Preventing Employee Theft In Your Business
September 10th, 2020
As a business owner, you would never want to think badly about your employees. However, 75% of employees are reported to have stolen from their employers at least once. To make things worse, employee theft costs businesses $50 billion annually.
For a business owner, those are alarming statistics as such actions may put legal, financial, and emotional strain on them as an employer.
Here are some ways you can prevent your employees from committing fraud:
What Can Cause Theft
The reasons for employee theft will vary. However, some circumstances can affect your employee’s decision to steal from your business. You need to understand those motivations and circumstances so you can properly address them.
- Compensation - An employee who feels like they are not being properly compensated for their time and effort will most likely steal to make up for what they think they deserve.
- Revenge - An employee who feels that they’ve been shamed, embarrassed, or ridiculed in front of customers or coworkers may steal as an act of revenge. Similarly, employees who have been dismissed or laid off may also commit theft.
- Financial Pressures - An employee experiencing a financial crisis may commit fraud out of need or desperation.
- Trauma - Traumatic life experiences such as marital status change, death in the family, or other events that may trigger a deep emotional reaction may drive your employee to steal as a way to channel their emotions.
- Outside Pressure - An employee may be pressured to steal due to their peers or even their coworkers.
- Opportunity - An employee may be tempted to steal all because they have the merchandise right in front of them. They may also be motivated to commit fraud due to weak financial control and cash management processes.
Having an understanding of those circumstances can help you identify the problem that needs to be tackled. Simply having a conversation with your employee may prevent theft.
Establish A Work Culture Built On Trust
One proactive way to prevent employee theft is to create a work culture that puts honesty above all. A few ways to do this is to award honesty and punish dishonesty whenever applicable. You may also try extending a certain amount of trust to those who deserve it by giving them responsibilities to show that trustworthiness is rewarded in your business.
Furthermore, get to know your employees outside of work. Trust can’t be built without having a solid relationship with them. Show that you genuinely care about them and their well-being.
Set Up A Whistleblowing Policy
It’s more than likely that one of your employees knows whether or not someone is stealing. Getting tips from other employees is the number one way employers are alerted about theft in the workplace.
Your employees may feel guilty about snitching, so it’s best to set up an anonymous tip line wherein they wouldn’t have to disclose their identities.
Install A Surveillance System
Video camera surveillance systems are an effective deterrent to employees who are planning on committing theft in the workplace. With cameras in place, your staff will know that they have a high chance of getting caught should they decide to steal. With this technology, you’ll also be able to monitor your business remotely.
Protecting your business is easy if you have the right tools available to you. Get professional security solutions today and safeguard your business with our top-notch security system. Contact us today for more information.