Bleeding Profits – Employee Theft

Unfortunately employee theft (also known as internal theft) is a reality when operating a business of any size.  More than half of all retail industry shortage is a result of employee theft.  Every business owner needs to be aware of this and take the appropriate actions to confront this reality.

Employee theft frequently manifests through internal collusion or assisting the theft by an external party.  Most often though internal theft is the primary form of employee theft that impacts businesses.

Internal theft happens in a variety of different ways.  Most retail businesses have cashiers and, of course, these cashiers have access to many assets.  Retail cashiers have access to the register funds.  This access and the level of direct supervision frequently create an environment that is conducive for internal theft.

It is critical to remember that each employee is a potential avenue to loss.  Every employee in an organization has access to assets.  This means that not only the business’s cashiers present the possibility for loss.   The stock workers have access to your inventory, the facilities’ staff often work unsupervised and after hours, and the management staff has direct access to the safe and reserve funds

If employee theft is suspected, the next step should be to initiate employee theft investigations.  As soon as an owner or manager notices that loss has occurred, the employee theft investigation is indicated – it should also become a routine measure to uncover loss yet unnoticed and to serve as warning as well.

The goal of employee theft investigations should be to uncover and address internal theft issues.  An CCTV systems, personnel surveillance, and controlled auditing.

The goal should be not only removing the guilty party, but also identifying any control or supervision issues.  An employee theft investigation also can support the course of correction that might be indicated.

For more information on employee theft, employee theft investigation and internal theft please contact us or call 1.770.426.0547 – Atlanta Georgia.