How to Stop the $50 billion in Annual Losses due to Employee Theft
By Russ Warner, Marketing –
According to CNBC in 2017, workplace crime costs US businesses about $50 billion annually. When I saw that number, I was shocked. If this is the state of things in U.S. organizations, what can be done to deter or reduce this huge loss?
There are several steps that organizations can take to deter theft and fraud by employees, including:
1. Developing and enforcing a code of conduct that clearly prohibits theft and fraud and communicating this code to all employees.
2. Implementing internal controls and procedures, such as regular audits and reviews, to detect and prevent theft and fraud.
3. Providing employee training on the types of theft and fraud that can occur in the workplace, and how to recognize and report suspicious behavior.
4. Establishing an anonymous hotline or other mechanism for employees to report theft and fraud.
5. Conducting background checks on new hires and periodically reviewing the backgrounds of current employees.
6. Monitoring employee access to sensitive information and financial systems.
7. Creating a culture that promotes ethics and integrity and holding employees accountable for their actions.
8. Having a plan of action in place in case of any incident and responding quickly and appropriately to any reports of theft or fraud.
Why not start earlier in the process? Vetting job applicants before they join the ranks is a useful way to avoid making a bad hire. Using a peer-reviewed truth verification solution such as EyeDetect to discover potential risky behavior is an option, where permissible by law. This practice is only legal in the U.S. when hiring employees or contractors for positions with federal, state and local government agencies, such as law enforcement.
However, it’s also important to note that pre-employment screening alone is not a guarantee that an employee will be the right fit for a company, it’s one aspect of the hiring process. There are other considerations such as, skills, personality, and work ethic that are important to evaluate. In addition to using EyeDetect, organizations should also have a robust interview process, which can include interviews, reference checks and other methods to evaluate the candidate’s soft skills. This will help the organizations to make a well-informed decision about whether the candidate is the right fit for the company and the specific role.
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