Every year, problems related to inventory shrinkage cost the retail industry in the U.S. more than $45 billion. The most significant contributors to this high level of loss include shoplifting and other external theft, along with fraud and internal theft.
As a business owner, it is up to you to act and implement the right loss prevention measures to help ensure your business’s ongoing success. When you make a few simple changes in your workplace, you can reduce the risk of theft considerably.
Create the Right Policies
You need to create and post policies that outline what you consider “acceptable use” of company property. This lets your employees with good intentions deter individuals who may be tempted to commit fraud or internal theft. Be sure your policy explains the disciplinary actions that will occur if someone is caught stealing from your company.
Set a Good Example
Rules should not just apply to your employees. Senior management and CEOs should follow the same rules as everyone else. If you want to keep others from stealing business supplies or money, make sure C-suite workers are not taking items for free, either.
Install Security Cameras
The installation of security cameras offers a smart and effective deterrent for workers who are thinking about theft or fraud. Knowing they could be filmed makes these people much less likely to steal. Be sure to set up your cameras in the areas where thieves may decide to commit a crime, like the storage area, break room, or stock room.
Avoid putting cameras in dressing rooms, bathrooms, or in any other area where privacy is expected, as this is illegal. Make sure to review the CCTV footage regularly to find any unusual activity and to help boost your loss prevention efforts.
Encourage the Use of a Hotline for Anonymous Tips
Tips provided by other employees are the top ways that employers discover internal theft and fraud. Most people are honest and remain loyal to their workplace. As a result, they will not appreciate it if a coworker is being dishonest or stealing. You can set up an anonymous loss prevention hotline to give workers a way to provide these tips.
When it comes to loss prevention, there are several factors you must consider. Keep the information here in mind to ensure you get the desired results and that you stop theft and other issues in your business – from both inside and outside individuals.