In an ideal work environment everyone would get to work on time, perform their duties efficiently, and respect one another. Unfortunately, the ideal is not always reality. The success of a business is dependent on many factors, hiring the right employees is a major one. Your employees are the life-force that drive your business, but they can also be the metaphoric “poison apple” to its success. The often hidden threat to a successful business is employee theft.
What is employee theft? Employee theft can be defined as, “any stealing, use or misuse of an employer’s assets without permission.” Now most people typically think this means cash or items of monetary value but that’s not always the case. The following will discuss what constitutes employee theft, how it affects businesses in the U.S., who the main offenders are, and how you can combat it. At Perfect Connections, Inc. we can help protect you and your business from untrustworthy employees. We’ve been providing security system solutions to businesses throughout northern and central New Jersey for over 20 years. While a comprehensive security system can’t detect an employee’s honesty, it can help prevent employees from stealing as the chances they might get caught increase. We don’t advocate blindly mistrusting your employees, we simply provide effective equipment to help prevent theft and loss.
When employees steal, they aren’t always stealing cash. Some of the most common assets stolen are time, supplies, cash, merchandise or company property, and company information. Time may not be a tangible asset, but it is often abused or stolen. Think about the employees that consistently show up late or take extended breaks and never make up the time. When you have one person doing this it doesn’t seem like a big deal, but looking at the big picture the numbers add up, and fast. It’s not only companies paying people who aren’t actually working their designated hours, it’s the loss of work and potential business for a company. This has an effect on the entire nation economically.
According to The U.S. Chamber of Commerce employee theft costs American businesses anywhere from $20 billion to $40 billion annually. That’s capital that could be reinvested in a company to create new jobs, grow, and/or innovate. This doesn’t mean people don’t deserve breaks or time off, it’s just pointing out the fact that if given the opportunity some people will take advantage. In fact 75% of all employees will steal at least once and some will become repeat offenders. The employees that steal are not always the ones you’d expect either. Surprisingly (or unsurprisingly) managers account for 55% of all employee theft. How do they get away with it? They’re typically in a position where they are well trusted, hence being a manager.
So what can be done to combat the damaging effects of employee theft? Fortunately there are some guidelines you can follow as an employer to help prevent, or at the very least, limit employee theft. Caron Beesley for the U.S. Small Business Association has 6 general tips and they are as follows: pre-employment background checks, check candidate references, communicate conduct guidelines, don’t be afraid to audit, recognize the signs, and set the management tone.
Running a background check is a good idea for any employer, it’ll provide insight into an applicant’s history that may not come through in an interview. Checking references will help speak to a candidate’s character from sources other than the candidate themselves. Being upfront about your expectations for employee conduct will set the stage for ethical behavior, this can be a code of conduct that is reviewed upon employee orientation, and companywide on an annual basis. Auditing your business is an effective way to discover theft and fraud especially because it’s performed by a third party and unbiased professional. Recognizing the signs can be a little more challenging, but according to Beesly there are some behaviors to take note of. You should be conscious of an employee not taking any vacation time, a change in normal behavior, being overly protective of ones work, disappearing financial records, and unexplained debt. Lastly, setting the management tone will let your employees know you take your business seriously.
Aside from company policies and expected behaviors, installing a comprehensive security system can help deter fraud and employee theft. Surveillance equipment can prevent theft and catch it in action. If employees know their environment is being monitored they’re less likely to attempt theft for the possibility of being caught. Using some sort of access control within your facility can help by limiting who can enter and sometimes exit specific areas. This would allow you to store items of high value or importance and limit who can access them via key fobs, swipe cards, or other credentials. Here at Perfect Connections, Inc. we understand no system is perfect or infallible, but they can help significantly decrease the chances of substantial loss and/or damage. Our team of experts has been providing comprehensive security system solutions to businesses throughout northern and central New Jersey since 1992. Call on our specialists to help you protect your business so you can get back to what’s most important, running it!
If you live or run a business in Central or Northern New Jersey and would like information on any of the topics discussed above, please call 800-369-3962 or simply CLICK HERE.
Image Credit: Image by Kev-shine-Flickr-Creative Commons
