Ghost employees are a worldwide problem… every once in a while we take a look at Google News to see what is happening in the world of ghost employee fraud. Here is what we found today from New York, Manila and Philadelphia.
City to recoup $1.4 million from custodians’ “ghost employee” scheme
“…two Bronx high school custodians had defrauded the city out of hundreds of thousands of dollars by listing “no-show” employees on their payrolls, the city announced a deal to get the money back.” (more)
Human rights commissioner suspended for ‘grave misconduct’
“There were also complaints of Quisumbing requesting and accepting a share of her staff’s salary, and employing and maintaining ghost employees.” (more)
CITY HALL SAM: Unions Back Boyle, Evans Backs Wolf, Kane Backs Himself
“STATE REP. J.P. MIRANDA was indicted on charges of using ghost employees in his district office. The new State Representative will have a chance to explain himself, but the vultures are already flying around his State Rep seat.” (more)
Companies all over the world want (read: need) to keep track of employees time. From being aware of their start time / end time, to knowing how late or early they are from their scheduled time, knowing the time and attendance of employees is important. There are many ways companies try and achieve this;
1. Traditional Punch Clock
2. Manual Hand Written Journal
3. Excel / Google Doc for Attendance
4. Bio-metrics (finger scanner)
5. Honor System
Each have their drawbacks and 4 out of 5 enable massive fraud. Time theft is a big problem in companies and adds up quickly. Imagine an employee who is 5 minutes late for work and leaves 4 minutes early. 9 minutes a day, times 5 days, times 52 weeks is 39 hours a year in paid but unworked time. Almost a full week! Now imagine you have multiple employees doing this. How much time theft is your company allowing?
Check out PayrollHero’s Time, Attendance, Scheduling and Analytics platform – we eliminate buddy punching, ghost employees and make it fun for employees to clock in and out for work.
Ghost employee stories continue to pop up on Google News. A simple search for “ghost employee” in the news section of Google brings up stories weekly discussing examples of ghost employee fraud. Here is 3 from todays search:
Reebok Employees Create Ghost Distributers (story)
Government Ghost Employees; Manila (story)
Minnesota Ghost Employees (story)
A round up of a few ghost employee related articles from Google news.
Detroit, USA – “Detroit Mayor Dave Bing was among the first in line at 7:30 Friday morning to produce identification to prove he is who he says he is” (Article)
St. Louis, USA - “Former employees told the FBI that St. Louis Treasurer Larry Williams not only knew about ghost, or no-show, employees on the payroll, he looked out for them…” (Article)
Nigeria – “no less than 17,000 ghost workers have been uncovered in the Power Holding Company of Nigeria” (Article)
Zimbabwe – “The government could have been defrauded of about US$50 million” (Article)
Windsor, Canada – “Ontario civil servants earning more than $100,000 didn’t even work at their public sector jobs last year.” (Article)