Are you missing inventory regularly? Are your books not adding up? Are there lunches missing from the break room? Well you may have employee theft in your business. Whatever the sign, employee theft takes your money and your peace of mind. One recent study through the Harvard Business School estimated $200 billion in retail losses were due to employee theft.
Here’s a few tips that may help you address and prevent Employee Theft:
Review
When was the last time you reviewed your cash handling and inventory management procedures? Slight cash variances are common, especially if your business is in the service industry, and quite often, a perceived loss turns out to be clerical and administrative errors. However, if there’s a large amount missing of cash missing at the end of the month, or there’s gaps where there definitely shouldn’t be, then you know something is off.
Communicate
Do you talk about theft with your employees? Making sure that your employees are aware of the consequences of theft is a great way to deter it. Communicate what behaviors are allowed and what you consider theft. Some employees may think a free meal, or taking a low ticket item is allowed. Let them know that you take employee theft seriously. Make a point to let them know you use technology to monitor employee and customer behavior in your store(s). Also, it’s a good idea to list the policies and consequences of employee theft in the handbook. For more information on what to include in your employee handbook, check out our article Your Employee Handbook and What You’ve Missed.
Surveillance and Signage
Does your surveillance system capture video that looks like a black and white TV with a bad signal? One of the best things you can do to deter theft is invest in a high definition surveillance system. Even better, integrate it with your Point of Sale to really get a handle on employee theft. A high quality system will point out suspicious patterns of behavior and show you the video to verify it. Make reviewing your system a part of your managers routine and let your employees know it! Utilize public view monitors and signage around your store to remind customers and employees that they are being watched.
Screen
The first step in eliminating future theft is to hire honest people, right? Take the time to fully screen potential new hires before they walk in the door for their first day. We don’t just mean a standard criminal background check. We’re talking social media inventory, driving records, and calling their references.
Get Help
So how do you make time to incorporate all of the tips above? The truth is that many retailers can’t. If that’s the case, consider reaching out to a Loss Prevention expert for help, like DIGIOP. Hiring an expert might sound expensive, but it can be surprisingly affordable with the use of technology. Besides, how expensive is a dishonest employee in your store every day?
DIGIOP offers a full suite of Loss Prevention solutions to help retailers take their business to the next level. Call us to today to learn how we can help you transform your business.