Employee Theft Prevention

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Employee theft is serious and more common than people think. It’s not easy to accept, but employee theft is worth considering as the cause of suspicious cash flow activity. These tips will help you erase employee theft from your business.

  • Pay Above Award Wages
The quality of your employees is up to you. If you cherish your business then you will have good employees. Value them. Pay above award. Human relations and business psychology experts say this will reduce theft.
  • Talk to Employees
Ask for their honest comments about the business and incorporate sound advice. The more they feel genuinely valued the less likely they are to steal from you.
  • No Employee Bags at the Counter
This speaks for itself. Employees do not require their personal belongings to fulfill their work activities. Secure storage space at the shop rear negates any reason for bags at the counter.
  • Have a Clear Refund Policy
Type the policy up and put it on the wall for customers and employees to see. Cover items such as: age of transaction, management approval, mandatory name records, address, phone number and signature – such requirements will stop abuse.
  • Offer Good Discounts to Employees
Let employees buy products from you at your cost or at an exclusive mark-up. This shows them respect and values they’re contribution to the business. A poor discount, or no discount at all, excludes employees from the business and can build negative relations.
  • Respect the Till
Don’t take cash out of the till in front of employees. If employees see you take money out for items like a coffee or your lunch they may feel invited to do the same.
  • Roster Mix Up
Change your roster regularly. It is common that a roster change will show you a theft problem you never thought was there. Don’t have friends working with friends if they are the only ones rostered on.
  • Speed Humps
Have a day where you turn on receipts for ALL customers. Then a day where you require that everything is scanned (as opposed to using hot keys and the like). These changes will keep employees and customers on the ball and make it easier for you to spot problems. It will also keep you on your guard and that’s good for the business.
  • Spend More Time at the Counter
The further you are from the action in your business the greater the opportunity for you to be ripped off. Spend time at the counter in unexpected intervals. Balance the register during the day. This keeps employees on their toes and reminds them of the presence of management.
  • Don’t Let Employees Ring Their Own Purchases Up
This is especially pertinent if you do not have a camera security system installed. Transactions should always have two distinct elements: the customer and the salesperson. Combining the two elements reduces the reliability of the sale process. This also applies to employees selling to family and friends—make sure a third person is present, or ban it altogether
  • Use Your Local Council
Many local councils offer theft prevention training and help as do some local police. (Local U.S. police stations are considerably more active in this area.)
  • Beware of Popularity
There is anecdotal evidence that the more popular the employee
the more likely they are the one stealing from you.

Tower Systems offers an integrated camera system / point of sale solution for businesses wanting to more easily manage the theft risk when owners cannot always be there.

Visit www.towersystems.com.au/theftmanagement for details.
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    Be wary of employees in financial difficulties. They are more likely to steal from you.