subject: Preventing Employee Theft [print this page] Employee theft can take a big bite out of your business's bottom line. In fact, the Association of Certified Fraud Examiners reports businesses lose approximately six percent of their revenue from employee theft. Small businesses suffer more because they often have limited resources they can devote to detecting theft. No matter the size of your budget, there are steps every business can take to protect itself from losing money to unscrupulous employees.
Start by creating a positive work environment. This will encourage employees to follow established policies and procedures. Fair employee practices, written job descriptions and clear procedures all lead to a better work environment. Managers should work to keep open lines of communication with their employees. This will make employees more comfortable reporting inappropriate behavior and theft. Managers should also consider implementing a positive employee recognition program. In addition to these actions, the most important first step is to document a policy on security and communicate that information with your employees. Make sure they have a clear understanding of what is considered a policy violation and the consequences involved.
Next, implement internal controls to keep your operations effective and efficient. Make sure to separate employee duties. This means no one person should both record and process transactions. Try to control access to important financial information. Certain employees have no business being involved in financial aspects of a company and they should not have access to this information.
Increase the perception of detection in your office building. If an employee believes he or she will be caught in the act of stealing, he or she will be less likely to do it. This can mean everything from engaging with employees so they understand how seriously accusations of theft are taken to installing video camera surveillance around the office.
Encourage your employees to take personal security seriously. There is only so far commercial security systems can go in helping a company deter theft. No burglar alarm system in the world will protect an employee from having his or her wallet swiped by a colleague. Have employees keep purses, wallets and cell phones on their person at all times. If the item cannot be kept with the worker, encourage it locked in a desk. If employees have an office with a door, give the employee a key and prompt them to lock the door whenever they are out of the room.
Video surveillance is also helpful in areas that are away from the office's general population. Hallways and closets that are not widely used are perfect spots for loiterers to wait for an opportunity to take something. Encourage your employees to challenge these loiterers.
While office supplies may seem like small items, theft of pens, sticky notes and other supplies can add up quickly. Consider putting a few individuals in charge of distributing supplies or simply give them a key to the office supply cabinet. This way they can monitor how many items are being taken and by whom.
After an employee leaves the company, whether they are terminated or they choose to leave, make sure they surrender any equipment issued and turn over identification badges. This will discourage theft of items or information once the employee is gone.
With a clear understanding of ways to secure your office, you can take steps to implement these suggestions. Be proactive in preventing theft in your workplace instead of passively watching it happen, and eat away at your profits.
