In fact, missing merchandise can just as easily, and just as likely, an employee theft problem. Yep, you heard right. Employee theft is a reality. Internal theft, the retail term for employee theft, is generally the #1 shrink factor in retail stores. Just like customers, employees often don’t want to pay for their products either. So how do you know if the missing inventory is due to shoplifting or internal theft?
The answer is you have to conduct an employee theft investigation. One of the first ways to conduct an employee theft investigation is to track when the product goes missing. To do this you will need to conduct “mini-inventories” or cycle counts, as they are commonly known, every day you work. By doing this you will narrow down when the product is going missing. (Thieves tend to stick to the same product group so you won’t have to count every item in the store; just what you have noticed is missing.) You can then compare the dates of loss to your employee schedule to see if the same worker is present at every, or almost every, loss date. This is not an automatic indicator of guilt as more than one person can be stealing the same product, but it will give you a starting point.
Next, is the tedious part. Surveillance. It is best if you have a Loss Prevention Agent that works for the company as this is time consuming. There are also companies who have trained LP agents for hire that can help complete an employee theft investigation on a case by case basis. You will need to observe the employee for several days to see if you can catch him/her in the act. Hand in the cookie jar is the best way to avoid liability. I also suggest package checks (especially when you think you have something). The employee may not be expecting this and it’s a great way to get the evidence you need.
For more information on employee theft, employee theft investigation or internal theft contact us or call 1.770.426.0547 – Atlanta Georgia
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