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On the surface, it seems easy enough to hire someone who's close to you. After all, you know them on a personal level and it's possible that you view them as hard workers as well. Even though this might seem like a good idea, it might be all that's needed for the case known as friendship fraud to rear its ugly head. For those who are unfamiliar with this particular type of fraud, here are a few key details that Bob Jain can tell you about.
According to Bob Jain, friendship fraud is when someone is employed due to a personal connection, only to act in ways that negatively impact the company. For example, someone might be hired in order to maintain payroll, ensuring that everyone is compensated accordingly. However, that very hire can then turn around and inflate their paycheck at the expense of the company. Suffice it to say, this has long-term ramifications.
You might be curious to know what friendship fraud stems from, but the main cause seems to be a strong sense of loyalty. For example, someone who has many friends might start their own firm. In order to round out the number of people employed by the firm in question, it's possible that he or she will bring on a few of their friends. This can result in serious problems later on, with fraud being just one example, which is why certain methods should be highlighted by Robert Jain Credit Suisse.
If you were curious to know how friendship fraud could be prevented, hiring practices must be taken into account. Specifically, personal connections should not be focused on nearly as much as job history, education, and useful skills in general. When these elements are taken into account, more likely than not, you will be given a better understanding of what that person has to offer. As Robert Jain Credit Suisse and other authorities can attest to, this results in better business.
As you can imagine, nepotism is one of the quickest ways for a business to go under. Reputable attorneys can tell you the same, especially when the possibility of friendship fraud exists. Of course, there are ways to combat this or even make attempts to avoid it. More than anything else, it's a matter of exercising care and being as mindful as possible. If you take the necessary steps, it's easy to imagine that this form of fraud will be a nonissue.
According to Bob Jain, friendship fraud is when someone is employed due to a personal connection, only to act in ways that negatively impact the company. For example, someone might be hired in order to maintain payroll, ensuring that everyone is compensated accordingly. However, that very hire can then turn around and inflate their paycheck at the expense of the company. Suffice it to say, this has long-term ramifications.
You might be curious to know what friendship fraud stems from, but the main cause seems to be a strong sense of loyalty. For example, someone who has many friends might start their own firm. In order to round out the number of people employed by the firm in question, it's possible that he or she will bring on a few of their friends. This can result in serious problems later on, with fraud being just one example, which is why certain methods should be highlighted by Robert Jain Credit Suisse.
If you were curious to know how friendship fraud could be prevented, hiring practices must be taken into account. Specifically, personal connections should not be focused on nearly as much as job history, education, and useful skills in general. When these elements are taken into account, more likely than not, you will be given a better understanding of what that person has to offer. As Robert Jain Credit Suisse and other authorities can attest to, this results in better business.
As you can imagine, nepotism is one of the quickest ways for a business to go under. Reputable attorneys can tell you the same, especially when the possibility of friendship fraud exists. Of course, there are ways to combat this or even make attempts to avoid it. More than anything else, it's a matter of exercising care and being as mindful as possible. If you take the necessary steps, it's easy to imagine that this form of fraud will be a nonissue.
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Visit Bob Jain Credit Suisse if you would like more financial expertise courtesy of Robert Jain.. This article, Bob Jain & Understanding Friendship Fraud is available for free reprint.
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