Articles / Press
Reducing Employee Theft
According to a recent report, a whopping 43% of lost revenue is due to employee theft. That’s around $18 billion in loss every year. The retail industry is the hardest hit by employee theft but all industries suffer from some degree of it, whether it’s as petty as office supplies or as serious as embezzlement. There’s no way to completely eliminate it but there are things you can do to greatly reduce it.
To start, if you aren’t already, do through background checks on prospective new hires including reference checks. While it’s true most places won’t give details about previous employment, the answers to questions like “Would you hire X again?” can say a lot.Personality testing can be very helpful as well, as can simply paying attention to how interviewees answer the question, “Why did you leave your last position?” be sure to take in their non-verbal cues too-most people who are lying give that fact away in their body language. This can eliminate or at least sharply reduce your chances of hiring someone that turns out to be a thief. A good video surveillance system is also a must, including video analytics and access control. For example, a store room where spare computer equipment is kept shouldn’t be open to access by anyone except the IT employees responsible for setting them up and assigning them. Just knowing they are being monitored does a lot to discourage the temptation to steal.
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Frequently Asked Questions
Which businesses can be affected by employee theft?
Although the article identifies retail as the industry most heavily affected, employee theft can occur in any organization. It can range from taking office supplies to serious financial crimes such as embezzlement.
Can businesses completely eliminate employee theft?
No security measure can eliminate every risk, but careful hiring practices, access restrictions, and surveillance can significantly reduce the opportunity for employee theft.
How can hiring practices reduce the risk of internal theft?
Businesses can conduct background and reference checks, ask previous employers whether they would rehire the applicant, and pay close attention to how candidates explain leaving earlier positions.
How does access control help prevent employee theft?
Access control limits sensitive areas to employees who need to enter them. For example, a room containing spare computer equipment could be restricted to authorized IT personnel.
Why is video surveillance important for preventing employee theft?
Video surveillance and analytics can monitor sensitive areas and document activity. Employees who know those areas are being monitored may also be less likely to attempt theft.