Preventing Employee Theft:

Hiring the Right People

Prevention begins with hiring the right employees. By adhering to a strict hiring process, you will be able to weed out applicants who have been dishonest on their application, or have a history of being dishonest at work.

• Have all applicants fill out a complete application, even if they have previously filled out a short application or sent in a resume. Check to make sure that the information on the current application matches up with any previous applications or resumes.
• Check all information for accuracy by calling previous employers, and references. Depending on the age of the applicant, go back up to ten years of employment history. Make sure your questions to previous employers fall within the legal guidelines.
• If a previous employer does not feel comfortable providing any negative information, ask them if they would rehire the person.
• Provide a place for applicants to explain all gaps in employment. Verify the reasons.
• Check the applicant’s driving record.
• Verify education levels and credentials. Ask to see any Degrees earned or for permission to contact schools about the applicant. Contact licensing agencies about professional credentials.
• Conduct a criminal records check and credit record check
• Screen potential applicants for drug use.
• Administer an honesty test. Certain types of psychological and attitude tests are helpful in determining if an applicant has been dishonest in the past, and whether they are likely to do something dishonest again.
• If you discover any inconsistencies, remove the person from consideration. If they are willing to lie on the application, they may be willing to be dishonest in more serious situations.
• Interview applicants more than once. This will weed out the less serious applicants who may be more willing to steal. It will also give you an opportunity to ask questions about anything that came up when speaking with references or doing background checks.

Working with Employees to Prevent Theft

• Make sure all employees know what is expected of them and what their exact job description and responsibilities are.
• Let them know who they should go to with any questions, concerns etc.
• Have regular performance evaluations so employees know how they are doing and so they can inform you of any concerns they have.
• Inform all new employees on your policy regarding employee theft. Remind all employees periodically of the policy as well. It should be a zero tolerance policy. An employee who steals from you once, is caught but allowed to keep his/her job, is likely to steal again and you may not be lucky enough to catch them at it again.
• Make your employees aware that employee theft hurts their bottom line. If they want to remain employed, the business must remain profitable. By preventing employee theft, they will provide themselves with job security and fair wages.
• Train all employees on recognizing employee theft and give them an anonymous way to report it if possible. Some employees may be aware of dishonest practices of other employees but don’t want to be the “rat.”
• Make sure management is setting a good example for employees. If management is stealing or engaging in unethical or illegal behaviors, it will be easier for employees to justify their actions.
  Make sure management is closely supervising employees. If an employee thinks that management is not paying attention, it will make it easier for them to steal.
• Set the employee parking lot away from the building so it is not easy to transfer merchandise from the business to their vehicle.