A ghost employee is someone who is paid but does not actually exist at the client. A ghost employee can go undetected for some time leaching payroll checks. These employees cost the staffing firm money and time searching for the nonexistent person.

Lost Money

A ghost employee siphons money away from the staffing firm one paycheck at a time. This form of fraud is an easy way for someone to steal from the firm. Multiple employees who don’t exist can take thousands of dollars a month from the firm preventing them from being stable and opening the firm up for a lawsuit.

Investigative Time

The staffing firm may spend countless hours trying to find the employee once they notice it. The lost man-hours spent searching through the payroll and other HR documents cost the business time and additional money. While it is important to find the ghost, putting some measures in place can help deter their existence in the first place.

Payroll Policies

The insurance firm World Wide Specialty Programs states proper implementation of payroll policies can help deter the risk of ghost employees. Separate payroll duties rather than relying on a single person and make sure the firm has crime insurance in place.

Taking steps to avoid and detect a ghost employee can prevent them from happening. These measures can help stop the theft as soon as possible.