Conducting Employee Theft Investigations

Let’s face it, as much as we may hate to admit it an employee theft investigation is a necessary part of doing business in today’s retail environment. According to the National Retail Security Survey from 2008, managers reported 48.6% of their shrinkage was attributed to employee theft. For those of you, like me, who struggled tooth and nail through high school math that means nearly half of your losses are created by someone you’re paying to be there. So how do we stop it?

First of all you MUST create a concise and easily understood set of rules and regulations. In this, the definition of theft should be clearly explained. These rules must also apply to everyone from the General Manager to the guy/girl who fills the vending machines. There can be no exceptions. It is important that the employee understand that they do have rights, but it is equally as important that the employee realize that you, the employer, have the right to protect your property and your investment from would-be criminals.

Employee theft investigations are extremely sensitive matters and should be handled as such. Preferably a professional, or someone with considerable experience in these matters, should handle the investigation and subsequent interviews. Everyone being interviewed should be reminded of the sensitive nature of the process and in certain cases having the interviewee sign a confidentiality agreement may be a proper course of action.

Once the employee theft investigation is complete and the proper action taken there should be an immediate after action meeting. Why was this opportunity for theft present? What can we do to limit or eliminate future problems of this kind? Remember, a properly conducted employee theft investigation can potentially save your company countless dollars in shrink, but only if done correctly.

For more information contact us about employee theft investigation or call 1.770.426.0547