buzz 03/03 The long-term effects of employee theft; flexible "sick" days for your workers

By Chris Sandlund

Opinions expressed by BIZ Experiences contributors are their own.

It's aSteal!
Few things send a shiver through your company like theft. Themoment an employee's purse is stolen, the staff starts talkingand productivity slows. But you should worry less about theshort-term loss of work than the long-term impact if you fail toaddress the problem.

"You create an environment where employees feelviolated," says Carl Pergola, national director of fraudinvestigation services at BDO Seidman in New York City. "Theyoften resent the organization for not having dealt with theproblem."

That applies as much for loss of personal items as for theftfrom the company. A lockable filing cabinet is a simple solutionfor letting people secure personal items. More important, inculcatea culture that won't tolerate theft or fraud.

Weed out career criminals by doing background checks onemployees who will have financial responsibilities. Also, divideresponsibilities to introduce checks and balances: Make sure theperson who issues purchase orders is different from the onehandling receiving.

Give your employees an outlet for reporting suspicious activity.Ultimately, they're the ones who pay for theft with lowerpaychecks and broken trust.

Sick of SickDays?
A recent study by human resources information provider CCH Inc.indicates employees aren't as ill as they let on. Onlyone-third of the time they call in sick are they ailing. Familyissues and personal needs take up a lot of sick days.

Taking an elderly parent to the doctor or closing on a house arestill valid reasons to take time off. The problem is, traditionalsick leave programs force employees to call in at the last minute,costing you direct expenses for other employees' overtime ortemporary replacements, says Lori Rosen, a CCH workplaceanalyst.

You can mitigate these costs, however, by scheduling theunscheduled. Some firms have paid-leave banks-an accounting methodthat includes vacation, sick and personal days in one pool. Ratherthan feign illness for a whole day to take care of a two-hour task,employees can take time off in increments.

"If there's a flexible enough plan to allow the timeemployees need, that time can be made up or worked around,"says Rosen.

By encouraging scheduled absences, you're able to assigntasks to other individuals. Employees can also pass alonginformation their colleagues need to maintainproductivity--something they wouldn't do when calling in thenext day.


Business writer Chris Sandlund works out ofCold Spring, New York.

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