Employee Theft

Every year businesses across the country lose billions of dollars to employee theft. Some studies show that the more employees believe they will be caught, the less likely they are to steal.

Here are Tips for Preventing Employee Theft:

• Screen all employees before hiring them – it's the best defense against internal theft.
• Never have fewer than two people close up at night.
• Have all keys distributed to employees engraved with the words "Do Not Duplicate."
• Watch for warning signs of theft – employees who:
  • Live beyond their financial means.
  • Habitually violate company policies.
  • Have a substance abuse problem.
  • Are chronic liars.
  • Seem immature or troubled.
  • May have cause to feel wronged.
• Secure all shipping labels unless part of an authorized, register-validated sales receipt.
• Limit the number of employees authorized to ring up other employees' sales, reducing the opportunities for collusion.
• Use a card access system rather than traditional keys — access cards can't easily be duplicated.
• Install a closed-circuit television system. It allows you to monitor employees and serves as a very strong deterrent when employees know one is in place.

Tips for Managers:

• Make bank deposit drops daily –no exceptions.
• Review daily exception reports highlighting excessive voids, overruns, no sales, refunds and other suspicious activity.
• Limit the number of "NO SALE" rings by defining under what special conditions they will be permitted.
• Require employees to keep the receipt for merchandise they consume in the store during that day, for possible verification by the manager.
• Inspect trash dumpster at random but at least weekly, following trash collection but prior to pickup.
• Never have fewer than two people close up at night.
• Don't allow employees to write up, ring up or wrap purchases for themselves or relatives.