Employee Theft Prevention: Protecting Your Business Against Internal Theft

 

Numerous businesses report that out of all the profit loss they experience the most, internal theft is the biggest culprit…and not busting sales! When we understand how major and prevalent internal theft is, what do we do as business owners and managers in order to have an effective employee theft prevention program?

Well, you can't prevent every single crime, but you can take steps to safeguard your business against embezzlement and other unsavory matters.

Background Check For Employment & Other Employee Theft Safeguards

First things first:

1. Hire the Right Way
In order to prevent dealing with employee embezzlement, you need to make sure you're hiring the best candidates. If you don’t do your due diligence, not only do you run the risk of employee theft, but you also may be getting a "lesser" crop of candidates.

Are you:

- Running a background check for employment on all potential new hires?
- Making drug tests mandatory for new hires?
- Calling all references for potential new hires?
-Asking trustworthy employees for candidate referrals?

These are things you or your HR team should be doing like clockwork for every new hire. Getting lazy on checking references or not wanting to ask candidates to take the extra step like a drug test will cost you down the line. If a candidate is eager to be a great employee, he or she will have fabulous past references and will also be willing to get drug tested. If he or she doesn't have solid references or hesitates to take a drug test…don't hire that person!

Secondly:

2. Conduct Staff Monitoring
Now that you've hired your staff, are you conducting proper employee monitoring?

Do you:

  • Make sure you have enough people on deck in order to ensure there are more than one set of eyeballs watching what is going on?
  • Conduct random bag searches? Make sure to have these done randomly—or perhaps daily. If an employee is uncomfortable having his or her bag checked, you should be very uneasy.
  • Encourage employees to speak out if they see any employee monkey business going on? Developing incentive plans to ensure employees look out for theft on the inside is a smart plan.

3. Check Finances Regularly
From inventory—if you've got it—to cash registers and account ledgers, make sure you have an accountant as well as yourself, going over the business finances. A dollar here or there missing adds up. Don't get sloppy or refuse to invest in such financial management. In the long run, you will regret not taking proper care of your business.

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