I read an article this week (Kellog School of Management), [and no, it was not on the back of a packet of Corn Flakes] saying employers should allow more slack for unethical behaviour by employees.  The case involved an employee guessing the costs of his expenses, he was too tired to search for the invoices, so he estimated a bit more than actual costs.

The article considered that staff could be tired, or stressed due to making decisions, so some allowance should be made.  However, the authors came to their senses at the end of the article and considered even if lapses may be due to causes other than intended dishonesty there must still be consequences for ethical violations, even if those violations are small or relatively uncommon.

There is no real lesson to be learned from this, but it shows where academics sometimes depart from the real world.  It also did not consider the result when the employer had to rely on that employee and the numbers were much bigger, would you trust them to do the right thing by you?

Along the same lines, many business owners are nice people, trusting, busy, perhaps naïve, don't know their rights, or sometimes just unlucky.  So they are often taken advantage of, whether by employees, or suppliers, or even customers.  I think the list below are about the top five, so you may need to take action to resolve a current problem, or perhaps a potential one.

1.Difficult Staff

They're different than when you engaged them, bullying,  demanding, and even toxic.  They have to be handled head on, as early as it starts.  There is a right way to manage these people out of the business, otherwise you can be held liable for an Unfair Dismissal claim.

Having good staff means recruiting well; interview; test; check references (and Face Book – amazing what some people reveal!).  Make sure they know your policies and procedures.

2. Passwords

All staff should provide you with their passwords as soon as they set up (this should be compulsory Policy, no exceptions).  Test that you can access occasionally.  Change the passwords before a potentially messy termination, and don't forget other records like XERO or MYOB.

3. Suppliers

Don't sign any contract, agreement, paperwork, form (whatever nice terminology they use) submitted by a supplier without reading it, understanding it, and having your solicitor also review it.  The cost is minor compared with the cost of litigation.  Websites are often a concern, and some can even refuse to allow you to use another designer or a competitor of the current designer.  Yes you can fight it as unreasonable, but there will be legal costs and delays.

4. Customers

Not just the slow payers, but those who you have done work for, but not been paid to this point, and then they expect you to do more work and 'they'll fix it up when you're finished'.  Particularly common in the Building industry, and big amounts can be involved.  Clearly set out your terms of trade upfront, also put them on the contract and each invoice, and bill regularly.  For additional protection use a Retention of Title clause and enter your customer on the Personal Property Services Register, this makes you a secured creditor if they go into liquidation.  (Call us if you want some details on this).

5. Hackers and Ransomware

One of your staff opens a simple email and this releases a virus which locks up your computer files.  They tell you to buy a number of Bitcoin ($1,650 each at the moment) and they will release your files.  Good luck in getting your data or money back.

Have a policy, tell people to be on the lookout for suspicious emails.  Engage a good IT person who installs good protection software and firewalls and backs up your files daily (if you want a recommendation, see PBIT at Nerang, ask for Andre).  Obtain cyber insurance, which covers the cost of recovery and the costs of losing confidential client data.  (If you would like a recommendation, call us or see Agile Insurance at Burleigh, ask for Lucy).

You don't need to tolerate these situations.  It starts with being clear up front, acting honestly and being fair, and never assuming because you won't do the wrong thing that others won't either.  Expect such situations to occur and have strategies and policies in place for handling them.