Running a business has always been tough. There are plenty of things that can go wrong. For example, consider inventory loss.
If losses account for a significant portion of the downward pressure on a business’s finances, they can actually put the company out of business.
Inventory loss occurs in several ways. For the purposes of this post, consider inventory loss due mainly to business theft.
A business can be hit by burglars or by its own dishonest employees. Neither option is all that attractive to business owners. And to many, employee theft is the worst of the two evils.
Discovering that people you trusted to help you run your business are actually stealing from you can be mentally and emotionally crushing. Worse yet, employee theft could jeopardize your company’s financial stability. So what do you do?
A Major and Growing Problem
Theft at the hands of dishonest employees is a major and growing problem. Employees stealing from their employers can come up with all sorts of reasons to justify their actions.
They believe they are underpaid and overworked. They perceive some sort of wrong perpetrated against them by management or ownership.
Whatever the case, they feel completely justified in stealing.
How serious is it? Check out the following statistics from a post put together by Embroker:
- 75% of employees have stolen from their employer at least once.
- 89% of all employee theft is perpetrated as asset misappropriation.
- 60% of business inventory losses are due to employee theft.
- 56.9% of retailers report internal theft being worse than external theft.
The number of employees admitting dishonest behavior jumped 18% from 2021 to 2022. Furthermore, the top four means of perpetrating retail theft among employees are:
- Direct merchandise theft.
- Refund fraud.
- Cash or deposit theft.
- Passing merchandise to friends.
Employee theft in the retail environment seems obvious. Dishonest employees have access to all sorts of merchandise that can mysteriously grow legs and walk away. But even non-retail businesses are subject to significant losses. There is no business completely immune from employee theft.
The Threat of Burglary Is Still There
A notable increase in employee theft does not change the reality of burglary. Burglars are still out there. They still look for vulnerable targets they can hit; targets with easy access to valuable merchandise and cash.
In short, jewelry stores are still being robbed. Sunglasses are still being stolen from sporting goods stores.
Convenience stores, restaurants, and pubs are losing daily receipts to overnight burglars.
And in the corporate environment, companies are losing everything from office supplies to very expensive office equipment. If burglars believe they can get what they want easily and efficiently, you can bet they will try.
Such knowledge can leave a business owner at a loss for what to do.
Here’s the most important thing any business owner could know – stopping burglars and dishonest employees is based on the same principle as preventing residential burglary and home invasion.
Make It as Hard as Possible
The key to reducing the prevalence of any type of crime is to make life as difficult as possible for perpetrators.
That’s why combining a home security system with a litany of other security practices makes a home safer.
Every layer of protection makes residential burglary more difficult. To the burglar, it makes sense to avoid a fortified home. There are plenty of softer targets waiting to be hit.
It is a similar scenario in the business realm. Check out the following text taken directly from a post on the DOJ’s Office of Justice Programs website:
“Some of the most effective methods used to minimize these thefts involve the use of electronic arm and surveillance systems. One of the best ways to control losses is to allow employees to enter only areas critical to their job function.”
The post goes on to explain how a combination of video surveillance and access control make it very difficult for employees to steal without getting caught. Access control keeps them away from areas of the building they don’t need to be in. Meanwhile, 24/7 video surveillance always keeps an eye on them.
As far as burglary is concerned, an electronic security system is highly effective when combined with high security doors and windows, proper lighting, shatterproof glass, and strong inventory management practices.
Security Systems and Remote Monitoring
Electronic security systems for businesses share some similarities with their residential counterparts.
For instance, Vivint offers a business security system that includes 24/7 monitoring.
A business can be monitored for unauthorized entry, unauthorized access by internal employees, broken glass or forced doors, fire, carbon monoxide, and more.
For a small business looking to prevent burglary and internal theft, an entry level business security system with remote monitoring is a great option. It’s an affordable solution that automatically increases a business’s protection once installed and online.
For larger businesses and enterprises, internal monitoring is another option.
Given that the company operates around-the-clock anyway, having an in-house security team keeping an eye on electronic surveillance would make sense.
It Is an Unfortunate Reality
It can be difficult for business owners to discuss security systems and their ability to stop internal theft. They don’t like to consider the fact that their own people are stealing from them.
But employee theft is an unfortunate reality. Worse yet, it can be the demise of a company already facing financial difficulties.
Stopping internal theft can mean the difference between company success and ultimate failure.
A business owner willing to do what it takes to stop theft is in a stronger position to succeed. Likewise, ignoring theft in hopes that it goes away on its own only dooms a business to mounting losses.
Both burglary and employee theft are real. Stopping them requires making the crimes as difficult as possible.
With a combination of electronic surveillance and tried-and-true security strategies, business losses can be minimized. For the company facing such losses, it’s a matter of having the will and resources to do something about it.