| Every company must take proactive steps when | | | | not surface through a normal employment check. |
| it comes to reducing employee theft. My husband | | | | 2. Have a good system in place for bookkeeping. |
| works for a privately owned business where the | | | | Don't let the same person that processes checks |
| company president has taken the time to hire top | | | | also process receipts. |
| notch sales people. | | | | 3. Review bank statements each month prior to |
| One day, my husband noticed an account that | | | | passing them to the bookkeeper. |
| wasn't producing sales, but had been given the | | | | 4. Have a strict policy for expense reports and be |
| best pricing discount. While he questioned this, the | | | | sure to audit them prior to payment. |
| sales VP consistently waved it off. After looking | | | | 5. Conduct physical inventories and reconcile this |
| into the account further, he found out what was | | | | inventory to company sales. |
| going on. The VP and another executive had set | | | | 6. Control check & document signers by limiting |
| up the account to source product for their own | | | | the number of signatories to a limited number of |
| resale in the gray market. The company quickly | | | | trusted employees. |
| went into a downward spiral. | | | | 7. Keep tight control on petty cash. Develop a |
| Financial resources were directed to prosecuting | | | | system that requires a receipt and signed |
| these two executives and every employee felt | | | | vouchers for all petty cash distribution. |
| the impact. New product development slowed | | | | Theft Prevention Equipment |
| which gave the company's competition an | | | | Another step in reducing employee theft is to |
| advantage. As marketing efforts were scaled | | | | invest in security and fraud resistant products. A |
| back, sales couldn't deliver on their projections. | | | | simple locking cash drawer is perfect for small |
| The sales pipeline shrunk, manufacturing dropped | | | | businesses. Be sure to purchase a drawer with an |
| below capacity, profit sharing plummeted and | | | | internal locking safe so that large denomination bills |
| employees were laid off. | | | | and documents are secured from pilfering hands. |
| Today, the company has recovered, but it was a | | | | In many cases, a locking cash drawer can pay for |
| slow process. The executives were prosecuted | | | | itself with one theft avoidance. |
| and the company was lucky. They learned an | | | | Tamper-evident plastic bags can protect your |
| important lesson about employee theft the hard | | | | assets by ensuring what is placed in the bag |
| way. | | | | actually makes it to the bank for deposit. These |
| How is your business? What steps are you taking | | | | plastic security bags have come a long way and |
| to avoid employee theft? | | | | now include tamper indicators for cold, heat, |
| The Real Consequence of Employee Theft | | | | saliva, and other vulnerable points. Tamper-evident |
| The Association of Certified Fraud Examiners has | | | | bags help keep honest employees honest. |
| reported a typical business will lose 6% of | | | | See-through employee bags are a great |
| revenues from employee theft. The report | | | | investment. The clear vinyl construction allows for |
| mentions that small businesses are especially | | | | easy identification of bag contents, which can also |
| vulnerable since they don't have the resources in | | | | be picked up by a security camera. Clear |
| place for theft detection and avoidance. It is | | | | employee bags are popular within retail stores, |
| estimated that 1/3 of business bankruptcies could | | | | casinos, hotels, and schools. |
| be avoided if companies had better theft | | | | Low cost hidden cameras can be placed |
| prevention practices. | | | | throughout your business to keep a watchful eye |
| You work hard for every dollar in today's | | | | on employee activities. Everyday items like |
| economy. Each dollar needs to stretch further | | | | Kleenex boxes and clocks merely disguise the |
| than ever before. Take some proactive steps | | | | camera, but help you determine which employees |
| today to help reduce employee theft. Here are a | | | | you can trust...and how much. |
| few ideas: | | | | Don't wait for theft to occur. Start planning a |
| 1. Screen potential workers to see if there is past | | | | comprehensive employee theft prevention |
| history of criminal activity. You can also check | | | | program for your business today. |
| credit histories and other information that may | | | | |