Employee theft is an issue that affects businesses in every industry, but can potentially be more damaging to smaller companies. According to
answers.com, security experts contend that small businesses may be particularly vulnerable to internal theft as these companies often have employees with multiple responsibilities that provide more opportunities to commit theft and greater means to conceal these actions. Additionally, owners of small businesses tend to view their workforce as, “family.” As a result, these owners are often devastated by feelings of shock and betrayal when an employee theft is discovered.
A recently published
article by Joyce M. Rosenberg purports that the majority of employee thefts are committed by long-term, trusted employees. It generally takes someone with a high level of trust from management to have the access to accounting systems, etc. which is required to perpetrate thefts. Because these are generally trusted employees, many small business owners never think to check up on them, and thefts can go undetected for years.
Bankrate.com has published a list of ways to help prevent smaller companies from falling victim to employee theft. Some of them are listed below:
- Screen job candidates thoroughly – Check references and previous employment history. Conduct a criminal history search in order to help determine whether potential employees are trustworthy before you hire them.
- Write and post an ethical conduct policy – Outline how employees should behave and what constitutes stealing.
- Conduct an annual independent audit of your books – This will help to uncover any irregularities.
- Always require a counter-signature on company checks.
- Take the time of go over accounts payable.