01 Feb Employee Theft: 4 Ways to Save Your Business and Your Friendship
Top Ways Small Businesses Can Prevent Employee Theft
Employee theft affects all companies, but small businesses can be hit doubly hard. They lack the resources for extensive security measures, and they’re more likely to employ trusted family or friends. Employee theft can be a difficult thing to spot and address – especially if the worker is a friend. After all, you hired that person because you felt you could trust him or her.
Is Employee Theft Really a Big Deal?
Shockingly, employee theft is extremely common. In fact, a study conducted by a loss prevention firm found that workers, on average, steal 5.5 times more than shoplifters. The study also found that 1 out of 40 employees was arrested for theft that year – and those are only the figures that were reported. Clearly, it’s important to take steps to prevent personnel theft, no matter how much your trust your laborers.
Preventing employee theft, however, doesn’t mean you have to take measures that might offend close friends. There are plenty of ways to safeguard your business without being accusatory.
Use Video Surveillance Systems for General Security
Video surveillance is useful in a number of ways. These days, it’s also affordable. Employees are much less likely to steal if they know video cameras are everywhere. Install cameras in hotspots like the storage room, cash register, and front of the store. Make sure to invest in high-definition security cameras, and keep access to them limited.
Service Management Software for Field Invoicing and Estimation
Many service management systems have integrated technician and customer monitoring and reporting. With the proper internal process and access controls, employee theft sets off red flags and triggers. For example, if a particular technician shows a lot of refunds or void transactions, the system and process will alert that there’s a problem. Requiring a field manager or office manager to authorize a refund, discount, or a void transaction is a good prevention step.
Install GPS Systems in Company Vehicles
Businesses that have a lot of mobility, like contractor services, face employee theft in other forms. This can take the form of “stolen” company time or other types of theft. The best way to prevent this is with vehicle monitoring systems, which show you where the work vehicle is at any given time. Of course, not all employees will be thrilled about the concept, but if you make it part of the work policy and contract, they’ll know what they’re signing up for. Vehicle monitoring is also helpful for increasing efficiency, so the benefits are twofold.
Lastly, you’ll need to stay on top of your bookkeeping and accounting to note any discrepancies and confront a potential problem. Schedule a call with us for more information on these and similar services for your enterprise.