In retail, preventing inventory shrinkage and limiting loss is just as important as having great products and stellar customer service. Unfortunately, the most significant contributor to the problem is employee theft. That means that having the right systems and process in place to prevent inventory shrinkage in place is critical.
Here are some important statistics you need to know about employee theft.
- Employee theft is common. 75% of employees steal from the workplace.
- 64% of businesses have been victims of employee theft.
- 84% of businesses do not report employee theft to investigators.
- Employee theft accounts for nearly 41% of all inventory shrinkage.
What Do Employees Steal?
Employee theft costs US companies $20 to $40 billion each year, and it is not all in ball point pens. Here’s what gets stolen.
- Money is most frequently stolen, with thefts ranging from $5 to $2 million accounting for 40% of incidents of employee theft.
- Product materials account for 18% of employee theft.
- Office supplies and equipment results in 6% of employee theft.
Proactive Ways to Deter and Prevent Employee Theft
No business can afford to ignore the issue of employee theft, but at the same time no business wants their employees to feel like they are mistrusted or to make the business feel like a prison facility. The solution is to develop a culture of prevention by implementing the right systems and processes, and let those things do the work for you. Here are some important steps you can take to help improve your security and reduce incidents of theft.
- Always use pre-employment background checks.
- Establish, clearly communicate and enforce conduct guidelines.
- Conduct weekly audits of inventory.
- Use access control systems to ensure the right people are in the right places at the right times. It can also keep unauthorized individuals out of critical spaces.
- Use video surveillance to help serve as a deterrent to employee theft. With video cameras and CCTV in place employees are less likely to steal in the first place and enforce a culture of integrity. Video surveillance can also help build a better overall retail operation by helping ensure great customer service, and optimal productivity.
Employee theft is an unfortunate fact that every retail operation must address. S-TRON specializes in retail loss prevention and commercial retail security systems. We stay current on the news, trends, and challenges so we can address your individual and highly specialized needs with the most appropriate solutions.