Theft in the workplace is on the rise and it affects business owners more than you might think. According to the Australian Federal Police fraud costs businesses over $1.5 billion a year. What’ s more alarming is that in some 70 percent of the cases those responsible are employees or former staff.
Types of workplace theft
Theft in the workplace does not refer only to an employee stealing money from the cash register, although this is quite common, too. Stealing office supplies or merchandise to sell is another complaint and the costs are quite high. Another form of theft is falsifying time keeping records to claim more money, which might be a bit more difficult to prove. Crafty fraudsters can also create fictitious documents to claim money or may engage in complex intellectual property thefts, like selling your designs to your competitors.
Unfortunately, the number of positions for which employees are required to submit to a background check is limited and many businesses do not bother with police checks if they are not mandatory. In many cases, such negligence comes at a high cost.
How to tell if an employee is trustworthy
Many Human Resources managers rely on their instincts, which might be right in a great number of cases. Not all of them, though.
One of the easiest ways to identify a potential thief is to ask the candidates about their criminal record during the job interview. If you sense the subject makes the candidate uneasy that’s already a red flag.
While you’re on the subject mention casually that it is company policy to require a national police check for any individual applying for a position which might allow them to steal funds or company property. Be glad if someone refuses such a request outright, it’s clear they have something to hide.
The majority, however, will accept to undergo such a background verification and you should reward their willingness by making it as easy as possible. Human resource professionals are increasingly turning to the services of government accredited agencies that can provide an online solution to police checks for business and individuals. An example in Australia is the tech savvy firm Australian National Character Check that has streamlined online police checks and has most checks back in 2-3 business days.
If the results come back clean you have nothing to worry about the new employee. However, if the candidate has prior convictions you should take a close look at that. Any offence related to money should disqualify a person if the position allows easy access to company funds.
Ongoing verification
People change and someone falling on hard times might resort to theft to cover outstanding loans or personal debts. As a Human Resources manager you need to be discreet, but always keep an eye out. This is not about being some sort of control freak, it’s your job to keep the company safe and know which employees represent a potential risk.
For instance, if an employee is depressed and keeps talking about making ends meet take a mental note and take steps to ensure there are no financial irregularities in the department where they work.
Other warning signs an employee might be stealing is a sudden change of their working routine – like coming in earlier than they used to or staying after hours when there are less people around.
Another worrying sign is when an employee who used to complain about lack of money suddenly buys a new car or books an expensive holiday. Obviously, there’s nothing you can do, but such activities should warrant closer observation of the employees in question.
