There is no point trying to pretend that your business does not have a problem when it comes to employee theft. The opportunistic nature of some of these thefts, means that even the most trusted workers can sometimes succumb to temptation when a situation presents itself to them.

Without a doubt, employee theft is one of the most costly and underestimated threats businesses face today. A common misconception is that the type of industry that you are in will dictate the level of threat that you face with regard to employee theft.

The hard truth is that it is a problem that doesn’t just affect retail stores, which are perceived to be the environment most susceptible to this threat. In fact, any company, regardless of size or industry, is at risk.

Theft should not be viewed from a binary perspective. It’s not just about stealing cash or stock. Dishonest employees can just as easily be found to steal time, or sensitive data. The spectre of internal theft can seriously damage your profits, and have a detrimental impact on morale, and trust.

There are many ways to reduce the threat and encourage better and more honest behavior. For instance, video surveillance at a construction site, or ‘vidéosurveillance chantier’ in French, for instance, provides an active deterrent against theft, as well as encouraging better standards of honesty amongst employees working on site.

You may think that these issues are not relevant to your business or present a minimal threat and inconvenience, at best. However, you might well change your mind when you discover the sheer scale and wide ranging nature of employee theft, according to statistics gathered on employee theft from various sources.

Here are some truly eye-opening statistics about employee theft, along with tips on how to prevent it, such as using video surveillance cameras, for instance.

Understanding the Scope of the Problem

According to the U.S Chamber of Commerce, for instance, they estimate that a whopping 75% of employees have stolen from their employer at least once.

It’s important to appreciate what is defined as theft. Traditional thinking would be that someone working for the business steals money from the till, or takes stock home without paying for it. Those would be cut and dried examples of theft, but you need to broaden your thinking to truly appreciate the scale of the problem.

Dishonesty takes many forms. It could be saying you have worked more hours than you have and claiming payment for these unworked hours. That is still a form of theft, even if the employee has not physically taken anything.

A Third of Businesses Go Under As a Result of Theft

Another sobering statistic to get your head around is that at least 30% of business failures can be attributed to employee theft. If you think about it, the damage to your cash flow from stolen goods or money can sometimes be impossible to recover from.

Employees cost you more than Shoplifters

You would think this would be most unlikely. However, the statistics don’t support this line of thinking. It has been calculated that the average employee theft is just over $1,300, while the average shoplifting incident results in a loss to the business of just over $430.

Billions are being Lost Annually

If you look at the estimates for the United States, for example, it is calculated that employee theft results in a total loss to all of the business impacted that is north of $50 billion.

More Inventory is Lost to Internal Rather than External Theft

Another alarming statistic to consider is that roughly 60% of inventory loss can be attributed to internal theft. That means your business is potentially losing more money through employee theft compared to shoplifting or external fraud.

Smaller Businesses are More at Risk

You might think that larger company structures present more opportunities for employee theft as a result of their scale.

However, it has been shown that small businesses are more at risk than larger companies. The reason for this is mainly because there are fewer safeguards and security measures in place to monitor behavior and discourage attempts at theft.

There are Certain Sectors That Are at Greater Risk of Theft

Although the threat of theft looms large within any business, certain sectors are more at risk than others. In general, retail, food services, and hospitality industries tend to experience the highest rates of internal theft.

Don’t Neglect the Threat of Senior Staff

Rank and seniority in a business do not provide any guarantee of honesty. In fact, employees in a management position tend to be responsible for about half of all reported theft.

This is mainly due to the fact they often have greater access and authority to help them commit the act of theft.

Time Theft is a Big problem

You may be surprised to discover that one of the most common forms of employee theft involves misappropriation of time. It could be punching a card for a colleague, taking extended breaks, or falsifying hours in some way or another. All of these misdemeanors amount to theft.

Dressing Up Theft in Other Ways

It’s not just the threat of stealing goods off the shelf that needs to be considered. Methods of stealing also include marking an item that has been taken as damaged or lost.

The Steady Flow of Cash Going Missing

If you run a cash-heavy business, it’s all too easy for small amounts of cash to go missing over a period of time. Once an employee becomes comfortable with taking small amounts, they often increase their activity.

These cash thefts can soon add up to a sizable sum that can go unnoticed when taken in small increments.

Incidents of Data Theft are on the Rise

Your business needs to be vigilant on this score. There are many examples of employees stealing customer lists, trade secrets, or proprietary software.

Financially-stressed Employees Can Often Pose a Greater Risk

Another key point to take into consideration when evaluating employees is that when they are under financial stress in their personal lives, they are often more likely to commit theft.

Employees Can Take Advantage of Security Lapses

If you don’t have systems or facilities in place to watch employees, these weak controls can be exploited to create opportunities for theft.

A High Turnover of Staff Generates a Greater Risk

Although it can sometimes be unavoidable, when you have a high turnover of temporary and new employees they may feel less invested in the company.

That creates the potential to consider theft if they are not looking at the job as a long-term prospect.

Video Surveillance Cameras Can Reduce Theft Significantly

Cameras act as both a deterrent and a tool for catching misconduct. Placing cameras in key areas such as inventory rooms, cash registers, and back offices can discourage theft and help you to investigate incidents.

Background Checks are Essential for Reducing Theft

Statistics show that vetting employees before hiring can help prevent the prospect of bad actors from joining your team. Always check references and complete background checks for every new employee.

Implementing Stricter Access Controls Will Help

Another positive step to reduce the prospect of theft would be to limit who can handle cash, access sensitive data, or enter restricted areas. This is another area of criminality that can be better controlled with these measures.

Encouraging a Culture of Honesty and Transparency Will Make a Difference

With the help of regular training, ethical guidelines, and open communication with employees, there is a better chance of fostering a greater sense of loyalty and accountability. This approach has been shown to improve employee theft statistics.

Using Digital Monitoring Tools Can Reduce Theft

Statistics have shown that using these tools for tracking employee behavior, such as time-tracking software and POS system audits, can lower the chances of theft within the business.

With these highlighted risks and statistics, you can see that employee theft is a real and persistent threat, but it’s one that can be addressed with the right strategies. These statistics highlight the importance of being proactive. By investing in measures such as video surveillance, you can better protect your business from these internal threats.