A better way to look at this may be to talk about what they steal and break it down from there. Employees can steal four types of things: cash, merchandise/product, supplies (& tools, equipment…) and time.

Cash in a retail environment is king. But we tend to put the youngest, most in-mature and least trained person in charge of it. Cashiers tend to fit that description. That is a fact of retail life. But we can manage through that. We have to put procedures in place to deter theft. It has to start at the time of hire. A clear message both verbally and in writing needs to be established. After that follow up is key. Many times we let multiple employees ring up transactions on one drawer so there is no accountability. One way to counter this is through random cash drawer audits. These unannounced audits will show if a shortage has occurred. Action can then be taken. Many times employees stealing cash will accumulate it in the cash drawer before removing it. If your cash audit reveals an overage that maybe what you are dealing with.

Merchandise or Product regardless of what it is, is worth something to someone; that is why you are in business. So if an employee can steal it, they could take it for their own personal use or for resale. Again we have to set up an environment where it is known that this will not be tolerated. Many times when employees are caught stealing, the business owner keeps them employed and has them pay it back. OMG, thinking about this, pay you back with what? They were stealing in the first place. Most likely they will do so again to “pay you back”. Remember, this person has proved that they are the worst of the worst. Oh yes, there may be a sob story. But they stole your assets, the reason does not matter.

Supplies, your equipment or tools are often over looked. I once conducted an investigation for a major resort that had a problem with a few thefts from guests only. It turned out that hundreds of thousands of dollars were stolen in cleaning supplies, furniture, toilet paper, fuel, etc.

We tend to overlook this area because we think it could not add up to much. You have to get your head around that. A roll of toilet paper and a can of cleaning solution every few days add up. Multiply this by a number of people and the situation is quickly a serious loss. Audit your supplies. Investigate when tools or equipment come up missing. Hold people accountable. You should assign or make certain employees accountable for these items. They can and should control them.

Both merchandise and supplies can be removed from your business on the employee’s person, discarded in the trash to be recovered later, out with a friend that is visiting or in collusion with a vendor.

Time is often never thought of in employee theft situations but can be one of the largest losses. Employees steal time by simply falsifying time cards or sheets. For example, a co-worker friend clocks them in but they are not there yet. Even 10 minutes, two or three times a week adds up to big dollars. From personal experience in the over 2300 employee theft investigations I have conducted, it has never just been 10 minutes here and there. This type of theft becomes addictive quickly and will grow to large amounts unless checked.

Time can also be stolen by managers who have control of payroll. I once had a manager set up a fake employee with a bank account. He submitted payroll information and deposited the checks. He embezzled around $20,000 before we investigated him.

All of these types of theft can be prevented. Policy and procedure that is followed and enforced is your very first line of defense but there are other techniques. You can learn more about them in our live- in- person or webinar training sessions. Contact us if you would like more information at 770-426-7593.