Discount Abuse: Not Just a Policy Violation

When people hear that a coworker was discharged for theft, it’s immediately assumed that that person was stealing money or was caught sneaking unpaid goods out of the store. But employee theft can take on many forms and doesn’t just refer to an associate taking merchandise or slipping themselves cash from the register. In fact, one of the most prevalent ways that a staff member can cause a loss to their employer isn’t even viewed by most associates as a form of internal theft; they assume it’s 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, most of them don’t remember the rules they’re expected to abide by. They may have been advised that sharing their discount with unauthorized family members and friends is considered a form of employee theft, but unless they work in loss prevention, chances are this won’t be a fact that they’ll concern themselves with. On the other hand, they may just assume they can’t get caught for it. While employed as an agent for one retailer, an associate’s brother come up to her while she was talking to my boss and me and he handed her a pair of shoes he picked out and money to buy them with while we were standing right there! Needless to say, I don’t think she forgot our company’s policy after that.

Although discount abuse cases aren’t as exciting to investigate as a merchandise theft situation, this form of internal theft has the potential to cost employers to miss out on profits. I’ve been asked many times by family members and friends to share the benefit of working for a clothing retailer with them. None of them have been pleased to hear that I can’t share the perks because I can’t commit any form of employee theft if I’m expected to catch my coworkers for it!

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