Employee theft has financial, operational, and psychological repercussions that touch more than just the employee who committed the crime. The income that can be saved by implementing a theft prevention program can pay for itself. You can design effective procedures to curb employee theft if you understand how it affects a business.
Let’s take a look at how employee theft can affect a business in 2022
Stealing material objects, presenting time sheets for hours not worked, embezzling funds, and any other types of employee fraud are all examples of theft. According to the website of the Association of Certified Fraud Examiners, the average firm loses up to 5% of its yearly income to fraud. Only 2.6 percent of employee fraud instances are detected by business monitoring systems, whereas 40.2 percent of fraud cases are discovered thanks to a tip from a coworker.
According to the website of the International Foundation for Protection Officers, employee theft is the cause of one-third of all business bankruptcies in the United States. To offset employee theft losses, a corporation may have to reduce payroll by discharging staff, forego increases, postpone crucial personnel advancements, and put corporate development plans on hold.
While we do not know the statistics in the UK, we can assume that the statistics will be very similar.
Employee theft forces the company to tighten security measures, which can have a ripple effect across the organisation. When stronger procedures are implemented to prevent theft, such as surveillance cameras, identity badges, and restrictions on employee access to corporate goods such as office equipment and supplies, tensions can emerge between management and employees.
As we mentioned in our blog on how to prevent office supplies, one way to prevent theft is to keep employee satisfaction up. When you start to implement security within the office workspace, this can start to cause rising tensions which may cause employee satisfaction to go down. It’s best to talk to a professional about this and the best way to do it.
A fixed asset management system may be just what you need. CASMs software utilises a check-in/check-out system which we have found has been great for companies to prevent employee theft.
The Snowball Effect
How Does Employee Theft Affect Business: The persistence of employee theft in the absence of effective measures to dissuade it can lead to other forms of workplace crime. There is a snowball effect that leads to workplace difficulties such as worker violence, harassment, and consumer stealing.