5 STEPS TO PREVENT EMPLOYEE THEFT

For many small business owners, there’s no such thing as a small loss due to theft or fraud. When a dishonest employee is the cause, it only compounds the injury. There’s not only the financial burden of the crime but the loss of an employee and the trust in your workforce.

Is employee theft really a problem? A recent study found that, in a retail setting, one of every 27 employees was apprehended by their employer for theft. In an office environment, office fraud lasts an average of two years before it’s detected. Apprehensions of employees for dishonesty spiked nearly 10% from 2015 to 2016, according to a survey of retailers.

How to Watch for Employee Theft & Fraud
The most-likely culprits to steal from employers are employees who have worked at their jobs for several years.

Some danger signals that you should look out for are:
A sudden devotion to their jobs or working later than normal hours.
Evidence of drug or alcohol abuse.
Evidence of financial troubles or irresponsibility.
Having strong objections to procedural changes related to financial, inventory or supply matters.
Living above their means.
Moonlighting in a parallel business.
Combating Employee Theft
Here are five ways to make it more difficult for dishonest employees to steal from your business and minimize the damage done to your business:

1. Run background checks When making hiring decisions, don’t just check a prospective employee’s references. Run a complete background check. It may seem a little pricey but it can be money well spent if it prevents you from hiring a future thief. Read Full Article