How to Avoid Falling Victim to a Bad Hire

The recruitment process is on our mind this month. But it is most definitely not a new topic.  We’ve been blogging for years about the occurrence internal misappropriation of trust money by agency staff.

Take a look:

The unfortunate reality is that Property Managers and Trust Accountants may be ripping off your business, and clients, right under your nose. And you may be none the wiser. And it happens a lot more than what you might think. In 2017, we handled more agency fraud cases than was acceptable.

The truth is that you can avoid many fraud situations at the initial recruitment stage. It begins with a good initial recruitment process. Taking your time to find the right staff. Not rushing and employing staff in times of desperation and haste. By following good work processes and not resorting to bad business management.

5 Items to Tick off in your Recruitment Process

  1. Set a minimum experience level

    This will ensure you are interviewing experienced and knowledgable staff. We work off a minimum of 5 years in either accounting or real estate.

  2. Always ask for original copies

    Ask your potential employees to bring along original certificates and licenses. Unfortunately sometimes these can be fraudulent. Better to ask than to find out the hard way. 

  3. Cross Check!

    And no you are not being over-the-top. Cross check each certificate/license number online with your local governing body for previous reprimands or disqualifications. If your applicant is in NSW, ask them to provide copies of recent CPD training to ensure requirements are being met. 

  4. Police Checks

    Advise applicants they will require a police check to apply. Once again, this is completely in your rights and in your best interest. It is a sound risk management practice. After all, your employees will be handling your client’s money so every effort is worth it. And it’s your business that is on the line. 

  5. Don’t rush

    Never be too desperate to hire staff. Good decisions are never made in haste. It is always better to wait for the right candidate than a bad hire. It will cost you thousands, as opposed to more days in order to find the right fit. 

Bonus Tip

INSURE INSURE INSURE! As a business owner, this is imperative. Check the cover on your business insurance policy. Make sure you’re covered for internal ‘Theft by Employee’. Check what the restrictions are on the excess. If in doubt, always ask and clarify. 

~ Jane Morgan is the Director of End of Month Angels, a consultancy firm specialising in Trust Accounting. Jane knows the legislative requirements of running a successful Real Estate office through her 20 years industry experience. Don’t trust just anyone with your trust accounting. Trust End of Month Angels and get back to what you do best – growing your business.