With organisations’ growing reliance on contract labour, fraud prevention techniques have become a staple for many HR and talent procurement teams. Organisations must be vigilant in preventing fraudulent activities that can negatively impact their bottom line.
Strikingly, 57% of fraud is committed by company insiders or a combination of insiders and outsiders. This can take many forms, from fake identities to hiring manager timesheet errors and bogus invoicing, costing companies millions.
Antonio Rugna, Senior Director – Customer Experience, Pontoon
Managing fraud at an organisational level can be complicated, and it’s something that employers need to take seriously. Fortunately, there are ways to identify and prevent contract labour fraud.
At Pontoon, our Business Intelligence Advisory (BI) teams use data analytics and raw transactional data from Vendor Management Systems (VMS) to help clients proactively address fraudulent worker activities. Below we discuss a few ways that employers can prevent contract labour fraud by working with a Managed Service Provider (MSP).
Using advanced data analytics helps spot fraudulent behaviour in contingent labor recruitment. Business Intelligence Advisory teams analyse data to find patterns. These experts provide deep insights and identify potential fraud.
Below are just some benefits of the tools used by Pontoon’s data investigators:
Tracking data meticulously provides a “predictive toolkit” to catch fraudsters early. Using the techniques and tools mentioned above, our programme-focused BI Advisors help clients feel confident that their business is safe and secure.
MSP intelligence personnel use data analytics to help organisations maintain compliance. They provide essential information to monitor worker compliance challenges and adherence to local labour laws and regulations.
For instance, by analysing worker data related to “bonus” or overtime payments, organisations can understand the demand intensity for additional work-related expenses in different departments and roles. This information can target efforts to recruit additional labour within compliance guidelines while reducing the cost of miscellaneous payments.
This helps organisations avoid legal and financial penalties and enhances their reputation as compliant employers. With the help of MSP data analytics, organisations can focus on their core business activities while being assured that their contract labour is compliant and fraud-free.
While fraud detection mechanisms are crucial, preventive measures are equally important. Here are some crucial measures organisations should consider implementing:
As your MSP partner, Pontoon can play a significant role in helping your organisation identify and mitigate fraud in contract workforce programmes. We bring expertise in managing contingent workforces and have robust systems and processes in place to address fraud detection and prevention.
Intuitive, user-friendly dashboards are essential for managers and HR professionals to identify patterns and prevent fraud.
Dashboards provided by BI teams track employee hours and expenses, helping to detect discrepancies that could indicate fraud. Consequently, by pinpointing anomalies quickly, managers can address issues promptly. Furthermore, dashboards monitor compliance levels, simplifying fraud prevention and adherence to labour laws.
Pontoon teams use these dashboards to identify potential bottlenecks. Initially, data may seem meaningless, but our BI Advisory experts spot red flags. Thus, dashboards enable us to better understand customer data and business specifics, which is crucial for success.
One of the critical benefits of MSP data analytics is that it increases spend visibility for clients. BI teams provide complete transparency into client recruitment and labour spend. This includes insights into which suppliers are leveraged, which roles are being filled and how much is spent on each contractor.
BI Advisory teams also advise on prevalent market pay and bill rates for the organisation’s job titles, regions and cities, providing competitive leverage. This level of visibility enables clients to work with intelligence teams to quickly detect any anomalies or discrepancies in rate cards and the overall contract labour process. Most importantly, clients can make better and more informed business decisions armed with this data.
Working with an MSP can be a great preventative measure against fraudulent behaviour. The business intelligence team within an MSP provides the insight, skill, and tools for your organisation to harness the power of data analytics in identifying patterns that may indicate fraudulent activity. By collaborating with supplier partners and tracking worker hours against job schedules and invoices, organisations can have a more comprehensive picture of where fraud could occur.
As contract labour becomes increasingly popular, vigilance is vital in having trustworthy watchful eyes as new opportunities arise. Therefore, if your organisation is looking to enhance compliance and identify fraudulent behaviour in your contract workforce programmes, it’s time to partner with an MSP like Pontoon.