Employee theft is costly for any business. Research shows that two out of three employees have committed some type of theft. There are several proven employee theft prevention strategies that also build trust within your team.
A survey from the National Retail Federation found that theft in the workplace costs businesses billions of dollars each year. However, much of that theft is preventable. It’s all about looking at your specific business operations and finding the right methods for how to prevent theft in the workplace.
What Are Employees Stealing?
Theft at work comes in many forms, such as employees stealing cash, physical merchandise, time, and sensitive information. Cash theft is common in cash-heavy businesses like restaurants. Convenience stores and retail stores struggle with product theft, while time theft can affect all types of businesses. Theft at the workplace can negatively impact a business’s bottom line and operational efficiency.
How To Prevent Employee Theft
With the right proactive strategies, you can deter most internal theft. The type of business you have will affect which theft prevention measures you should implement. How to prevent employee theft in retail will look different from how to prevent employee theft in a restaurant.
The specific strategies a business should implement also depend on the types of employee theft it is trying to prevent. For example, to prevent cash theft, it requires a good cash management system and a secure safe. Tracking time closely can help deter time theft, and closely monitoring inventory can help prevent theft of merchandise and supplies. Clear policies that outline the consequences of theft can deter all types of employee misconduct.
Deter internal theft by taking control of your cash management with CashSimple® from Integrated Cash Logistics.
Use Smart Cash Management Systems To Reduce Cash Handling Risks
It can be difficult to track and prevent the theft of cash when it’s moving through multiple hands. Convenience store, retail store, and restaurant owners and managers should implement cash handling security measures to prevent stealing in the workplace. ICL’s CashSimple® cash management solution reduces manual errors and theft opportunities. It increases accountability and offers real-time tracking of cash flow. Using a smart cash management solution can also help franchisors with cash management across locations.
Monitor Inventory Closely To Prevent Product Theft
Digital inventory tracking systems can detect discrepancies without having to waste time and money on tedious manual inventory processes. It’s essential to conduct regular audits, ensuring you are aware of the whereabouts of products and cash at all times. If your store sells high-value items, consider restricting access to them to prevent costly theft. Strategies like installing security cameras and CCTV can also help reduce theft of merchandise in retail stores.
Track Time And Attendance To Catch Time Theft
Time theft includes extended breaks on the clock and buddy punching (i.e., clocking in for a co-worker who isn’t actually at work yet). It can be costly for businesses. A study by the American Payroll Association found that up to 5% of businesses’ payroll costs are actually time theft. You can use digital time-tracking tools to enforce accurate attendance and productivity. Security cameras can also help deter time theft.
Establish Clear Policies And Consequences For Theft
Employee theft prevention starts with detailed anti-theft policies that are clearly communicated to employees. Documented procedures and consistent enforcement act as deterrents. Include a no-tolerance policy for all types of workplace theft in your employee handbook and ensure all new employees sign it. Regularly review company policies and training on how to prevent and report potential theft. Include a whistleblower policy as well to protect employees who report theft at work.
Foster A Transparent Culture With Strong Internal Controls
The best way to reduce employee theft is through a positive workplace culture. Workplace culture influences ethical behavior and can prevent employee theft before it begins. Employees who feel valued and listened to are less likely to steal. Building trust and maintaining checks and balances are great ways for how to prevent employees from stealing. Research shows that providing an anonymous employee hotline to report theft and fraud they witness is another great employee theft prevention technique.
Convenience stores are particularly susceptible to internal and external theft. Learn how to increase security at your store to deter thieves.
How To Deal With Employee Theft
When there is suspected theft in the workplace, it’s essential to conduct an investigation, documenting all evidence as soon as possible. Depending on the nature of the theft, it is usually up to the business owners and operators to determine whether to take legal action against an employee for stealing. Make sure all rules and regulations for a business’ specific industry are followed. In some cases, reporting the theft may be required by law. Lastly, practice discretion when addressing employee theft to protect your company’s reputation.
See How ICL’s CashSimple® Cash Management Solution Makes Your Operation More Secure
Employee theft prevention is easier with ICL’s CashSimple® cash management solution. Our portal provides real-time data that operators can use to see all cash deposited in ICL’s smart safe. You can also track who opens the safe and when. With our unique cash capture technology, we buy your cash immediately upon depositing it in the safe. This means you are no longer liable for the cash.
Check out our c-store case study to see how ICL helped increase cash visibility for 50+ c-store locations through our centralized dashboard. Then, schedule a discovery call and interactive demo to see what CashSimple® can do for your business!
