Continuing economic uncertainty and job losses create an uncertain labour market. But there is another significant and regularly unconsidered element, which is helping to cause additional concerns.

There is an often repeated belief that middle managers feel more nervous than most workers as rumours of redundancies surface in a company. Right or wrong, it is a perception that persists and research suggests it is unlikely to diminish.

London Business School academic Linda Gratton, for example, proclaims the death of middle management in her latest book The Shift, suggesting we are in an age where big companies can shed executives easily as they are viewed as a dispensable layer that is simply responsible for shuffling paper (see further reading, below).

In such an environment, no manager is going to take steps that could jeopardise their status. And technology – with its focus on increased automation – is sometimes viewed by under pressure finance and IT executives as a significant threat. But is that reasonable?

Through the downturn, companies have continued to increase efficiency with more technology and fewer workers. Executives operating in such conditions can be concerned that the implementation of new IT systems will raise questions about past inefficiencies with the board likely to question why time-saving technologies were not adopted earlier.

The combined result of this confluence of circumstances is a type of management fear that could have very real and very negative effects on your business. Job protectionism is genuine and IT and finance managers are likely to do everything they can in the current economic climate to look after their own position and perhaps also the positions of their colleagues.

If the status quo works at a personal level, managers might avoid pushing for an investment in systems that could expose long-standing flaws. Organisations must consider such concerns when an executive swerves technology implementations.

The ultimate action must be for c-suite leaders to ask more questions about the potential benefits of new technologies. All board members must be aware of the potential impact of systems rather than a select few.

Potential fears surrounding automation means your company must also take steps to carefully manage the introduction of new IT. New technology doesn’t have to equal middle management job losses, but it could mean lost productivity and cost cutting opportunities if you don’t take steps to prevent apprehension!

Further reading:
http://www.hrmtoday.com/leadership/the-death-of-middle-management/

The cost of running scared is a post from Advanced Business Solutions - Supplier of accounting software, business intelligence and document managment

Sales are down, the UK economy is in debt and unemployment is rising. In hard times, how far would a depressed employee go? Would one of your workers commit fraud?

Research from the UK’s fraud prevention service CIFAS suggests an economic slowdown and a rise in fraud certainly go hand in hand, with a 40% increase in people being falsely impersonated last year compared with 2008.

Worse for the business, half of the 2,000-plus employees surveyed by consultant Ernst & Young in 2009 thought that one or more types of unethical business behaviour was acceptable during a recession!

The implications for your business are clear: when the economy is in turmoil, the risk of employees committing fraud is likely to increase. You and your executive colleagues must take steps to protect the firm against potential exposure.

Your first priority should be implementing technology that can help combat errant behaviour. And specific software systems, such as spend analysis and document management, are key to fraud detection and prevention.

Companies looking to understand the direction of cash must understand who is being paid and when. Analytics will help you identify which employee is acting in an unusual manner.

Accidental errors – such as billing mistakes and invoice miscalculations – can be seen. And taking a strong stance on spend management will also allow you to track and trace potential weak spots that could provide a loophole for fraudsters.

Document management is also key for fraud prevention. Electronic capture of documents will mean the business will be able to preserve the integrity of its evidence and documents cannot get altered, shredded or mysteriously ‘lost’.

Invoices, orders and other financial documents can be imaged, securely stored and all interactions with the imaged documents are recorded which creates an audit trail, meaning the opportunity for an errant employee to cover their activity is significantly reduced.

The economy may well be improving but times remain hard for many, making employee fraud a real risk. Finding the right technologies for fraud detection and prevention are therefore vital, from spend analysis and document management systems through to expense management and time and attendance solutions. The time to act is now.

Fraud detection and prevention – why software is key is a post from Advanced Business Solutions - Supplier of accounting software, business intelligence and document managment