Employee theft is a serious problem for businesses. According to research, 75% of employees admit to stealing something from the workplace, and 75% of those who have stolen reported that they stole at least once per year.
The most common items stolen are office supplies, which cost employers an average of $1,500 annually.
Employee theft can also range from filing fraudulent expense reports to developing code for proprietary software behind your employer’s back.
What is employee theft? Why does it happen? How do you prevent it? And what should be done when it happens?
This article will answer these questions by discussing how employee theft occurs, why it happens, and how to stop it in its tracks. Employee Theft Occurs When Employees Steal From Their Employers.
Theft is a crime committed against another person or entity (e.g., stealing money). It involves taking something without permission.
In the workplace, employees steal from their employers through various means including embezzlement, fraud, and other forms of misconduct.
Embezzlement refers to misappropriating funds that belong to an organization. Fraud is defined as intentionally misrepresenting facts with the intent to deceive others.
The dangers of employee theft
- Loss of company assets such as cash, inventory, equipment, etc.
- Damage to reputation due to loss of trust in business partners/customer base
- Increased risk of litigation for failure to comply with legal requirements
- Potential liability under federal law if not reported within 24 hours
- Risk of termination when discovered by management
- Decreased productivity due to time
Why people steal from their employers:
Lack of motivation – People who are motivated will work harder and more efficiently than those who aren’t. If they don’t have a reason or incentive to do the job well, then why should they?
- Greed – Some employees may be greedy and want all the money that is available without working hard enough to earn it. This can lead them into stealing from their employer.
- Fear – Employees may fear losing their jobs if caught doing something wrong.
What can be done to stop employees from stealing?
Hire a private investigator service to find out what your employees are really are up to. You’ll know exactly where you stand with this person. It could save you thousands in legal fees!
If an employee has been found guilty of theft, fire him/her immediately. Don’t give them any chance to get away with anything else. If they have stolen before, chances are they will steal again.
Do you know what your employees are up to? If not, we can help. Contact us today.