Employers Lose A Lot Of Money Due To Employee Theft
The most common form of employee theft is stealing cash from the cash register or from the company account. Other forms include time card fraud, productivity theft (cell phone abuse), office supply theft, and product inventory theft. It is estimated that companies and business owners lost over $50 billion in 2016 due to employee theft. In fact, businesses lose more money because of their own employees stealing from them than from shoplifters.
The best way to prevent employee theft is to stop it dead in its tracks before it can even happen. Here are just a few things that, as a business owner, you can do to prevent your employees from stealing from you and your business.
Learn about your potential employees before you hire them. See if they have any criminal activity in their background or anything that could indicate that they might steal from you. It is legal to conduct background checks on people for employment but few businesses utilize this important tool. Since they are getting less expensive it makes sense to do them.
Proper Checks and Balances
Have a system set up so that employees can check each other’s work. For example, the person that handles the company petty cash should never also handle the receipts that show where the cash is being distributed. Or how the money has been spent.
Make sure that your employee parking is not too close to your building where you keep your inventory. You don’t want to make it convenient for them to easily load up their vehicles. I once knew a person that owned a company that sold car stereos. His employees parked right by the door to the inventory warehouse. Near the end of the working day they would take a couple stereos and place them right outside the warehouse door. When it was time to leave they would simply punch out and then put the stereos in their vehicles as they were leaving.
Have Written Policies
Make it very clear to your employees that them stealing from your business will not be tolerated. Be sure to list the actions you would take in the event of employee theft such as termination, prosecution, and restitution.
Card Access Control
With a swipe card access control system you can have all of your doors locked at all times. You will be able to control who has access to any of the doors as well as what time they have access to them. With the ease of web browser based system, you will be able to log in from any computer on your local network and manage your system. Change access for any employee for any door at any time.
Having security cameras installed in key areas such as by cash registers, inside inventory and office supply rooms, by any safes, and covering the outside doors in the parking lots would greatly cut down employee theft. If not completely stop it. If employees know that they can be seen by the most reliable eye witness then they won’t want to take the chance of being caught. With today’s technology you can have a custom security system with remote monitoring at an very affordable cost that will save you and your business a lot of money down the road.
Get A Free Quote
If you are considering getting a card access system and/or a custom security camera system built for your business give RSI Audio Video Security a call. We can be reached at 586-219-0808. You can also reach us by email as well. Ask us for our free no-obligation quote and consultation.