Employee theft is far more common than you may realize. Security experts estimate that 25 to 40 percent of all employees steal from their employers and the U.S. Department of Commerce (DOC) estimates that employee theft equals a total loss of approximately $50 billion on an annual basis nationwide.
Small businesses are believed to be particularly vulnerable to employee theft due to their infrastructure. Many small business employees have multiple responsibilities and in many cases are less managed. This provides a greater opportunity for an employee to conceal their actions.
Theft can have a detrimental impact on your small business that can result in too great of a loss for you to stay afloat. The most common ways employees steal from a company are pocketing cash, stealing merchandise, stealing supplies, falsifying employee payroll, and releasing important company documents.
While employee theft may be difficult to detect, there are strategies you can implement to prevent it from starting to occur in the first place.
When it comes to cash management, one offs are hard to prevent. Any time a register opens your employee has the opportunity to skim off the top. One way to prevent this from happening is to have security cameras installed. This not only protects the company from internal theft but will also be a huge deterrent for burglaries and robberies as well. What employers need to understand is the catastrophic losses happen when an employee has access to entire drawers by themselves in the back office.
The best practice in this scenario is to have a system of checks and balances. To start the process you always need to have more than one employee move tills to the back office. After these employees have made their way to the back office, rather than having the employees waste valuable company time counting the drawers down, have a cash management safe in place for them to simply insert the money into the safe. Once the money is in the safe it is longer creating an opportunity for your employee to steal from the company. Routine cash drops throughout the day will help lessen losses as well.
There are many benefits to business owners to deploy a cash management safe that benefit everyone throughout the company.
Written By: Heather Haney