7 Strategies to Discourage Employee Theft

If you run a small business or a startup, employee theft can have a large impact on you. You aren’t rolling in money, and you can’t afford to lose much. You also aren’t working with a budget that will allow you to hire an excessive amount of loss prevention professionals, and you may not be able to put a camera in every corner of your workplace. If you’re concerned about potential employee theft, there are plenty of free or inexpensive things you can do to get a handle on things.

 

1. Watch for Strange Behavior

If someone is early to arrive and quick to leave, they may be hiding something. Employees who frequently object to or ask a lot of questions about common procedures, particularly those relating to the security of your business, may be a cause for concern. Sometimes, behavioral changes can be related to employee burnout. Just make sure you address these issues with an employee as soon as you notice them. If burnout isn’t part of the equation, you may want to keep a closer eye on the employee in question.

2. Spread Out Responsibilities

If you’re putting too much power in one employee’s hands, this employee can be using his or her own authority to cover up any misdoings. If the same person counting the money is responsible for auditing their own count, that’s a recipe for disaster. Don’t put too much in one person’s hands. It will go a long way in keeping everyone a little more honest. Other people will be able to spot mistakes after the happen, whether they were intentional or a result of theft.

3. Plan Some Surprises

Never let anyone know when auditing or inventory is coming up. If employees know things can be checked at any moment, they may be less likely to take a risk. If you conduct these checks without announcing them ahead of time, thieves may be quick to come up with excuses or remove themselves from the situation entirely. The looming possibility of a surprise check serves as a powerful deterrent. No one will have time to cover their tracks, and that just may keep them honest.

4. Double Check

Check and check again on everything. Have a chain of checkers. It doesn’t matter what exactly it is that you’re checking. It could be accounts or even back stock. Whenever you check something, have several people review the figures to make sure everything checks out. This is more than just a theft deterrent – it’s also a great way to make sure you have your numbers right. Accuracy is convenient for budgeting and drawing up projections.

5. Address Loss Prevention Often

If you’ve noticed some unexpected shrinkage or you already know someone has to be stealing from you, address it at a meeting immediately. The longer you allow it to go on, the more will wind up missing. Explain to your employees without accusing any of them (in order to avoid uncomfortable interactions with employees who have nothing to feel guilty about) that things are coming up missing, and address any new procedures you want to introduce in order to prevent this from recurring in the future. Lay the groundwork to welcome any employee who may know something to come forward.

6. Be Visible

It doesn’t matter how busy you are – you’re going to need to supervise your employees. Employees with bad intentions are far more likely to steal if they don’t have to work very hard to do so. If they’re unsupervised, they’ll be able to do whatever it is they’re going to do with little risk. Try to stick around. If you can be working on something around your employees, stay within their line of site. This prevents theft while also boosting productivity. No one will be likely to slack off with the boss just a few feet away.

7. Have a Safe Reporting Policy

No one wants to be perceived as a “rat”. Employees who have noticed other employees doing things they shouldn’t be doing may be afraid to come forward out of fear of retaliation. Good people nearly always want to do the right thing, but they’re sometimes trying to avoid awkward confrontations. Allow employees to report suspicious behavior or theft to you in person with a guarantee that they’ll never be mentioned as the reporter. You can also set up a box for written anonymous tips or accept them via email.

It’s important to remember that the overwhelming majority of your employees won’t be looking to steal from you. Most people just want to come in, do their jobs, and go home without damaging your business. Never be hyper critical unless you know for sure that theft has actually occurred.

 

Author: Lucy Taylor is a law expert supporting LY Lawyers, a reliable and affordable law firm from Sydney. Lucy is also an avid blogger who enjoys finding solutions to law issues in everyday life.