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The licensed industry is an increasingly competitive market place, many bars have responded by empowering staff and undertaking structural and management reforms in recent years. Undoubtedly, these changes have significantly raised the levels of customer service and enhanced customer satisfaction. Paradoxically these changes, combined with the responsibilities allocated to bar staff and management to supervise and manage bars with autonomous control have created more fertile conditions, scope and opportunity for dishonest actions by staff members.
The way licensed premises approach the issue of staff fraud is changing in response to the increased risk. Many bars have historically been anxious to play down the threat from within their premises or group and have been reluctant to admit to the scale of the problem or the associated financial losses. However, for many licensed premises, the days when the publican or general manager would handle most staff fraud cases quietly with no publicity, allowing the dishonest employee either to resign discreetly or be dismissed inconspicuously, are long gone. Indeed, a number of licensed premises are now taking this a step further by sharing data actively with each other on incidences of staff fraud within their groups and amongst their industry colleagues and trade associations.
The purposes of this presentation was to raise awareness of the potential threat posed by staff fraud and dishonesty and to provide examples of generic best practice that can help publicans manage and mitigate the related risks.
Murphy, J (2016). Overcoming Fraud & Dishonesty in the Hospitality Industry, Hospitality Expo, RDS Main Hall, Ballsbridge, 3rd - 4th February, Dublin.
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