Profit Killers – Internal Theft

I was taught three things cause shrink throughout my loss prevention career: internal theft, external theft, and paperwork error. The number one cause is internal theft, followed by shoplifting, then operational miscues. 

Conducting an employee theft investigation is imperative to keep track of employees. These investigations take very little time to complete and are extremely beneficial in weeding out dishonest employees who are causing more harm than good to your business. 

In order to prevent employee theft, store management together with loss prevention has an obligation to monitor and follow up on transactions that appear out of the ordinary. When dishonest employees are apprehended and their employment terminated, other employees take note. The end result is more employees who are disinclined to act dishonestly. 

The impact is extremely powerful when an employee is considering stealing and observes a co-worker being escorted out of the store by loss prevention, or in extreme cases the police. When employees realize that their work is monitored at all times internal theft is prevented. 

The worst cause of shrink is employee theft and unfortunately it does occur. However, with loss prevention initiating and concluding a proper employee theft investigation, the amount of loss is reduced and profit increases. Attending to effective loss prevention produces and maintains honest and productive employees in your business.   

Visit the Loss Prevention Store to purchase CCTV Systems that prevent employee theft and internal theft and help with Employee Theft Investigation. 

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