Employee Theft - Part 1: Why Employees Steal

Employee theft is a giant issue for every business; large and small. It is near impossible to completely prevent employee theft but there are ways to try to catch it, stop it and methods that can be taken to help curve the issue.

Employees steal for a number of reasons;

1. Under-paid. Employees that are paid less than they deserve are very likely to steal in attempts to make up the income they're not making based on your low pay. Does this mean paying more is the solution? Well, here's #2...

2. Over-paid. Employees that make too much money can become very comfortable with their position in your company. They are well aware that the amount you pay is far superior to what they would make doing the same work elsewhere. Since their comfort level is so high, they assume you won't replace them; that they are an *asset* to the company. On overpaid employee will likely steal just to own the items, not for the money reselling them.

3. The employee *feels* they are entitled. Some employees may feel under-valued, so they will attempt to sabotage the company by stealing. Other employees may think you're a jerk for having "rules" and steal simply because they feel good ripping you off.

4. To impress others. Employees that are young are apt to commit theft to impress their friends or to give their friends free merchandise.

5. Too Nice of a Boss. Sometimes you just can't win for winning. If you fall into the "friendship zone" with employees and they become very comfortable with you they may have the same outlook as an over-paid employee. They can think "if I get caught ill just say I was taking it home to show my friend because she wanted to buy some".

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So basically you're damned if you do and damned if you don't.

The best way to help curve theft is to try to prevent it from the jump. When you hire an employee, have them sign a contract with very specific terms on it. Don't just download a contract off the internet! The average American Intelligence Level is that of a 7th - 8th grader. You want to make sure that your new hire clearly understands the rules.

Take the time to write a "contract". Make it very easy to understand; "Removing ANY property from company grounds without permission from (your name) is theft" also include "I take theft very seriously. I will prosecute".

Then, take the time to review the contract with your employee. You want them to understand that even taking something as simple as a notebook home is theft. Explain to them that everything cost money, not just the actual items that you are selling. My employees are always shocked to find out that the bags we give customers cost $0.02 each. The tags we use to price clothing costs a penny a piece, etc. These costs add up.

If you suspect that your business is currently a victim of theft, you need to nip it in the bud with a quickness.

You have a few options-
...And installing a hidden camera to "catch" your employee who you already don't trust ISN'T one of those options. If you install a *secret* hidden camera without your employee knowing, you will likely get your ass sued. The law states that employees have to be aware (by contract) that they are being taped. The employee DOESN'T have to know the location of the cameras, but they DO have to know you're filming them.

Hidden cameras work wonders to help prevent customer and employee theft BUT if you suspect you're currently a victim of theft, you first want to find out if you can trust your employee...

Read Employee Theft Part 2: How to LEGALLY Catch An Employee Stealing