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Five Common Indicators Of Employee Theft
Do you trust your employees? Sure we all want to believe that our employees are honest, and that they would never betray our trust in them by stealing money or merchandise from us. However, the fact is that, statistically, 2 in 10 employees will steal, given the right opportunity. That rate rises even higher when numerous conditions are met.
So, do you, as a business owner, know what to look for so that you can minimize your risk of being a victim of theft by your employees? Below is a list of some common indicators of risk of employee theft:
Evidence Of Theft In Non-Public Areas
If you find empty packages in your back stock or other non-public areas, there is a very good chance one or more of your employees is stealing from you. Even packages in the garbage, etc. is an indicator of theft. Often, employees will try to conceal the evidence by placing the packages, etc. behind other merchandise, in corners, or other places that are not regularly checked.
Discrepancies In Financial Data
Shortages in cash registers is a very common indicator of theft, especially if there is no accountability process for cash reconciliation. However, overages are not just free money. Sometimes, an overage indicates that employees are overcharging customers with the intent to pocket the excess at the end of the day. Unless they are very good, they will inevitably make calculation errors, and you will end up with an overage.
Frequent Visits By Friends Or Family Members
I have personally seen this one many, many times: The employee who gets frequent visits by friends or family who come in to talk, and even make purchases. You may think it’s good for your business, but you may want to take a closer look. One of the oldest tricks in the book is for an employee to pass off merchandise to friends and family by charging for one or two items, but not charging for higher priced items. Or, maybe the employee is so popular because they give great deals, in the form of discounts, on your merchandise, at your expense.
Personal Financial Issues
Not everyone who has money troubles will steal, but it is still something to be aware of. Employees with money problems are more likely to steal than those who are financially stable, in most cases. Things to watch for are employees who frequently ask for a raise, or borrow money from fellow employees, or who talk about their financial difficulties in public, even to customers. The more desperate the situation, the higher the risk that the employee will steal.
Performance Issues
Employees who don’t perform well are a higher risk of theft, also. Those who are habitually tardy, generally lazy, or just don’t seem to care about their job are very often the employees who can easily justify stealing from their employer in their own minds. This is especially true if the business owner is in the process of addressing these issues, and corrective action has been initiated. These employees have no loyalty to the business, nor to the owner/manager. Often, they believe that they are owed something more from the business, and since they aren’t getting “their fair share” from their boss, they decide to help themselves.
Employees whose behavior suddenly changes for the worse is another common indicator that they have become disgruntled, and are more likely to steal from the business.
Of course, this list is by no means all inclusive. In fact, there are many more indicators that can factor in when it comes to employee theft. Also, the indicators above do not necessarily mean that an employee is definitely stealing, just that there is a higher probability that they will, given the right opportunity. However, this list does represent some of the more common indications of employee theft.
So, how does a business protect itself against employee theft and minimize the risk? First, hiring the right people, and checking references and backgrounds on all employees is key to limiting your exposure to employee theft. Next, having a solid program in place that minimizes opportunity and enforces accountability will limit risk of theft even further. Inspect what you expect, and be aware of behavioral changes in employees.
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[...] The Bunker Blog: Five Common Indicators Of Employee Theft “Do you trust your employees? Sure we all want to believe that our employees are honest, and that they would never betray our trust in them by stealing money or merchandise from us. However, the fact is that, statistically, 2 in 10 employees will steal, given the right opportunity. That rate rises even higher when numerous conditions are met. So, do you, as a business owner, know what to look for so that you can minimize your risk of being a victim of theft by your employees?” [...]