The security measures you implement will be more effective when your employees know the values and ethics your business upholds. VComply’s PolicyOps platform empowers organizations to manage policies, reduce risks, and maintain compliance effectively, all while preventing employee theft. Creating a rewards program that recognizes and rewards employees for honest behavior can significantly reduce the likelihood of theft. You can offer incentives like cash bonuses, extra vacation days, or public recognition for employees. These rewards not only motivate employees to do their best but also foster a culture of integrity within the organization.
Company
Consider drug tests for certain positions and review candidates’ social media profiles for additional insights. In an increasingly mobile world, protecting your business assets extends beyond the physical premises. Richmond Security’s mobile solutions allow you to monitor your business remotely. Whether you need to keep tabs on video feeds, manage access controls, or receive security alerts, our mobile tools ensure you’re always connected and in control. In this comprehensive guide, we’ll delve into the causes and types of employee theft, and provide you with effective strategies to safeguard your business assets. By the end of this blogpost, you will have a deeper understanding of the issue at hand, and have the necessary tools to initiate a robust theft prevention strategy.
Control Access to Prevent Theft
Always use pre-numbered checks, with amounts and payees typed or written in permanent ink. Producing all checks from financial software such as QuickBooks is highly recommended. Lock blank checks and a signature machine, if you have one, in a secure place.
Practical Strategies to Prevent Employee Theft in the Workplace
Employees might steal this data if they are planning to open their own venture or to sell it to competitors. Common types of confidential data are 1) previous month sales, 2) customer information of the regular customers. Remember, employee theft is not just a financial loss; it can also damage a company’s reputation and morale. By taking proactive steps, businesses can protect their assets and maintain employee trust. Regularly review your policies to ensure they remain effective and relevant. Implement surprise cash counts and meticulous reconciliation of sales and receipts.
The information on our website cannot be considered a substitute for legal and binding advice for any specific situation. While we strive to provide up-to-date and accurate information, we do not guarantee the accuracy, completeness and timeliness of the information on our website for any purpose. We are not liable for any damage or loss arising from the use of the information on our website. Now that we’ve explored the different types, let’s explore some important measures on how to stop employee theft. An organization can create an environment that deters and detects fraud and abuse by taking into consideration the concepts above.
Some businesses also install security devices to monitor merchandise or inventory. Protecting your business from crime is on your mind if you’re a small business owner. If you’ve only been wary of outside threats like shoplifting and cyberattacks, you might be overlooking potential criminal activity occurring within your company. Employee theft is a serious problem that often goes unnoticed, and the financial damage it causes can be devastating to a small business.
Pilfering Goods or Gear—They may steal physical items, anything from office supplies to valuable equipment. They might quietly slip items into bags or hide them among personal belongings to whisk them away unnoticed. Shiftbase will help you plan enough staff to meet the demand and still keep your costs as low as possible. This article was contributed by Steve Thomason, Managing Director in LBMC’s Audit practice, based in our Chattanooga office. You can reach Steve at to discuss how our team can support your organization. As artificial intelligence technology continues to develop, the demand for workers with the ability to work alongside and manage AI systems will increase.
Employee screening should include federal, state and local background checks, verification of at least two applicant references, MVR checks and a social media screening. Employers should verify the information provided and confirm that it is truthful. Many background checks allow employers to verify degrees from accredited universities. Protecting your assets can help ensure your organization maintains profitability. This can enable your organization to deliver reliable and timely service while safeguarding income and customers.
Prevention strategies
Use workplace management software to ensure that there are at least two employees working at any given time. Use a system that makes it easy to replace a worker who is called out. One way to make employees feel like you care about them is to offer them adequate pay.
It also makes it less likely that employees will accept fraudulent returns or voids if they need a manager’s signature to process the transaction. Here are 13 top-tier ways to prevent employees from stealing—so you can safeguard your assets and maintain a strong, honest workplace. Such technology is already a part of many workplaces and will continue to shape the labor market and HR. Here’s how employers and employees can successfully manage generative AI and other AI-powered systems. Not one business is immune to it, which is why preparation should come first. But managing a business can be hectic, making looking for any warning signs less than simple.
Use real-life examples and case studies to illustrate the impact of theft on the business and its employees. Encourage open discussions about ethical dilemmas and provide guidance on how to handle them. By fostering a culture of ethics and awareness, businesses can reduce the risk of employee theft and promote a trustworthy work environment. Regular audits and inventory checks are essential for detecting discrepancies and preventing theft. Conduct random audits of financial records, inventory, and other valuable assets to identify any irregularities. Implementing a robust inventory management system can help track stock levels and identify shortages.
Our VSaaS solution shows you what you need to see while skipping the rest. If you notice behavior changes, it is worth seeing if the staff member is ok. It may be that they have stolen something, or there could be something else bothering them. The latter is important to find out about as well and leads to our next step. Don’t worry, the next few points go beyond your hiring process and offer advice you can use even during a labor shortage. Your cash handling procedure should be reviewed regularly to make sure that it remains as secure as possible.
Knowing how to stop employee theft requires a structured approach to combating the problem using clear policies and controls. If your company currently has an annual audit by an independent CPA, they will already be assessing your internal controls and providing you with a report with suggested improvements. If you do not currently have an annual audit, you can engage an independent CPA to perform an internal control assessment consultation to identify weaknesses and potential improvements. It should define all the different types of employee theft and the consequences if an employee is found stealing from work. It is a data collection system that helps you find anomalous transactions that might be signs of employee theft.
Focus on Employee Satisfaction and Training
- It’s also wise to check their hobbies before making hiring decisions.
- Monthly financial statements are reviewed by the management team and the board of directors or owners.
- They sometimes do this by under-reporting the sales amount and keeping the difference.
- Many background checks allow employers to verify degrees from accredited universities.
Most employees are loyal and honest and they would feel aggrieved to know that someone is stealing from their place of work. Make it easy for employees to report their suspicions by setting-up an anonymous tip line. In addition to segregation of duties, an organization must also implement controls can prevent employee theft organization-wide policies and procedures.
Industry Solutions
- Over 50% of cases occur in employees with a tenure of five years or less.
- Consider introducing time-based access controls, restricting certain sensitive operations to specific day periods.
- Sadly, the most trusted people in your business are the ones who have the opportunity to steal.
- Consider drug tests for certain positions and review candidates’ social media profiles for additional insights.
- Lack of employee awareness and training is one of the biggest threats to data security.
- Employees are more likely to report misconduct when they know they can do so safely and discreetly.
Besides a warehouse security camera, make it a rule to check the inventory at a certain time of the month and carry out some random check also. For example, you may make a list of it and counting how much you have in front of them time to time. When you ring something up and the sale price is going to be in the computer, and that will tell you how much money should be in the drawer at the end of the night. If you use the POS, there is no way for employees to pocket the money because the system knows how many items are actually sold. Thieves have learned that aggression can cause staff to back away, making retail theft a comparatively low-risk crime.