Provide a way for employees to report theft or fraud by co-workers. This needs to be done carefully to avoid signaling you don’t trust employees. Thoroughly vet all job candidates by checking references, performing background checks and conducting your own research through online searches. It’s important, though, to make sure you’re complying with state and federal laws. Some cases of employee theft are never reported to the police, however, so it’s a good idea to call all references to find out about any past issues or reasons for concern.
LEVERAGING SECURITY TOOLS TO SAFEGUARD YOUR BUSINESS
You can monitor their arrival and departure times to identify trends and see if anyone is in the building when they’re not supposed to be. Since your employees know their times are being tracked, it’ll make them think twice before coming in early to steal from you. Of course, you always want to trust your employees, but it’s still a good idea to keep an eye on them. Here are just a few ways an access control system will help you keep an eye on your employees and prevent employee theft.
These methods will surely lead to financial leakages for a restaurant if you do not pay attention to them. Employee theft involves any unauthorized taking, use, or misuse of an employer’s assets. So, make sure to provide definitions and examples when necessary, avoid jargon and acronyms, and use clear, simple language. Make sure you use consistent terms and formats throughout your policies.
Use advanced payroll systems that minimize manual entries to reduce the risk of employee theft. Employee theft and fraud are growing concerns for businesses of all sizes. From financial discrepancies to stolen assets, such activities can severely impact an organization’s bottom line. To protect their company and foster a culture of integrity, HR managers and talent acquisition specialists need to implement effective measures. When there is suspected theft in the workplace, it’s essential to conduct an investigation, documenting all evidence as soon as possible. Depending on the nature of the theft, it is usually up to the business owners and operators to determine whether to take legal action against an employee for stealing.
Have video coverage of your garbage dumpsters
These camera systems can significantly help deter not just customer theft, but also dishonest employee behavior while on shift. Surveillance footage can be reviewed and provided for law enforcement. It’s important to monitor your data and employees carefully, with full disclosure, to help keep your staff ethical. Employees should be shown that there’s technology in the store to keep tabs on their activity with increased accountability.
Track all transactions
- If the employees know that at any time throughout the day you will come over and count the cash drawer, then there is a better chance of deterring any theft of cash.
- If you do not currently have an annual audit, you can engage an independent CPA to perform an internal control assessment consultation to identify weaknesses and potential improvements.
- In this resource, we discuss the types of theft, the ways you can strengthen your internal controls, and the COSO framework.
- One of the most effective ways to prevent employee theft is to implement rigorous hiring practices.
- Controlling access to sensitive areas and information is crucial in employee theft prevention.
It’s your responsibility to undertake a thorough investigation before any accusation is made. Business owners need to tread carefully since false accusations can lead to lawsuits. It’s always recommended that you seek legal advice before dealing with the employee under suspicion. The tips above will help you when trying to prevent employee theft in your workplace so you can focus on growing a healthy business.
It’s essential to maintain a culture of integrity and transparency in the workplace, which starts from the top down. This will help to prevent employee theft because they will be accountable for maintaining an accurate register. Keep a record of the times that the register has been short in relation to the same employee.
- After making 10 pizzas, they save enough ingredients to make one extra pizza.
- Internal theft prevention should be conducted throughout the employment process, from recruitment to personnel management, and from internal regulations to external surveillance.
- This will help to prevent employee theft because they will be accountable for maintaining an accurate register.
- Business owners need to tread carefully since false accusations can lead to lawsuits.
- However, whenever possible background and reference checks should be performed before onboarding new employees.
Company
Employees who feel valued and listened to are less likely to steal. Building trust and maintaining checks and balances are great ways for how to prevent employees from stealing. Research shows that providing an anonymous employee hotline to report theft and fraud they witness is another great employee theft prevention technique.
Use Smart Cash Management Systems To Reduce Cash Handling Risks
Create an environment where workers feel comfortable anonymously reporting suspicious activities—without the fear of retribution. Skimming Cash and Fudging Sales Records—Workers might pocket cash from transactions or manipulate sales records. They sometimes do this by under-reporting the sales amount and keeping the difference.
The increasing use of mobile devices for business operations makes it essential to protect company-owned smartphones, tablets, and laptops. Dispose of these materials correctly to prevent the inadvertent disclosure of sensitive information. Use cross-cut shredders to shred confidential papers or hire a document destruction company to ensure irreversible destruction. You minimize insider data theft by quickly detecting and responding to warning signs. Cloud network security becomes increasingly vital as organizations rely more on cloud-based controls can prevent employee theft collaboration and storage platforms.
Past employees may know where cameras are located, where valuable equipment is stored, and ways to bypass security measures. Once an employee is terminated, access should be revoked immediately, and records should be kept to identify employees who may have a high risk of retaliation toward your organization. Larger organizations may consider relocating high-value equipment to an alternative site within their location. In this article, we’ll guide you through restaurant loss prevention strategies to prevent employee theft in your restaurant.
However, it is important to balance security with privacy; inform employees about the surveillance and its purpose to avoid creating a hostile work environment. Regularly review footage to identify any suspicious activities and address them promptly. By implementing the strategies outlined in this article, organizations can reduce the theft risk and mitigate its impact. Should incidents occur, a well-prepared response plan is essential for addressing such issues effectively.
This means that workers who are not able to adapt and learn these new skills will be left behind in the job market. Make unannounced internal audits and have a yearly audit performed by an outside firm. However, before making any business decision, you should consult a professional who can advise you based on your individual situation.