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4 Ways to Prevent Employee Theft

Employee theft is something business owners should accept to some degree. Most insurance companies and retail analysts consider theft by employees to be part of shrinkage, a business reality that includes shoplifting, breakage, spoilage, and vendor fraud. The issue with employee theft is when it exceeds the levels of shoplifting, which accounts for 37 percent of shrinkage according to a 2014 study by Checkpoint Systems, an American supply chain management firm. With the above in mind, keeping employee theft down to a minimum can be managed using the following strategies.

1. Maintain a Positive Work Environment

Corporate culture can go a long way toward reducing employee theft. If management promotes a toxic work environment, employees may feel empowered to steal cash or even items they do not even need. In this case, theft will be a reaction toward draconian work policies and a means to get revenge. A positive work environment shows respect for staff members and gives recognition for their efforts. Promoting goodwill in the workplace builds true loyalty toward the company, which in turn motivates employees to protect their organization instead of stealing from it. When a toxic work environment is left unchecked, employee theft can escalate into situations such as sabotage and even violence.

2. Retain Security Guard Services 

Uniformed security personnel at retail businesses are often recommended to deter shoplifting, but they can also keep employee theft incidents down. Security guards can be instructed to keep an eye on suspicious employees, which can be addressed during a staff meeting after a major incident is detected. Employees who know they are being watched by uniformed guards may feel self-conscious and perform their duties in a more productive fashion. Managers who believe organized shoplifters are being assisted by insiders will likely see these incidents stop immediately after hiring security officers in Hayward.

3. Install Surveillance Cameras

There are various ways to implement a video surveillance system, and none of them should involve decoy cameras because employees will quickly catch on to this ruse. Hidden cameras can be used in case of serious theft. Otherwise, visible cameras should be adequately monitored by loss prevention professionals. 

4. Be Smart When Screening Potential Employees

A Hayward security services provider can help business owners determine the best course of action regarding background checks. Naturally, arrests and convictions for fraud, larceny, and shoplifting are the most concerning red flags, but there are other signs that could point to a potentially dishonest employee. For example, an applicant who shows a pattern of working as a stock clerk or cashier for just a few months before resigning without explanation could be an insider for a shoplifting crew. An applicant who denies drug use and fails the test is another red flag, and the same goes for an applicant who provides fake references.

Contact ADS Guards if your business needs armed or unarmed security. Hayward companies have been placing their trust in our high-quality services for nearly 20 years. Call 1-800-794-1550 today for a free quote.