Preventive Actions To Reduce Employee Theft In Business

​One of the most prevalent problems faced by business owners is employee theft. According to the FBI, employee theft is a growing crime in the United States. They said that it deprives business owners of at least 7% of their estimated margins. The problem is dreadful for businesses because of the opportunity costs and losses it incurs. 

Now, employee theft affects not just the earnings of a business. It also impacts the firms' culture and reputation. So here is a guide to reduce the risk of employee theft in your business: 

Strengthen the screening process of hiring
The pre-employment screening process shows if there are red flags. You will observe it from the records and behaviors of applicants. Job titles with access to accounting records need a keen level of background checks. It could cover credit history and criminal records. More so, be wary of disagreements in the resume. Because this could be a ground for questionable character.

Know your employees
Be alert to the behavior of your employees. Because they could have opportunity and motivation for potential theft such as:

• Drugs and alcohol abuse
• Evidence of obsession in gambling
• Lifestyles above the salary level
• Consistent and persistent borrowing
• Sudden devotion to work 
• Strong rejections to procedural changes about accounting or inventory matters

Set up a reporting process
Employees are the best way to get information about their co-employee theft. Because they have the same work environment. They may observe their co-worker acting weird or not doing their tasks properly. 

Implement a reporting system where employees can account for suspicious behavior. At the same time, secure their identity. Here are some ways to encourage this reporting process:

Offer the choice of reporting anonymously. Assure potential whistleblowers that their identity is secured and information is confidential.

Provide different mediums for reporting. Employees may report through emails, forms, texts, or a complaint box in the office. It's for wider accessibility. 

Always remind employees. Let them use various forms of communication to remind your employees. That encourages them to report any misconduct observed, including theft.

Ensure check and balance
Make sure there is task delegation on recording transactions and collecting the payments. You should not entrust one person the control of all financial records. It helps catch errors and overlook important information.

Conclusion
Inventories, especially cash, are the most susceptible to theft. So the best way to prevent employee theft is through strong detection. And, of course, preventive actions.

At Kapasu Insurance Services Inc., we do our best to ensure that our clients are well-protected with affordable and comprehensive policies. We make sure to go the extra mile to help you with your needs. To learn more about how we can help you, please contact our agency at (760) 995-3853 or Click Here to request a free quote.