Security Solutions That Help Mitigate Employee Theft

Dixie Safe & Lock Service Inc. • Jun 13, 2019

Employee Getting Money from Cash Drawer — Houston, TX — Dixie Safe & Lock Service Inc.

A topic we touched on in one of last month’s blogs was security measures you can install in a business to get discounts on commercial insurance rates. One of the security measures insurance companies look for, especially for retail and food service businesses, is till monitoring.

It would be great if every employee was an honest, upstanding worker who would never dream of stealing money or inventory from their employer, but we don’t live in an idyllic utopia. And it’s not just disreputable people who steal – many people who are down on their luck may feel as if they have no other option to make ends meet.

The best way to keep everyone honest – regardless of their motivation or situation – is the deterrent of knowing they’re being watched.

How Big of a Problem Is Employee Theft?

The answer depends on your definition. According to the California Restaurant Association, an industry group comprised of California restaurant owners, approximately 75 percent of employees steal at least once – and 95 percent of businesses are victims of employee theft. Their definition includes theft of time and office supplies. For example, they believe an employee checking Facebook while they’re on the clock constitutes theft.

Of course, that means if you’re working on the fryer and haven’t eaten all day and you quickly chomp down a single tater tot you’ve joined the thief club. Does that one tater tot have a huge impact on a business? Probably not. However, the cumulative effect of mundane thefts can eventually add up to significant losses.

If every employee at a pizza restaurant takes home a free pizza at the end of the day and you have 10 employees in the store per day your business is losing nearly 300 pizzas worth of inventory every month.

Statistics Brain, a research group, estimates U.S. businesses lose approximately $50 million annually due to employee theft.

Discouraging Employee Theft

Although all forms of theft should be a concern – whether it’s being on the clock but not actually working or using the office printer to make full-color “lost dog” pamphlets – the type of employee theft that can be most effectively deterred by security solutions is the more traditional kind, like taking money out of the till or stealing inventory.

Cameras can be one of the most effective deterrent measures for this more bottom-line damaging form of theft. If employees know they’re being watched or that a visual record will exist when management realizes the count is off after their shift, they will be much less likely to steal.

For both retail and office jobs, having specific accounts, login and entry codes for each employee are also a valuable anti-theft tool. Even if you don’t have a camera in a restaurant you can still go back to the entry log on the cash register’s computer and see who was using it during a shift when the count went off and narrow down the potential suspects.

For retail, if inventory is missing from the stock room or loading dock you may be able to look at entry logs and see who accessed the area and when.

Another sign to look out for are patterns of voided sales and refunds, especially in food service. For retail, there are schemes where an employee will put merchandise in the trash and put it in their car or give it to a third party once the trash has been removed from the premises.

Keeping an eye on purchase and refund records, setting trash removal routines and even using clear garbage bags are all potential strategies to combat these types of employee thefts.

Quick Tips on Reducing Employee Theft

Delineate Duties – the person who receives payments from customers shouldn’t be the sole employee in charge of accounting, a position that would allow them to potentially steal and cover their tracks. Procedures can be set up for counting tills and deposits, like requiring two employees to verify the count and deposit the money.

Keep Track of Inventory – There should be checks and balances for any business that deals with inventory. Managers are not above theft, and they are often in the best position to take inventory and attempt to cover it up by fabricating inventory records. Periodic and random inventory checks should be performed to ensure records match reality.

Have Thorough Hiring Practices – Making sure your employees are honest, stable individuals is probably the best strategy. If you avoid hiring people with histories of theft or reckless behavior, such as gambling or drug abuse, your business can significantly reduce the risk that an employee may steal to feed an addiction or pay for costly mistakes in their personal life.

Work on Building Morale – Employees are much less likely to steal if they like their employer and the people they work for. Both loyalty and guilt can be strong motivators, and people are much less likely to steal from employers they like, respect and believe treat them well and compensate them fairly.

Get Business Security Help From Dixie Safe & Lock Service Inc.

Dixie Safe & Lock Service Inc. has helped secure many Houston area businesses to protect them from security threats. Business security should be a comprehensive solution that deters burglars and thieves as well as employees who may have sticky fingers. You can schedule a consultation to learn more about our security systems and our recommendations by calling (713) 643-5767.

Number	First Name	Last Name	Email Address
1	Anne	Evans	anne.evans@mail.com
2	Bill	Fernandez	bill.fernandez@mail.com
3	Candice	Gates	candice.gates@mail.com
4	Dave	Hill	dave.hill@mail.com

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