Senior Employees Bypassing HR for Advances: How Should I Handle This Recurring Issue?

Hi,

I am working as an HR executive. Recently, our senior employees approached management directly and requested an advance amount.

Management contacted me and mentioned that I should instruct the employees to communicate through me first before seeking advances directly. This situation has occurred more than three times.

Please provide guidance on how to address this issue effectively.

Regards,
Lavanya S.

Hi Lavanya,

This is a very normal situation. It happens everywhere.

Solution:
If you are the only HR in your company, then send a circular to all your internal customers (i.e., all departments) stating that any loan requests should be routed through HR. Sign the document, send it across to all departments, get the signature from all HODs, file it, and also put another copy on the notice board.

Regards,
Saravanan
Email: saranjanar@gmail.com

What do you mean by senior management? Which category of employees asked for this advance? Are they seniors to you in the organization?

Siva

Employees may not want to come to you and ask, as they might be thinking you would not do the job for them. Perhaps the employees don't know that you are a concerned person when it comes to advances. It's possible that the employees thought that approaching management could accomplish the task, assuming you don't have the authority to provide advances. There are many assumptions to consider, and you have only explained a part of the story. Providing the full story will help solutions flow more easily.

Hi Lavanya,

It happens in few organizations where systems and procedures are not defined properly. You can go through the simple format I have attached and start implementing such formats. Loans or advances have to be processed with specific parameters. You draft a policy for loans and advances, get it approved from the management, and implement the same.

Also, you can tell your seniors that, "Let me check the mood of MD so that you can avoid disappointment. Else, fill the form and give it to me. Let me take approval from an appropriate mood" like. Definitely, you can win their confidence. This would enable your MD some breather, to think and decide on recommendations.

Regards,
Balaji

Dear Lavanya,

You can issue a circular stating that any loan/advance must be duly signed by the management (CEO) and a copy marked to all departments, with one copy to be posted on the notice board. Please ensure that all advance/loan applications are routed through you.

It is important to be firm on this matter, as direct approaches by senior personnel should be discouraged.

With regards,
L. Kumar

Hi,

I think there are barriers between you and the so-called senior employees. Just try to break them; otherwise, it will be a worse situation daily. This is not a one-day activity. For this, you need to develop confidence in the senior employees for your actions and your words. Mutual respect and organizational culture also contribute a lot in this aspect. So please try to bring them onto a common platform.

Good luck.

Regards, Raul

Dear Lavanya,

Please design a rule that any application to the management should be in writing and then routed through the department head and the head of the HR department. This rule is to be circulated through a circular signed by the management.

Regards,
P. Ramachandran