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Employee theft can be devastating to a business owner, no matter the value of goods or money that’s been stolen. Financial loss is always harmful to a business, but the demoralizing impact of an employee stealing can be far reaching throughout the company. So, how do you reduce the risk of theft? You need a thorough plan.
How to Prevent Theft in the Workplace
Start by hiring honest people. Use background checks and references to build a foundation of trustworthy employees. Uncovering previous offenses or incidents before hiring could save you time and trouble in the long run.
Establish a zero tolerance policy. Creating and enforcing a policy around prohibited behavior sets clear expectations. Review the policy upon hire and have employees review it annually. It’s also important that you be prepared to prosecute offenders; if one person gets away with an infraction, others will believe that they can, too. Take offenses seriously.
Establish a zero tolerance policy. Creating and enforcing a policy around prohibited behavior sets clear expectations. Review the policy upon hire and have employees review it annually. It’s also important that you be prepared to prosecute offenders; if one person gets away with an infraction, others will believe that they can, too. Take offenses seriously.
How to invest in security
Secure work areas. Lock cabinets, storage rooms, and offices that contain sensitive data or money and entrust the keys only to those who need them.
Set up cameras. Choose locations where money is handled or where potential for theft is high, with cameras that take clear footage. People will typically think twice if they know they are being watched, but be sure that employees know they are being monitored. The camera should be also include space to save at least 30 days of footage, and in the event of an incident, footage from that day should be retained so as not to be accidentally saved over.
Install an alarm system. Prominently display a sign outside of the business stating that an alarm system is present and monitored to deter burglaries and robberies. Educate your employees on the procedure if a robbery were to occur. Robberies are no time to be a hero. Activate alarms and call the police as soon as possible and comply with demands made by the robbers until help arrives.
Use a layered cyber security model. Employee education, network security, and software security are the basis of strong cyber security. Without cyber security an employee or hacker could easily access sensitive data about accounts, clients, or colleagues and use it maliciously.
Set up cameras. Choose locations where money is handled or where potential for theft is high, with cameras that take clear footage. People will typically think twice if they know they are being watched, but be sure that employees know they are being monitored. The camera should be also include space to save at least 30 days of footage, and in the event of an incident, footage from that day should be retained so as not to be accidentally saved over.
Install an alarm system. Prominently display a sign outside of the business stating that an alarm system is present and monitored to deter burglaries and robberies. Educate your employees on the procedure if a robbery were to occur. Robberies are no time to be a hero. Activate alarms and call the police as soon as possible and comply with demands made by the robbers until help arrives.
Use a layered cyber security model. Employee education, network security, and software security are the basis of strong cyber security. Without cyber security an employee or hacker could easily access sensitive data about accounts, clients, or colleagues and use it maliciously.
How to Identify Theft in the Workplace
Financial indicators. Common red flags that theft is occurring are missing money, supplies, or merchandise. You may notice that overhead costs are rising but sales are flat-lining or decreasing.
Behavior indicators. Employees who are stealing may seem like model employees. They come in early and stay late, they work overtime, and never take vacations. They may be overly protective of their duties, fearing that if someone does it for them, their theft will be discovered.
Behavior indicators. Employees who are stealing may seem like model employees. They come in early and stay late, they work overtime, and never take vacations. They may be overly protective of their duties, fearing that if someone does it for them, their theft will be discovered.
How to Investigate Theft in the Workplace
Gather data. Gather video, inventory reports, bank statements, or any other documents that can provide evidence of theft. Always contact your lawyer for legal advice.
Consider the evidence. Is your evidence clear cut? Were there any witnesses? Make sure the data points to a clear answer; assuming guilt will only land you in legal hot water.
Have an honest conversation. Speak with the employee in question and present your evidence, without accusation. Written proof of termination is recommended; consult with your lawyer for advice on what the letter should say.
Consider the evidence. Is your evidence clear cut? Were there any witnesses? Make sure the data points to a clear answer; assuming guilt will only land you in legal hot water.
Have an honest conversation. Speak with the employee in question and present your evidence, without accusation. Written proof of termination is recommended; consult with your lawyer for advice on what the letter should say.
Workplace theft is a crime that costs businesses an average of $50 billion dollars annually. With a multi-layered plan of prevention and response, you can protect your assets and foster a culture of trust in your business.
