Tips to Lessen Employee Theft

Employee theft accounts for a large amount of business losses.

• Establish a written policy that outlines employee responsibilities, standards of honesty, and general security procedures and consequences for not following them. Make sure new employees read it, understand it, and sign it as a condition of employment.
• Follow strict hiring practices. Verify all information and contact all the references listed on an application. Consider running a credit check.
• If internal theft is discovered, take action quickly. Contact your local law enforcement agency and be sure to send a message to your employees that theft will not be tolerated.
• Keep accurate records on cash flow, inventory, equipment, and supplies. Have it checked regularly by someone other than the person responsible for maintaining it.
• Limit access to keys, the safe, computerized records, and alarm codes, and engrave "DO NOT DUPLICATE" on store keys. Change locks and access codes when an employee is terminated.
• Reward employees for uncovering security problems and for doing a good job.