Let’s face it—sometimes in HR, we don’t know whether to cry or laugh. Personally, I choose laughter (it’s cheaper than therapy). The recent headline-grabbing situation at Macy’s, where an employee allegedly concealed up to $154 million in delivery expenses, offers a perfect mix of drama, shock, and “how did no one notice this for three years?” energy.
Before you start clutching your pearls (or your quarterly budget report), let’s break down what happened. One employee—yes, just one—apparently went rogue in the accounting department, hiding hundreds of millions of dollars in small package delivery expenses. It’s like a real-life episode of Office Scandals Gone Wild. Macy’s had to delay its earnings release, conduct an independent investigation, and, of course, terminate the employee responsible.
What can HR professionals learn from this fiasco? Oh, plenty. Let’s dive into some key takeaways that will hopefully keep your own organization off the front page.
1. Trust, But Verify—And Then Verify Again
Sure, we all want to believe the best in people, but this situation is a prime example of why internal controls are non-negotiable. Macy’s trusted one employee to manage a massive expense category, and it cost them dearly. HR’s role in this? Partner with finance and leadership to ensure proper oversight mechanisms are in place.
Lesson:
- Audit processes should be as routine as morning coffee.
- No single employee should hold that much unchecked power.
As HR professionals, we’re often the ones stuck with the fallout, cleaning up after an “oops” moment. Let’s make sure “oops” doesn’t become a line item on your P&L.
2. Culture of Accountability—or Lack Thereof?
How does someone hide $154 million for nearly three years without raising a single eyebrow? The answer likely lies in a culture where accountability was either missing or overlooked.
Red flags for HR:
- Employees working in silos with little to no oversight.
- A culture where people hesitate to question or report inconsistencies.
What HR can do:
- Foster a speak-up culture where employees feel safe pointing out issues.
- Train managers to spot irregularities (and not just in timesheets).
Also, let’s normalize asking questions without being labeled a tattletale. After all, there’s a difference between collaboration and turning a blind eye.
3. The HR/Finance Love Affair—It’s Time to Commit
Too often, HR and Finance operate in separate bubbles, only crossing paths when something’s gone terribly wrong (cue panicked phone call about a “discrepancy”). This Macy’s situation is a glaring reminder that HR and Finance should be BFFs, not just acquaintances.
Ideas for collaboration:
- Joint training sessions on risk management and compliance.
- Cross-departmental audits to catch irregularities early.
Because let’s be honest—if the HR and Finance teams at Macy’s had been collaborating more closely, someone might’ve noticed the $154 million black hole a lot sooner.
4. Don’t Forget the Human Side of Fraud
While the numbers in this case are jaw-dropping, there’s a human story behind every fraud. What motivated this employee to go rogue? Desperation? Arrogance? Pure chaos? As HR professionals, we’re in a unique position to dig deeper into the “why” behind these actions.
What HR can do:
- Provide ethical training to remind employees that honesty is, indeed, the best policy.
- Monitor for burnout or stress that might push someone toward poor decisions.
We’re not just gatekeepers of policies; we’re also the ones who can help create an environment where employees don’t feel the need to “get creative” with the company’s finances.
5. Laugh Through the Chaos, but Learn
If nothing else, this story gives us a moment to pause and reflect (preferably with a strong cup of coffee in hand). Yes, it’s absurd. Yes, it’s a little funny in a “this could never happen here—wait, could it?” kind of way. But it’s also a wake-up call for HR professionals to take a proactive role in safeguarding their organizations.
Because let’s be real: if Macy’s had leaned a little more on HR to strengthen their culture of accountability and partnership with Finance, we might be laughing at something else entirely.
So, HR friends, let’s laugh—but let’s also take notes. Because the next time someone asks, “What’s the worst that could happen?” you can now answer, “Oh, just a cool $154 million mistake.” And with that, back to work we go.
Elga Lejarza
Lejarza HR Consulting
