21 Tips To Cap Staff Temptation – Part 1
Basic Premise
Many of us drive within the legal speed limit (or just slightly above it) only because we fear being caught and punished. Without that downside risk many would establish a habitual cruising speed above the current legal limit, with potentially catastrophic consequences for all parties. So strong detection systems, rules and their enforcement are a natural part of enjoying the benefits of a law-abiding society.
In the same vein, employers have a moral responsibility to put in place “strong detection systems, rules and enforcement” when placing assets (whether cash, stock or services) within reach of their employees – some of whom may live in a state of continual financial challenge.
It’s just not fair to tempt a person beyond a certain point and, in the context of a business, it’s just plain dumb to do so! Why? Because of the loss of assets? No, because the failure to be able to accurately identify a thief places everyone under suspicion, erodes team spirit and confidence and, often, will paralyse a business.
The damage to the business usually goes well beyond the value of the stolen goods.
The Cost
There is plenty of anecdotal evidence that employees are responsible for upwards of 60% of all theft suffered by small and medium businesses, and yet it is the easiest theft to manage.
As one of our clients has said, “I had to take a $20,000 hit in one of my retail sites before I realised how guilty I was of helping people to steal from me. It was a lesson well worth learning!”
21 Tips
Below we’ve assembled 21 tips for reducing employee theft, in many instances simply by reducing the temptation to cross the line. While many of these may appear to relate to a retail context, you will find they also have parallels in just about any type of business. We commend them to you.
1. Set an example of honesty yourself. As a leader of people, it is essential that you demonstrate what you expect of them.
It should go without saying that employers or managers who cut corners; lie about facts, products or services; who don’t treat Customers, suppliers or staff fairly, are inviting those below them to follow suit.
Less obvious may be the need to demonstrate honesty in matters such as drawing (your rightful) cash from the business – don’t do so in a casual fashion that would look exactly the same as a staff member’s stealing it! Instead, follow process. Use the petty cash system and lodge a docket; cash a cheque so that it’s recorded; or draw cash from an ATM. If you take stock, book it against a register or “sell” it to yourself against a loan or capital account so that staff understand that it is accounted for.
Don’t do anything, yourself, that would compromise the accountability for inflowing cash (such as pulling cash from the till for lunch), but instead be the first person to respect and abide by the systems. Lead by example.
2. Background check everyone! So many smaller business operators are so inherently honest themselves that they find it hard to think the worst of anyone. They take people at face value, and don’t check references or prior employment history. It doesn’t work.
Background check every intending employee as a matter of course.
Gain their written permission to do so as a condition of their employment application employment.
When checking their application, be wary of gaps in employment history; absence of references from past employers; or refusal by a past employer or referee to provide a reference or further detail when requested. If you strike the latter case, develop some questions that would enable you to infer a problem without requiring the other party to cross the line of the Privacy Laws.
If doubts emerge, and yet the person you are considering looks to offer a lot, it’s probably time to engage an agency or trained investigator with access to police and other sources. It may involve a fee, but that fee will be miniscule in comparison to the ultimate cost of making a poor hiring decision.
Let new applicants know some of the detail of the processes to which they are required to agree as a condition of their application, and don’t be surprised when some don’t proceed. Your process is already working – and this step cost nothing!
