In all business, small and large, we have to keep our eye on unnecessary loss and employee theft. A few key areas where we see repeated theft are:
Time theft: Employees that repeatedly come into the work area at exactly starting time, but then proceed to make coffee, chat with co-workers, use the restroom and then eventually make it over to their work station. We also have the issues of time spent on Facebook, the Internet, etc. This is stealing time, and can easily be controlled through enforced policies and treating this, as it should be, a disciplinary issue.
Payroll theft: Often in small businesses one person is responsible for Payroll and there is not a solid backup and audit process. No business should allow one person to be solely responsible for managing the payroll system without a backup audit system in place.
Office Supplies theft: Believe it or not 67% of all employees steal office supplies! Post-it notes are the #1 item stolen by employees when it comes to office supplies. We are not suggesting you micro-manage down to whether or not your employees are walking out the door with a Bic pen; however we are suggesting you pay attention. Example: Which employee orders your office supplies? Do you ever conduct an audit or even look at the invoices as they come across your desk? We once had a client whose Administrative Assistant was over ordering supplies, small amounts at a time, then would immediately return them and request a gift card for the credit. As the gift cards piled up, she would trade them in for big items, such as a laptop, and then sell it on Ebay. She did this for ten years before she was caught with a simple audit. In the end, if your employees know you are (at a minimum) monitoring the office supplies, they are less likely to risk taking more than they need for their actual work.
Full Product Theft: If your business produces an actual product it is very likely you have some type of theft occurring. Often we find company owners that are making some small product that perhaps has pieces that can become something more valuable and they think “why would my employees steal these?" If that is what you are thinking, run, don’t walk, to Ebay and do some searches on items similar to what your company makes. You will be surprised at the number of small items that are broken down for copper, stainless, etc. and are just sold in large lots to companies that manufacture something else.
Why do employees steal?
There are a myriad of reasons but some of the key ones are:
- They feel the company owes them because they are not paid enough
- They are concerned about losing their job – for reasons other than stealing
- They feel the company is mismanaged and no one will notice
What can managers do to prevent theft?
- Have a solid disciplinary plan to address issues as they arise
- Monitor your workplace and processes for equipment and office supplies
- We believe in and suggest often to our clients to install Webcams in critical areas of your workplace
- Audit! If your employees know there are random audits, they are less likely to steal
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