Causes of Employee Theft
- Low morale at the workplace.
- The employee feels that the business or company has wronged or mistreated them in some way.
- The employee feels that they are underpaid [and under-appreciated] for the “hard” work they do.
- The consequences for theft are minimal.
- Lack of control over inventory.
How do you identify employee theft?
Warning signs of employee theft
- refusal to turn over job tasks to others.
- unusual working hours.
- poor work performance.
- unjustified complaints about employment.
- defensiveness when reporting on work.
- an unexplained close relationship with, or unjustified favoritism by, a supplier or customer.
How do employees steal from employers?
The five most common ways employee theft occurs are petty theft, data theft, cash larceny, skimming fraud and fraudulent disbursements.
What is theft in the workplace?
Just as serious are employees who steal by completing inaccurate timesheets, claiming reimbursement for items not purchased, fraudulently transferring funds or misusing a corporate credit card, cheques or taxi vouchers. …
How do I stop my staff from stealing?
- Prepare a written fraud policy.
- Check references carefully for all staff.
- Review your internal controls.
- Swap roles on a regular basis.
- Spend time getting to know your staff.
- Prepare your KPIs and management accounts every month – they will quickly identify any anomalies.
Do most employees steal?
75% of all employees have stolen from their employer at least once and half of those workers steal repeatedly.
What is the punishment for employee theft?
Employee Theft or Embezzlement can be charged as a misdemeanor or a felony depending on the value of the property taken and the defendant’s prior criminal history. The punishment ranges from six months in county jail to three years in state prison. Anything you say can and will be used against you in a criminal case.
What to do when you find out an employee is stealing?
Once you’ve investigated and concluded that an employee has been stealing, either assets or data, take the following steps:
- Make sure your evidence is strong.
- You will probably want to terminate the employee immediately.
- Notify the police.
- Don’t deduct anything from the employee’s final paycheck.
What is the percentage of employee theft?
What percentage of employees steal from their employers? Recent stats suggest that about 75% of all employees have stolen from their employers at least once during their time within their company. That makes about three-quarters of all employed workers, with 37.5% of them stealing at least twice.
What are some examples of employee theft?
Examples of this type of employee theft include:
- Stealing cash funds from registers, safes or petty cash drawers.
- Overcharging a customer and pocketing the difference.
- Skimming (not registering a sale or recording a transaction in accounting books and taking the cash)
What should small business do to prevent theft?
NFIB recommends that small business employers perform background checks on potential hires. Checking references is one important step. But for employees entrusted with handling your money or financial records, a background check is better. 2. Supervise employees closely.
What are the most common types of employee theft?
1. Skimming. This popular scam occurs when an employee charges a customer full price but takes a little cash out of the total for themselves. This may result in telltale cash register imbalances; or, it can be more complex, like using coupon codes on a customer’s purchase while still charging them full price and then pocketing the difference.
What to do in the event of employee theft?
Be proactive by helping your employees align their ethical thinking with the expectations of the company. When it comes to employee theft, having provisions in place in the event of a problem and communicating your expectations to your employees all play a major part in safeguarding your business.
How many employees are aware of employee theft?
There is a great deal of awareness among employees that theft is taking place among their ranks. In fact, it is estimated that 20% of employees are aware of employee theft happening right under their noses. Now whether they are doing something about it or not is something that we can’t be entirely sure of.
