Worried About Employee Theft? Here Are A Few Ways You Can Prevent It

If you’re an employer, it’s essential to understand the risks of employee theft. Employee theft can cause financial loss for you, damage your reputation and damage your relationship with your employees. This blog will discuss some tips that can help you protect yourself from this kind of crime.

1. Hire honest people

One effective way to prevent employee theft is to hire honest, dependable, and ethical people. 

A company can go about this by putting into practice the following steps:

Screening potential employees 

Companies should screen their potential employees carefully and conduct criminal background checks for all positions. If a potential employee fails the background check, or if there are reasons to believe that this person will steal from work, the company should not hire that person. 

Make employees aware of the company policies

Another way to prevent employee theft is to provide employees with Guidelines for Ethics and Theft Prevention. These guidelines should outline ethical behaviour at work and strategies for preventing theft from happening. It is essential that employees be made aware of these guidelines, and they should be encouraged to report any instances of suspected theft or unethical behaviour.

Provide training to employees

It is best that employees be provided with training on identifying and reporting potential theft. This training should include information on the laws prohibiting employee theft and tips for preventing employees from stealing from work. Training programs like these can help prevent widespread theft and can save companies a lot of money in the long run.

2. Gain internal control

Any business looking to prevent employee theft is recommended to focus on building controls and processes internally. This means instituting policies and procedures to prevent employees from stealing or falsifying information. Some of the steps that can ensure that companies maintain control internally are:

Monitor employees closely

Companies should closely monitor employees’ activities to detect any suspicious behaviour. If an issue is detected, company officials should take appropriate action, such as suspending the employee or raising security awareness. 

Rotate tasks among employees

Another way companies can gain internal control is by rotating tasks among their employees. Essentially, rotations help prevent employees from copying what another employee has done. In addition, this approach can ensure that all members of any given department are constantly learning something different to improve themselves without stealing information from others. 

Restrict the amount of information provided to employees

Additionally, companies should provide employees with information pertaining to their position, which is deemed necessary to keep. Companies should update this information regularly, and employees should be aware that their responsibility is to keep it safe. 

Conduct regular audits

Finally, companies can also conduct regular audits of their properties. Consider involving an independent auditor to ensure that all policies and procedures are followed correctly. An auditor can help detect discrepancies and document where inventories are kept as per company policies. By following these tips, companies will be able to prevent employee theft.

3. Ensure security measures to protect your company

Protecting your company and any information of your company is crucial in ensuring that your company is secure. There are various ways one can go about securing their company. Some of these are discussed below: 

Consider a digital PIN system

Employees are advised to use a unique PIN when logging in to their work computer. Companies and employees should change the PIN regularly, and employees should never share the PIN with anyone. In addition, it is highly recommended to maintain strong password policies and avail of options such as two-step verification or multi-factor authentication. This system shall ensure that confidential information is secured, and in case of any leaks, companies can detect the people responsible immediately. 

Maintain records of employees who have access to confidential information

Companies should maintain a record of all employees who have access to company data or systems. This record should include the employee’s name, position, and login information. In addition, the document should list any passwords or other security measures that have been put in place to protect company data. Employees who have access to company data must be aware of the necessary security measures and record these in their personnel files. 

Change passwords regularly

Password management is a crucial part of information security. Keeping your passwords secure means that no unauthorized person can access your account and carry out destructive actions, such as deleting critical files or stealing confidential data. There are several steps you can take to help keep your passwords safe. A good practice to ensure that your information is secure is to change your passwords regularly.

Protecting your business from employee theft is crucial in safeguarding your assets and reputation. By following these tips, you can minimize the chances of your employees stealing confidential information or, worse, pilfering company funds. In addition, it is suggested that companies create a written policy outlining acceptable and unacceptable employee behaviors. This will ensure that everyone knows their expectations and avoids potential conflicts or misunderstandings. Finally, if you or your business needs additional help addressing this issue, consulting a professional is advisable.