Vacations provide several benefits to both employees and employers. Employees come back from vacation refocused on the tasks at hand, while the employer benefits by having motivated and refreshed employees. Vacations are necessary for all parties involved.
What’s common in the banking industry is temptation. Bank employees are surrounded by opportunities for dishonest acts, teller shortages, CD documentation fraud, fictitious loans, and unauthorized account transfers are all exposures that are unique to the banking industry.
Internal controls such as segregation of duties, job rotations, and internal audits are great methods of both discovering and preventing these acts, but the best control to prevent and discover employee dishonesty is a vacation.