Reducing the Impact of Employee Theft

While no one wants to believe that their trusted employees would steal from them, the harsh reality is that employee theft is the biggest cause of loss each year for small business owners. In fact, according to a retail theft survey conducted by Jack L. Hayes International, a loss prevention consulting firm, one out of every 40 employees was apprehended for theft by their employer in 2012. The survey also found that on average, employees steal 5.5 times more than shoplifters on a per-case average ($715.24 vs $129.12), says Entrepreneur. These staggering statistics alone are enough to take action, so share the following advice with your clients and protect their operation with a Crime Insurance Policy.

Filter out the bad employees.

As the saying goes, past behavior is a good indicator of future behavior. Anyone who was been convicted of a crime, especially one of theft, is likely to repeat this offense. It is wise to conduct drug tests prior to hiring, as well.

Implement controls.

It’s more difficult for an employee to steal if they are not alone in the store. For this reason, implement the buddy system and have at least two people in the store at all times and ensure two people verify deposits, closing slips, and banking. Avoid letting close friends work together and ro tate paired employees frequently.

Set up a camera.

While some shop owners feel as though this ingrains a lack of trust in their employees, it’s hard to argue the point that employees will have a difficult time stealing if there are virtual eyes on them 24/7.

Get to know the employees.

It’s much easier to steal from someone you don’t know very well, and it is much harder to steal from someone with whom you have a relationship. Shulman recommends connecting with your employees and being aware if they are going through financial difficulties or experiencing high levels of stress, which can increase the impulse to steal.

About Genesee General

At Genesee General, we are dedicated to providing the custom-tailored solutions your clients’ businesses need to thrive. For 34 years, we have continued to provide quality and affordable insurance policies including professional liability, employment practices, cyber liability, and more. For more information, contact us today at (800) 282-8755.