Most people don’t think about employee theft unless it affects them directly.  But employee theft does affect everyone every day.  The business that suffers from internal theft, whether it’s in the form of cash, property, or merchandise either has to recover the amount of loss by increasing prices to consumers, or by going out of business altogether. The U.S. Chamber of Commerce has estimated that 3 out of 4 business failures are attributable to employee theft of all types.  However, business owners frequently don’t look at internal theft as a cause of loss because they don’t want to admit that they can’t trust their own employees.

In the case of government workers who steal, the taxpayers suffer (it’s their money after all), and the intended recipients of whatever program was targeted also suffer.  A school official in Maryland was recently accused of stealing over $100,000 of federal funds intended for economically disadvantaged students.  The five-year employee bought computers, video game consoles, TV’s, and other electronics for herself and her family members.  Tax money – yours and mine – went into that employee’s pocket.

But as aggravating as stealing from the government can be, stealing from a business can be financially devastating.  Employee theft can also become almost commonplace if ignored by management, as more and more employees see that there are no consequences to the act.

The important thing for an employer to do if he even suspects that there is theft occurring at his business is to initiate an employee theft investigation using a qualified and experienced loss prevention investigator.  Not only is a loss prevention investigator trained and experienced in getting to the bottom of theft problems, he has the advantage of seeing the situation with an unbiased eye toward the employees.  One survey indicates that 55% of employees who steal are managers.  And overwhelmingly, the thief is someone that the employer placed a great deal of trust in.  The investigator will also point out vulnerabilities found in controls and procedures that allowed the situation to exist, and be able to advise ways to prevent such instances of internal theft and others from occurring in the future.

Call 770-426-0257 to speak with a loss prevention investigator about your employee theft issues, or click here for more information.

What goes through an employer’s mind when he realizes that he is a victim of employee theft?  Anger?  Betrayal?  Revenge?  Helplessness?  Disappointment?

Certainly most of emotions are legitimate.  An employer takes a person into his company, gives him an opportunity to learn, work, and succeed, pays him a salary to do it, puts him in a position with some degree of trust and yet the employee still injures the company and the employer by taking merchandise, property, or money that doesn’t belong to him.

After an employee theft investigation has determined that an employee was indeed guilty of theft the employer may consider if he himself had anything to do with the failure.

In many cases, the answer is yes, because for internal theft to occur, the thief must have opportunity and motive to steal.

An employer should convey to each employee from the day he is hired, that it is not all right to steal.  Not from the company, not from a customer, and not from another employee.  Most people know this already, but it never hurts to lay a groundwork that is clearly understood, and that is that the company culture does not tolerate theft or those that tolerate it.

Adequate supervision is a must.  An employee who knows that his work is subject to review is less likely to commit an internal theft episode.  This goes for every employee from the porter who takes out the trash (Do you ever check the outside trash area for stolen property?) to the bookkeeper (Avoid giving too much responsibility to one individual), and everyone in between.  Supervisors and managers are not immune to committing employee theft; as a matter of fact, they can cause more damage for a longer period of time than a “regular employee” because of their positions of trust and responsibilities.

Assign job responsibilities so that a system of checks and balances exists, lessening the odds that an employee can engage in internal theft undetected.

Don’t exempt any employee from these rules.  In most employee theft investigations, the thief almost always was “one of my most trusted employees”, according to the owner.

Do you need an employee theft investigation or just want to know how to avoid employee theft and not become a victim?  Call 770-426-0547 in Atlanta Georgia or click here for more information.