Sharp rise in employee theft in 2002 compared to 2001. Research conducted by CBS stated that a company loses 5% of its revenue each year because of employee fraud and nearly 30% of all business failures are caused by employee theft according to the Better Business Bureau.
Employee theft is a reality that impacts business owners across a variety of industries. Employee misdeeds take many forms:
Perform unannounced internal audits. In 1 year 2 audits by outside firms, help to understand and evaluate a company's internal controls, including its corporate governance and accounting processes.
Guidelines are designed to streamline certain processes according to what the best practices are. In the company policies, you must clearly mention that there will be no warning and no second chance. If they are found to be committing theft or any other type of fraud, the employees will be immediately terminated. From time to time update your staff regarding security guidelines.
Ensures that the right quantity of supplies is available in the organization. With appropriate internal and production controls, this practice ensures that the company can meet customer demand and provides financial flexibility. Employed employees also know that you are tracking inventory.
24/7 human and AI-based surveillance that prevents crimes from happening and can solve criminal cases quickly with physical evidence. Live surveillance acts as a deterrent among employees that you are being actively monitored by a third party or owner from anywhere at any time.
To run a business profitable, at regular intervals, business owners engage actively with their employees to discuss goals for this month or next month and any challenges they face and ask what changes they would like to see happen in an organisation. Think about it.
Create an excel sheet in which to record daily transactions and expenses. At the end of the month or the end of the day verify it again. In addition, a financial transaction is supervised by at least 2 people. You can also organize workflows to ensure that one employee verifies the work of another.
Educate employees regarding their responsibilities. What to do or not to do. Working employees must aware of internal theft and how to detect, prevent and report it.