Okay, that being the case I think my recommendation still stands. If you don't know SSIS, this would be a great first project to get you started: read the file names from a directory and write them to a table, which you can compare to your main system's "all employees" data to find the missing folks. The SSIS package could be run periodically to keep the data in the "existing pictures" table fresh, and the output of this query could easily go to a SSRS report.

THIS might be helpful, but I'm sure some Google-fu with "SSIS read filenames in directory" type queries will also get you where you need to go.

Good luck!

~EJM