It may sound simple, but the best way to address employee theft is to not let it happen in the first place. While it may be impossible to achieve that goal, several steps can be taken by a business to reduce the likelihood that employees will be able to steal from the company.
Thoroughly Screen Candidates
First and foremost, business owners should use the hiring process to their advantage. Use this process as an opportunity to identify, and eliminate, potential risks before the employee is hired. A criminal-background check should be a standard element of this procedure. As part of this hiring procedure and depending on the local government laws and regulations on this topic, the employer shouldn’t hesitate to ask interviewees about any past issues regarding thefts and criminal convictions.
In calling a candidate’s references, a potential employer should ask questions that will allow additional insights and to shed light on whether the candidate may pose a theft risk. Sometimes former employers may be hesitant about directly discussing problems with past employees. However, they may be more forthcoming when asked a more open-ended question such as “What are some of the areas for which you would NOT recommend this person?” or “What are some areas where the employee may require additional supervision?” Often these open-ended questions will allow the former employer to supply information that it may not automatically reveal. For example, the open-ended questions above may allow a former employer to make a statement “I would not recommend that he/she be responsible for money.”
An Employee Manual with Strict Policies and Enforcement
A business should create and regularly update an employee manual with clear language detailing the consequences of theft and other similar bad behavior, which should include a policy that an employee is subject to immediate termination with cause if he/she steals from the company. Make certain that all employees read it and acknowledge that they have done so. The language in the handbook should identify particular areas or situations in which wrongdoers will be terminated immediately without exception. Once these policies are in place, the employer must enforce these guidelines without exception.
Incorporate Redundancy into the Workplace
The business’s management practices should employ a “second set of eyes” system so that no single employee is solely responsible for a specific area or for reporting. This acts as a disincentive to theft because it would be more readily apparent when an inappropriate act has occurred. In a retail setting, it is useful to train employees in multiple assignment areas, this allows for rotations on regular basis.
Encourage an Environment Where Employees Are Comfortable Reporting Suspicious Activity
A business can benefit greatly from a well-publicized, confidential reporting system, one in which the reporting employee incurs no negative ramifications for reporting the suspicious activity of fellow employees. Research has found that 23.5 percent of employee thefts are first discovered by other employees observing an issue and confidentially notifying management.
Additional steps your business can take to reduce the risk of employee theft:
- Make sure that employees’ access to classified or sensitive data is restricted.
- Hold regular meetings where company policies (including policies involving employee theft) are highlighted.
- Use periodic surprise audits or request reporting in areas where employees may be tempted to skim cash or misuse funds.
- Make certain that all employees know that they can supply confidential information about suspicious activity without any fear or repercussion
- Lead by example. If business owners and senior management follow company rules, their employees are more likely to do so as well.
The steps a business take initially can save substantial money and headaches later on. Employee theft is a problem that will never be completely eliminated. It is also a risk a business should not take lightly. A business should steps now, with the advice and counsel of an attorney, to develop the policies and practices which will reduce the likelihood that your money and resources will head out the door in employees’ pockets.
