THURSDAY, JULY 21, 2016
 Even after you take extensive steps to hire the very best employees, sometimes the wrong people are brought into your business. No matter why the theft occurs, employee-related theft is a very large and costly risk for businesses. It does not matter if you operate a restaurant or a large firm. Theft can occur in many forms. Your business insurance may help to minimize these losses, but it is far less expensive to work towards reducing the frequency of employee theft. Ultimately, you may be able to reduce loss claims with a few tips.
Establish Policies
One of the first steps to reduce employee theft is to establish very specific policies. Outline what is and what is not allowed, and ensure employees understand these requirements. It is important to establish controls and then teach each of your employees their responsibilities. This gives you grounds to terminate employees who do not follow the rules.
Create Frequent Audits
Make it a goal to complete audits as frequently as possible. These audits may include cash and asset controls. For example, employees should verify cash on hand before turning over the business, drawer, safe or other transaction tools to the next employee. Additionally, audits of inventory should be conducted as often as possible, especially on high-risk items. A checks and balances system in which one person counts out and one counts in ensures there is no confusion as to when product, equipment or even cash goes missing.
Allow Employees to Report Theft
Encourage employees to report theft they see occurring. You should have a safe way of reporting this information so that employees do not feel as though they will be “caught” by other employees for reporting them. Make the process anonymous if necessary.
Ensure Surprise Audits are in Place
Your employees also need to know that you, as the manager or business owner, will randomly pull reports to verify assets as well as cash. Even in larger corporate firms, random balancing of cash sheets and accounts should be expected.
By taking the time to balance these assets, it is possible to reduce the number of business insurance claims filed for employee theft. That keeps your costs down and keeps your business operational.
We’ll help protect your professional endeavors. Call CSP Insurance Services at (843) 519-2557 for more information on Florence SC business insurance.
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