Dishonest employees (Part 1)

SAFEGUARDS AGAINST EMPLOYEE DISHONESTY

Loss by theft in retail establishments varies by the type of operation and the efficiency of management. Losses range, for example, from 1.3 percent of sales for a well managed department store to about 7 percent for a loosely controlled operation. According to one estimate, dishonest employees account for about two thirds of retail theft and shoplifting for the remaining third.

Even though you cannot eliminate stealing entirely, you can take steps to minimize it. The key lies in the proper mix of the right controls.

The best safeguard against employee theft is the worker whose integrity is beyond question. Too many retailers take integrity for granted. A store owner should take every precaution to ensure that the people hired are honest, and then, maintain the kind of store climate that will encourage them to stay honest.

Screen Applicants

Just like a book, a job applicant can't be judged by outward appearance alone. Appearance, experience and personality may all be in the applicant's favor, but he or she may still be a thief or other high security risk. Remember that the person you easily pick may just be looking for easy pickings.

In hiring, apply strict screening standards and, no matter how urgently you may need additional personnel, do not compromise those standards. Screen applicants through reference checks, credit checks, psychological tests, polygraph lie detector tests and personal character examinations. Be sure to adhere to the law in performing these checks.