Two week vacations are good for you and your employer. I don’t suggest running up to the CEO and telling him this yourself, but there’s been lots of recent research has shown the benefits for both parties involved. If you’re lucky your boss reads this blog [since Saudi Arabia’s defense ministry, India’s parliament, and criminals inAustralia already do].
First let’s address the positives of an extended vacation for the employee. Not that long ago The Economist (http://tinyurl.com/3j3vwtw) discussed employees on sabbatical that were encouraged to travel during their time away and came up with an assortment of amazing ideas that were able to improve their company’s business model:
Marc Benioff got the idea for Salesforce.com by looking at enterprise software through the prism of online businesses such as Amazon and eBay… Salesforce.com is now worth $19 billion… Mr. Benioff had his lucrative epiphany while on sabbatical—swimming with dolphins.
So for the employee they are able to get out of the office, explore the world at large, and come back to their office rejuvenated with ideas that occurred to them naturally outside of the workplace when they were able to reflect upon what could be improved and implemented. This type of innovation is vital to staying ahead of the competition and avoiding stagnation, something your company and you both want to avoid.
However there are plenty of arguments against giving all your employees that much time off if you simply want them to come back with fresh new ideas. If the lowest man on the totem pole at your company is begging for an extended amount of time off to infuse new ideas into the business platform this may be troublesome since the mail still needs to be delivered, the trash needs picked up, the phones need answered, and so on.
That being said the second, and honestly more important reason, to have employees stay away from work for an extended amount of time (two weeks or so) on a yearly basis is it works as an excellent means to detect potential fraud.
Take a look at Jérôme Kerviel, (http://tinyurl.com/4x5zmry) someone who was able to commit a seven billion [you read that right… Billion] dollar fraud against Societe Generale, the second largest banking institution inFrance.
Kerviel previously worked in the back office area of the bank, learning the bank’s internal controls to prevent fraud; then stepped out of the back office and onto the trading floor where he, while never missing work, was able to commit the largest bank fraud on record.
Jonathan Marciano with Ernst & Young points out (http://tinyurl.com/3vehn2j)
“The profile of a typical fraudster is a long serving, trusted employee, who works long hours and is reluctant to take their annual leave. Without doubt, one of the most simple and cost-effective anti-fraud measures is to ensure employees take at least two consecutive weeks holiday.”
The fraudster that is always present, always working through vacations, sickness, and family emergencies is able to cover up their tracks far better than the an equally dedicated employee who every summer takes two weeks off to go swim with dolphins with their friends and family before coming back with new ideas on a business model that could revolutionize your business model.
While the employee is out of the office it allows for the employer to review their transactions, review their processes, and research any issues that may have come up over the course of the last year. Does something seem suspicious or out of place? Was a guideline overlooked? Was something that appears to be a mistake end up costing the company a substantial amount of money? If so did anyone else benefit from this type of “mistake”?
As the employer this needs to be investigated by a skilled risk management professional who can make an assessment of the person while they are not there to potentially cover up their footprints.
I agree with Ernst and Young’s suggestion to make sure that employees are out of the office for an extended amount of time once a year to allow for the risk management team to ensure that the employee isn’t taking unnecessary risks with the company’s capital or robbing the company blind.
However, I feel the need to add a specific caveat to this policy. If the employer only requires that the employee take two weeks off sometime during the year the fraudster can act accordingly as well. The fraudster simply takes the last two weeks at the end of one year and the first two weeks of the next year. The fraudster is then able to work, without being questioned for the next two years straight [practically] before having to take more time off, plenty of time to commit whatever fraud they have planned [and then some].
Therefore, it is vital that the employer makes the employee take off the extended amount of time during the same time of year each year. Without doing so the company is still opening itself up to unnecessary risks and worst of all the fraudster-employee has a month head start running from prosecution while still on the company’s pay roll in theory.
So go out and enjoy the last of your summer. Return with new, insightful ideas of how to revolutionize your business model. While you’re away the company will know what a dedicated employee you truly are, and both you and your employer can finish the year strong.
anti-money laundry 