EMPLOYEE THEFT IN THE 4TH QUARTER

theft (2)It always seems that as we get into the 4th quarter, cases of internal theft seem to rise. Every year for the past 8, I’ve dreaded the case load that I know will be coming in the next three months. While it is impossible for me to predict, with any certainty, internal theft cases at any point in the year, I can always guarantee that each one of my 29 stores will have at least one case in the next three months. Good thing I’ve got my bags packed.

I would almost bet that I’m not alone here. Those of you reading this right now have experienced the same thing. Yeah, sure, we see employee theft cases all year long, but why do they seem to increase during the end of the year? Are more people just desperate to satisfy those wish-lists? Is it driven by greed for the season’s hot new electronics? Is it our temporary associates, who may not receive a background check? Probably a little bit of all of those.

Holidays bring pressure, especially if you have a family. Even more so if you are struggling financially. Those children surely need a new tablet, even though rent may take up an entire 2 weeks’ salary. Let’s not forget about utilities and groceries, clothes and other essentials. If someone is desperate enough, Santa will pass, but it will be on your dime. I grew up in poverty. My father worked long hours for minimum wage, and my mother raised 3 kids. When the holidays came around, I can remember my mother taking on temp work and my dad taking on another job. Nowadays, it seems as that type of work ethic is completely unheard of. Why work yourself to death, when you could just steal what you want.

Our employees also have greater access to product. Even before that new tablet hits the display, an employee has to take it off the delivery truck. Chances are, these receiving employees are grossly unsupervised, and can simply cart it out the back door. Just last week, I had a case where two guys were doing just that. They had bilked the store for nearly $10k in product that never made it to the sales floor. The managers learned a very hard lesson about supervision, as well as back door procedures. Employees also learn our system and understand where our weaknesses are. Last year (same store as the first example), the hard-goods employees (all 10 of them) were taking cash payments from customers and loading up bulk items like treadmills, ride-on toys, and basketball goals. The store has a procedure in place for a supervisor to verify all receipts prior to bulk items being taken out. The store was not following this program and it costs them well over $75k.

Temporary workers are another pain in my side. Obviously, we need the additional support in the 4th quarter. Hiring is essential, but hiring the right person is even more so. My company waives the background check process for temporary hires. It’s the reason I’m bald at 28. There are better alternatives out there. I know a ton of other retailers also have this practice. It’s not good for business. Yes, these people are only working for you for a limited amount of time, but they can do serious damage in that time. Just last year, two temporary cashiers embezzled nearly $30k in one of my stores by processing fraudulent return transactions. Upon their arrest, we saw on their criminal records that each had multiple arrests for embezzlement and shoplifting. They would have never been offered employment outside of the temp hire period.

There is no quick fix, or simple solution to employee theft. As managers and business owners, you have to take proactive steps to minimize your losses. Employees will always find ways to steal from you; it’s your job to make it increasingly difficult for them to do so. The key to a strong 4th quarter is clearing your store of product, just not through the backdoors. 


THE IMPORTANCE OF CUSTOMER SERVICE

theft (13)For me, this is the last week of the 3rd quarter. It’s already that time of year once again. In just a few short days, the 4th quarter will ramp-up and shoppers will be in a tizzy as they check their loved ones off that holiday wish list. I just read a national report that predicts consumer spending this season will be at its highest point since 2008. That’s fantastic news to us retailers. We are poised to post some record sales in the next three months, provided that we execute to our fullest potential. What keeps the customer coming into your store? Is it your customer service levels?

I am a champion of customer service. Like many before me, prior to my LP career I was a store manager for a big box retailer. You can set all the POGs, put up all the proper signage and all those other corporate tasks, but you will find yourself on a lonely island if your store is not customer centric. It’s a two way street. Attentive and responsive employees will help drive sales. They will also reduce shrink.

Take for example a customer shopping for a treadmill. Sure, they could come into the store, pick out the item themselves and cart it out. You just made a $500 sale and you really didn’t have to work for it. Did that customer get the foam mat to protect their floor? What about the silicone lubricant for the belt? How about a new pair of running shoes to prevent an injury, or even some fitness supplements to help them with their workout routine? What if by not speaking with someone on your staff, they purchase a treadmill that doesn’t fit their activity level? You may have very well left an additional $50-$100 on the table in add-on sales. Why would you leave all these extra dollars out there?

My company, like so many others, runs a survey. Customers can call in the number on the back of the receipt and share their in store experiences. I often review these for opportunities in the store. One thing I see the most is that customers feel “ignored”. Is it so hard for our employees to simply greet a customer? I see it so often. Employees who are too task oriented, who whizz past our customers without as much as a greeting. Do you see that in your store? Is it acceptable?

Let’s talk shrink. This is an LP centered magazine, right? Do you know that the very best method for reducing shoplifting losses is? If you guessed customer service, give yourself a pat on the back. First and foremost, a thief never wants to be acknowledged. If your employees are engaging and monitoring their areas, a thief will not have the opportunity to steal your merchandise. When my LP team completes a shoplifting report, there is a checkbox at the end of the report. It asks simply if the suspect was ever provided customer service by an employee. When I get those reports that say “no,” I use that shoplifting incident as a tool to coach the managers of the store, and show them a customer service failure. By training your employees to give high levels of customer service, you can and will deter criminal activity.

Customer service isn’t just telling a customer hello. It’s about each and every employee going the extra mile to satisfy your customer. Every single person that comes through your doors has a choice. They are choosing to give you their money. You, as a manager, should be honored by that choice. You should make it a core philosophy in your building that the customer is the most important aspect of your business. Strive to be the store that people will shop at, no matter the distance from their home. Engage your customers, leave no money on the table and be proactive in reducing shoplifting losses. Remember, customer service means money in your pocket and less product walking out the doors.


What Is The Profile Of A Shoplifter?

shoplifting2

There is no profile of a shoplifter. And although lately some retail stores have been charged with profiling shoppers, the truth is, you cannot know whether a customer entering your store is a shoplifter or not. Security cameras, loss prevention officers and well trained managers can help a business with shoplifting.  But making assumptions whether this particular customer is a shoplifter can, in the long run, make your business loose more money by engaging in profiling.

For more about this and other news follow the links below.


Ex-Trooper Who Shot Man Arrested for Shoplifting

Columbia, SC (WLTX) – A former South Carolina Highway Patrol officer who shot a man during a traffic stop last year has been arrested on a shoplifting charge.

Sean Groubert, 32, and his wife, 23-year-old Morgan Groubert were both arrested back on October 18, according to the Richland County Sheriff’s Department.

According to an incident report, the two were at the Walmart at 10060 Two Notch Road. A loss-prevention employee at the store said the two were at the self-checkout register paying $29.84 for items worth $136.04. The employee told deputies the men had changed the price tags on the items.

Both were booked at the Richland County Detention Center. Groubert’s lawyer said his client is accused of stealing food.

At a hearing Monday morning, a judge did not revoke bond for Sean Groubert on the charges he’s facing related to the shooting, but did order him to be on house arrest without electronic monitoring. Sean Groubert asked the judge to keep him out of jail because he said his wife is expecting a child and he’s the only source of income.


At odds over shoplifting policy in Knoxville, Tennessee

KNOXVILLE, Tenn. (AP) – The Knox County District Attorney is taking an aggressive new approach against shoplifters that could land repeat offenders in prison for years.

District Attorney General Charme Allen has authorized the use of felony burglary charges to prosecute petty thieves who return to the scene of their shoplifting crimes, the Knoxville News Sentinel reports (http://bit.ly/1RspPlA). The policy, enacted a few months ago, is untested in Tennessee’s appellate courts, according to attorneys.


Montana State player pleads guilty to shoplifting

BOZEMAN, MONT. 

A Montana State men’s basketball player has pleaded guilty to misdemeanor theft for shoplifting from a Bozeman grocery store.

The Bozeman Daily Chronicle reports (http://bit.ly/1OlokYC ) 22-year-old Shikei “Shy” Blake pleaded guilty to Bozeman Municipal Court on Oct. 21. Sentencing is set for Nov. 18.

A citation indicates the theft happened on Sept. 20 at Town & Country Foods. No additional information was available.

MSU coach Brian Fish declined to comment.

Blake is a junior center from Wilmington, Delaware, and transferred to MSU from Northeastern Junior College in Sterling, Colorado. He arrived on campus in late July.

The Bobcats open their season with an exhibition game Tuesday against Northwest Indian College.


State’s shoplifting laws handcuff retailers

The other day, I walked out of a hardware store without making a purchase because I couldn’t get a clerk to come unlock the anti-theft hook from which the item I wanted was dangling. My petulance came cheap because I knew I could buy the same item at any number of other places, but it made me wonder how often anti-theft devices do double duty as anti-sales devices.

According to the 24th annual National Retail Security Survey, American retailers lost $16.7 billion to shoplifters in 2014. Since the study looked at inventory shrink, it apparently didn’t factor in the cost of anti-shoplifting devices – or lost sales to customers irritated by them.

Nor, apparently, did it include the cost of chunky tags on clothing, swiveling surveillance cameras and the hiring of loss-prevention specialists, those retail employees whose jobs have nothing to do with selling or customer satisfaction.

We’ve grown accustomed to the sight of uniformed guards standing sentry near store exits and patrolling the parking lot the way cowboys once rode the fence line. According to federal statistics, private security guards now outnumber certified law enforcement officers by a 3-2 margin. Security, in America, is increasingly a product to be purchased.


Shoplifting and Racial Profiling

theft (12)Experts agree that shoplifting can be reduced by having a trained team of employees and managers at the store.   Shoplifting seminars or shoplifting prevention training can help reduce shoplifting at your store, and let you keep more of the profits. By training your employees you can avoid racial profiling, or at least mitigate it and avoid lawsuits that are costly for you. For more about this topic, follow the links below.


The black man arrested in Georgetown because he looked like a shoplifter

An hour after Bilaal Briggs clocked in for work at Sports Authority in Arlington on a mid-May morning, a tall African American man walked into Georgetown’s Zara. He grabbed some clothes and, when a manager spotted him, bolted out of the store. The manager called police and dispatched a warning on a private messaging app that hundreds of Georgetown retailers, residents and officers use to discuss people they deem suspicious in the wealthy, largely white community.

“We just got hit,” wrote the manager, Neetu Kaur. The description: “African American male 6’2 tattoos of stars on right side of neck and a tattoo of letters on the left side of his sideburns.”

Two days later, Briggs, who is black, 6-foot-1 and has tattoos of stars on his neck, arrived at Zara to buy a shirt he had placed on hold. The manager spotted Briggs, mistook him for the thief and called police. Within minutes, Briggs was in cuffs, wondering what had happened.


Police to start charging businesses for ‘excessive’ shoplifting calls

LANCASTER, Pa. (WHTM) – Surveillance cameras keep a watch on anyone who walks into Keystone Fireworks in East Lampeter Township.

Business owner Kevin Shaub says that’s one of the reasons they’ve never had a problem with shoplifting.

“Our product, being that it’s generally a fairly large product, doesn’t lend it to be easily shoplifted,” he told ABC 27 News.

Township police told ABC 27 News they’re getting called to more than 300 reports of shoplifting a year and have been burdened by the amount of shoplifting calls from retailers.

That’s the reason behind a new ordinance which calls for business owners who make “excessive” shoplifting calls to pay police.

Businesses who call officers more than 10 times a month will have to pay $250 for each call.


Stores using app to detect shoplifters accused of racial profiling

Some businesses in an upscale Washington, D.C. neighborhood are accused of racial profiling through a mobile app that allows shopkeepers to alert each other — and police — through private messaging about people acting suspiciously in their stores, reports CBS News correspondent Jeff Pegues.

In trendy Georgetown, store owners will tell you shoplifting is part of the cost of doing business.

“The type of people that is more like a shoplifter, they come here all the time, they go to that same item, they get the feel of the store,” said Keisha Green, an employee at the Sports Zone Elite.

In the last 60 days alone, police recorded more than 120 thefts in the heart of Georgetown.

To counter crime, businesses are using an app called GroupMe. It works like a private chat room, in which 380 members — including merchants, employees, community leaders and on-duty police officers — send each other descriptions and pictures of customers acting suspiciously.

But in Georgetown, where nearly 80 percent of residents are white and have a median household income of almost $120,000, the vast majority of the reports are about black customers.


You Can’t Afford to Ignore Employee Theft

theft (2)People like to believe that the hard work, dedication and sacrifice that goes into starting and building a business will be rewarded, but that’s not always the case. It’s sad to see a business fail, especially when an owner has put a lot of time, energy and money into it.

It’s particularly troubling when the reason for the failure is employee theft or occupational fraud (stealing money, property and time).  Occupational fraud accounts for about 30% of small business closures per year (U.S. Department of Commerce).  It’s destructive to them because they’re unable to absorb the losses created by the fraud. 

The 2014 Global Fraud Study “Report to the Nations on Occupational Fraud and Abuse” estimated the average small business loses about 5% of revenue each year to fraud (The Association of Certified Fraud Examiners).  When they have small margins 5% can be the difference between profit or loss — the difference between remaining open or closing the doors. 

Most owners don’t think their employees are stealing from them.  They believe their workers are more honest and loyal than the average.  If they do suspect theft they ignore it by rationalizing “it’s not much”.  They assume the statistics are because of the other guy’s workers, who must be taking a lot from him. 

Unfortunately, that’s not a valid assumption.  There have been many studies, done over decades, about employee dishonesty and the results are interesting — as well as disheartening.  Depending on the study, 75% — 85% of people admit that they have in the past, are currently or will in the future steal time, money or property from their work place.

One of the constants, in the studies, is the conclusion that how an employee is treated doesn’t have much to do with whether they commit fraud or not.  They’ll take from a boss who they like as well as from one who they don’t.  Some of those 30% of business who failed were run by nice guys.  No small business owner can afford to ignore occupational fraud.


After Dark Is Not Just For Vampires

Money1For Retailers there are a number of scary things that happen when the sun goes down. As we get into fall it becomes darker, earlier. This can become problematic for us. We have issues that get magnified with darkness that concerns employee/customer safety and the safety and security of our businesses. There are the usual concerns of employees walking to their cars after closing and the like. I want to bring up some that you may have not considered.

Employees – Are you taking your deposit after closing? Night makes this a much more dangerous task. Consider changing this to mid-day. Take it at lunch time. Lock the deposit into the safe overnight. Then take it during the day when there is less risk. Safes are not very expensive. $400 will get you a decent safe. Bolt it to the floor so someone does not steal the safe. When you take the deposit to the bank conceal it in something other than the bank bag. Let’s not make it too obvious. 

Robbery – Many of us never discuss this with our folks, we should. What is your plan? Do they understand that their safety and the safety of your customers trump everything else? If you are not sure what you should do or say, contact us.  I can send you a draft policy and some materials you can use (free of charge and I am not going to try to sell you anything). 

Customer and Employee Safety – Yes you could be liable for something that happens while on your property. This includes your parking lot. Even if you are leasing in a strip center. If there are lights out in the parking lot or if it is poorly lit then do or say something. An email to the management company or property owner will put them on notice that you have a concern. If you have control, get it fixed. If there are people hanging around that you are uncomfortable with, then contact the Police. Ask to meet with a Sgt. or Lt. over your area. They would rather prevent an issue than deal with the results. If the department has public business meetings, you should attend. This will give you information on crime trends in your area and ideas on how to combat them.

Speaking of the Police, have you taken the time to make acquaintances with the Police Officers working your area? Do they know that you always have a cup of coffee available and want their presence in your store? Do they know that you encourage and support their efforts? A uniform officer and a patrol car in the area of your business goes a long ways to preventing problems. 

As a former Police Officer, I can tell you that these things mean a lot to them. The majority of contact they have with people is with criminals and victims. Normally they do not see the rest of us as we are not their normal “customers”. Especially in today’s times a kind word, show of support and asking for their opinion and guidance mean a lot to them. Do this enough and when you really do need them, They will be responding to the face of a person they know instead of an address.

Remember, those Officers, their spouses and friends are also your potential customers.

Shoplifters – Remember that shoplifters need one thing to ply their craft: concealment. Even if you have a Checkpoint System make sure that your store is brightly lit, that there are no hidden spots that make a shoplifter feel warm and fuzzy about concealing merchandise. Make sure that your folks fully understand your vision of customer service. Staff that display good customer service skills will shut off most impulse shoplifters. Consequently good customer service skills are not just a tool for sales but a weapon against shoplifting.

Customers that have Checkpoint Systems that LPSI installed can always schedule a free, live on-line shoplifting seminar. We are happy to help. October is a great time to schedule this before the holiday season gets in full swing. This will help raise your staff’s shoplifting awareness for the holidays.

Let us know, if we can help you get ready for your holiday selling season!


TAKING CARE OF THE PEOPLE WHO TAKE CARE OF YOU – HOW TO MOTIVATE YOUR LP TEAM

image3-NEOBIZMAGI’ve had the pleasure of running the most productive team of LP agents in our company for quite some time. My team of 10, who cover markets across the Southeast, consistently make solid cases day in, and day out. Not too long ago, my peers put me on the spot at a regional meeting and asked what makes my team so successful. We have the same number of people in markets like Houston and Atlanta, who don’t have the number of cases that we do. So what’s the secret to success?

Hire the right person

From the time I have an opening, I look for the perfect candidate. I actively go out and recruit when time permits. I’ll reach out to my industry peers and find out who their top performers are… and not so shamelessly try to lure them away. I have never once settled for a “warm body” hire, as I see all too often in our stores. I not only need someone who can catch a thief and build cases, I need someone who can work alone, who has a strong work ethic and can build partnerships with stores teams, managers and local law enforcement.

Pay for performance

When you find that right person, don’t let a few dollars come in the way of a great hire. Money is a great motivator and in this field, you get what you pay for. Spending that extra payroll can pay off for you in the long run. This assures that you are getting someone who will be dedicated to their job in addition to being less likely to go rogue and cause you a potential lawsuit. Remember, you can get a job flipping burgers for $10/Hr. is that the quality person you want on your team?

Training

I don’t care how much experience someone has. When they come to my team, they all get the same amount of training. I often hear store managers say that “they don’t have time to train new store employees.” That makes me cringe. Without proper training, you are setting a new hire up to fail. I personally provide the first 2 weeks of training to all my new hires. Yep, I scrub down to a t-shirt and shorts and work the floor, just like the old glory days. After that 2 weeks, I have them shadow 2 of my top performers for another 2 weeks each. 6 weeks of training altogether before they are ever released on their own. There is always time to train.

Set expectations

Time and attendance. Cases. Personal code of conduct. Interaction with managers/law enforcement. All these areas need to have certain expectations set in stone. I expect my team to arrive to work on time each day. I expect them to make solid cases each week and I expect them to conduct themselves in a professional manner at all times when interacting with anyone on behalf of the company. This also includes shoplifting suspects. When someone on my team fails to meet those standards, you can bet your paycheck they will be called out on it. I don’t accept sub-par performance in any job category; neither should you.

Motivate, Motivate, Motivate

I can’t stress that enough. A productive team is a motivated one. Find ways to get your team motivated. For me, the simplest, yet most effective method I’ve found is free food. My top performer each month gets a $30 gift card to the restaurant of their choice. I also find the time to spend at least a few hours each month with my team and when possible, buy them lunch. Twice a year we’ll do a cookout as well. I’m telling you, free food is a motivator. Try it out.

Aside from free food☺, I find that calling out great performance motivates everyone. Just last week, one of my agents made a $1,500 shoplifting stop. I publicly recognized him for his work and 2 more of my agents made $1k stops that week. Would they have made those stops anyway? Maybe? What I can tell you is that there exists this atmosphere of friendly competition amongst my team. Seeing their peer get recognized undoubtedly made them more focused in order to gain that notoriety as well. Just as you call out the bad, always call out the good.

Communication

This is my “cliché” for a successful LP team, but it holds water. Each week we all get on a conference call and talk about the previous week. I’ll let each one of them talk about their apprehensions and what they could’ve done better during each case. This is also an opportunity for me to bring up any concerns I have, company initiatives coming out, or any other house cleaning that I need to speak to. This is also a great time to discuss new trends and big time boosters that we need to focus on. If you’re not speaking with your team regularly, then you’re leaving valuable information on the table.

Weekends/scheduling

We’re retail. We’re busier after 4 and on the weekends. Does that mean you have to work your team a closing shift every night and every single weekend? No. (I heard the collective gasp.) Remember I told you my team is the most productive in our company. Guess what? They only work 1 ½ weekends a month. That’s right. I schedule them to work one weekend and one additional weekend day. During the busier holiday times, we might increase that a little bit, but it’s important to keep those in there to prevent burn out. I give them a free extra weekends off, they give me plenty of shoplifters. I have no complaints. I also don’t schedule them the same mid/closing shifts every day. I vary from  openings, mids and at least one close per week. Again, I try to prevent the burnout of working a close every Friday, or all day every Saturday.

You’ve more than likely heard plenty of these before, however applying them to your LP team can be highly beneficial. We have to remember that those we employ are put in incredibly stressful and often potentially violent situations each and every day. The idea that they get up and are happy to come to work each day is a true testament to their character. I had a boss a long time ago tell me that employees are people first and employees second. You take care of the people who take care of you. Those two lines are how I run my team and it’s never let me down.


The Habitual Shoplifter

shoplifting2According to the National Association for Shoplifting Prevention (NASP) there is no profile of a typical shoplifter. 

And while three quarters of the shoplifters are adults, the rest are under age persons. Men and women shoplift equally, and more than three quarters of the shoplifting done in the United States is considered opportunistic.  Habitual shoplifters, which according to the NASP steal an average of 1.6 times per week, employee theft and organized shoplifting rings are a major concern for the retail industry, and the cause of billions of dollars of loses.

For more about this and other topics follow the links below.


Habitual Shoplifters are an International Concern

Shoplifting and other forms of retail theft cost retailers tens of billions of dollars each year. As a result retail leadership has learned to recognize the value of a well-trained management staff and a professional loss prevention department. We have learned to drive operational efficiency, and ensure that controls are in place and adhered to throughout the organization. We have learned the value of deterrence, limiting the desires and the opportunities for theft and other losses by integrating loss prevention concepts with retail practices. We have embraced a belief in training and awareness as being at the heart of a successful loss prevention program.

Despite our best efforts, there will always be those that will test our resolve. For those retail loss prevention professionals that must deal with shoplifters every day, we are trained to recognize that a shoplifter can look like anyone—shoplifters are not bound by gender, race, creed, or social standing. Professionals are trained to identify patterns of behavior and must follow strict protocols before shoplifting suspects can even be approached. There are well-defined principles that guide our decisions, and clear steps that must be followed before an apprehension is made.

But there are times when specific individuals will draw our immediate attention. Based on well-established patterns of previous behavior, the habitual thief—those that are known to have stolen from us on multiple occasions in the past—deserve our efforts and focus. While not a definitive indicator of future intentions, their presence in the store warrants priority consideration.


Teton Village Sports shoplifters arrested

TETON COUNTY, Wyoming –

Two suspects in a recent shoplifting were arrested after they returned to the same store wearing the clothing the store managers say they stole.
On Saturday at 10:24 AM the Teton County Sheriff’s Office received a call from an employee of Teton Village Sports reporting that the suspects from a shoplifting incident earlier that week were back in the store. They were reported to be even wearing the same clothes they had been wearing when captured on surveillance video earlier.

Teton County Sheriff’s Office deputies, who were patrolling the area, arrived within seconds and positively identified the suspects as those wanted for the original crime. The deputies say that the suspects were in the process of victimizing the store for the second time.


DO YOU HAVE A ROBBERY POLICY?

shoplifting6Like it or not, there exists a chance that your store will fall victim to an armed robbery. Why? It’s very simple. Your store has money inside. There are those that refuse to work for a living and will resort to a robbing innocent people like you and me. What would you do if faced with that situation? Would you, or your employees know what and how to react in order to prevent injury, or loss of life? Do you have a robbery policy in place that all employees are familiar with? If not, well, it’s time to put pen to paper.

Just within the past month, one of my stores were robbed by tow gunman during business hours. Two men walked into the store, approached the cash office with guns drawn and demanded our money; my money. Luckily, my employees did exactly what they were trained to do and the goons left before anyone was injured. Sometimes, retailers aren’t so lucky. There was a recent story on local news where the same situation occurred at another store and the owner fought back. Unfortunately, it ended in tragedy when the robbery turned into a homicide. That’s not something I ever want to go through.

If you’re created a new robbery policy, I’ll give you some points to consider. Most importantly, there is nothing in the store worth losing your life over. Nothing. Nada. Zip. Zilch. Everything inside those four walls can be replaced. You, your employees or a customer cannot be. In your policy, you should explain that. Train your employees to comply with all demands and get the thieves out of the store as quickly as possible. Most importantly, do not call 911. It’s going to be automatic for people to start pulling out cell phones. DON’T! The response time to a robbery in progress call will be hot and heavy. You don’t want the police showing up with gunmen still in the store. There could be a shootout, potentially hurting people in your store, or you could be faced with a hostage situation. Neither are great, so get them out of the store as quickly as possible. This is why you have CCTV cameras!

In your policy, you should also include an after action plan. For example, what on Earth is that manager, or supervisor on duty supposed to do after being robbed? As calmly as possible, close the store, and ask all customers to come to the front. Inform them that the store needs to close due to a police investigation, however if they would like to give a statement to police, they are more than welcome to do so. Next, move all of your other employees to a common area of the store, away from the crime scene. You’ll probably want to start counting money to see what was lost, but don’t. Remember that your store is now a crime scene and you won’t want to tamper with any potential physical evidence. The police will tell you when they are ready for you to calculate your loss.

Long term, you may want to contact your HR department if you have one, as there may be some employees, especially those who were the actual victim, who may need some counseling. Everyone reacts to these types of situations differently and it’s important that you understand that your employee has just gone through an incredibly stressful ordeal and may need time away from the store to process what happened. While a robbery may not be something that ever crosses your mind, it can happen. Having a policy in place and having your employees well trained on that policy can very well save a life one day. Remember, nothing inside those four walls is worth dying for.


PROSECUTING EMPLOYEE THEFT

theft (2)If you employ people, I can guarantee that one of them, at some point during their employment, will steal from you. It could be some office supplies, or perhaps a few reams of paper; or more commonly, money, or even your merchandise. We trust our employees from the time they are hired and throughout their tenure. Employees know our stores in and out. They know our strengths and more importantly, our weaknesses. This knowledge often leads the employee down the path of dishonesty. I’ve investigated hundreds of employee theft cases and nearly all of these employees say the same thing when they are interviewed. They say they stole because it was easy, or they had no fear of repercussions if they were caught, other than maybe just losing their jobs.

Personally, I don’t care if it’s a $3,000 watch, or a $1.50 bag of potato chips. If I have evidence that an employee willfully and purposefully has stolen from me, I’m going to terminated that employee and refer the matter to local law enforcement for prosecution. It doesn’t matter if that employee is an old man, young woman, or any color of the rainbow; everyone will get the same treatment. In my stores, it is very important that I create a deep understanding with my staff that there is a zero tolerance policy towards theft. You would be wise to do the same.

A few years ago, I came across an employee that had taken a couple of consumable items. It wasn’t much, probably under $10, but they knew they were stealing from me and did it anyway. After obtaining a written confession, I terminated that employee for theft. Due to the dollar amount being so low, I did not contact the police. Not long after, at this very same store, another employee was terminated after an investigation showed they had stolen over $10k in cash. This employee happened to be a different race and sex than that previous employee. Not long after that termination, my store received a lawsuit for wrongful termination. That employee claimed I prosecuted him based on his race and sex, and I let another employee, who was of a different race get off without being arrested. It was a long hard fight to prove our case (which we ultimately won), but it was a great lesson for me to learn. From that day, I adopted my “everyone who steals goes to jail policy”. It’s served me well ever since.

In addition to protecting yourself from employment related liabilities (like the one described above), prosecuting employees caught with their hands in the cookie jar serves one other great purpose. It’s a deterrent. It’s a huge deterrent to other employees who be entertaining the same idea. If Susie Q and I are both cash office employees and I see her get escorted from the store in silver bracelets after she stole a few hundred bucks, chances are, I’m never going to do the same. If your employees know that the consequence of stealing is always going to be jail, from day one, they are less likely to steal from you. If and when they do, you’ll be ready to set the example for the rest of your staff.

I know for some of you out there, making the decision to prosecute an employee, maybe even one of your most loyal and trustworthy employees, is a very emotional thing to go through. You may feel like you want to cut them a break and simply have them pay you back. I’m telling you from experience, that is not enough. They will eventually steal again. Moreover, your other employees will see how easy it is to get away with theft and may do the same thing. The way in which you react to catching an employee stealing should be exactly like how you get out of a bad relationship. Sever all ties, put your emotions aside and do what’s best for your financial future.