• Employee theft is a common problem with the potential to cause serious issues for businesses.
• It is necessary to understand why employees steal in order to find practical solutions.
• Implementing access control systems and surveillance cameras can help to prevent employee theft.
• Clear policies and consequences must be communicated to all employees, so everyone knows the seriousness of the issue.
• Taking these steps will help you reduce the risk of employee theft and ensure your business remains profitable.
Employee theft is a problem that can have severe implications for your business. Whether it’s stealing time, products, or money, employee theft can cost you time and money. It can also hurt morale and cause long-term damage to the reputation of your business. Here’s what you need to know about it and how to defend against it.
Four Problems Caused By Employee Theft
It’s estimated that 75% of employees have admitted to stealing from their employees. This can be very devastating and can cost businesses thousands of dollars annually. It’s a common problem, and here are the issues caused by it.
Reduced Profits and Loss of Inventory
One of the most obvious ways employee theft can affect your business is by reducing profits and causing inventory loss. If an employee is taking advantage of their access to company resources, they may be siphoning off products or money without you knowing. This can lead to reduced profits, mainly if the stolen items are regularly sold or high-value items that are expensive to replace.
Lower Employee Morale
No one likes feeling like they’re being taken advantage of or like there’s someone in the office who doesn’t follow the same rules as everyone else. When an employee steals from the company, it causes other employees to become less trusting and less likely to invest in their work with enthusiasm. Low morale often leads to poor customer service, reducing profits for your business.
Risk To Reputation
Any type of theft is frowned upon by customers and potential customers alike, so if word gets out about an employee stealing from your company, it could damage your reputation as a trustworthy and reliable brand. Unfortunately, a tarnished reputation is hard to repair, so you must act quickly if you suspect any kind of theft in your workplace.
Risk To Security Systems
Employee theft may also expose vulnerabilities in your security systems that outside sources could potentially exploit. If an employee knows how to get around specific security protocols, they might be able to share this information with others or use it themselves down the line when they no longer work for you.
This could put sensitive customer data at risk and leave you open to legal action if customer details are leaked or stolen due to negligence on your part in protecting this data appropriately.
Ways to Deal With Employee Theft
No one likes dealing with thievery in their workplace, but unfortunately, it happens occasionally. Here are ways you can deal with them in your business.
Learn Employee Motives
First, you need to know why your employees are stealing in the first place. Are they struggling financially? Do they feel undervalued or taken advantage of? Understanding why they’re doing it can help you find a solution that works for both parties. You should interview caught employees or every employee in your company, know their needs, and deal with them.
Install Access Control Systems
You need to lock doors that contain sensitive or expensive assets. You can invest in the best wifi door lock for this. These locks are very secure and can give specific employees access to certain rooms or doors. This is an excellent way of monitoring who has access to what items and preventing theft.
Install Surveillance Cameras
Cameras are also an excellent deterrent for thieves, as they’ll know they’re being watched and monitored. You can also review footage if theft does occur, so you’ll have proof to take action.
Create Clear Policies
Finally, ensure all your employees know the rules and policies in place to prevent theft. Make it clear what happens if someone is caught stealing and ensure that everyone understands the consequences. This will help to deter potential thieves and keep your workplace safe.
Employee theft is a serious issue, but knowing how to deal with it and protect against it can help you minimize its impact on your business. Make sure you follow the steps above, and by taking these steps, you’ll be able to reduce the risk of employee theft and ensure your business remains profitable.