Employee Theft: Desperate Times Call for Desparate Measures.
Small
business employees steal nearly 40 billion dollars every year in this
country. If that statistic doesn't
appall you, I bet this one will: 75 % of all employee theft goes
unnoticed. Due to the recent fiscal
crisis, the threat of downsizing and cutbacks, the lack of salary increases,
and loss of billions in personal investments has left millions of Americans in
a state of grave financial and personal stress.
Such matters will only make it more tempting for employees to help
themselves.
I
opened a small business in Philadelphia in the summer of 1999, and I realize
that now more than ever before, I must re-examine the procedures that safeguard
against employee theft or I will be out of business very soon. A little extra effort and common sense can go
a long way. The following suggestions
are strategies that I feel have kept my business secure and hope will do the
same for yours.
Do background checks
on your employees. Many times in the past, I have relied on a
-gut feeling" about a prospective employee who was recommended by a trusted
friend. This is just bad business. Spending a little extra effort to make a few
phone calls and do a little bit of research is a small price to pay to ensure
your business's security.
Create more incentives. Salaries that
have been consistent for years, might not be sufficient anymore for many
Americans who are under an unprecedented state of personal financial
duress. If your employees feel that they
are working under a glass ceiling, they might be more inclined to rationalize
their fraudulent decisions by telling themselves they had no other choice. More incentives and bonuses for high
productivity will undoubtedly help deter theft.
Eliminate the
opportunity for theft. Allow different
people to perform the key tasks of your business. Doing so will create a system of checks and
balances in which your employees routinely check one another's work. Always make sure that finance and accounting
employees consistently take time off so that irregularities in their work can
be identified.
Beware of management
oversight. According to the
Association of Certified Fraud Examiners, it is most common for employees who
steal to use the proceeds for lifestyle improvements. If one of your employees starts wearing
designer clothes and driving a BMW and you know this person makes $50 grand a
year and has three kids, it probably wouldn't hut to investigate this
matter.
Establish open door policies. Encourage an atmosphere where employees can
speak freely with management and owners.
By creating a forum for your employees to voice their pressures and
concerns you will eliminate them before they become a problem. In my research for this article, I came
across a news article about a controller at a California fruit packing company
who stole $112, 000 from the company.
When asked why he did it he said, -Nobody at the company ever talked to
me, especially the owners. Managers were
unfair. They talked down to me and they
were rude. They deserved everything they
got."
Be a positive role
model. Moral integrity starts at the top of any
organization. Create an atmosphere of
ethical behavior and equitable management through the example you set in your
company. Basic human psychology teaches
us that employee theft is often times a response to anger and frustration in
the workplace. Employees who find their
working environment pleasant and fair will be much less likely to steal.