We Kiwis are a trusting lot, and most employers extend a high level of trust to their employees. But that trust can and does, sometimes get abused.
Workplace crime is real. Theft and fraud occur more than most of us would care to think, and, in some cases, the employer doesn’t even know it has taken place.
Employee theft of cash, inventory or business assets is no joke. Small thefts add up. It’s estimated that nearly two thirds of businesses have been a victim but only a small percentage report it.
In the United States, the National Retail Federation estimated in 2019 that the average loss from employee dishonesty was over $1000.
Safeguarding your business with the right policies to help prevent theft and reduce the risk is a no brainer.
So, what can you do?
- Get policies in place that help prevent theft from occurring.
- Carry out proper bookkeeping practice.
- Monitor transactions.
- Track inventory.
- Count the cash in your business morning and night.
- Regularly review all petty cash.
- Do background and criminal checks when hiring team members.
For small businesses, it could look something like this:
- A cash handling process involving more than one person.
- Director sign-off on bill payments and expenses.
- Clear guidelines on what can be reimbursed or charged on the company credit cards.
Don’t jump to conclusions or fire from the hip
If one of your employees has stolen from you, or you suspect they have, you still need to carry out an investigation and go through a disciplinary process before you can look at dismissing them.
Remember, even in cases where your employee has clearly breached their duties, they can still raise a personal grievance if you do not follow the correct procedure. Make sure you have robust documentation and policies in place beforehand.
If you need assistance implementing or updating your money policies, we can take care of that for you.