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Employee theft can cause serious financial losses, damage trust, and harm the overall well-being of your business. However, simple employee theft prevention solutions can safeguard your organization. By understanding the motives behind employee theft and employing simple prevention strategies, you can protect your business and livelihood.
Here are six tips that can prevent employee theft in your business to help insure your success.
1. Understand employee theft
There are multiple types of employee theft. For example, when an employee steals staplers, scissors, pens, etc., it is known as “theft of supplies”. On the other hand, when an employee steals your business products for his personal use or for resale, it is known as “theft of merchandise”. “Theft of money” occurs when an employee steals funds from your business. Stealing valuable information about your business, such as client lists, business plans, banking information, etc., is known as “theft of data”. You must be vigilant for all of these different types of theft.
2. Encourage your employees
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According to the National Institute of Health (NIH), employees who are satisfied with their job and work environment are more productive and are less likely to get involved in fraudulent activities. It’s important to create a positive environment and make sure your employees feel needed and appreciated by recognizing their efforts and contributions. It will help gain loyalty, and loyal employees are more likely to report theft or unethical behavior committed by other employees.
3. Know the warning signs
If you notice any sudden changes in an employee’s behavior or lifestyle, this can be an early sign of employee theft. Also, any irregularities in financial records, missing documentation, unexplained inventory discrepancies or frequent financial difficulties need further investigation immediately.
However, it is crucial to approach any investigation with proper caution. You should maintain privacy during the investigative process and not jump to conclusions without adequate evidence. So the next time you see red flags in an employee’s behavior, be sure you proceed with the proper strategy in mind. This is covered in the bonus material of our program, where we explain step-by-step how to handle any suspected or uncovered fraud.
4. Install security cameras wherever possible
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Installing video cameras can provide tangible evidence in the event of theft or suspicious activities. It can help you understand the sequence of events, identify the thief and gather crucial information to do further investigation. Also, when your employees see these security cameras, it will serve as a strong deterrent to any theft and misbehavior.
In addition, with advancements in technology, various video surveillance systems provide remote access capabilities, allowing business owners or authorized personnel to check live footage from anywhere. We cover which security systems we currently recommend for small businesses, and explain where you can legally place cameras and where you cannot.
5. Create an anti-theft policy
Establishing an anti-theft policy can help you prevent employee theft. You need to specify any actions that are considered theft or fraud. You need to clearly state the consequences of engaging in theft to your employees, including potential legal action and termination of employment. Also, you need to be sure your anti-theft prevention policy complies with your local labor laws and regulations. We cover all three sections that need to be included in your employee handbook to help prevent employee theft and embezzlement.
6. Purchase an online employee theft and fraud prevention program
A recent survey by the Association of Certified Fraud Examiners (ACFE) has found that businesses with anti-fraud or employee theft training have much smaller losses and fewer fraud incidents as compared to businesses that don’t have such programs. These online employee theft and fraud prevention programs educate business owners on how to control employee theft in their business. They give business owners guidance regarding common fraud schemes and what red flags to watch for (some are very specific and surprising!) The networking opportunity can also help you share your personal experiences with like-minded professionals, and to stay updated regarding emerging threats, fraud trends, and effective countermeasures.
Embezzle-Proof Business is your one-stop destination as the best online program to help you in preventing and detecting employee theft and embezzlement. Contact us today to get professional assistance from our experts.