How small businesses can avoid employee theft

To create an atmosphere that deters employee theft or fraud, there are a few strategies security dealers can adopt.

Security cameras protect physical items, but how do you provide oversight of data?

When dealing with employees, most small businesses adopt a hope for the best but plan for the worst policy. You want to believe your workers have the business’s best interest at heart, but employees are human beings, and they are capable of making mistakes.

Security Magazine recently reported small businesses accounted for 72 percent of employee theft targets in 2014. Out of the small-businesses hit, 80 percent had 100 workers or fewer.

To create an atmosphere that deters employee theft or fraud, there are a few strategies security dealers can adopt.

1. Implement a strict screening process
You want to keep the possibility of theft in mind at the very beginning of an employee’s career. By screening out potential trouble from the start, you won’t have to deal with problems in the future.

You should create red flags to watch out for during the interview process. You can perform a thorough background check and see if a potential employee has a history of theft or dishonesty. The National Federation of Independent Business suggested going the extra-mile and utilizing an honesty test. There are written physiological evaluations available for small businesses to use during employee screening.

You don’t have to be covert about it; you can tell prospective employees your business takes theft very seriously. Communicate the repercussions of crime in the workplace and what actions are taken when workers are caught. It’s better to make consequences known from the start rather than spring it on staff when you start to grow suspicious

“Constant communication between workers and managers is always beneficial.”

2. Keep communication with employees open
Constant communication between workers and managers is always beneficial. Providing channels for feedback gives you insight into daily performance. If regular communication is a normal part of daily procedures, you can monitor employees without breathing down their neck.

Routinely scheduled meetings and messaging can make it easier to spot changes in behaviors. Score, a small-business advice site, listed a few employee activities that could raise suspicion. Employees who seem to be spending more than their salary allows, start working later hours than normal or show signs of drug and alcohol abuse should be pulled in for additional interviews.

3. Technology financial oversight
Security dealers are very familiar with tech tools that prevent physical thefts. Your office probably has locks, alarms and security cameras to prevent employees from removing valuable items from the premises. You should also use software technology to provide oversight of your digital goods.

Financial software for security dealers creates a centralized database for all financial transactions. It provides complete visibility of payments, receipts, work orders and bills to all users granted access. Entrepreneur magazine advised companies to use the buddy system, you want to make sure no one person is in charge of large sums. It’s better to use a system that provides routine oversight and makes regular audits simple.

Employees who use financial software on a daily basis will realize that transactions are performed in front of the entire company. Temptation isn’t as strong when you aren’t an easy target.

Financial software facilitates data oversight of monetary transactions. Financial software facilitates data oversight of monetary transactions.

4. Get more eyes on your finances
Keeping things above board means you can invite others to perform regular supervision. The Managing Your HR blog said small businesses would be smart to have an outside accountant audit their funds. If your company uses alarm dealer software to manage finances, the constant data reporting the system facilitates creates a crystal clear image of regular procedures. Any discrepancies are sure to stand out in regular data reporting.

You can also encourage other employees to communicate any errors or problems they come across. Some workers have mixed feelings about informing on their colleagues. You should create an atmosphere of honesty and accountability, and make sure people are aware of the punishments of theft and how stealing from the company is disadvantageous for everybody in the company.

You can provide opportunities for anonymous information. The office can be equipped with a comment box or software can offer discrepancy reporting capabilities. Messages can be sent straight to the managers anytime anything suspicious happens. You want to make financial monitoring a part of your employees’ regular routine, as opposed to an action taken in certain circumstances.

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