How Businesses can Avoid Falling Victim to Employee Theft
The impact of employee theft on businesses and the economy is staggering. The distressing news is that much of this corporate could have been avoided. Research shows that the majority of employees that commit the following crimes will typically get away it for two years before being discovered:
- Theft of products or services meant for the consumer
- Pilfering of office supplies or work tools
- Stealing cash from a sales register or embezzlement
- Stolen time by charging for work hours that are not accurate
And, when companies decide to press criminal charges against a thieving employee, it generally takes 5 years to settle the cash – and most often without being compensated for the stolen items or the cost of lawyers and court fees.
And if your company deals in retail, it would be quite common to experience some inventory shrinkage due to employee theft. The most surprising statistics are the costs of employee theft to businesses and the U.S. economy. “A typical business loses 5% of its revenue annually which translates to potential global fraud loss of $2.9 trillion.” The best way to deter employees from stealing time, money, products, or services is by installing an APC business security system with video surveillance.
Benefits of video cameras in the workplace
From SMB’s (small to medium-sized businesses) employee theft can be ruinous. While you may want to establish a culture of trust with your workforce, some employees will have circumstances that lead them to workplace theft. These include a financial crisis, pressure from outside influences, and sometimes revenge against management. Make sure your trusted employees know that your commercial security system is not meant to be an invasion of privacy.
Instead, promote your security strategies as protecting worker’s jobs and their safety. Any company can take advantage of by an employee who is also a criminal. A business security system is installed for many reasons, including to prevent vandalism, theft, or personal assaults in the workplace. Here are more benefits of using one service provider for commercial security and fire protection with video surveillance:
- Can resolve employee disputes
- Protect potentially unsafe areas like parking lots
- Lowers the risk of robbery or employee theft
- Monitor lobbies, stockrooms, and visitors
More strategies to prevent employee theft
It is always best to take a defensive stance against employee theft. To be proactive rather than reactive. If you have employees in sensitive positions such as handling cash or access to the corporate checking account, it is advised to have a system of checks and balances. At least two employees or the approval of a supervisor should be required to sign off on financial transactions like voiding sales and issuing customer refunds.
Make sure your pre-employment screening process includes a background check that includes credit history and encounters with the criminal justice system. Anyone applying for a financial position within your company should not have inconsistencies in their resume or references.
Finally, install a camera surveillance system that deters employees or customers from engaging in dishonest behavior. The best choice is to partner with APC for commercial video surveillance that discourages employees from risky behaviors but can also be used as proof of criminal activity in a court of law.
Contact APC or visit us online to minimize the risk of employee theft at your business. We offer a variety of service levels and a wide selection of state-of-the-art IP cameras and video systems that will fit any application and any budget. Our service features the powerful APC Video Management System (VMS) that can operate on LAN, WAN, Wi-Fi or fiber optic networks and can be viewed remotely by web browsers and smartphones.