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Employee Theft: Retail Managers Frightened of Bankruptcy

Posted by Brandon Weaver | Thu, Oct 31, 2013 @ 10:24 AM

employee theft preventionWalk down most aisles in a department store or retail outlet and you’re sure to find a variety of anti-shoplifting devices. Among others, these include ink-filled tags on clothing, alarm cords for high-ticket items and locked merchandise behind glass. But these security measures are only half of the equation if one of your goals as a retail manager is loss prevention. What’s the other half, you ask? Employee theft.

With the amount of people shopping this upcoming holiday season, retail general managers should be even more aware of shoplifters. But the bigger threat to store loss can come from your own employees. Employee theft does not have to be in a cubicle-type office setting either, like the classic film Office Space. Just like the characters in the film, employees are in your store more than customers so they are more apt to learn the nuances of the workplace and any potential blind spots they can take advantage of.

A common misconception is that jewelry stores are the number one target for employee theft. In reality though, convenience stores, truck stops and stores that sell office supplies and stationery are the biggest victims. To that end, consider these statistics: 

National Federation of International Business (NFIB) says:

  • $600 billion lost annually ($4,500 on average per employee) due to employee theft
  • As many as 30% of the average company's employees do steal, and another 60% will steal if given a motive and opportunity

Security Info Watch says:

  • On a per case average, dishonest employees steal almost 6 times the amount stolen by shoplifters
  • 1 out of every 40 employees stole from their retail employer in 2012

Don't give your employees the chance to steal. They might not burn down the store like Milton in Office Space, but they can sure burn a hole in your profits. In fact, according to the U.S. Department of Commerce, about one third of all business failures each year trace back to employee theft and employee crime. Not only do we recommend these 27 Tips to Prevent Shoplifting, but also our newest ebook, 30 Tips to Prevent Employee Theft.

employee theft prevention

Topics: Retail

Written by Brandon Weaver