Employee Theft: The #1 Profit Killer

Throughout my career in loss prevention I was taught that three things cause shrink: external theft, internal theft, and paperwork error. Internal theft is the number one cause, followed by shoplifting, then operational miscues. Keeping track of employees is a necessity and this is done by conducting an employee theft investigation. These investigations don’t take a lot of time to complete and can be very beneficial in weeding out the dishonest employees that are causing more harm than good to you and your business.

Loss prevention and store management have a responsibility to monitor transactions and follow up on transactions that seem out of the ordinary in order to prevent as much employee theft as possible. Once some of the dishonest employees are caught and have their employment terminated, the other employees will notice this. The end result would be more honest employees who are reluctant to act dishonestly. If you were an employee that was thinking about stealing something and saw a co-worker being escorted out of the store by loss prevention or for extreme cases the police, would you think twice about stealing? The answer is yes. Deterrence works, letting your employees know that their work is monitored at all times works.

Employee theft is the worst cause of shrink and sadly it will take place. However with the help of loss prevention starting and completing a successful employee theft investigation, you can reduce the amount of loss while increasing the amount of honest and productive employees that you have in your place of business.

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

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