Friday, March 22, 2019

Shocking Employee Theft Statistics That Every Boss Should Know

Shocking Employee Theft Statistics That Every Boss Should Know


No one wants to believe that their employees are stealing from them but in most cases they are (or they have been stolen from in the past). You want to trust the people who you took time and care to hire, but it is hard to know every piece of their background and if they have been dishonest in the past. Employee theft is complicated. Some people will “borrow” a stapler to take home or sit on their phone instead of working. What they don’t realize is these “harmless” actions are actually employee theft in its simplest form.

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Not all employee theft are these seemingly harmless actions. Sometimes employee theft can be significant. I’m sure that we have all seen cases in the news where long time employees embezzled thousands (or in some case millions) from their employers. They are usually the last person you expect. Stealing from an employer is a slippery slope. It usually starts out with a small item or a couple dollars and then some employees who see that they are getting away with it, may test the waters even more. They could steal something bigger or keep taking money. Before you know it, time and amounts add up and the losses could be devastating. Don’t let your employees do this to you. Know what they are doing and monitor them regularly.

In case you need some convincing here are some shocking employee theft statistics (Courtesy of Statistics Brain and the Association of Certified Fraud Examiners):

Your Employees Are Stealing From You

It’s a hard fact to come to terms with, but in the study from American Certified Fraud Examiners they found that 75% of all employees surveyed admitted to stealing from an employer at least once. Many admitted to doing it multiple times.

More Employees Steal Than Shoplifters

42% of inventory shrinkage in retail is due to employee theft. What is really startling is that only 35% is from shoplifting. More employees are stealing than shoplifters.

A Quarter Of All Employee Thefts Are For Over 1 Million Dollars

The median amount for employee theft is $175,000. What’s even more shocking is that 25.3% of employee theft cases involve an amount of $1 million dollars or more. For a small family owned business, that is enough to bankrupt you. In a lot of cases with employee theft, this is exactly where it leads to – Bankruptcy.

Are you still convinced that your employees could never steal from you? Your employees may be honest, but it wouldn’t hurt to keep an eye on the situation as well. You can perform inventory on a frequent basis to make sure that your products aren’t walking off of the shelves. If you are worried about your employees stealing confidential information, you can remotely monitor your PC to ensure that they aren’t sharing files or copying information that they shouldn’t. Don’t let employee theft bankrupt your company, take steps to protect it now!

Lucy Collins is a hiring manager for a large retail store. When not hiring and training new employees, she is a contributor for Sniper Spy, an application that allows you to remotely view your PC.

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