Why do people steal money from their employers?
Employees may also steal to get revenge on their employers. Employees who suffer a pay cut, or who feel overworked and underpaid might seek to even the score with their employers by stealing time or money from the employer.
Why does employee theft matter to your business?
2. Why Does Employee Theft Matter? The U.S. Chamber of Commerce estimates that 75 percent of all employees steal at least once, and that half of these steal repeatedly. The Chamber also reports that one of every three business failures is the direct result of employee theft.
What to do when you suspect an employee may be stealing?
The best way to respond to employee theft is to prevent it from occurring in the first place: Use caution when recruiting. Insist on references and validate them. Require criminal background checks of all new employees.
How can I protect my employees from theft?
1. Know your employees. Be alert to key indicators of potential theft such as: Sudden, apparent devotion to work and working late. Lifestyles well above salary levels. Strong objections to procedural changes related to financial, inventory or supply matters. Drugs and alcohol abuse.
What happens if you find out your employee is stealing money?
Certainly you want your money back, but if you go about getting it the wrong way, you could be facing felony charges of your own. You’ve just discovered that an employee has been stealing cash and you want every cent back. To recover that money, several options are available, but one could get you in big trouble.
How to prevent employee theft in small business?
By establishing internal controls and letting employees know that you are vigilantly looking out for fraud, you can indeed deter many of your employees from attempting to steal in the first place. Considering the fact that the average median loss from small business employee theft is $147,000, prevention will always be cheaper than the cure.
How is employee theft a problem in America?
As we discussed in last month’s blog, employee theft is a huge problem. It can be as simple as a clerk at a store stealing from the cash register or taking money from customers and voiding the sale, to a more complicated theft such as employees falsifying their expense accounts or writing phony checks.
What happens if an employee fails to report theft?
Advise employees that if they know of another employee’s dishonesty and fail to report it, they can be subject to discipline as well. Remember, the word “theft” is a minefield all by itself. Used in the wrong circumstances it could expose your company to litigation, a defamation claim or worse.