Ideas to Decrease Employee Theft

Employee theft continues to rise.  In some retail settings it’s surpassed customer theft.  There are a variety of reasons for the increase.  One of them is that many managers have a hard time believing that “My people would do such a thing”.  And because they have a hard time believing it they don’t take steps to combat it.

Here are some of the things they say: “It’s not in my personality to believe the worst of people.”  “I try to promote a family atmosphere.”   “I don’t want to offend the honest employees by punishing everybody for the few bad apples”.  “I don’t want to be a security guard.”  “I want my store to be a place where people like to come to work.” 

But, whether you want to believe it or not, chances are your staff has, is and will steal from the store.  So, what do you do?  How do you balance stopping the thieves, while not alienating the honest people?  Conscientious managers struggle with these questions.  Here are a few answers.

Do surprise register checks – Random cash drawer reconciliations let everyone know you’re paying attention, while not singling anyone out.  It’s business, not personal.

Highlight inventory control – Have all staff members take turns helping you spot check inventory records with actual product.  Let them know you take missing items and incomplete records seriously.  Employee theft thrives on a manager’s inattention to detail.

Check the tapes – Tell and show your employees that you check the tapes.  Are the z-tape’s numbers sequential?  If not, why not and who’s responsible?  What are the average “no-sale” numbers (x-tapes)?  Do they go up on a certain shift or day?  If so, why and who was working?  Asking for explanations is not the same as making accusations.

Promote anonymous tips – We all have ideas about “narcing, snitching and tattling,” many of them negative.   But, it’s one of the most effective ways to stop workplace fraud.  It gives people the chance to step forward without fear of retaliation.

However, a tip is not a fact and shouldn’t be seen as one.  It’s a starting place for you to carefully look into the accusation.  A tip can’t be used to get back at someone or unfairly accuse them if you are thoughtful and cautious about pursuing it. 

There isn’t a way to completely stop employee theft.  But, if you make it difficult most won’t try it and others will get caught quickly, which increases staff morale.  Honest, hard working people don’t want to work in a store where management turns a blind or incompetent eye on dishonesty.  They want a store that’s fair, openhanded and safe for everyone.

Nicole Abbott is a professional writer who’s had over 150 articles published.  She’s a business consultant and former psycho-therapist with over 20 years of experience in mental health, business and addiction.  She’s a coach, lecturer, trainer and facilitator.  She has conducted over 200 workshops, trainings, presentations, seminars and college classes.