The benefit of owning a small business is that you know your employees so well. You’ve met their families at the company holiday party and watched their children grow. You trust them to be honest and fair. Besides, you hired them.
Yet, statistics indicate:
- 75% of employees are expected to steal from their employers in 2012 (U.S. Chamber of Commerce)
- Companies in the U.S. lose about $50B annually (StatisticBrain.com)
- Men (59%) are more likely to steal than women (41%) (StatisticBrain.com)
- 60% of inventory loss is due to employee theft (National Retail Federation)
- 30% of corporate bankruptcies result from employee theft (U.S. Chamber of Commerce)
Much of the problem has to do with our human desire to believe the best of everyone. Unfortunately, too many people take advantage of that belief.
According to the blog, “Protect Yourself from Employee Theft,” some of the reasons employees steal include:
- They think they can get away with it
- Frustration or dissatisfaction with their job
- Revenge for a past slight
- Belief that everyone else is doing it
- Their boss cheat and steal
The best way you can protect yourself and your business against employees who steal is to take steps to minimize the risk.
Don’t pretend it doesn’t happen. Everyone has a price. Unfortunately, some of them are on the low end of the scale.
Establish and communicate a no-tolerance policy. The specifics of dealing with each instance of employee theft is up to you and your attorney. However, having a policy is your first line of defense.
Have checks and balances in place. Double-check everything. When more people are responsible for a process, it makes it more difficult to cheat the system.
Monitor your margins. If you don’t keep tabs on your margins and know if they’re shrinking, you open yourself up to theft.
Conduct background checks. Before you hire new employees, make sure you know their work history. Avoid fraud, dishonesty, and negligent hiring.
That’s where we come in. We provide fast, accurate, comprehensive background checks, investigative screening, and verification services. For more information on how we can help before your next new hire, contact us.