Three out of four of your employees will steal from you this year, according to the U.S. Chamber of Commerce. One of those people will steal repeatedly or has already done so. Let this situation continue and your business has a one in three chance of declaring bankruptcy and going under.
Employee theft statistics for 2012 show that companies in the United States will lose between $20 and $40 billion to small-scale pilfering and large-scale embezzlement. If you already have effective controls in place, you may notice the cash, office supplies or inventory items that go missing. If you are like most small business managers, however, you have too many duties on your plate to notice the other thefts happening behind your back. Trade secrets, internal documents and proprietary technology can all slip out of your organization for years without anyone noticing. In fact, 75 percent of employee crimes are never caught. [click to continue…]
An estimated 50 billion dollars are lost annually from US businesses due to employee theft. Stats show that, a whopping 75% of all employees have stolen from their employers at least once.
Furthermore, statistics show that nearly 50% of these very same employees will likely steal at least a second time from the very same employer These are sobering statistics !
What is workplace theft and how can you prevent it? Quite simply, anything that you purchase as part of your normal course of business that is taken without your permission is considered workplace or employee theft.
This can range from using paid work time to take care of personal business, taking a box of pens, or something extreme like stealing a lap top.
Stealing money is one workplace theft statistic, that impacts businesses by the tune of 50 billion dollars lost each year.
One of the most common types of workplace theft is falsifying information on time sheets and reporting time not worked. Stealing office supplies or other office resources is a another prevalent issue.
Retailers face issues on a regular basis with employee theft such as employees who overcharge customers and then pocket the extra cash that they charged.
One statistic that left me dumbstruck is the fact that employee theft has been the root cause of about 33% of all bankruptcies no matter the type of business.
These statistics show that the majority of employee theft flies under the radar and is undetected by supervisors or upper management. This makes it easy to overlook when subtle forms of employee theft are taking place, such as time or intellectual property theft, because it may not show up on the company ledgers.
So, what can you do to prevent these types of crimes? First off, you must have a policy in place that clearly outlines your zero-tolerance policy and then act swiftly when you are presented with a situation where an employee is caught stealing, even if it is their first time doing so.
You’ll also want to consider conducting criminal background checks before hiring any new employee, to weed out those with a history of theft.
A note of caution: You‘ll want to be sure to have a very solid hiring practice in place. You must apply criminal background checks consistently ; that is, don’t just perform background checks on people who you suspect may be less than trustworthy.
You must perform background checks on all potential hires, or at least all candidates who are applying for jobs where they are handling money for example in order to not be perceived as discriminating against some job applicants over others.
You should also reserve these types of background checks to only your final candidates: the ones whom you are checking references on and are likely to hire. Don’t waste time and money checking criminal background checks on each candidate that you interview. In some states in the U.S., it could even be illegal, so be careful.
Recommended Resources:
If you are a small business owner, or any company for that matter who may need to do background checks for particular jobs, my recommended resource is an instant background check service called Intellius. As of the date of that this was produced which is June of 2011, an individual criminal background check is $29.95 which is $10 off their regular price. Once again, I want to emphasize that if you use this or any service, be sure to remember that you should be consistent with how you apply these types of checks as mentioned in the podcast. Criminal background checks are a very useful tool that could save you time and money in the long run, but you want to use it wisely.
There is also a really good book on what every employer and HR professional needs to know when thinking about conducting any type of background check with information on the laws surrounding background checks.
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(7 mins, 49 secs)
Workplace theft statistics bear out the fact that a whopping 75% of all employees have stolen from their employers at least once. In today’s HR Podcast episode, I share details about employee theft statistics and share with you what you can do to lessen your exposure to employee theft.
In this episode of Employee Theft Statistics, I also share 2 recommended resources that will help you to be a proactive, and not a reactive employer when it comes to dealing with workplace theft issues:
An estimated 50 billion dollars are lost annually from US businesses due to employee theft. According to the International Foundation for Protection Officers, approximately 75% of all employees have stolen from their employers at least once in the duration of their careers. Of those, about half will steal again from the same employer.
To help keep your business from becoming one of these workplace theft statistics or cases, there are a few factors to take into consideration. To begin with, it’s important to identify what workplace theft is. In this case, it refers to any use of the employer’s assets without permission.
Money is what most people will think of when they are looking at workplace theft statistics, which adds up to the 50 billion dollars in revenue that are lost each year. However, workplace assets could include more than simply monetary amounts. Time is another asset that an employee could steal, if they are paid for time for which they did not work. This would include falsifying information on time sheets, which is one of the most common types of workplace theft. Stealing office supplies or product displays can be other ways to take advantage of company resources.
If you run a business in a retail environment, you will want to watch out for employees who overcharge customers and then take the extra cash that they charged. The danger with this type of common theft is that not only is money being taken from customers, but this could severely damage your company’s reputation. More sobering workplace theft statistics: employee theft is responsible for approximately 33% of all bankruptcies, and is seen in virtually every type of business.
According to the latest workplace theft statistics, most theft is undetected by supervisors or upper management. This makes it easy to overlook when subtle forms of employee theft are taking place, such as time or intellectual property theft, because it may not show up on the company ledgers. To help prevent these petty crimes establish a program of zero-tolerance. Address swiftly any situation where an employee is caught stealing, even if it is their first time.
Another thing employers may want to consider is conducting criminal background checks before hiring any new employees, to weed out those with a history of theft. Keeping a reliable accounting system and an open line of communication in the office can also go a long way towards preventing workplace theft.
Dianne Shaddock is the Founder of Easy Small Business HR, Employee Hiring and Managing Tips. Through the Employee Hiring and Managing Tips podcast, blog, and weekly ‘quick tips’ e-newsletters, Dianne offers expert advice on how to make better hiring decisions, manage difficult employees, develop employee policies, motivate staff, and so much more. No stuffy, corporate HR policy lingo; but straight forward, easy to understand and implement advice for businesses just like yours. Stay ahead of the curve and go to Easy Small Business HR for more tips on how to hire and manage your staff effectively.
