How to Deal With Employee Theft

Employee theft is a very common crime that issearches can detect anyone with potential
not even regarded as a crime by most peopleproblems that either indicate a previous record of
who commit it. The taking of the odd pen or fewtheft or someone who could be tempted and
sheets of paper home is regarded as many aspsychological profiling can achieve the same thing
being a right rather than as a crime and it isat the interview stage.
something that even the most senior ofFor best results, both of these functions are best
managers are guilty of.carried out by professionals. Either company
Although it is said that 95% of companies sufferemployees trained in these functions or a
from employee theft, it is probably closer toprofessional agency will be able to provide the
100%. Serious theft, however, is a different thinglevel of service required to reduce the chances of
entirely. There is a world of difference betweenyou employing someone who will be tempted to
the theft of a few pens and the steady depletionbecome involved in employee theft.
of stock through organized crime within a largeThis action does not resolve your existing
organization. This sort of employee theft isproblem, but it does help to stop it growing. It
estimated as causing over 30% of all companyreduces the chances of new thieves joining the
bankruptcies and many companies are incompany. There is another benefit of introducing
desperate need of a means of controlling it.a strong employment screening procedure. If
The first action a company must take is to clarifytheft from your company continues and causes
to employees the penalty for employee theft. Atharm to shareholders through loss of their capital,
the very least, immediate suspension pendingthey could sue you for negligent hiring. You have
investigation must be stated as the initial step.to be able to demonstrate that you took all
The matter should then put into the hands ofreasonable steps to ensure that you did not
your lawyers and the law processes should beemploy people who already had convictions for
allowed to proceed. You should not dismisstheft and have tried to prevent employee theft
anyone until the case has been proven legally orat the hiring stage.
you could find that you are the one answeringPart of the problem in normal companies is that it
charges. These procedures should be clearlyis neither fully understood, nor clearly stated,
stated on company notice boards and shouldwhere the line is drawn between theft and what
have union support where relevant.is allowed to be taken. Many companies allow
There are some forms of employee theft thatsubstandard or rejected products to be taken
are almost impossible to control. Intellectual thefthome by employees and others do not. An
of company secrets can be controlled theoreticallyemployee moving from one company to another
by the introduction of tight contracts with keymay misunderstand that these policies are specific
personnel, such as senior managers and scientists,to individual companies, rather than general
but if they decide to move to another companythroughout industry. Employees should not be
such contracts are almost impossible to enforce.criminalized through ignorance and your failure to
Though a contract may state that a seniorclearly state your policy. If you do not allow
scientist cannot legally work for another companyemployees to use rejects, you should clearly
in the same line of business for a set period ofstate that fact with prominently placed notices.
time after employment is terminated, how doDo not assume that all employers have the same
you stop them working for a competitor frompolicy.
home or from an overseas facility?Your policy with regard to what constitutes
How do you stop customer theft, another formemployee theft should be clearly stated in the
of employee theft that frequently involves anemployees’ handbook if there is one or along
employee either providing a new employer with awith the acceptance of their application for
customer list, or taking customers that theyemployment. If you have an induction scheme it
personally deal with along with them? This is verycan be introduced to them then.
difficult if not impossible, since you cannot controlThe mistake that many employers make is to try
your customers’ allegiances.to control serious employee theft themselves
Proper control starts at the employment stage.when there are many professional companies
Employee theft can be reduced by the use of aavailable that could help them to save a lot more
rigid employee screening procedure that ismoney than it would cost to have the problem
designed to detect potential thieves prior tocontrolled.
employment. Criminal record and credit rating