What does the term 'fence sitters' refer to in the context of the 20-60-20 rule?

The term 'fence sitters' in the context of the 20-60-20 rule specifically refers to individuals who might commit fraud if given the opportunity. This group represents those who are not firmly in the honest or dishonest categories but find themselves in a neutral position, displaying some level of vulnerability to unethical behavior under certain circumstances.

In organizations leveraging the 20-60-20 rule for performance management, the workforce usually comprises three distinct segments: the top 20% who are high performers, the middle 60% who are average and can be influenced depending on the environment and leadership, and the bottom 20% who are underperformers, often showing negative behaviors. The middle 60%, or the 'fence sitters,' may not actively engage in fraudulent activities, but they possess the potential to do so if they perceive a lack of oversight, peer pressure, or if the perceived benefits outweigh the risks associated with such actions. Understanding this group is crucial for implementing effective financial crime prevention strategies, as addressing their needs and concerns can reduce the risk of fraud occurring within an organization.