How To Prevent Employee Theft And Dishonesty

Because employee theft is such a widespread issue, it’s important that all business owners, ranging from small businesses to large companies, take the appropriate precautions against it. Here are some tips that may help.

  • Establish a pre-employment screening program.
    • The program should include reference checks. You may also want to perform criminal and credit checks depending on the position you’re hiring for.
  • Create security guidelines.
    • The guidelines should outline the company policy for employees who are caught stealing.
  • Use human resource programs.
    • Develop programs designed to build employee loyalty and align employee and company goals.
  • Ensure that company merchandise or property isn’t easy to steal.
    • This could include a number of tactics ranging from locking up merchandise to installing a surveillance system.
  • Establish controls.
    • The controls should be for petty cash disbursements, bank deposits, withdrawals, issuance of cheques, payrolls, reconciliation of bank statements, and payment of invoices.
  • Ensure no one employee has control over all parts of a financial transaction.
    • Separate responsibilities and functions so more than one employee deals with any given financial transaction, and organise workflow to ensure one employee verifies the work of another.
  • Perform regularly scheduled and random inventory checks.
    • A program should be implemented to manage these checks.
  • Monitor the premises with closed circuit television (CCTV) surveillance.
    • Be sure to keep in mind any applicable privacy law requirements with respect to surveillance.
  • Check merchandise records.
    • All incoming merchandise should be checked against purchase invoices and all outgoing merchandise against shipping documents.
  • Being firm is important. But so is being friendly and fair.
    • If you treat your employees with respect, they’re far more likely to return the favour.