Many business owners spend millions of dollars each year to keep their valuable assets and properties safe from thieves and trespassers. From the finance, retail to the manufacturing industries, implementing security policies and acquiring sophisticated security systems have become the norm, considering the possible losses and damage that theft and fraud can cause to a business’ bottom line and reputation. Nevertheless, despite strong initiatives to keep intruders out, there is one fact that is often overlooked by many business owners—that thefts and heists can actually occur as inside jobs.
Employee Theft: A Business Owner’s Worst Nightmare
Employee theft is a thorn in the side of every business owner, costing businesses more than $5–10 billion dollars annually. It does not only refer to pocketing cash from the register or stealing confidential customer information, but also includes shrinking goods and company supplies, as well as duplicating company’s intellectual properties. When not addressed immediately, employee theft can significantly affect a company’s operations and business relations. That’s why it’s highly essential for organisations to remain vigilant and employ measures to protect themselves from employee theft.
Dealing with Employee Theft
There are various ways business owners can apply to safeguard their business and minimise the risk of employee theft and fraud. Here are some:
- Create a culture of honesty – One of the best measures employers can apply to defend their business from employee theft is by creating and reinforcing a culture of honesty in the workplace, one that rewards loyalty and hard work and does not tolerate indiscretions. Introduce and discuss policies on employee theft openly and consistently, and make it clear to staff that reporting any illegal or suspicious activity is encouraged. A positive business culture often reduces the risk of internal theft, as studies have shown that those who steal from their own employers often do so out of compulsion and disgruntlement.
- Conduct regular audits – Using an independent party to run audits regularly or spontaneously will also help detect fraud or illegal activities. Make sure to include the checking and tracking of office cash flow records, equipment levels, as well as employees’ sick and vacation leaves.
- Invest in security systems – Another way for business owners to prevent and address employee theft is by installing sophisticated corporate security systems. CCTV cameras, access control and alarm systems are effective deterrents for possible thieves. Integrating these systems into critical areas in the workplace, such as cash registers, safes, records and IT areas, is recommended to monitor any fraudulent or suspicious activity. And even if they do occur, it will be easier for businesses to identify the culprits through photo or video footage. There are various security services specialists that organisations can tap to find out what type of commercial security systems is suitable for their business.
- Do background checks – Conducting comprehensive background checks on possible hires is also advisable, especially for vital positions in the company, such as people in the accounts and IT department. Watch out for red flags, such as criminal records, history of suspected theft or fraud, and even poor credit history, as these may indicate responsibility and character issues. Be sure to call references and ask important questions, including length of employment, personality, and work ethic.
No employer wants to be betrayed by his or her own staff. That’s why it’s important for business owners to be pro-active when it comes to detecting and preventing employee theft to ensure financial stability and to maintain a pleasant and harmonious working environment.
About the Author: Debra Wright keeps tabs on all things new in the world of business. Aside from using this information in her current line of work, she seeks to help and inspire others by writing about her newest discoveries. Keep tabs on Debra @debrawrites.
Cover photo credit: CarbonNYC
