In 2013, some 78,000 employees in the US were found to have stolen about US$55 million from their employers. The data only takes into account retail sector employees. This trend of office theft is not without its victims. Businesses and communities served by these businesses will lose out because with reduced profits, businesses will be forced to raise prices so that consumers will be affected. Fortunately, there are ways that all companies, from the lowest employees to business owners, can catch dishonest employees and end theft in the workplace.
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Method 1 of 3: Catching Dishonest Employees As Supervisors
Step 1. Collect every evidence of theft carefully
To catch a thief at work, you must have information. As soon as a search occurs, gather information that can help you figure out when, where, and if possible, around whom the theft occurred.
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Data you may wish to collect includes:
- The exact date and time of loss of money/goods;
- Beginning and ending balance of each cash register (in case of theft of money);
- Total inventory and sales (in case of theft of goods);
- Name of the employee who was at work when the theft occurred;
- Access card swipe data, whenever possible;
- Employee expense reports; and
- Equipment usage notes.
- If you don't have the information, start recording when you suspect theft. Recording is usually enough to prevent future thefts, but if the theft persists, you'll be better prepared to catch a thief.
Step 2. Find the defects in the notes
Take a look at your notes and find anything that doesn't seem to make sense, or any gaps where money or items could be lost. The better your bookkeeping, the more likely you are to find evidence of theft.
For example, when you check stock records, you may notice that the 20 smartphones at the beginning of the day had decreased to 10, but only 9 were sold. The results of these calculations are certainly a question mark, and you should investigate
Step 3. Pay attention to the function of the cash register
Employees who steal from cash registers usually use various tactics to cover their tracks, usually with the help of certain functions to get a chance to steal. For example, a dishonest employee might use the cash register's no sale function to steal. When a buyer gives money, a no sale order on the cash register is entered so that the machine opens. Employees will give change to customers, and take money from the cash register. The customer would have no way of knowing this cunning, and neither would the sale be recorded.
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The cash register functions that you need to be aware of include:
- No Sale
- Refund
- $0 Sale
- Reports (dishonest employees may pocket the proceeds of sales that occur when the cash register prints the report).
- O'Dell Restaurant Consulting has a comprehensive guide containing common employee theft tricks, and some of which take advantage of the special functions of the cash register. Read the guide at this link. While the link focuses on restaurants, many of the tricks mentioned in the guide also apply to many other areas, including retail.
Step 4. In case of theft of money, do the calculation of money at the cash register
One of the most common ways to deal with theft of money is to have employees count the money at the cash register at the beginning of the shift, and count it back at the end of the shift. The calculation results will be compared with the sales report. The system is relatively easy to implement, and while it's not guaranteed to stop the theft of money from the cash register, blatant theft can easily be caught.
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Using standard tables will make it easier for owners and supervisors to implement this system. Include the following rows in the table:
- Beginning balance
- Cash sale
- Credit card/cheque sales
- Total sales
- Ending balance
Step 5. If possible, use data from video recordings
If your company has a CCTV security system, look at the footage to find evidence of theft, especially if the camera points to a theft location such as a cash register. Use that information to narrow down the time and place of the incident, then wait for latent signs of theft, such as:
- Employee hands move money from cash register to pocket.
- Money moving from the cash register to the tip holder.
- Strange habits in the cash register area (for example, a dishonest employee might mark the cash register carefully to remember how much he stole from the cash register so he can adjust the financial statements).
- Selling goods that move to pockets, wallets, bags, etc.
- Items that can still be sold are moved to the trash.
- Unauthorized access to money vaults, safes, etc.
- Visits to the office outside of working hours,
Step 6. Ask the employees one by one
While a thief will not confess under interrogation, an honest employee may be able to give you a clue. Consider calling employees to your office to have an honest and open discussion about theft in the office. You can ask if they know of any employees who steal, or ask them to help stop the theft. You can also remind your employees of the theft-related rules in your office.
- Invite employees to talk one by one in your room. Your employees may feel more secure if they are not dealing with other employees.
- You may also want to talk to as many employees as possible, even all employees if possible. Thus, if the employee who stole was fired, it would be difficult for him to know who leaked information about his behavior.
Step 7. Consider conducting an internal audit with the help of a third-party investigator
Owners and supervisors are not alone in dealing with the problem of theft in the office. Many independent consultants and investigators on office security and theft prevention can help you. Although the cost is too high for a small incident, if the theft continues and becomes a big problem, the services of this consultant will be very meaningful.
Internal audit is very useful when fraud occurs at the accounting level. Bookkeeping employees can steal quite a lot from a company without getting caught, so outside auditors can be very helpful
Step 8. Confront the thief only if you have convincing evidence
Do not accuse or fire without evidence because this will only demoralize workers and prove that you can fire arbitrarily, especially if it is later proven that the employee you fired did not steal. To avoid this, wait until you can prove theft before firing.
In addition, if you fire an innocent employee, and the employee's contract contains a position security clause, your actions will include unwarranted dismissal, which could result in prosecution. However, most employment contracts in the US allow you to fire an employee at any time, either for no reason or for a reason
Method 2 of 3: Protecting Business from Theft
Step 1. Set up an anonymous feedback system
If you want to free the office of bad employees, help good employees do it. Having an anonymous feedback system makes it safer for your employees to report theft or other misconduct at work. In addition, your employees can also raise concerns, criticisms, and suggestions to make their workplace better.
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Anonymous feedback systems can be implemented in various ways, for example:
- Suggestion box in an inconspicuous space (eg in the break room) so employees can write notes without being noticed.
- An email account that automatically censors the name of the employee who sends email to that address.
- Third-party anonymous feedback programs, such as 3sixty, Suggestionox, etc.
Step 2. Install exception handling software on your cash register system
The chances of employees stealing from the cash register will be less if they know that the use of the exception function in the cash register will be reported to the boss. Consider software that automatically reports exceptions, or requires manager authorization before exceptions can be made, to guard your cash register.
- Exception handling functions are usually part of modern cash register software. If the cash register at your company is old, consider upgrading the cash register for safety.
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Recommended cash register programs include:
- AmberPOS
- POS Vendors
- Lightspeed Retail
- iVend Retail
- NCR Counterpoint POS and Retail Management
Step 3. Install a video security system if your office doesn't already have one
For dishonest employees, supervision will be the highest motivation to stop stealing. Place cameras in vulnerable locations (such as cash registers, expensive goods areas, etc.) to reduce theft and provide strong evidence when theft occurs.
It is also proven that fake cameras can reduce the theft rate in the office. Of course, that depends on whether your employees know that the camera you are installing is a fake one. However, fake cameras are recommended only to "strengthen" the viewing range, not to completely replace the original camera
Step 4. Consider other legal monitoring options
Video recording is not the only legal way for companies to monitor employee performance. A variety of other monitoring options are also available, and their use will depend on how serious the theft problem in your office is. However, make sure the monitoring you use does not violate any laws in your area, or the contracts you and your employees have entered into. Also, make sure your employees are aware of the monitoring you will be doing before the monitoring begins.
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Additional monitoring you can do can take the form of:
- Internet browsing history check;
- Scanning communications for suspicious keywords;
- Monitoring messages, emails, Wi-Fi connections on personal devices, etc;
- Addition of security forces; and
- Swipe card access logging in sensitive areas.
- However, monitoring employees too closely can be dangerous. Excessive supervision from the boss can make employees feel intimidated so that their morale is eroded, especially if your supervision is much stricter than the standards in your business group.
Step 5. Try to establish a personal relationship with each employee
Most companies know the three main reasons for employee theft: the employee has a large number of urgent needs, the employee feels neglected by the company, and the employee steals because of an opportunity. While you can't control the first reason, and the third one can be handled with tighter bookkeeping and supervision, the second is a matter of feeling. In short, employees will not steal if they are valued at work and like their boss.
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You can develop good relationships with employees in the following ways:
- Chat informally with employees, about life, hopes, etc.
- Offers bonuses and rewards for good performance.
- Try to chat, even if a little, with each of the employees.
- Consider social events outside of work (vacations, family outings, etc.).
- Empathize with employee complaints and frustrations.
- Think about this: In a 1976 survey, nearly half of the respondents answered that they stole from their respective offices without feeling guilty. Don't be an annoying boss so your people can steal without guilt, but be a friend to your employees so they don't steal.
Step 6. After dismissal, reorganize security in the office
Although it's rare, employees who have been fired can steal from their old office, especially if they still have keys, logins, and so on. To avoid this from happening, reset the security system in the office after firing certain employees. Do the following, depending on your type of business:
- Change the building lock.
- Change the electronic lock code.
- Change your company email account password, Wi-Fi password, etc.
- Retrieve the key, key code, or other login credentials of the fired employee.
Step 7. Try other unconventional solutions
The increasing problem of theft has triggered creative ideas from various companies to solve it. While not all of the following ideas will fit your situation, they have proven to be effective in preventing theft in certain cases.
- Use clear plastic waste. Employees may hide stolen items in the trash, then secure it when disposing of the trash. With clear plastic waste, this will be more difficult to do.
- Make it a rule to make sure each box is leveled before recycling, to make it easier to steal via the trash can method discussed earlier.
- Rearrange furniture, or reorganize the office to prevent unseen space. If there is no dark room, it will be even more difficult for employees to steal.
- Perform a sudden cash register inspection or audit. Even though employees don't like it, this method is quite effective because if they know that the cash register can be audited at any time, they are less likely to steal.
- Give gifts regularly. Giving out items that don't sell well to employees for free is a way to reduce theft. For example, if employees at your restaurant frequently steal food, allow them to take any food that doesn't sell well.
Method 3 of 3: Help Stop Theft as an Employee
Step 1. If you notice anything suspicious, contact your boss
As an employee, you don't have the power to change systems and stop theft, but that doesn't mean you can't help. If you see, hear, or know of anything that could lead to theft, contact your supervisor immediately. Do not be silent because in the rules of many companies, silence attempts to steal can get you dragged along.
In many companies, especially those with low levels of employee satisfaction or companies with a wide distance between top management and employees, there may be a culture of silence. Employees who steal expect their theft to go unreported, and may bully employees who dare to do so. In this case, don't destroy your relationship with other employees by reporting their behavior to your boss at work. Contact your boss via email, phone or anonymously below
Step 2. Use an anonymous feedback system
Unfortunately, at some companies, it's a bad thing to have a "leaky bucket" reputation for reporting theft. If you are caught in this situation, it is recommended that you report the theft anonymously. By reporting anonymously, management can handle the theft problem, but the thief cannot accuse you of being a whistleblower.
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Things you can try to report theft anonymously include:
- Slip an anonymous note under the boss's office door;
- Write information in anonymous feedback system;
- Write an email to the boss with a disposable address;
- Chat with the boss outside of working hours to discuss the theft issue.
Step 3. Gather information carefully, but don't overdo it
If you see an opportunity to record the theft with notes, photos, or video, do so, but be careful when recording it. If the thief notices he is being recorded, he may avoid you, and make it difficult for you to prove that he is. In the worst case, you may be labeled a "leaky bucket," and your relationship with other friends at work will deteriorate.
Remember that in most cases, remembering the location and time of the incident and the people involved will suffice. If the boss trusts you, and your description matches their record, your boss may have enough information to act, even without any additional evidence
Step 4. Avoid accusing impulsively
Employees are indeed required to report theft to the boss, however, accusing other employees without evidence is certainly not permitted. In addition, even if there is evidence that the theft was committed by a particular employee, the employee should not be humiliated in front of other employees or customers.
In addition to being embarrassing when wrong, accusations without evidence can also bring down morale. Allegations without evidence make employees feel that management can accuse them at any time
Tips
Consider browsing academic databases to find scientific studies and surveys on theft in the workplace to find new strategies to prevent theft. For example, Google Scholar has hundreds of journal articles on the topic, which can be accessed at
Warning
- Don't try to monitor people you suspect outside of work as you will be seen as a stalker and could be prosecuted.
- Don't try to judge a thief in the workplace without permission from your supervisor because if you fail, the thief will feel watched, or you may get into trouble for it. In addition, employees caught stealing may act impulsively or get angry, and cause conflict in the office. This conflict can reduce morale.
