Employee Disloyalty

 

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Question: Recently I was betrayed by an executive in my company who gave very damaging information to the adverse party in a lawsuit. I pride myself by my judgement of people. Yet, in this case, events proved me wrong. Now that the horse is out of the barn, is there anything I can do to prevent recurrence?
Kaplan responds:
bulletSome employers have difficulty believing that any of their employees would sell out to the competition. Yet, it happens every day. It takes many forms, but is undoubtedly the most dangerous threat faced by most businesses. Too often, it is discovered by accident after serious damage has been done. Interestingly, money is not always the motivating factor. Sometimes its a bent ego and sometimes it is just a sense of adventure. Your ability to prevent recurrence is limited. But, there are meaningful things that both you and an investigator can do:
bulletIn sales related activities it is possible for an investigator to periodically insert leads and then see if those potential sales are being "walked" to a competitor.
bulletSince such disloyalty can also involve the use of bugs and wiretaps, installed by the disloyal employee, periodic debugging sweeps of the premises should be considered. The presence of a wiretap might be your first and only warning of this sort of problem.
bulletOne of the most effective safeguards is a good solid background investigation prior to hiring an individual. In the results of such a background check don't expect to see a prior history of disloyalty per se. What you can expect, may be an attempt to hide a prior period of employment. Whatever the reason for this, it is almost certainly an attempt to hide a problem that you don't need. However, far more likely to surface are personal character flaws that suggest that this individual feels that he doesn't have to play by the rules. These can be manifested in any number of ways. Something as innocent sounding as a long history of traffic violations, suggests that at least in a small way, this applicant feels that he is above the law.
bulletAnybody who is the law unto themselves, is also a person who can easily rationalize the correctness of violating the established norms by selling you out. There are many other problem indicators that a good background investigation will surface.
bulletDo not overlook exit debriefings. They will tell you a lot, particularly about disloyal executives who prior to that time, the departing employee was afraid to talk about. These debriefings can be conducted in house, or better yet, by an outside investigator who is not likely to try to protect a member of your staff.
bulletProbably the best safeguard is setting up an "Inspector General" position. This is a person, either in house or under contract who answers only to the CEO. This is a function well suited to a Private Investigator. Employees are encouraged to make direct contact with the Inspector General without fear of being identified or retaliated against. Although many minor complaints that should be handled in the course of routine business are surfaced, so are serious allegations of high level disloyalty and dishonesty. What you are doing here is opening up a channel of communications that is missing in most companies.
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