Dealing
with employee theft is a concern for all businesses, large and small.
The first step in controlling the problem is
to understand the types of loss a company can suffer.
The next step is to figure out when a loss is
occurring, and then what you can do about it.
One
of the most common types of employee theft is larceny.
Most often this occurs in small ways such as
office supplies for personal use, or theft of product.
Although most of the time these types of theft
are small, and seem inconsequential, they add up quickly.
When the product is a candy bar from a store,
the loss is minor and hardly noticed.
However, when your inventory is refrigerators, one or two missing items
cuts into the profit margin rapidly.
So,
how do these things start?
Employees,
like customers, like all humans, do things for a lot of different reasons.
There is no one “type” of employee who will
steal, and no one “type” that won’t.
So
being vigilant and aware of your business and employees is critical.
There can be a variety of red flags to watch
for, depending on your business.
One
indicator is a change in pattern, such as being at work at irregular hours.
This is particularly true if the employee
changes his or her schedule to be at work when no one else is there.
Occasional flexing may not be an indicator of
anything, and depending on your business it may be beneficial, but changes to
the work routine should come through a supervisor, not through the employee
without approval and justification.
Another
significant warning sign is a failure to follow, particularly a new failure to
follow, established procedures.
If your
company has a well established routine, especially a written policy, then your
employees should be following it.
If
there is a better way to do things, your employees should come to you and
present their ideas so the procedure could be changed.
If an employee individually decides not to
follow company procedures you should pay close attention to the situation.
Humans
have an expectation of what should be, and a sense of when things are
wrong.
Things that seem out of place
probably are.
Follow your instinct if
something doesn’t feel right.
It doesn’t
mean the employee is automatically wrong, there may be many valid reasons for
their actions, and there may not be any problem at all.
But as a supervisor or a business owner, it’s
your job, and in your own best interest, to stay involved.
Understanding
the legal authority of the company, and knowing how to apply your authority
will help prevent being a victim of theft, as well as help you catch on quicker
and help make your case stronger when it does happen.
The statutes for larceny and embezzlement are
available online at
Vermont Legislature T13 Ch 57.
This chapter covers not just larceny and
embezzlement, but also the rights of the merchant regarding merchandise, and
the requirements regarding theft of rental property.
You
can install video surveillance in non-private areas of the business, require
check-in / check-out, and even inspect bags and packages.
Develop written policies and procedures to
cover these situations, and document training in proper procedures.
Where ideas and information are important,
establish no-compete contracts and non-disclosure contracts.
Make sure you consult your attorney to ensure
the policies and practices you use are in compliance with your industry
requirements and other applicable standards.
Documentation
is key to protecting yourself both before you become the victim, and after you
find out and begin take action.
By
having written standards and policies, you can establish consistent and
defensible expectations for your employees to follow.
By being vigilant and consistent in following
them right from the start you can decrease your chances of having someone steal
from you.
As soon as you realize
something is not right, document the facts and circumstances you find.
Being able to present a clear, well
documented picture to the police, the union representative or the attorney will
make your life a lot easier.
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