How Small Businesses Can Stop Employee Theft
Employee theft is one of the most pervasive problems faced by businesses today, and it continues to escalate at an estimated rate of 15 percent per year. This volume presents the first full-length guide to the alternatives available to companies seeking to reduce both the actual theft of tangible property and the profits lost through cheating on time cards and expense accounts. Theft is increasing due to the economy deteriorating. People are even stealing gas from gas stations and even parked cars due to skyrocketing gas prices!
Employee theft victims were less apt than non-victims to trust the police or have faith that the police could help. Businesses that experience employee theft are more apt to experience other types of victimization as well. Employee theft accounted for over 41% of inventory shrinkage, while only 35% was attributed to shoplifting (Mullen 1). A reason for this is because companies started to direct their attention to and have successfully reduced shoplifting.
Security experts say that as many as 30 percent of the average company’s employees do steal, and another 60 percent will steal if given a motive and opportunity. Some estimates indicate that more than $600 billion is stolen annually, or, roughly $4,500 per employee. Security control depends on what emphasis the security department places on theft, such as preventive measures. Security concerns also extend very specifically to our workplace and potential employees. Changes in today’s business, social, and political climates are creating a greater emphasis on the need for effective background checks of job candidates and current employees.
Employees can steal easily in many ways, with some examples being: not giving the customer a receipt and the correct change, giving back fictitious refunds, and pretending to ring up merchandise for friends. Prevention is key, but if employee theft is suspected make sure you have a good surveillance camera system, the the evidence and call the police.
Employment screening can go a long way in avoiding employment of thieves. A clearly stated policy on both theft and on the disposition of rejected or scrap product should reduce theft within your company.
Employing the services of an outside firm that specializes in Forensic Accounting is the only way to guarantee a swift and thorough resolution to a very difficult problem. Employee and Customer hotlines bring important issues to your attention in a timely manner that allows you to address problems and resolve them quickly and legally .
Employees handle your money. Employees handle your products. Employee dishonesty coverage provides protection against employee theft. Employee dishonesty coverage provides for losses of money, securities, and other property caused by theft or forgery of an employee of the insured, acting alone or in collusion with others. Employees can steal easily .
Employees define what is right and wrong regarding their behavior, and they can rationalize stealing from their employer in their own minds. Thieves normally view themselves as average people in a dishonest world where everyone is just trying to get ahead or to maintain what they have. Employers can identify theft patterns, workplace violence issues or previous sexual harassment problems and react accordingly. Addressing these issues before employment begins is much easier than attempting to correct a problem uncovered after the start of employment.
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