Did you know that the first step to creating a culture of accountability and fraud prevention can be as simple as having an employee communication hotline? Do you know how to ensure that you have a successful hotline, and not one that employees avoid due to concerns about anonymity?
According to the ACFE’s 2010 “Report to the Nations”, an organization with a hotline, on average, saves $145,000 per year on fraud-related losses and 40 percent of US frauds were detected through tips of which half came from employees. So how does one promote a successful hotline?
Hotlines are successful when there is complete buy-in from management and owners. Having involvement and promotion of the hotline by upper management shows the company’s commitment to the hotline and its commitment to its employees to avoid retaliation for use of the hotline. Furthermore, it’s important that the hotline is promoted as a means by which the company is striving to improve its processes through transparency, accountability, and ethical behavior. Allowing a culture in which your employees feel valued and heard whether they are discussing ethical behavior or process improvements will allow your hotline to be successful.
If you have questions about how a hotline might benefit your business, please contact the Fraud and Forensics team at Sharkansky. Not only can your hotline prevent or detect fraud but it gives a valuable voice for improvement of your company through an anonymous form of communication available to your employees.