Theft and robbery may sound like they have a lot in common; they do. But there’s a minor difference. When unscrupulous individuals steal without the use of force or any threat, that’s theft. But if someone uses force on you (e.g., point a knife at you) and takes your wallet, that’s robbery. However, when someone breaks into a residence or a work area to steal, that’s burglary.
This is a contributed post and does not necessarily reflect the opinions of Meet The Harris Family.
What may surprise you even more is small businesses are losing a lot, not to the competition but employee theft. Around 75% of small businesses in America suffer from such a brazen act every year. And it’s no surprise the finance department is where the majority of these crimes happen.
You might think all the stealing is petty. No, sir. When you total the amount of workplace theft that happens in a year, it will add up to billions. According to Statistic Brain, such a crime costs around $50 billion yearly in America. And that certainly is no small change.
Lucky for you, it’s really not a hopeless scenario. For one, there are proven ways to ensure employee theft becomes a thing in the past. The ball is, therefore, in your court. If you’re willing to make necessary adjustments in your internal structure and processes, you should be able to minimize, if not totally eradicate, such a troubling menace.
Protect Your Property
What’s astounding is that, more often than not, people who are the most trusted in the company organization are the ones that break such trust. Thus, it’s always not in your best interest to put your full trust in an employee because he’s been there for ages.
Plus, you have to watch out for behavior red flags. Even without resorting to spying, you will notice such signs as these usually surface like a sore thumb. These include addiction, lifestyle changes, and sudden relationship break-ups.
Think ahead. The most common forms of company fraud are:
- Payroll theft
- Funds theft, merchandise theft, check theft
- Vendor fraud (employee manipulating accounts payable)
Right from the get-go, restrict access to company assets. We’re talking about computer rooms, supplies, inventory, and even keys. As for your company laptops and PCs, change passwords now and then.
Additionally, this is where insurance plays a huge role in protecting your business, especially if you’re starting. It’s not unlike your mobile home insurance, for instance, where your mobile home is protected from theft. Business insurance can also cover theft, internal or external. Indeed, should employee theft happen, you can claim compensation with suitable business insurance.
Make Written Procedures Happen
Expectations are key when handling employees. That’s why written procedures are a must. They instill the right expectation in your workers. In addition, they foster that atmosphere of greater productivity. A few crucial steps you can take are:
- Keep proper documents on bill payments.
- Make sure to number all forms and documents for easy tracking.
- Tighten your payroll procedures so that every penny sent out arrives at the right employee.
Manage Your Inventory
Chances are shady workers will find a hole in your system, which is especially true for inventory. So monitor your inventory well. Remember that there are two inventory types. There’s the inventory of supplies, which includes your office supplies. And there’s the inventory of your products should be selling goods.
Supply inventory is prone to pilferage. You embolden the criminal to commit bigger crimes if you don’t take action. Also, stolen goods can easily add up over time. Your product inventory is prone to pilferage. So keep track of it and know how each one ended, be it damaged or delivered or whatnot. When you show you value each product that comes out of your company, you discourage workers from theft.
Have Another Employee Monitor
This is why a separate audit is a must. If the person to countercheck the accounting work is the same person who did the accounting, your company is in big trouble. Make sure you have a separate professional to audit your accountant. Such a two-step process ensures little to no theft happens.
So this means the one paying your bills in the bank should not be doing bank reconciliation. And this also goes true for your sales department. The one who sells the goods should not be the one to decide if a product is to be thrown away as scrap.
Review Your Safety Measures
Best of all, take a step back every once in a while. While putting safety measures is wise, know workplace thieves are constantly finding holes in your system. It’s best, therefore, that you do regular reviews and check every so often. That way, you can build a bigger trap should the mouse grow stronger.
