Internal theft is one of the most common risks that companies face on a day-to-day basis. For example, the Association of Certified Fraud Examiners estimates that in 2018 businesses lost 5% of their annual revenue to employee fraud and abuse.
From the advantages of opening a hotline to some practical ideas about how to handle your trash removal, these tips will help you protect your business from dishonest employees.
Provide Your Workers With Way to Report Theft
Establish a channel that allows employees to report internal theft or fraud by their coworkers. This must be done carefully so as to avoid giving the impression that you don’t trust your employees. The effort is worth it: according to the study linked above, companies with a hotline detect employee fraud through tips more often (46%) than companies without a hotline (30%).
Use an Outside Accountant
Using an outside accountant is a smart way to head off risks of employee fraud or theft. Introducing this control makes it more difficult for irregularities to go unnoticed. Bank statements, checks, and the ledgers for accounts payable and account receivable are some of the documents that a third party should verify.
Keep as Little Cash on Hand as Possible
Having a lot of cash lying around may lead to theft or even accidental mix-ups that result in losses for your company. In any case, putting your employees in a position where they may fall to temptation can be a costly mistake. Above all, keep cash hidden or stored in a safe place that only trusted employees know.
Pay Attention to Your Trash Removal Routines
We tend to think of trash as unworthy of attention. This seems a harmless assumption until you realize that dishonest employees often take advantage of this preconception to bilk their employers of supplies, merchandise, or even money. There are some measures you can adopt to defend yourself against this tactic, for example:
- Flattening all boxes before throwing them away
- Using only clear trash bags
- Locking dumpsters
Strengthen Your Background Check Process
An effective background check process can help you weed out candidates with a record of inappropriate or fraudulent behavior. This way you nip the problem in the bud, saving the headache of potential theft as well as the resources you would need to devote to address the issue when it materializes.
Background checks can provide you with useful information about prospective employees including criminal records, credit records, and employment history, among others. These reports allow you to make a more informed hiring decision, setting your company up for success in the short and long term.
When it comes to recruiting and background screening, it’s important to get help from the best. At Plexus Global we ensure global candidate screening through tailored solutions and the most reliable technology.
We are located in Riverside, California. Contact us today by telephone (844-516-1008), email, or through our social media accounts on Facebook, Twitter, and LinkedIn to learn more about our services or schedule an initial discussion with one of our experienced professionals.