Protect Your Business, Stop Employee Theft
By Brandon Peters on January 15th, 2014
Employee theft has been an unbridled phenomenon in the business world. Loss-prevention consulting firm Jack L. Hayes International’s study on this problem reveals that more than 70 thousand employees were apprehended in 2012 for thievery, which is 5.5 percent higher than the previous year. More or less $50 million was recovered in those cases, which is also a few percent higher than the previous year.
As a business owner or entrepreneur, you should know how to protect your investment from employee theft. But how can you protect your business without a broader knowledge of the problem?
Common Factors Affecting the Increase in Employee Theft Cases
Ineffective Hiring Procedures. Ineffective hiring procedures may increase your chances of hiring untrustworthy employees. A well-defined process, however, will allow you to know your applicant better.
Lack of Supervision. Lack of supervision gives employees opportunities to steal from the company. So, make sure management directly supervises employees on a regular basis.
Markets for Stolen Goods. Thieves know that these markets are platforms for illegal, and potentially lucrative, business. Report to the authorities any knowledge you might have of them.
Social Dishonesty. Powerful figures from different sectors of society performing dishonest activities encourages ordinary individuals to commit dishonesty of their own, including employee theft. Be vigilant.
How to Identify Employee Theft
You may want to take action if you notice some of your employees secretly having suspicious conversations; excessively loitering around your business (whether on or off duty); always away from their posts and taking long breaks; habitually violating security protocols or company rules and regulations; or acting suspiciously.
Other signs to warn you that your employees have been stealing from you include the following:
- Inconsistent or unexplained behavior
- Defensive reasoning
- Habitual unapproved borrowing of company money or property
- Expensive personal habits
- Extravagant spending of earnings
- Negatively criticizing the company
- Prohibited co-employee affairs
What You Should Do
Make internal security measures transparent to your employees so they are aware that dishonest and fraudulent activities are prohibited, and prioritize surveillance inside and outside your business premises.
If you would suspect employee theft, don’t attempt to solve the problem by yourself. Hire a business lawyer or avail of a pre-paid legal service.
Don’t waste precious time and allow thieves to hurt your bottom line and keep you from achieving your business goals. Take the steps you need to help ensure that your business is secure and your investment is protected.
About the Author
Brandon Peters is an entrepreneur, writer and a travel, gadgets, health, and outdoors enthusiast. He loves sharing his insights, knowledge and experience in different fields. He also loves LegalShield. You can follow him on Facebook, Twitter and Google+.