When running a business, preventing theft should always be a top priority. However, threat isn’t always coming from where one may assume. Unfortunately, some of the people you should be most concerned about are those you trust the most. Employee theft is surprisingly a major concern for business owners. This dishonest activity within an organization can create a significant negative impact and takes many forms, including cargo theft, forgery, data theft, cyber-related embezzlement, and theft of cash, checks, business equipment or client property.
Employee theft is such a widespread issue that it’s important to implement appropriate precautions, such as:
- Pre-employment screenings: Include reference checks, and perform criminal and credit checks depending on the position you’re hiring for.
- Security guidelines: Outline the company policy for employees who are caught stealing.
- Human resource programs: Develop programs designed to build employee loyalty and align employee and company goals.
- Safeguards for company merchandise: This could include a number of tactics ranging from locking up merchandise to installing a surveillance system.
- Controls: Implement these for petty cash disbursements, bank deposits, withdrawals, issuance of check, payrolls, reconciliation of bank statements, and payment of invoices.
- Separate financial responsibility: Ensure no single employee has complete control of financial transactions. Separate functions so more than one employee deals with any given financial transaction, and one employee verifies the work of another.
- Scheduled and random inventory checks: A program should be implemented to manage these checks.
- Premise monitoring: With closed circuit television surveillance, applying privacy law requirements.
- Merchandise record checks: All incoming merchandise should be checked against purchase invoices and all outgoing merchandise against shipping documents.
Be sure to treat all employees with respect, as they will be more inclined to act accordingly.
This can be applied if dishonest acts committed by an “employee”, whether identified or not, acting alone or with another individual has a clear intent to gain financial benefit (other than what is earned in the normal course of employment (salaries, commissions, benefits, etc.), or cause you to sustain loss.
Take advantage of preventive measures to help protect your business from employee dishonesty. Sometimes, despite all of your precautions, it may not be enough. Do what you can to prevent theft and dishonesty, and
About IFS Insurance
At IFS Insurance, we specialize in protecting homeowners and renters throughout Delaware, New Jersey, Pennsylvania, and Maryland. Our quality solutions and commitment to excellence has allowed us to serve these states for over 50 years. For more information about our products, we invite you to contact us today at (800) 598-0420