Small Businesses: How to Reduce Employee Theft
Updated: Aug 4
It’s hard to think that the employees you trust your business with may be stealing from you but it may be more likely than you think. According to a survey done by Jack L. Hayes International, a loss prevention consulting firm, one out of every 27 employees was apprehended for theft in 2016. Thankfully, there are ways to secure your business and prevent opportunities to steal from arising.
Hire smarter. Performing background checks and even drug tests can help you weed out any bad hires. In fact, employees with drug addictions are at a higher risk for stealing. Checking your interviewee’s references can also help you ensure that a potential hire is trustworthy and low risk.
Employee theft is more likely to occur when an employee is left alone. Always having at least two employees working together, particularly during opening and closing hours, can limit the opportunity to steal. The president of Jack L. Hayes International, Mark Doyle, recommends having all refunds and voids witnessed by a second employee.
Create an employee tip line. By providing a safe and confidential space for employees to disclose information to you about employee theft, you may be able to prevent the likelihood of theft. This is because the more paranoid an employee will feel from knowing their coworkers are also watching out for theft, they’ll be less likely to commit the crime. You can choose to offer employees rewards for disclosing information, or set up an anonymous locked box, as well as having all tips go to a certain email address.
Set up a checks and balances system in your office. If one person writes a check, have another person reconcile it. If everyone is held responsible for certain actions in particular, you can limit all chance of fraud.
Installing security cameras can let employees know that you’re keeping an eye out. These are particularly a good idea if your employees regularly handle money or inventory. You can also catch the burglar much easier when you have tangible evidence.
Get to know your employees better. Making a personal connection with the people you work with can make them rethink stealing from you or from your business. After all, it’s much easier to steal from someone you don’t know very well.
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AZ Insurance Team 480-535-5709 https://www.azinsuranceteam.com
*All policies are a little different and this may not be applicable to your insurance policy, talk to your agent to see what your policy covers.*