As a business owner, it’s important that you understand that employee fraud accounts for five percent of revenue loss in businesses across the nation. While you still have to worry about employees walking off with office supplies, today’s technology has allowed theft and fraud to take on a whole new level. Here are five tips for preventing your employees from affecting your bottom line:
Never skip the background check when you’re considering an applicant for employment. Where you draw the line is up to you, but having the information in hand is an important first step. Before conducting any background check, consult the laws of your state. The information that you are able to use to consider whether or not to hire someone varies from state to state.
It’s not unusual for business owners to ask for references from applicants and then never follow through. If you aren’t going to check references, don’t ask for them. Past employers, supervisors and managers can offer valuable insight when it comes to your potential employees. Again, it’s important that you check the laws in your state. Some states only permit past employers to verify employment and, in extreme cases, a candidate you passed by because of a poor reference can sue their previous employer for slander.
You can’t expect your employees to know what you desire if you don’t tell them. You and your management team should sit down and create an employee handbook that each new hire will be required to read, understand and sign for receipt of. Your handbook should include your company’s code of ethics, policies and procedures, and expected conduct. The handbook should also outline the disciplinary procedures that your company has in place.
4.Manage Your Business
Do you know who gets stolen from? Business owners who don’t take the management of their employees seriously. If you want to combat theft, take your role as a manager seriously. This means that you encourage an open-door policy, offer employee-assistance programs, provide sick and vacation time, and establish internal controls. If your employees are treated fairly and respect you, they are less likely to steal from you.
5.Keep Your Eyes Open
If you are blind to the goings on in your business, you’ll quickly find that you’ve been compromised. Pay attention to red flags that could indicate fraud or theft. Employees who are stealing from you may exhibit an almost insane protectiveness of their work station, a preference to working alone and unsupervised, changes in behavior that can’t be explained, and a reluctance to take time off of work. If you notice a combination of these things in an employee, it’s time to start digging deeper.
You went into business to make money, and you hired employees to help you reach your goals. If you walk through your office with your eyes closed, you’re going to become the victim of theft. Vet your employees well and keep your eyes open; if you do these two simple things, your employees won’t get the better of you.
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Category: Personal Branding