Employee Theft-3                                                                                                                      WC Blog 323
Training to reduce employee theft-3
Employee Background Checks-3
“Sweethearting” May Not Be So Good For Your Business; Find Out How Training To Reduce Employee Theft Can Help You Identify And Stop This And Other Dishonest Activity
     I went to a coffee shop located next to the campus library where I work and for the second time in recent weeks I had something happen that has prompted me to write about the issue. I work late nights at the library and this particular coffee shop closes about an hour after I arrive to work so I occasionally grab a cup of coffee a few minutes before they close. The employees know I am a staff member and take my order and are supposed to ring my transaction, give me an employee discount and take my payment. Twice now the employees have tried to tell me not to worry about paying, I assume because it is near the end of the night and they will probably be throwing out the remainder of the coffee. Because of my background in Loss Prevention I am uncomfortable with this and insist on paying for my drinks. I know some of you may be thinking I am being silly, that they are closing soon and dumping it anyways, why not just take the drink? In my opinion, there is a bigger issue at stake here, at what point do you draw the line for your employees? Can being “flexible” on little things like this lead to larger issues of theft? It can be a slippery slope when you permit grey areas for employees. Many managers have a difficult time making the distinction because they have not had training to reduce employee theft. Consideration should also be given to the possibility that this can snowball into full blown associate crime. When employers lack knowledge of theft concerns they are probably not aware that employee background checks can help prevent a store being the victim of employee theft and fraud.
     Why do managers need training to reduce employee theft? Because associate theft takes many forms and the untrained owner or manager can miss the indicators that would point out that theft is taking place. Losses could be in the form of return fraud, cash theft, merchandise theft, price manipulation and so much more. Loss Prevention Systems, Inc. has experienced Loss Prevention experts that can train you and your managers on identification of theft, prevention techniques and warning signals that can lead to employee theft.
     Additional modules from Loss Prevention Systems, Inc. include optional training on pre-employment hiring and how it can help employers avoid hiring people who may harm your business. In cases, like the one I experienced at the coffee shop there is a term for it called “Sweethearting”. In an article in LPMInsider, “Sweethearting: The Dark Side of Good Customer Service”, by Richard C. Hollinger, PhD, March 6, 2017, the author provides the definition of Sweethearting from an article he cites; “Service Sweethearting: It’s Antecedents and Customer Consequences”, by Michael K. Brady, Clay Voorhees and Michael J. Brusco, March 2012 issue of Journal of Marketing, “Sweethearting occurs when frontline workers give unauthorized free or discounted goods and services to customer conspirators.” While this activity can start off with good intentions of providing the great customer service employees are encouraged to practice, it can quickly turn into a regular exercise that costs businesses money. Dr. Hollinger writes, “Pre-employment Screening tests can head off sweethearting if we add measures that look for high scores on “personal ethics” and, alternatively, low scores on the “need social approval from others.” http://losspreventionmedia.com/insider/employee-theft/sweethearting-the-dark-side-of-good-customer-service/  In other words, employee background checks can help in weeding out potential employees who may be inclined to engage in these behaviors.
      While they may start innocently, like giving away a cup of coffee at the end of a shift because it is going to be thrown out anyways, I have personally seen these situations multiply to include more people and bigger losses. I have apprehended groups of employees who started out giving unauthorized discounts on food and drinks to friends that spiraled into full blown employee theft cases involving passing of merchandise. It is amazing how much that $1.89 cup of coffee can really end up costing you in the long run.
     Don’t allow sweethearting to develop in your business. You can prevent lost profits through training to reduce employee theft and conducting employee background checks. Find out how much you don’t know from the experts who have worked in the field. 
Training to reduce employee theft is important and we can help you with it. Call 1.770.426.0547 and let’s talk.
     

I went to a coffee shop located next to the campus library where I work and for the second time in recent weeks I had something happen that has prompted me to write about the issue. I work late nights at the library and this particular coffee shop closes about an hour after I arrive to work so I occasionally grab a cup of coffee a few minutes before they close. The employees know I am a staff member and take my order and are supposed to ring my transaction, give me an employee discount and take my payment. Twice now the employees have tried to tell me not to worry about paying, I assume because it is near the end of the night and they will probably be throwing out the remainder of the coffee. Because of my background in Loss Prevention I am uncomfortable with this and insist on paying for my drinks. I know some of you may be thinking I am being silly, that they are closing soon and dumping it anyways, why not just take the drink? In my opinion, there is a bigger issue at stake here, at what point do you draw the line for your employees? Can being “flexible” on little things like this lead to larger issues of theft? It can be a slippery slope when you permit grey areas for employees. Many managers have a difficult time making the distinction because they have not had training to reduce employee theft. Consideration should also be given to the possibility that this can snowball into full blown associate crime. When employers lack knowledge of theft concerns they are probably not aware that employee background checks can help prevent a store being the victim of employee theft and fraud.


Why do managers need training to reduce employee theft? Because associate theft takes many forms and the untrained owner or manager can miss the indicators that would point out that theft is taking place. Losses could be in the form of return fraud, cash theft, merchandise theft, price manipulation and so much more. Loss Prevention Systems, Inc. has experienced Loss Prevention experts that can train you and your managers on identification of theft, prevention techniques and warning signals that can lead to employee theft.


     Additional modules from Loss Prevention Systems, Inc. include optional training on pre-employment hiring and how it can help employers avoid hiring people who may harm your business. In cases, like the one I experienced at the coffee shop there is a term for it called “Sweethearting”. In an article in LPMInsider, “Sweethearting: The Dark Side of Good Customer Service”, by Richard C. Hollinger, PhD, March 6, 2017, the author provides the definition of Sweethearting from an article he cites; “Service Sweethearting: It’s Antecedents and Customer Consequences”, by Michael K. Brady, Clay Voorhees and Michael J. Brusco, March 2012 issue of Journal of Marketing, “Sweethearting occurs when frontline workers give unauthorized free or discounted goods and services to customer conspirators.” While this activity can start off with good intentions of providing the great customer service employees are encouraged to practice, it can quickly turn into a regular exercise that costs businesses money. Dr. Hollinger writes, “Pre-employment Screening tests can head off sweethearting if we add measures that look for high scores on “personal ethics” and, alternatively, low scores on the “need social approval from others.” http://losspreventionmedia.com/insider/employee-theft/sweethearting-the-dark-side-of-good-customer-service/  In other words, employee background checks can help in weeding out potential employees who may be inclined to engage in these behaviors.
     

While they may start innocently, like giving away a cup of coffee at the end of a shift because it is going to be thrown out anyways, I have personally seen these situations multiply to include more people and bigger losses. I have apprehended groups of employees who started out giving unauthorized discounts on food and drinks to friends that spiraled into full blown employee theft cases involving passing of merchandise. It is amazing how much that $1.89 cup of coffee can really end up costing you in the long run.
     

Don’t allow sweethearting to develop in your business. You can prevent lost profits through training to reduce employee theft and conducting employee background checks. Find out how much you don’t know from the experts who have worked in the field. 

 

Training to reduce employee theft is important and we can help you with it. Call 1.770.426.0547 and let’s talk.