Find out the meaning of employee theft and how a company can manage the vice.

Employee theft definition, formula and examples

Employee theft is becoming an ethical concern in the business world. Employee theft definition refers to it as the act of an employee stealing from the organization where they work. It should be known that this form of theft goes beyond stealing cash but also time, supplies, information, and company’s products. Does it matter? How should one evaluate and manage employee theft?

How to manage employee theft

There is no formula for evaluating employee theft statistically, to inform prevention and handling practices. However, you can take certain preventative and management measures, to prevent and contain the situation respectively. First, let’s consider a case where an employee has stolen company’s items. Before you report them or take any disciplinary action, you should document the incidence. Ensure that you gather all the financial documents, physical evidence, witnesses, and available security footage. Always include the date and specific times, when documenting the aforementioned pieces of evidence.

Evaluate the situation. Was the theft intentional? What does the company’s policy say about this form of misconduct? Has the employee committed the crime another time? By answering these questions, you can tell if the employee requires a warning or immediate termination of their employment. Then, you have to decide whether to involve law enforcement agencies. However, before you call the police, consider the limitations of such a move. For example, it might erode the existing trust that the employees have in you as their employer. If you decide to dismiss the employee, be sure to supervise them when they are leaving lest they carry crucial information or items, which can have adverse effects on the company.

As mentioned earlier you can employ preventive measures to ensure that there is no employee theft. You can do so by conducting criminal background checks on each applicant, to avoid hiring individuals who can commit theft afterward. In addition, you can revise the company’s policy, to make sure it is intolerant to theft. You may also need to restrict certain areas. Another way, you can contain theft among the workers is by providing them with lockers to keep their personal items. Last but not the least installs an advanced security system. This will act as a preventive measure but it will also assist when you are gathering evidence incase employee theft occurs. By understanding how to handle and prevent theft by employees, you can save the organization a substantial amount of money, which is often lost through such incidences.

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