There is an unpleasant fact that is not mentioned or discussed openly in our local business community and that is that employee theft is common. Yes, employees steal, and they do so more than is recognized. In fact, it is reported that in the USA up to 75% of employee theft goes unrecognized. Our Federation is not the USA, but with the lack of local statistics, let us assume we are in the same boat.

Employees steal for different reasons. Some of the main reasons are opportunity, personal financial difficulty, and disgruntlement.

So what do employers do when they discover and confirm that an employee has been stealing?

The unfortunate answer in our business community is that, even to the detriment of the business success and maybe even its existence, either nothing is done or not enough is done. Many employers feel that there is merit in keeping such unfortunate discoveries quiet for fear of bad publicity. Obviously, the decision is theirs, but what can be done to deter employee theft?

Here are some tips to curtail employee theft:

1. Hire the right people: One of the most important things to do when employing new people is to check them out. Follow up on their references or do your own background checks where possible. Ask direct questions relating to any unconfirmed rumors you may have heard. In other words, ask the difficult and uncomfortable questions.
2. Separation of duties: Ensure that all staff carry out only the specific duties that are assigned to them, and that their duties do not create conflicts of interests or opportunities to steal. For example, one employee should not take the orders, deliver the goods, collect the money, and make the bank deposit.
3. Ensure that staffing is at full capacity: Without the entire staff it is impossible to have adequate separation of duties.
4. Insist on vacations, lunches and coffee breaks: It is important that staffers take these breaks when they are due, and stay away from their work stations during those times as appropriate. This is a proven internal auditing principle. Many instances of employee theft are discovered during absences, and staffers perpetrating irregularities are usually reluctant to take breaks.
5. Educate the staff on business policies: The staff should be clear on what the business expects, and what the consequences are for acts in violation of policy.
6. Business policies must be adhered to: Management must enforce policies and ensure that they themselves follow them.
7. Punish offenders: Identify offenders and take decisive action.
8. Build and maintain relationships with employees: These relationships must be appropriate ones. Bosses should be open with employees, share information, engage them in conversations, and most importantly be empathetic and show genuine interest in their wellbeing. Such relationships with employees will help management in recognizing financial difficulties and other impetuses to steal. Maintaining good relationships with employees fosters loyalty.

Ultimately, it may not ever be possible to completely eliminate all forms of employee theft, but efforts must always be made to restrict it because of the major negative effects it has on businesses. The key however, is to ensure that proper investigations are done and that if an employee is suspected of stealing there is proof of the violation before decisive action is taken.

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