Are You Being Robbed?
Did you know that one in three business failures are linked to employee theft? The ANZ says that up to 80% of workers admit they have or would consider stealing from their employers. While they might only be thinking of helping themselves to a box of pens, others have grander ideas.
The theft of a few boxes of pens, needles or paper doesn’t sound like a lot but the totals add up. It’s not just stock and money that employees steal; it’s time, too. Long lunches and leaving early or starting late is a way of stealing – taking money for something they didn’t provide.
Smart Company says, “The Australian Retailers Association estimates that more than half of stock “shrinkage” is from employee theft. And the Australian Federal Police says 70% of all business fraud losses are from staff or former staff, amounting to at least $1.5 billion a year.”
Would you know if you were being robbed?
The first things to look at include:
- Stock levels – are they below expected levels?
- Sales totals – are they below expected levels and if so, does it happen on a regular day or time cycle?
- Lack of receipts or paperwork – have any gone missing?
If your gross profit figures are below industry averages, yet your business seems to be going quite well, suspect employee theft.
When you begin to feel that things are not adding up, check your reporting systems immediately. Check your bank and credit card statements, and do a stocktake. Go through your financial reports or call your accountant to assess your figures.
Some of the businesses which fail due to staff theft didn’t have adequate financial reporting systems and processes in place. To protect yourself and your hard work, make sure you have accurate systems in place and that they are used properly and monitored regularly.
If you need help to create or monitor your systems, talk to us. We will help you protect your business against employee theft.