How to Protect your Business from Employee Theft
While trying to grow your business, you sometimes have to deal with dishonest employees. Employee frauds and thefts are quite common in today's workforce resulting devastating losses for businesses. Many businesses, particularly the smaller ones, do not fully enforce controls in place to monitor employee behaviors.
Every years in the U.S, employee theft costs billions of dollars. According to a report from the National Retail Federation, about 30% of employees steel from their employers and nearly 60% have the intent to steal if opportunity knocks the door. Such employee crimes have also resulted about a third of all business failures each year as per the U.S. Department of Commerce reports.
So, here are some accessible practices you can consider to prevent the employee theft from happening and help protect your business from disastrous consequences:
Create a Code of Conduct
It is crucial to establish a code of conduct where no employment frauds or scams is tolerated at any cost. It is also an effective deterrent to candidly address internal fraud issues and let your employees know that accounts checks and other employee monitoring are routinely executed. The business ethics policies should encourage employees informing any malicious act to management.
Employ an Efficient Solution for Audits
The loss of company's confidential data and other finances is often linked to employee theft. So, monitoring your business data and finances should always be a priority. It is proven to be effective to enforce an accounting software system so that you can assign the levels of authority and track unusual activities through access done by employees. Many preventing employee theft businesses often outsource their IT and accounting systems to a third party managed services provider to help them provide more secure solutions.
Vet your Employees Thoroughly Before Hiring
Before hiring an employee, it is essential to take time and run a thorough background checks including candidate's education, financial as well as employment histories. Although the candidate is referred, always do vet the references and make sure the candidate does not have a history related to any kind of malicious and criminal activities. Candidate's financial stability should also be examined to check how fiscally responsible he/she is because research shows that many employee theft is often linked to ease financial hardships.
Accessing the above outlined tips can be a great foundation to build a well-streamlined business process that may help mitigate employee theft faced by various businesses.