Corporate Investigation Case #5
Business Vulnerabilities

Business Vulnerabilities: factors that lead to damages

Ghosting is a prevalent and growing challenge in the job market across industries and organization sizes.

Statistically, the main problems are labour shortages and skills gap.

According to a 2021-2022 reports by the Canadian Federation of Independent Business (CFIB), more than 60% of Canadian businesses reported having job vacancies, with many struggling to find qualified candidates. Skilled and semi-skilled/unskilled labor shortages are limiting business growth for a significant percentage of businesses. This problem can lead to delays in production, fulfillment, and delivery.

The social phenomenon of “ghosting” becomes kind of new norm. It is a behavior where job candidates or employees abruptly and without prior notice cease communication or engagement with employers, often in the midst of the hiring process or shortly after starting a job. Employers find ghosting is a serious problem that leads to wasted time, resources, and difficulties in filling positions.

The survey conducted by the CFIB reveals that “ghosting” has become a significant challenge for hiring managers. There are four specific instances of ghosting:

No – Show Employees.

More than one-third (36%) of companies reported hiring individuals who either never showed up for work after being hired or stopped coming to work shortly after starting. This means that these individuals were hired for a position but failed to fulfill their job responsibilities or abandoned their roles shortly after joining the company.

Candidate Disengagement

The survey also found that 37% of job candidates exhibited ghosting behaviour during the application or interview process. This refers to candidates who, after expressing initial interest and engaging in the recruitment process, suddenly stopped responding to communication or withdrew their candidacy without providing any explanation.

Professional candidates not interested.

The prevalence of ghosting is also observed in professional candidates who may verbally accept a job offer but then never respond again.

“Ghosting” of exit interviews

Similarly, when employees leave their positions, a significant number fail to show up for exit interviews. This “ghosting” of exit interviews potentially leads to security risks if work equipment is taken along with departing employees.

On the one hand ghosting maybe related to current job market, where there are more vacancies available compared to the number of candidates seeking employment. On the other hand job candidates maybe are not who he claims to be.

If an employee disappears, it means that he does not need a salary in this company. At the same time, this ghosting behaviour has negative consequences for businesses, that unscrupulous competitors are always happy:

Draining resources.

When candidates or employees suddenly disappear, employers are left in a difficult position, needing to fill the gap quickly and efficiently. Also, hiring and training employees incur costs for the company. When a ghosting incident occurs, the company not only loses the investment it made in hiring and training but also faces the additional expense of finding a replacement. This financial setback can disrupt budget plans and strain resources.

Security Concerns.

If an employee disappears without notice, they may still have access to company systems, data, and sensitive information. This presents a risk of data breaches, intellectual property theft, and other security breaches that could be exploited by unscrupulous competitors or malicious actors.

Legal and Compliance Risks

Depending on the nature of the business and the position held by the disappeared employee, their sudden departure could create legal and compliance challenges. For example, if the employee had access to sensitive customer data or financial information, the company may need to ensure that data is properly secured and compliant with privacy regulations.

The phenomenon of ghosting remains a challenge across all types of job roles and industries.

These challenges emphasize the significance of the human factor in any business and the need for proactive strategies to address these issues.

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