How to Prevent Theft in the Workplace: 7 Tips

Dealing with theft in the workplace can be incredibly frustrating. It’s bad enough when customers take advantage of your business, but finding out that an employee is the culprit can be even more disheartening. Learning how to prevent theft in the workplace requires a nuanced approach.

Learn how you can discourage and stop workers from committing theft. These tips include solutions that address the source of stealing while also creating a safe place for your team. 

Key takeaways:

Here are some insights about how to prevent theft in the workplace:

• Theft takes many forms, including stolen time and products
• Preventing theft requires a multifaceted approach
• You need to create a culture of integrity to stamp out theft
• Installing security cameras will further discourage theft
• Time theft is the most difficult to prevent and requires a robust shift management solution

Table of contents:

• What is workplace theft?
• Workplace theft examples
• Workplace theft is common
• How to prevent theft in the workplace

What is workplace theft?

Workplace theft is anything a worker does to deprive the business of something of value. Stealing products or money is probably the first thing that comes to mind. While that’s part of workplace theft, it’s not the only thing of value workers can take from you. Employees can also steal time by claiming unworked hours on their time cards.

There are many reasons people steal from their jobs. Some common motivators include:

• Financial hardship
• Lack of oversight
• Sense of entitlement 

Workplace theft can have huge impacts on team chemistry and the company’s bottom line. Your business will lose money, especially if theft becomes widespread. Employees may lose trust in their coworkers. They may even develop negative feelings about the business if one of their work friends is terminated. 

Workplace theft examples

What does workplace theft look like? It can take many forms, each of which creates unique challenges. Here’s a look at some common examples. 

Time theft

Time theft occurs when employees are paid for hours they did not actually work. This can happen in various ways. Buddy punching is one of the most egregious examples. This occurs when someone clocks in for their coworker. 

Taking excessively long breaks can also be a form of time theft. For example, suppose that you give workers a 30-minute lunch break. Running a few minutes over doesn’t constitute theft. However, if someone frequently takes a 60- or 90-minute break, it can be considered time theft. 

Identifying time theft can be especially tough when your team works rotating schedules. Shift workers may rarely run into management. This freedom allows dishonest employees to “add” extra hours to the time clock. 

Switching to a digital time clock helps prevent buddy punching and can also track break times. Top solutions can even track workers’ locations to ensure they are actually on the premises when they clock in. 

Stealing from the till

Stealing from the till involves workers taking cash directly from registers or the safe. This type of theft is common in the retail and hospitality industries. 

If your team frequently handles cash, be on the lookout for this type of theft. It can be difficult to detect and requires diligence. Financial losses from till theft might seem small at first, but they can accumulate fast. Suppose that a cashier takes $20 per day. That adds up to $400 to $600 per month, depending on how many days they work. 

Abusing resources or product offerings 

Workers might use company assets or products for personal use without permission. This can include misappropriating office supplies or taking products home. Driving company vehicles to perform personal errands represents another form of abuse. 

Misuse of resources can be damaging in several ways. Using vehicles for an unauthorized purpose results in additional wear and tear. It can also place added liability on your business if the employee is involved in an accident. Wasting supplies can amount to thousands of dollars in losses over the course of a year.

Embezzlement

Embezzlement is a more sophisticated version of stealing from the till. Culprits will use their position to slowly steal funds over an extended period of time. 

For instance, the person in charge of payroll could add non-employees or fictitious individuals to the pay log. They could divert funds to these “people” each pay period and put the money in a separate account. Over the course of a year, the culprit could deprive your business of tens of thousands of dollars. 

Workplace theft is common 

Workplace theft is rare, right? Unfortunately, it is not. Employees frequently steal from the companies they work for. Each year, employee theft costs businesses approximately $50 billion.

Roughly three out of four workers have stolen from their company at least once. In fact, most companies are impacted by employee theft—95% of all businesses experience it. Smaller companies tend to be more susceptible. 

How to prevent theft in the workplace

Putting a stop to theft can be challenging. You’ll need to use several different tactics to guard your business from the dangers of stealing. Here are a few strategies to consider: 

1. Conduct background checks

Everyone deserves a second chance. However, you also need to know who you are hiring. A background check can help you make informed hiring decisions. These checks will also provide insights about a person’s work history and criminal records.

Don’t stop there. Make sure to connect with a person’s previous employer. Find out more about their trustworthiness and if they are a good fit for your team. 

2. Supervise your staff

You do need to give your team some autonomy, but you can’t blindly trust them. Put processes in place to ensure your staff has an adequate level of oversight. 

Conduct regular audits and monitor transactions. Review register totals and ensure all cash is accounted for. Rotating staff duties and requiring managerial approval for certain transactions can also reduce opportunities for theft. 

3. Listen to your employees’ concerns and make them feel seen 

Encourage a “see something, say something” culture. Tell your staff to report suspicious activity to you. Provide a means of doing this anonymously to avoid friction among workers. 

One great option involves investing in a team messaging app. Top worker management tools include messaging capabilities, making it easy for you to stay connected to your staff. 

If someone expresses a concern, listen to them. Make them feel like you are taking their complaints seriously. Look into any accusations of wrongdoing. However, you need to do so tactfully. You don’t want to burn bridges with workers who aren’t doing anything wrong. 

4. Install security measures

Installing surveillance cameras and alarms can deter theft. Cameras can also capture vital evidence if a theft occurs. Ensure these systems are visible and regularly maintained. 

Place cameras in high-risk areas, like above cash registers and in stock rooms. Doing so can help monitor activities and deter theft. 

Don’t wait until you receive a complaint of wrongdoing to review camera footage. Periodically look through videos to make sure your employees are conducting themselves with integrity. 

5. Try a geofencing time clock

Time theft can be one of the toughest issues to catch and prevent. Buddy punching and falsifying logs can allow time thieves to go undetected for months. 

You can solve this problem by investing in a geofencing time clock. These tools ensure employees are physically present at the workplace when they clock in and out. 

When I Work offers a GPS-powered time clock. You can create a custom geofence around your place of business. If workers try to clock in outside the geofence, you’ll know about it. The fence can also track break times and document when workers leave the building. 

6. Practice proper bookkeeping

Proper bookkeeping practices are essential in preventing and detecting theft. Regularly reconcile accounts and conduct audits. Closely monitoring financial transactions allows you to quickly identify discrepancies and take corrective action. 

For example, regulated inventory checks might reveal that items are missing. You can then review video footage to identify what happened and who’s responsible. The sooner you identify discrepancies, the easier it will be to catch the culprit. 

7. Invest in employee scheduling software to see who is working, when 

Using employee scheduling software can help you manage your workforce more effectively. You’ll also be able to track who is working and create a detailed log. If an incident occurs, you can easily identify who was on shift. 

When I Work is the best tool for simplifying shift management. You can build schedules, run reports, and hold your team accountable. 

When I Work is a full-service payroll software that promotes wage transparency. It helps you track employee hours worked and identify discrepancies. The employee schedule software includes tons of other tools to make your life easier. It features team messaging, automatic scheduling, and GPS capabilities to hold workers accountable. 

Track your employees’ time with When I Work

Learning how to prevent theft in the workplace involves adopting the right tools. When I Work provides robust time tracking and scheduling solutions so you can better manage your team. You’ll unlock benefits like:

• Accurate time tracking: Ensure workers are clocking in and out when they should be 
• Real-time scheduling: Easily manage shifts and reduce conflicts 
• Enhanced transparency: Gain visibility into employee activities and attendance
• Geofencing capabilities: Verify employees’ locations to prevent time theft 
• User-friendly interface: Simplify scheduling and time tracking 

Using When I Work will address your greatest workplace theft pain points. You’ll also get more efficient at scheduling and planning shifts, thereby unlocking major cost savings. Sign up for a free trial of When I Work today.