Some of the obvious acts of stealing are stolen Petty Cash or cash payments from customers by the employee trusted to handle them. This happens in many firms, and in some cases, will go unnoticed until an audit of client payments or Petty Cash is done.
Of course, in retail there is always the theft of merchandise as well as cash. But what other ways do employees steal and how should you handle it?
Employees may cheat on time. If you don’t have a time clock or computer sign in system, then you may have issues with employees fudging their time. Even though this is not an uncommon practice, it is still theft. Other ways, include offsite clocking in (unless you have a GPS or someone who can witness arrival times), other employees clocking in for someone, or “forgetting” to clock in and verbally telling someone their hours.
They may use or steal business property, like office supplies, using office credit accounts to purchase personal items, or using business credit cards for personal business.
Preventing cash theft should be easy. A detailed cash log with dual signatures or initials for receipt both for Petty Cash or cash payments from clients is a good way to prevent cash theft. Preventing use of office supplies or even office credit accounts may prove challenging and require strict audit procedures.
If you suspect an employee of stealing, there are steps you should take to protect your firm and yourself:
- Do not accuse the employee without proof
- Be sure to keep accurate records of cash,
inventory, etc. in the control of this employee
- Note shortages immediately and discuss (without
accusing) with the employee as to why this might have occurred
- Develop a fail-safe cash management plan where
two employees must be responsible for the receipt of and processing of cash
payments or Petty Cash disbursements
- Make sure that you have written reports from
co-workers and managers regarding any suspected shortages
- Never leave cash in the office unattended, be
sure that it is carefully locked up by management personnel at the end of each
work day with a full accounting attached
- If you have proof that cash, business property,
or inventory has been stolen, file a police report and let them investigate
- Make sure you have a clear, written policy about
other employees clocking in for anyone
- Make sure that employees have a written policy
regarding missed time clock punches. A
counter-signed authorization for missed punches should be in use and repeated
failure to comply should be reprimanded, including a written warning in their
personnel file
- Terminate the employee/s who have stolen from
you, escort them to their desk to collect their belongings and out of the
building. Change the locks, codes,
internet access immediately.
While termination and police action may lead to retaliation by the employee/s, keeping a dishonest employee may only result in poor morale and the feeling of favoritism by others.
If you would like assistance with HR issues or just have questions, please contact PEO Brokers Group!
Angie Adams, President
PEO Brokers Group
