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As a business consultant, I am often called upon by small business owners which have issues with employee theft. While it might be impossible to completely eliminate this type of issue, there are certain steps which I take to reduce employee theft. I have taken these steps at dozens of companies and reduced the burden of internal shrinkage considerably.
Cameras in the Stockrooms
One of the first things I do is place cameras in the back and point them out to the employees. I have always been a supporter of having security cameras in stockroom and backrooms. Of course, state laws have to be followed as to where surveillance devices can be placed, but usually these restrictions only knock out dressing rooms and bathrooms. Usually, small business owners have no issue placing surveillance equipment on their sales floors in their lobbies to protect themselves from shrinkage, but employee theft can put a huge dent in the bottom line.
Tracking Transactions
If I enter a business which uses some type of computerized device to conduct business (computer or register), I make sure there is a way to track employee use and transactions. Employees use these systems every day and can figure out ways around many types of protective measures. If I have the ability to check their work from time to time, I have found that employee theft goes down.
If employees believe they are being watched, they are less likely to attempt to steal merchandise or sensitive information. Most people who steal try to use some type of obfuscation or subterfuge as they want to have the least amount of chance of getting caught. If they know I am checking up on them from time to time, they are going to be less likely to try to rack up extras through my business. If I always stay a step ahead of them, I can easily reduce employee theft.
Always Take Action
I cannot count the number of times I have found companies which have given second chances to employees who stole from them. If I come across an employee who has stolen from me, I terminate them immediately without the possibility of another chance. By giving an employee a second change to make good, you also give the employee a second chance to steal. There is also a chance of other employees finding out and believing they can get a second or third strike if they steal.
If you found a customer stealing, or attempting to steal, you would want to make sure he or she never came back. You would go out of your way to ensure other customers did not do the same. Take the same steps with your workers if you truly want to reduce employee theft.