I’ve been helping a business recently where an employee was stealing between $10 and $30 a day. They were stealing by not recording services the business charged for, services which were not reconciled in the business – thereby making uncovering the theft difficult.
It was only when the employee was not in the business for a time that it was noticed.
It’s important that you have processes to track everything, that all revenue, including for services, is reconciled.
This low-level theft, lunch money theft I’d call it, is as disgusting as employees who steal tens of thousands of dollars. The emotional cost is as high and the impact on the business can sometimes be almost as great.
Question from a newbie.
I’m having consistent shortfalls in magazine return reconciliations. Since all my staff swears everything is being scanned (no department sales) the only conclusion I can draw is theft while the mags are on the shelves.
I have reviewed audit log for cancelled sales and poured over security footage of the shelves and staff but came up empty.
short of spending more time reviewing more footage. What else can i do to identify those discrepancies?
Gary, some years we had a particular magazine that was being stolen every issue.
We placed it near the counter for a few issues and the problem stopped, if it had been a staff member I expect the theft would have continued but this was not the case. Also we scan ALL newspapers as a lot of magazine theft involves magazines being hidden a paper that the customer will pay for. Scanning gets the paper in your hands and you will certainly notice if a magazine is hidden in there, in fact we had a customer magically produce a magazine from the paper once we asked for it so it could be scanned. We also fold papers as we hand them back so if a cards has been secreted away in the paper it will be damaged.
Gary, Magazine theft is real and it can happen even under the nose of the most vigilant employee/owner, it all depends on the volume of theft. We have seen ALL demographics try and walk out without paying and use all kinds of excuses once caught from I forgot to, or I already bought it elsewhere even though it has our price label on it. Try scanning all newspapers as some put mags inside papers and walk out only paying for the paper but if they know they need to hand over the paper it reduces the risk.
As for small employee theft, staff just do not get that if they take something that is not theirs it is stealing from a drink, gum, magazines or $5-$10 here and there. It is rife and the general excuse is that the employees are doing it hard, poor buggers.
On average, total theft (employee and inventory) theft costs between 3% and 5% of turnover each year.
Magazine theft is an issue. Newsagents used to say it was adult titles that were bagged when actual data showed it to be the top sellers.
Scan everything you sell – even newspapers. Shake product so anything inside falls out.
Move product around.
Eyeball every shopper.
Depending on value, consider an undercover security person for a few hours a week – one such approach broke a group of older women doi g over a local newsagent.