What does employee ghosting involve?

Employee ghosting primarily involves the practice of clocking in for fellow employees or creating fictitious employees. This deceptive behavior can occur when individuals misrepresent their attendance at work or fabricate employee identities to benefit from wages without actually performing any work. This fraudulent act can result in significant losses for organizations due to payroll fraud, as businesses end up paying for labor that was never actually provided.

Moreover, the creation of fictitious employees can lead to additional complications, such as having to manage payroll taxes and benefits for individuals who do not exist. Understanding the implications of employee ghosting is crucial for organizations to implement effective controls and auditing measures to reduce the incidence of such fraud.

The other choices present different types of misconduct: skipping work without notification, reporting inaccurate hours, and fraudulent overtime claims, which are all serious issues but do not encapsulate the specific nature of employee ghosting. Ghosting is distinctly focused on the deception involving timekeeping and payroll related to existing or non-existent employees.