How Businesses Can Prevent Employee Theft

Virtually every type of business has to be prepared for the possibility of employee theft in the workplace. It’s imperative to have an effective plan to minimize risks based on your operations and your employee’s access to resources.

Create Accountability Through Accounting Controls

Stopping employee theft issues starts with effective oversight. While you want employees to be able to perform their job duties independently, too much independence can create more opportunities for theft to occur. Employees who have access to a company’s funds need to be monitored periodically. Conducting random audits, requiring dual signatories for dispersing funds, and assigning two or more individuals to share responsibility for customers’ accounts can establish effective restrictions. In addition, you should consider having an audit performed by a third party who can help you to identify practices that can be improved upon.

Enhancing Employee Supervision

Expanding your business’ supervisory practices can deter instances of theft. Requiring managerial approval for certain activities such as customer returns or instructing employees to sign out certain supplies can help to mitigate the risk of theft. In addition, having video surveillance of your business’ premises will let employees know that they’re being watched and help discourage theft.

In many cases, employee theft can occur repeatedly over an extended period of time before employers learn that it’s happening. Limiting your risk exposure with carefully targeted policies and practices can safeguard your business from significant internal loss.