Discount Abuse – Another type of Employee Theft

It is almost always assumed that a person was caught stealing money or sneaking unpaid goods out of the store when people learn that a coworker is discharged for theft.  However, employee theft assumes many forms and does not only refer to an associate taking merchandise or cash from the register.

In fact, one of the most prevalent ways that a staff member causes loss to their employer is often not viewed as internal theft by most associates. Instead, they assume it is a policy violation addressed by Human Resources. This often overlooked form of shrinkage is known as discount abuse.

Although most corporations and employers outline their policies for newly hired associates, employees often fail to remember the rules they are expected to keep. They may have been advised that sharing their discount with unauthorized family members and friends is considered to be employee theft; however, chances are this won’t be a fact most employees concern themselves with unless they work in loss prevention.

On the other hand, they may just assume they won’t get caught. While employed in retail loss prevention, an associate’s brother approached her as she was talking to my boss and me. He handed her a pair of shoes he had picked out with the money to purchase them while we all standing right there!  Needless to say, I don’t think she ever forgot our company’s policy after that encounter.

This form of internal theft has the potential of costing employers serious losses of profit if left unattended. Although discount abuse cases are not as interesting to investigate as a merchandise theft situation, it can be a huge source of loss for the company and requires education, frequent reminders, and monitoring.

This can be a gray area for many employees created by lack of thought or awareness; however this policy needs to be repeatedly conveyed to employees and monitored as well. I’ve been asked frequently by family members and friends to share the benefit of working for a clothing retailer with them.

None of them have been pleased and some are surprised when I inform them that I cannot share the perks because this would actually initiate an employee theft investigation that I am expected to conclude if one of my coworkers is thought to be guilty of such acts.

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