Who's watching the till?--Given the opportunity, employees may steal

Jul 1, 1998 12:00 PM, George Partington

American workers steal approximately $1 billion from their employers per week, according to the report "Employee Theft - The Profit Killer."

Other estimates from sources such as the Department of Commerce put losses from employee theft in the $60-$120-billion-per-year range, according to the report, written by John Case of the security consulting firm John Case and Associates, Del Mar, Calif.

The primary cause of such staggering losses, says Case, is opportunity, not need. Employers provide opportunities for theft by failing to: separate duties; implement and maintain consistent procedures; use a system of checks and balances; consider impact of staff cutbacks; and use adequate key and access controls.

Many employees have an attitude of leniency toward theft, says industrial psychologist Rex Backes, project manager for HReasy Inc., Charlotte, N.C. The company has developed an automated program that uses interactive voice response technology to pre-screen job applicants via a touch-tone phone.

Twenty-five percent of a sampling of respondents to an automated HReasy interview say they are uncomfortable working around cash and valuable merchandise, according to a PR Newswire report. In addition, about 15 percent say there are times when it is acceptable to stray from company rules.

Case says employees give the following reasons for stealing: * I am worth a lot more than the company is paying me, and I made up the difference; * the company expects some loss/shrinkage - besides, it is insured; * management doesn't care - they never said anything about it.

A happy employee is an honest employee Dishonest behavior is less likely when an employer is committed to the well-being and career advancement of employees, according to a survey of supermarket employees conducted by the Workforce Development Group of National Computer Systems, the Food Marketing Institute and the Retail Institute at Purdue University. The "Eighth Annual Survey of Supermarket Employees" questioned 938 supermarket employees representing 26 companies about their jobs, employers and tendencies to engage in both productive and counterproductive activity at work.

Honest employees who considered themselves to be "top performers," when compared with low-performing, counterproductive employees, tended to give their companies higher marks for the following values: * employee empowerment; * career-enriching opportunities; * equitable pay and benefits; * honesty and ethics; and * safe working conditions.

"The study indicates that an organization's culture can greatly impact employee behavior," says Robert Altmann, M.A., personnel research coordinator for Workforce Development Group. Profitability is enhanced by minimizing the costs associated with theft, turnover, absenteeism and accidents.

For the full report from John Case, visit www.employeetheft.com.

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© 2012 Penton Media Inc.

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