Introduction Each year, staff theft costs small business million of pounds and by failing to act upon or prevent such theft, some small businesses will incur damaging financial loss and reduced employee loyalty that can result in closure. Almost all small business owners will feel that their staff is extremely loyal and honest, and 99 per cent of the time, they will be right. However, we have to accept that the millions of pounds that is lost every year by staff theft is no accident. For those small businesses that have very little staff, it is much easier to monitor what goes on in the workplace. For small businesses that have a large number of staff, say, more than 20, it can be much more difficult to keep an eye on things: this is where most theft cases arise.
It is a fact that small businesses are more vulnerable to staff theft due to the lack of security measures they adopt compared to larger companies.
What is Considered as Staff Theft Staff theft can cover a wide range of incidents but the most common of these are as follows: By far the biggest cost to the majority of businesses is incurring extra telephone/Internet costs to the business without permission Giving discounts or free goods/services to people that are not entitled Stealing stationery such as pens, paper and envelopes Stealing equipment ranging from staplers to cameras to computer hardware Copying information files for personal use or for selling to third parties Copying computer software for personal use or for selling to third parties Producing false orders and taking the goods
What Causes Staff Theft Many business owners regard staff theft as a minor incident when it comes to, say, stealing stationery such as paper and pens: quite often, they will be aware of it but decide not to take any action. Consequently, if an employee feels that they can get away with it, they may continue to do it and what's to stop them stealing something of more value if they believe they will not be threatened with action. If an employee feels that they have been treated unfairly or not acknowledged for their worth, they may be provoked to steal to make up for what they are not given. This may be to make up for their low wages or as retaliation to favouritism or an unwanted grilling. Employees can be influenced by each other. If they see another member of staff causing an act of theft and getting away with it, they too may catch onto the idea. Likewise, if a member of staff higher in command is seen causing an act of theft, it will not set a good example for those they are in charge of and consequently, they too may think it is ok to steal. Today's technology is becoming smaller and more portable and so it is much easier for staff to steal. In addition, the lack of organization in a business can make it much harder to trace when a piece of equipment was last used and who was responsible. If a member of staff has been made redundant, it can have a large influence on stealing. Should the employee feel that their hard work and loyalty has not been rewarded, they may steal equipment believing that it is owed to them by the business. Many independent acts of theft by outside parties are often linked back to employees within the business. Employees will know most of the security measures in the business and therefore can give advice on how they can be broken.
Article Index
1. Avoiding Staff Theft 2. Preventing Staff Theft 3. Investigating Staff Theft |
