How To Prevent Your Employees From Stealing From You
Many small businesses have an internal problem on their hands: employees with sticky fingers.
Did you know that losses due to employee theft are higher than those due to shoplifting?
PEEL REGIONAL POLICE Crime Prevention Services lists on their Fact Sheet that:
- Three out of ten business failures are attributed to internal theft.
- Employers lose $3 million per day as a result of internal theft.
- The average dollar loss per employee theft incident is $609.
Employee theft can have a significant impact on small business. If you want to prevent your employees from stealing from you, you must first understand the motivating factors behind employee theft.
Why Would Employees Steal From You?
For any small business owner, employee theft is a difficult subject to deal with. No one wants to think that someone they hired based on good faith could have their hands in the cash drawer. And who enjoys confronting an employee about grabbing too many pens from the supply room.
However, employee theft is a reality for the following reasons:
Removing the first factor, opportunity, will go a long way in reducing employee theft.
How To Prevent Employee Theft
- Proper background checks for every new employee is a must. Ask for references and make sure to follow up on them. You could include a criminal records check, as well as a credit history check especially for financial responsibilities.
- Careful cash drawer control, including surprise cash counts are extremely important. Ensure that the person writing cheques is not the same person signing the cheques.
- Consider partially blocking Internet access to reduce time theft.
- Some research suggests that better paid employees are less likely to steal from their employer. Is it time for a raise?
- Implement access control to limit employees uncontrolled access to automobiles, locker rooms and garbage disposal areas. An audit trail of who-when-where can be invaluable in preventing employee theft.
- Video Surveillance with security cameras placed near cash registers, retail displays and areas with valuable supplies often help with keeping employees honest. High resolution IP cameras can provide the evidence necessary to pursue employee theft.
- Set up a confidential reporting system to encourage employees reporting theft and suspicious activities while remaining anonymous.
In order to prevent employees from stealing from you, you must identify the opportunities for theft and find appropriate ways to remove the factor of opportunity.
For a free, no-obligation security consultation, contact SafewithUlli today. You’ll be glad you did!