Employee Theft - How to Stop Employees from Stealing

Sometimes your best customer is a shoplifter and your best employee is a thief

If you are in the retail business and you have employees there is a good chance that one or more of them is stealing from you on a regular basis. The US Chamber of Commerce estimates that 75% of employees steal from the work place and most steal on a repeated basis. On average, it takes more than 18 months for an employer to catch an employee who is dishonest and stealing.

Every year billions of dollars are lost to internal theft and it appears this figure is rising. This is especially tough on the smaller businesses which often are less able to absorb a loss than larger businesses.  A small business usually lacks the resources of a loss prevention department and loss prevention personnel therefore often internal theft can go unnoticed for a much longer period of time, sometimes it is never recognized.

With the rise in both shoplifting as well as employee theft a greater number of businesses are shutting their doors because losses exceed profits. For the first time employee theft has overtaken shoplifting as the number one cause of shrinkage which is of great concern.

Now although there may be more incidences of shoplifting the losses per incident for employee theft is much greater. According to the "Annual Retail Theft Survey" conducted by Jack L Hayes International. On a per case average, dishonest employees steal $665.70 or 5.9 times the amount stolen by shoplifters.

Statistic:

Employee theft alone accounts for about 33% of the businesses bankruptcies that occurred each year prior to the recession

 

 

Although it may be impossible to totally eliminate all internal theft a proactive strategic approach will certainly help to minimize this source of loss.

Following good hiring procedures, performing strict inventory controls and having clear policies if an employee is caught stealing will help. Also maintaining a good positive work environment will be a positive step towards reducing theft. But perhaps the most effective method of reducing theft is employee involvement in loss prevention
 

 

Make Your Employees the Solution

Some studies are now suggesting when employees are involved in the overall loss prevention process there is a reduction in all forms of theft including internal theft.

Including staff members in discussions regarding shoplifting issues during staff meetings can be a step in the right direction. Ask for their suggestions and feedback on areas that they would improve to reduce shoplifting theft. Also involve them in loss prevention training. The participation in Shoplifting Prevention Training by all staff members may be one of the most cost effective tools. Not only does training help to reduce shoplifting but it has been shown to reduce internal theft as well. Psychologists believe that employees who are involved in the process of reducing shoplifting tend to take a greater level of personal responsibility to reduce all forms of retail shrinkage including internal theft. Often they are more vigilant in keeping a closer eye on coworkers as well. Overall training sends all employees a strong message: that you, the retailer take all forms of loss extremely seriously.

 

For larger businesses direct training by a Loss Prevention Specialist can be a good method in the reduction of internal as well as external theft but may be cost prohibative for the smaller establishments. Smaller businesses with less than 20 employees may benefit from ongoing online training whereby each staff member including part timers participate on a fairly regular basis.

 

 

It is unlikely that employee theft will go away anytime in the near future and every business owner works too hard to have hard earned profits walking out the door, taking loss prevention steps will help keep more of thoses hard earned dollars out of the hands of both internal and external thieves.


Biography

After losing a business to shoplifting and two years later being a victim to a shoplifting assault FJ Tarasoff made a commitment that he would help retailers protect their assets as well as the safety of all staff members. Twenty years later, Tarasoff is a leading authority in retail loss prevention, he conducts training workshops on various loss prevention techniques, including shoplifting and intenal theft and is the developer of “The Shoplifting Prevention Program” an affordable online training program. He has also been interviewed by numerous media outlets including, The CBC, The Globe and Mail, Small Business report, Hardware Magazine, Grocer Magazine, GlobeandMail.Com, Canadian Retailer and is a member of Retail Loss Prevention professionals Group, Security and Loss Prevention for Retail Industry and the UK Loss Prevention Group.

 
For more infomation or question contact me at info@shopliftprevention.com
or go to www.shopliftprevention.com