If you’re in an industry where spillage is common, like food service or hospitality, don’t presume that missing inventory is automatically theft.
At the same time, this could simply be a sign they’re not well-trained on the register. If they’re new, consider doing additional training and see if the problem resolves itself.
Edited printouts, excessive refunds, and missing transactions are all signs someone might be stealing. You could lock the refund button to require manager approval if this is a unique problem for you.
This is unlikely to be theft if you’re tracking employee sales numbers. It’s much more likely that you simply have a few bad sales people who are underperforming.
Requiring your employees to personally justify or get approval for business expenses is one simple way of preventing this.
For example, let’s say your records show that you had 20 smartphones in stock at the start of the day and 10 in stock at the end of the day. If you only have receipts for 9 sales, it’s a major red flag.
An employee’s hands passing bills from a register into their pockets. Strange behavior or fidgeting around the register when nobody is around. Good merchandise going into the garbage or being moved where it doesn’t belong. Frequent “change making” between the tip jar and the register.
When you do have register changes, require multiple employee signatures to sign off on the balance. That’s the easiest way to prevent thefts at register changes.
Popular tracking programs include SentryPC, Teramind, ActivTrak, and HubStaff.
Forensic accountants will typically charge $300-500 per hour for this kind of work. It’s pricey, but if someone is stealing it’s likely worth it.
If you don’t have CCTV cameras installed, now is the time. Not only are they helpful in documenting potential customer issues and preventing thefts, but they’re a key part of keeping your employees accountable.
Ask the employee if they mind you recording the conversation before you start. You might sit employees down and say, “We have a problem with someone stealing. Do you happen to know anything about it?” Note when the employee resists a follow-up question. Resistance, discomfort, and changing the subject are all signs that they know something.
If you don’t have an HR or legal department, take your evidence and info to your immediate higher-up and ask them what they’d like to do. What you do with an employee you caught stealing might be up to you, but you want to ensure that you’ve covered your bases before you do anything rash.
If you’re in an “at will” state and you have no contracts with your employees, you can typically fire anyone at any time without reason.
Bring HR and/or a legal department rep if you have these departments at your company. You might say, “Look, we’ve got evidence that you’ve been taking money out of the register. Do you have anything to say about this?”
Contacting police when you don’t have decent evidence that they actually stole something may get you in serious trouble with your other employees or the law.
If you have any security on site, enlist them to help you escort the employee off of the premises.
This may be appropriate if the employee has been with you a long time and this is their first indiscretion, or if they’ve got personal issues (like financial problems) that have temporarily clouded their judgement. You might say, “I understand you’ve been going through a lot, and you seem genuine about being sorry. We’re going to let this go, but if you ever do this again, you’re out of here, okay?”
You might ask, “I saw you took cash home yesterday from the tip jar without cashing out the barbacks. Why did you do that?”
This also gives employees a chance to voice their concerns, complaints, and provide constructive criticism in hopes of improving the workplace!
Frequently talk to your employees informally about their lives, aspirations, and so on. Offer extra rewards and bonuses for outstanding work. Make an effort to talk with each employee individually at least a little. Consider organizing outside-of-work social activities (holiday parties, happy hour outings, etc. ). Empathize with your employees’ potential complaints and frustrations. Overall, try to create a culture of openness and transparency in your company.
Use clear trash bags. Employees may hide merchandise in the trash, then stash it in a safe spot when they take the garbage out. Require all boxes to be flattened before recycling. This makes it harder to steal merchandise or hide inventory. Rearrange furniture or remodel to eliminate blind spots. Employees are less likely to steal when there are fewer spots where they can’t be seen. Use random register audits/inspections. Play it up like you’re checking a mistake you made to avoid making employees feel like they’re being monitored. If applicable, use a POS (point of sale) system that tracks inventory and sales. Give occasional freebies and bonuses. Giving your employees unwanted merchandise or small bonuses go a long way to making them feel cared for.
