Strong Hiring Practices can Deter Employee Dishonesty

shoplifting2Employee theft is a common and costly problem in retail.  Some businesses’ are reporting that, for the first time, internal pilferage has now surpassed external.  There are many ways to control and manage internal theft.  But, one of the most effective ways is often overlooked.  Stop it before it starts.

Many companies have the misconception that “management” starts after someone is hired.   But, good management practices start before the employee is ever hired.  They start when the candidate is sitting in her first interview.

Companies who’re committed to integrity understand that from the moment the potential hire encounters the company (i.e., website, employment application, recruiter, Human Resources) he should know that the company values honesty.  Values it and is activity looking for employees who do too.

When a business makes it a priority and emphasizes it as a condition of employment, dishonest people will start to be weeded out.  Some will self select — they’ll become uninterested in the job and move on to a less stringent company.  Or if they think they can cheat the system, make it difficult for them to get through the hiring process.

One way to get people to fall by the wayside is to have an up-to-date written drug free workplace policy, which includes rigorous pre-hire testing.  The applicant must sign it and follow through with the testing.  Many will sit in the interview, say they agree with the policy and never go for the testing.  Or, of course, fail it.

Another way to screen for honesty is to let people know up-front, clearly and in bold letters that the company has a firm policy of checking references, education and work history.  It may also check on credit and criminal history, depending on the job requirements.   

People are blatant about their dishonesty, they count on nobody checking — make sure they know your company does.  They’ll walk away and not even attempt to apply for the job or will be caught in their deception when their information is checked.

Be very careful about using social media in hiring practices.  It shouldn’t be used as a shortcut.  It’s not a substitute for due diligence and good procedures.  If an interviewer doesn’t hire a woman because they found out through Facebook she was pregnant, the company is in violation of the law.

The laws concerning the applicants’ “right to privacy” and potential employers’ “right to know” are just starting to be written.  Many legal experts are encouraging businesses to err on the side of caution and use only legally established hiring methods.  Don’t let your company become the test case to make new law.

Nicole Abbott is a professional writer who’s had over 200 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. 


EMPLOYEE THEFT – A LESSON IN HUMAN NATURE

theft (2)It’s no big secret that I can’t stand a thief; I did make a career out of catching them. Shoplifters really get under my skin, but employee theft really fires me up. You put people to work, give them opportunity to grow and instead of putting in the long hours, hard work and dedication needed to move forward, they steal from you. They betray your trust, slap you in the face and take money out of your pocket and food off your family’s table. Will you ever stop employee theft completely? Probably not. You can, however, minimize the risk.

If you employ people, there’s a good chance one of them will eventually steal from you. Through my Loss Prevention career, the excuse I’ve heard the most from dishonest employees was that they did it because it was “easy”. So why are we, business owners and managers making it so easy for our employees to steal from us? The first problem I see constantly is that, over time, complacency sets in. The next is a failure to follow established controls and finally, my personal favorite, is a lack of oversight.

A key to being a good manager is to not be over-bearing. I’ve learned a long time ago to “trust, but verify”. What that means is that you trust that your employees are doing what they are supposed to do when you’re not around, but you verify, and not simply assume they are. For example, you tell your warehouse team that the back door should never be open without a manager present. This is a basic control measure to prevent product from walking out of the back door. You obviously can’t be in your warehouse all hours of the day and night, so you have to verify. CCTV makes this easy. Managers often fall victim to complacency. If the warehouse crew knows that that the manager never checks to see if the doors are open, or that manager never addresses the violation, an environment for a dishonest associate to thrive is created.

Failing to adhere to established controls is yet another way we, as managers, often let our employees steal from us. (It also goes hand-in-hand with complacency.) I’ll give you a great example. I worked for a company that had a carry-out policy with respect to large, bulk items. If an employee was assisting a customer with a large item, the employee had to have the door greeter sign off on the receipt before it was carried outside. This was of course to discourage employee theft. I remember walking near the front doors as an employee rolled out a TV set. The door greeter asked to sign the receipt, and the employee said, “I’ll sign it outside”. There was a manager at the door as well. Both the greeter and the manager did not react to this. I immediately went back to the cameras and discovered this employee had just stolen this TV. A subsequent investigation showed he had rolled out thousands of dollars in this same manner. If the store would’ve followed their established controls and not fell into complacency, this employee would never had the opportunity to steal.

Manager. The word manage is actually in the name! The working world needs managers because most people need oversight. Some may need more than others, and you’ll find that some people need very little. You have to adapt your style of management to suit each of your employees. Managers that sit in the office all day long and are never give a sales floor presence are more likely to be the manager that employees feel comfortable stealing around. This isn’t to say that the manager is “in on it,” but the dishonest employee knows their chance of being caught is greatly reduced when “that manager” is working. Presence on the floor and constant follow up are traits of a good retail manager. Knowing that at any moment you can round the corner to see what the team is working on will keep those dishonest employees on their toes. Chances are, they won’t risk being caught, or better yet, they won’t ever see an opportunity to steal from you!


WHAT’S THE VALUE IN LOSS PREVENTION AWARENESS TRAINING?

meetingpic.Whether you’re a small one store business, or a large chain store, loss prevention awareness training for your teams cannot only protect against criminal acts, but also make a direct and positive impact on your bottom line. There is an inherent value in awareness training that lots of managers just don’t take advantage of. The core of any successful loss prevention program is not how many shoplifters are caught, nor is it how many employees were arrested; it’s training and awareness of your store teams. We are called loss “prevention,” not loss “reaction,” right? So how do you persuade your managers to see the value?

In my experience, in order for a manager to really do something, and to buy in to anything, you have to appeal to the “what’s in it for me” mentality. (Because a job and steady paycheck just aren’t enough.) What’s the biggest complaint from your managers? What I hear most is “payroll”. They need more people and more allotted hours to get the job done right. You surely just can’t dole out payroll hours, as this is the biggest controllable expense you have. So you have to work with what you’re given; but what if what you’re given is slowly being eaten away by shrink?

Shrink has a direct impact on payroll. Take for instance, if your store lost $12,000 last month to shrink and we assume that you have an average hourly rate of about $10/Hr. That $12k you lost could’ve been sales, had you had the product in stock for the customer. That equates to about 70 payroll hours you’ve lost. That’s 3 part time workers, or 1 full time and 1 part time worker. So how do you recoup some of those hours? Awareness training.

Well, who do you train? I always start with the cashiers. This group is your last line of defense against fraudsters. So much can happen at the point of sale. You can have price-switchers, quick-change artists, box stuffers, counterfeiters, etc. A well trained cashier can quickly spot these thieves and save you thousands. Take for example, ice chests/coolers. A poorly trained cashier may never think about opening these up as they come through the line. This is a gold mine for organized criminals. How much product can you hide in a 160qt ice chest? This would be a good starting point for any training program. Every cashier should be expected to open the contents and check for any hidden product. You’d be surprised at what you’ll find.

Monitor your success. Let’s assume you start with this simple step. Each time your cashier finds hidden merchandise, you record the dollar value of the save. Maybe you even spark a little competition amongst your cashiers. At the end of the month, you (and the manager) have a solid number to show the value in that small investment you made in training. Now you can expand.

What makes a successful training program work is having fun. I had a store manager years ago that really inspired her team. She went around the store and hid little notes inside backpacks, coolers and anything else that she wanted her teams to open and look inside. Those notes said, “When found, bring to a manager”. Those cashiers were then rewarded in some way. From this program, this manager was able to make a positive financial impact of over $10,000 in what otherwise would have been stolen product.

That’s an extreme example. I have other stores that have an “item of the week”. The cashier supervisors’ partner with the department supervisors and each week, they showcase a high ticket item. One week it may be an expensive tent, and the next week a high end toothbrush. During the week, all the cashiers have an opportunity to touch the product, learn about it and understand that it’s an expensive item. This not only gives them the ability to speak to the product to our customers, but to also identify any potential price switch scenario they may encounter.

It’s hard to argue with the value a good LP training program can bring to your store. Not only can you increase your sales, but you can also positively impact your shrink and wage metrics. You also limit the exposure your store has to criminal activity, so your employees and customers can shop and work in a safer environment. If you’re not using your entire team to prevent shrink, it’s time to do so; your bottom line is depending on it.


Identifying The Problems To Prevent Shoplifting

theft (13)

To fix a problem, you first need to know what is wrong with it.  Shoplifting and employee theft are two of the main causes of billions of dollars lost in the retail industry every year.  Employers and management personnel do not know how to fix those problems, and sometimes are not aware there is a problem till much later.  If employees are caught stealing, the problems then are the financial costs associated with prosecuting such individuals.  Is firing them enough punishment?  Should the employer  pay thousands of dollars in legal fees to bring such individuals to court?  There are many issues associated with shoplifting, do you know what to do about them?

To read more about this topic, follow the links below.


Managing Retail Shrink Begins with Problem Identification

The retail shrink action plan should begin with problem identification.

One question I have been asked frequently is, “How did you know how to battle retail shrink in the grocery business, especially considering your background is predominantly in discount retail?” My response to that question is almost always the same, which is: “I follow the loss prevention road map.” Often I get blank stares, but after explaining, most understand and realize they have probably been following their own road map for years without realizing it.

I have always described the road map as a six-step process; one that takes years to perfect, but when executed properly can yield amazing results in not only retail shrinkage reduction, but any expense a company is attempting to minimize.

The process includes the following six steps:

• Step 1—Problem identification
• Step 2—Program development
• Step 3—Program execution, or what I like to call countermeasures
• Step 4—Comprehensive awareness programs
• Step 5—Auditing for compliance
• Step 6—Measurement


Shoplifting prevention tips for businesses

Is Low Income A Reason To Shoplift?

shoplifting1

Lawmakers across the nation have been asking for harsher theft penalties for shoplifting.   California and other states have passed laws that anything below $950 dollars worth of stolen merchandise is a misdemeanor. The punishment for shoplifters is negligent, and small business owners wonder whether the laws are there to protect the small business or the shoplifter. Many government officials believe that an increase in wages will help the fight against shoplifting, but many small business owners are skeptical.

For more about this and other stories follow the links below.


N.J. Senate committee to take up $15 minimum wage

A New Jersey Senate committee is expected to act Monday on a plan that would phase in the state’s minimum wage to $15 an hour over the next five years.

The National Federation of Independent Business says raising the cost of labor will be a blow for small businesses. It predicts the move will cost 70,000 jobs in New Jersey over the next decade.

Senate President Steve Sweeney disputes that. He says giving low-income workers more money to spend will make the economy stronger.

“We raised the minimum wage last time. They predicted thousands of layoffs. Guess what? There were thousands of jobs added,” said Sweeney, a Democrat from Gloucester County.

William Rodgers, public policy professor at Rutgers, says the number of job openings has increased but companies are not filling many of those positions because the salaries are low.

“So by raising the minimum wage you’re going to help some of these employers fill those vacancies that they’ve been having for a long period of time,” he said. “You’re also going to see improvement in morale. Productivity is going to improve.”


Change in law results in big jump in California shoplifting

ROCKLIN, Calif. (AP) — Perry Lutz says his struggle to survive as a small businessman became a lot harder after California voters reduced theft penalties 1½ years ago.

About a half-dozen times this year, shoplifters have stolen expensive drones or another of the remote-controlled toys he sells in HobbyTown USA, a small shop in Rocklin, northeast of Sacramento. “It’s just pretty much open season,” Lutz said. “They’ll pick the $800 unit and just grab it and run out the door.”

Anything below $950 keeps the crime a misdemeanor – and likely means the thieves face no pursuit and no punishment, say retailers and law enforcement officials. Large retailers including Safeway, Target, Rite Aid and CVS pharmacies say shoplifting increased at least 15 percent, and in some cases, doubled since voters approved Proposition 47 and ended the possibility of charging shoplifting as a felony with the potential for a prison sentence.

Shoplifting reports to the Los Angeles Police Department jumped by a quarter in the first year, according to statistics the department compiled for The Associated Press. The ballot measure also lowered penalties for forgery, fraud, petty theft and drug possession.


$37,000 in goods shoplifted, couple arrested

The couple allegedly stole from Safeway, Target and Fred Meyer.

SALEM, Ore. (KOIN) — Salem police, with the assistance of a region retail theft prevention coalition, arrested 2 people for unlawful racketeering.

Salem Police Lt. Steve Birr said Michael Rascon and his wife, Maria Rojas, were arrested on Thursday morning after detectives executed a search warrant in the 100 block of Connecticut Street Southeast.

A large amount of new retail items still in their original packaging was located at the residence, police said.

Rascon and Rojas will be charged with unlawful racketeering, money laundering, organized retail theft, and first-degree theft by deception.

Investigators with Safeway/Albertsons, Fred Meyer and Target collaborated as part of the Northwest Organized Retail Crime Alliance to build the case against them.

KOIN 6 News has learned the two were selling stolen items online, buying stolen merchandise and even had “shopping lists” of things that they wanted stolen so they could turn around and sell.


Prevent Shoplifting – Focus on the Basics

meetingpic.For decades the gold standard of learning theory was that people needed to be told something 3 times before they really understood and remembered it.  If you wanted people to learn something you were supposed to: tell them what you’re going to tell them, then tell them, then tell them what you just told them.

Not anymore.  People’s attention spans and retention abilities have dramatically decreased over the last 10 – 15 years.  Depending on the research it’s now believed the average person needs to hear something 5 – 7 times before he understands and remembers it. 

This new standard in learning has changed the way effective businesses conduct their training.  Training modules are shorter and on-going, which gives employees the chance to retain and integrate the material. 

The new normal is particularly important in retail.  Well-trained employees are still one of the best ways to prevent shoplifting.  Therefore, a successful store will combine new training methods with fundamental shoplifting prevention techniques.

Pay attention at all times

Distracted employees are a real problem in retail and it’s getting worse.  Training includes, but isn’t limited to: the store’s policy on cell phone use, avoidance of personal on-the-floor conversations, proper customer service, common shoplifting tactics, and how to handle “lingering” customers.

Greet and be attentive to every customer

Friendly, conscientious employees are a natural deterrent to shoplifters.  Impulse or thrill thieves are less likely to act and professional ones are more likely to go somewhere else where the employees are less diligent.

Monitor the high risk areas/merchandise

Ongoing reminders of at-risk areas are useful.  When people get familiar with their environment they don’t “see” it any more.  The dark area in the corner gets ignored because they stop seeing it as a prime shoplifting site.    

Some items will always be a target for theft, while others are just the most recent trend.  It makes employees’ jobs easier if they know that pink T-shirts are now disappearing, rather than the blue ones that were 3 months ago.

A solid, basic training program which provides a solid, basic education to employees is still the most effective way to prevent shoplifting.  An additional bonus is, when done correctly, it can increase morale and employee buy-in.


Nicole Abbott is a professional writer who’s had over 200 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. 

Preventing Shoplifting Today

shoplifting5

The reasons associated with shoplifting and  employee theft are many.   Shoplifting is now considered one of the most widespread crimes in the United States, and according to the National Association for Shoplifting Prevention (NASP)  there are about 550,000 shoplifting incidents daily.  The billions of dollars lost to shoplifting and employee theft robs not only the store, but the consumer and the communities where they are located. Security measures to prevent shoplifting still seem to fall short, and retailers across the nation invest heavily in the most up to date security systems for their store.  For more about this and other topics, follow the links below.


Loss Prevention Strategies in a New Age of Natural Selection

There are times when each of us must challenge our convictions and embrace change.

We live in a time of great change. We work in an industry where our ability to adjust to the needs of the customer and the dynamics of a global market sculpt the landscape of retail. We serve in a profession that demands that our loss prevention strategies adapt and adjust to business strategies, our retail partners, and the many elements that can impact company profitability. This isn’t exactly breaking news. We know this. We preach this. We embrace these principles as a critical aspect of what we do. Why then, are there those that are so resistant to certain types of change?

Why do some applaud advancements in technology, but fail to take advantage of the technology that’s available right at their fingertips? Why do some advocate the value of training and education, but fail to support an industry certification program? Why do some lecture their teams on the power of information, and then not take simple steps to stay informed? How is it that we can see the train coming and stand on the tracks rather than jumping on board?


The First Line of Defense

Retailers look to make exterior customer spaces safer

The combination of shootings — by terrorists or otherwise — and other workplace violence has put the retail industry on edge. Stores, restaurants and shopping centers struggle with strategies to protect employees and customers inside their locations, as well as in the parking area outside.

There are few patterns as to how and why the violence takes place where it does, and scant data to support any particular hypothesis. Such violence doesn’t occur on a daily basis, and is just infrequent enough that occurrences generate news alerts on social media and local radio, video lead-ins for the nightly news and headlines in daily newspapers.

Already in the first three months of this year, the industry has seen such incidents as a fast-food employee accused of killing his manager in the restaurant’s parking lot in a Kansas City suburb; a discount store manager in Mobile, Ala., who police say was shot to death by a man he lived with; a 23-year-old clerk at a Norfolk, Va., convenience store shot in the chest during a robbery; and an attempted robbery at a cash loan store in Irving, Tex., that turned into a hostage situation when the armed robber grabbed a female employee to use as a shield as he attempted to get to his car for a getaway. The robber/kidnapper was shot and killed by a responding police officer.


Ten Cheap and Easy Shoplifting Prevention Tips

We’ve put together ten tips that you can use as a business owner to reduce theft and shoplifting at your business. Most thieves shoplift on an average of 1.5 times a week; with nearly $25 million worth of merchandise stolen every day. The following is a list of proactive steps you can take to reduce your losses due to shoplifting.

1. Prevention is your best protection. A business that announces they don’t tolerate theft will often be passed over in favor of a more “friendly” store. Signage and cameras (real or realistic-looking fakes) discourage many would-be shoplifters. Postacrime (www.postacrime.com) has a variety of effective signage and prevention tools. Decals on windows, fitting room mirrors and display fixtures will let the criminals know you’re watching them closely. Many police departments post advice and precautions on preventing retail theft; the Salem, Oregon police department (http://www.cityofsalem.net./export/departments/police/tips_for_preventing_shoplifting.htm) offers very practical information on protecting your business.

2. Trained employees are your best weapon against shoplifting. Just the act of greeting a patron or offering help lets a shoplifter know that he/she is being watched and the employees are attentive. Employees should watch for inappropriately baggy clothing, lingering in corners and unusual attention to traffic and employees. Occasionally a shoplifter will have a partner to create a distraction such as an argument or fainting; employees should designate one or more to react in such a situation while the others continue to work.


 

FOUR STORY FALL FROM GRACE

theft (12)It’s not too many industries where I can share two separate stories of a crook falling four stories after trying to steal. This is why I chose Loss Prevention as my career. It’s not the thrill of the chase, or the feeling I get when I close a big case; no, it’s the funny stories I get to tell!

I’m a Regional LP Manager for a medium sized company. I have about 30 stores across a few states. That also means I’m on the alarm call list for all 30 stores. Basically, if there’s an alarm activation, the monitoring company contacts the store managers, in order of proximity to the store. If they go down the list twice, with no answer, they try the district manager. If the DM doesn’t answer, the call goes to the regional manager (who of course never answers). If none of those folks answer the phone, I get the call. ( I always answer). You would think that it wouldn’t be too common for me to get this call. In fact, as I’m typing this I had to take a break to answer one. Most of the time, it’s false alarms and a manager needs to respond in order to reset the alarm. Sometimes, however, it’s an actual burglary.

About 4 years ago, it was a little after 1am on a Saturday night. I wasn’t quite asleep yet when I heard the company cell ringing from the next room. It’s the alarm company. I greet the caller, who knows I’m the last person on his list and he very hesitantly tells me that there’s been an incident at a store and police are requesting a key holder respond immediately. The store, luckily for me, is right down the road from my home (it’s where I office). I tell the alarm company I’ll respond, but to keep calling managers until one wakes up.

When I get to the store, I see fire, police and EMS at the rear. I get out just as an ambulance pulls away. After a few minutes of searching, I locate the officer in charge of the scene. “You’re going to love this one!” he says with a smirk.

A Darwin award candidate was able to gain access to our roof. Turns out, there was some roof repairs made earlier in the week, and a manger never secured the ladder. This guy climbs up with the idea of stealing the copper wiring out of our HVAC units. Great idea on paper… What he didn’t consider was the near-life ending shock that would result from that attempt. A shock so powerful that it threw him out of his shoes and off the side of the building. He was lucky to survive.

Same scenario, but different store. Due to a manager’s failure to secure the roof ladder after some repairs, a genius had the bright idea to rappel down into the store from the skylight. I would assume that he watched some James Bond movies before trying this. Big difference here was that this young fellow lacked the upper body strength of Mr. Bond.

After scaling the roof, he smashed through the skylight with a hammer. Very crudely, he tied one end of a long rope to an AC unit and threw it down the skylight. He did so right in front of a camera dome as luck would have it… Our cat burglar then begins to scale down the rope by hand; only problem is that he isn’t quite strong enough to support his own weight. He falls. About 4 stories down and the camera captured everything. When he hit the ground, he literally bounces. There’s no movement for a good 5 minutes. Dazed and confused he eventually comes to his feet, only to realize that he has no way out. His plan was to steal several high end items and then climb back up the rope. Needless to say, that didn’t happen. He spent the next several months behind bars; and that was after spending a few weeks in the hospital for a fractured skull and broken femur.

A RETAILER’S WORST FEAR-STORE ROBBERY

theft (1)It was 4:30am on a Tuesday morning. My company cell phone pierced through the quiet halls of my house. At first, I didn’t get out of bed; perhaps it was a wrong number. Silence. As I doze back off, I hear the familiar tone once again. Who could be calling me and for what reason at this hour? I let it ring. I hear the chirp of the voicemail. Before I can muster the energy to get out of bed, I hear my personal phone ringing. This one is next to me on the night stand. Something is wrong, I immediately think to myself. When I reach for my phone in the middle of the dark room, eyes still blurry, I see the caller ID. It’s a sheriff’s deputy that I’m good friends with. My heart is in my throat as I answer. “You’re morning crew was just robbed at gunpoint. Get to the store now.”

I don’t think I even gave my friend a response before leaping out of bed. I quickly get dressed and race down stairs. Those two missed phones calls were from a panicked and frantic store manager. The other from the general manager. I jump in the car and speed across town; waking the VP of Loss Prevention, the regional VP and the media relations department. All with the news that no LP manager wants to say. “Our team was just robbed. I have no info on the wellbeing of our employees. I’ll update you as soon as I gather info.”

I get to the store and see close to a dozen police units. There’s crime scene tape and the local new stations are already setting up shop. I rush to the front door and see that it’s been shattered. Later, I find that the robber fired two shots from a .45… one round came within inches of a stocker, into the door, gaining entry into the store. At this point, I don’t care about the damage, I don’t care about the money. I head straight to the staging area and am suddenly taken into an embrace by the morning manager; someone I’ve worked alongside for 10 years. She’s shaken up, but OK. So is the rest of the team. I finally have good news. I send a quick text to my boss that all employees are safe; no injuries. We lost $9k and have a broken door. All replaceable.

It was no accident that our team made it out of this ordeal safely.

Every single week, our company’s robbery policy and procedure is covered with our teams. While a robbery can happen at any time of the day or night, they are most likely going to occur early in the morning, or late at night. Training your team to react to this scenario greatly increases your chance of getting out unharmed. So we train, constantly on three very important points.

  1. Comply – there is no need to argue with a guy with a gun. Everything in the store can be replaced. The company brings in several billions of dollars each year; the amount of cash that can physically be taken is nothing compared to your safety.
  2. Give them whatever they want — if they want cash, give them cash. If they want the entire electronics department, let em’ have it. If they want you to open each cash register for the change, then that’s what we’re going to do in order to get them out. Do not argue, do not deny. Your job is to get them out of the store as quickly as possible and without incident. Let our cameras and law enforcement partners’ worry about trying to identify them.
  3. Never, under any circumstance, contact the police while there is an active robbery – We never want a robbery to turn into a hostage situation. If the police show up quickly, the robbers could panic and hold the team hostage. There is also the possibility of a shoot-out with police and the potential for injury to the team. This point cannot be stressed enough. Wait until you are positive that the robber has fled the scene before making that call; because once you do, you’re going to have every free unit across the city rushing to your doors.

While I hope to never have to see one of my teams go through an ordeal such as this again, I know that there will always exist the remote possibility of it happening again; whether it’s to one of my stores, or to one of yours. If you’ve never thought about implementing a robbery policy/procedure before, I would highly suggest doing so now. The better you plan for such an act, the better your chances of coming through without injury. Remember, money and merchandise can be replaced; a team member cannot.


Ideas to Decrease Employee Theft

meetingpic.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.