Employee Theft “The Invisible Business Killer”
A child looks at his mom's fresh baked cookies cooling on the kitchen counter and thinks, "I can take just one cookie and she'll never notice".
Sadly this is the same mindset shared by many employees, an estimated 75% of all employees to be exact. And as hard as it is to believe an employee you hired to fill a trusted position would actually steal from you, it happens all the time.
According to a 2007 U.S. Department of Commerce report, employee theft costs U.S. business $40 billion dollars last year, with nearly 80% of all employee theft going undetected.
And right now, with our recessionary economy, employee theft in 2008 has risen sharply in response to foreclosures and the tightening job market. So while many employees think that swiping a few items on occasion may not amount to much, the report concluded that over 30% of the companies going out of business last year were the direct result of employee theft.
Employee theft accounts for nearly 50% of all inventory shrinkage. Sometime management may have indications of the problem through declining profits, unexplained inventory shortages, rumors or other signs.
However they seldom consider the fact that employee theft is possibly a major factor for the company losses.
Today employee theft and shoplifting make up the greatest annual source of property crime in America. As a source of inventory shrinkage, employee thief is over 10% higher than common shoplifting.
Management Misconceptions It is often very difficult for owners and managers to accept the possibility an employee they hired, trust and work beside is capable of engaging in such disloyal and dishonest activity. As a result, management clings to misconceptions about the problem.
Common Workplace Misconceptions
• Well-paid and senior employees don't steal.
• Most theft is caused by non-employees.
• Employees will report employee theft.
• Employee theft is conspicuous.
There is no physical profile for a dishonest employee. They come in all ages, sex, ethnic backgrounds, religions, levels of education and economic status. You cannot determine who is likely to steal based on demographics.
The list of the ways to steal is almost endless, so there is no practical way to anticipate every theft. Employee video surveillance is widely used today and a proven and cost effective deterrent.
Employee surveillance has become the norm and today people are aware and understand the need for surveillance cameras. In addition to preventing theft, cheating and other misconduct, videotaping employees in their workplace helps you monitor employee productivity.
Video surveillance lets you keep an eye on your business from your office… your home… when you’re out-of-town… even on vacation. You’re always in control. Call us today for a free demonstration to see how a video system can keep your company's profits safe and healthy.