Businesses Increasingly Suffer Losses from Within

Office Zone offers tips on loss prevention and security deterrents.

The Department of Commerce estimates that one-third of all employees have stolen merchandise or equipment from their employers.

75% of internal theft goes undetected.

Employee theft costs business between .5 – 3% of their gross sales, or $60 billion per year nationally. That is $1 billion per week.

1. Conduct background checks on job candidates before hiring them. According to HR Logic, approximately five-percent of all white-collar employees have criminal records. Take the time to call the applicant's references and previous employers. Be understanding that people do make mistakes, but know about those mistakes upfront.

2. Install a video surveillance system around the business and in parking lots. It will show you care about employee safety, and it acts as a deterrent for shrinkage. People are less likely to steal when they know they're being watched. Office Zone has a wide selection of wireless security cameras, multiplexers, and digital video recorders that can easily be installed in sensitive areas such as sales floors, stock rooms, offices or break rooms at http://www.officezone.com/secur_1.htm

3. Empower employees to prevent theft. Don't create an adversarial relationship between management and employees. Establish positive and motivational loss prevention programs that highlight how theft affects them personally. Offer incentives or rewards for departments that reduce losses. This will increase morale and give the employee a sense of ownership in the company. A 1993 University of Florida showed that 38.9% of employee theft and 57.7% of shoplifting incidents were discovered and thwarted by employees.