Are You Letting Your Employees Steal From You?

Employee theft is one of the most difficult issues a business owner faces. An employee is 15 times more likely than a non-employee to steal from an employer and they are responsible for approximately 44% of business’s theft losses (National Federation of Independent Business). And yet it’s one of the problems owners and managers are least likely to address.

However, the denial method of management doesn’t work causing nearly a 1/3 of businesses to fail due to employee fraud (U.S. Department of Commerce).  There are many reasons why owners are resistant to addressing the problem of employee theft. Three of these reasons are centered in the owner’s personal beliefs.

I’m a good guy – Some managers simply refuse to consider the idea that their employees would steal from them. They believe “I’m a good guy, so my people will never steal from me”. They misinterpret the issue of employee theft as a personal issue, a referendum on their character, rather than the personnel, business and legal issue that it is.

It’s not that much – Many loss prevention specialists, accountants and business analysts are aware of the open “secret” in many small businesses. Some owners and managers know and don’t care that their employees are stealing. They think, but don’t actually know, the loss is a small amount and for a variety of poorly thought out reasons believe it’s “not worth dealing with”.

There’s nothing I can do about it – These owners or managers don’t want the responsibilities of their jobs. They develop beliefs which permit them, in their minds, to not be held accountable for their managerial duties. For example, they have convinced themselves thatit’s impossible to find good quality workers, so employee theft happens all the time and everyone does it. In this rationalization, there’s nothing the manager can do, so he’s justified in doing nothing.

One of the most important components to any comprehensive loss prevention program is management’s commitment to and involvement in it. Many times business owners can be the biggest obstacle to a successful program due to their erroneous personal beliefs. Regrettably, many have found that ignoring the vital issue of employee theft leads to drastic consequences.

Nicole Abbott – writer, educator and psycho-therapist