The overwhelming cause of shrink in your store is most likely due to Employee Theft. Knowing what to look for and how to prevent it from perpetuating is the key to a healthy business. There are several key indicators of potential dishonest employees that, with proper training, your managers can que in on and stop a theft before they happen; or minimize the loss once discovered.
Employee Theft Reduction Training should be standard for all supervisors and managers that you employ. As a business owner, you may not be in your store, on the floor every minute of every day. That is the reason you employ managers, right? Every Employee Theft case that I’ve ever worked or been a part of has had some of the same things in common. When you train your managers, make sure to discuss the following points, as they are almost universal.
Making Big Purchases
While this is often not a nefarious action, it can be a sign of Employee Theft. Most managers are aware of the financial situations of their employees. Managers know the employee’s salary that is to say. If you suddenly have an employee spending amounts that are much greater than what you are paying them, then something may be amiss. They could potentially be taking advantage of an employee discount for their friends and family.
Having Friends Come in the Store
It’s always great to have a family member or friend drop by work, especially if they bring food! Again, on the outset, it wouldn’t appear improper if this was a non-common occurrence. However, if you notice an employee that has friends coming into the store, especially if they are a cashier, then something may be going on beneath the surface. Part of any Employee Theft Reduction Training should also be how managers can review register activity, as well as how to operate your cameras. Those employees that always seem to have friends over could be giving away product, or failing to ring up all of their purchases at the cash register.
Complaining about Money and Hours
We’d all like to make more money, right? Most people have that desire, however employees who constantly bring up their pay rate and discuss their financial problems could be a huge red flag for a well-trained manager. If an employee feels there is no way out of their current situation, they may resort to stealing from you to either help their current situation, or as “payback” for you not paying them a wage they feel they are entitled to.
Taking out the Trash
While this may sound silly on the surface, be sure to include this tidbit in your Employee Theft Reduction Training. Generally speaking, no one is really thrilled to have garbage duty. I mean, it stinks! This task does present a perfect opportunity for Employee Theft, since chances are, the employee will have unfettered access to the back door, and will generally be unsupervised. You can limit this risk by always having a manager open outside doors and using clear plastic trash bags. Never let an employee, no matter how tenured, have full access to go in/out of your store without supervision.
Get more information on how to stop shoplifting, contact us or call 1.770.426.0547 today.
