More than Just Shoplifting

Kessler International, a forensic accounting firm, released results from a survey of 500 employees. It is shocking that 95 percent, yes 95 percent of employees stole from their employers.  My guess, maybe it is cynical, that the other five percent were not being 100% honest.  Included in "theft" was theft of time and supplies. There are many ways employees will steal from their employer beyond outright theft, but the results can affect profit. If it be minutes here and there texting, printing out the party invitations, using the computer for personal use, taking toilet paper home, grabbing a handful of pens, using store bags for cat litter (I was chatting with someone who told me they do that!), using any in-store discount for "gifts" to friends and much more. The employee will justify themselves and one could argue that these forms of theft are not severe, but there is no doubt that they do add up to significant losses in the workplace.

THEFT OF TIME

 In this Kessler survey, nearly a third of the employees admitted to falsifying the number of hours that they worked. This behavior is significantly increased with heavy cell phone use at work and using their work computer to visit personal social media sites, news or shopping. While social media was almost nonexistent when the survey was first conducted, now it is pervasive. Many unproductive hours are spent each pay period by employees checking e-mail, updating social media, reading the news, texting and the list goes on. I read about an employee that was caught selling items stolen from the store he worked at on Craigslist. He was found by posting these items for sale on a work computer while he was "working."

THEFT OF SUPPLIES

 The theft of supplies is just as high as it was more than 30 years ago when John Clark and Richard Hollinger conducted a landmark survey for their book, Theft by Employees. Pens, paper, bags, boxes, and even toilet paper are still stolen from work to use at home by employees, spouses, family members, and children.

SOLUTIONS

 What can be done to prevent your employees from stealing time and supplies? As with any severe problem, there are no easy solutions. There are small steps that can be taken to reduce this threat to your businesses' wellbeing.

•Personal use of computers

To help combat the problem of employees using a work computer for personal use provide a computer or two in the break room that is not on your computer network to avoid possible malware, viruses and the like.

•Cell phones

A friend of mine works for a major retailer in the outdoor recreation industry. They have a strict policy of no cell phones on the sales floor, period end of story.  He tells family and those who need to get a hold of him that when he is working it's best to call the store if an emergency arises.  If banning cell phones from the retail floor is practical or even advisable and if your store is of course up to you.  Whatever your policy be consistent, avoid the appearance of favoring one employee over another.

•Supplies

Hard to say why but an employee who would never dream of taking a coat off the rack and bringing it home may not think twice of bringing a ream of 8.5x11 white paper, a handful of pens, a few rolls of toilet paper or some gift boxes home for personal use. Having a book where employees make a notation when removing supplies for in-store use will discourage them from taking items home for personal use.

 To protect yourself, put your policies in writing and have each employee sign that after they have read and understand your policies.  It may be wise to have your lawyer review any policy manual.

 When it comes down to it instilling in your crew that everyone is on the same team, with the same goal, it will not only reduce internal theft but increase profit and serve the customer.

 I would love to hear from you on what your store does to decrease either internal or external theft. If you reply to these loss prevention newsletters with an idea or example you will get $5.00 off an order of any size. One coupon per customer, please. Use Coupon 9776LP. -Coupon expires in 1-week Exp. Date 12/20/2018.

Bonus Tip:

Putting small, expensive items in a well-lit showcase will not only reduce theft it will "add value" to the product.

-Mark Turner