Employee theft, just like any other theft, refers to the use of any material that does not belong to you without getting permission from the owner, who in this case, is the employer. It is well known that some employees are not trustworthy. Even the honest ones are tempted. So, how do you safeguard your assets from dishonest employees? How do you reduce the temptation and help the honest folks maintain their fidelity?

You need a fool-proof internal control system. This is a system of check and balance to safeguard your investment. It can take a while to develop depending on the nature of your business. However, COSO (The Committee of Sponsoring Organisation of the Treadway Commission) has a comprehensive framework for your consideration. In the interim, here are five tips to help you prevent employee theft in your organisation.

Segregation of duties
Learn from the grocery store wisdom: a salesperson to sell and a cashier to process payments. No single employee should carry out a business process from start to finish. To achieve this, you might need to give instructions on a need-to-know basis and also ensure that employees maintain confidentiality of the instructions given.

Access control
This can be as simple as instruction on doors, or as complex as an electronic security clearance system, that can be used to grant authorisation only to qualified personnel. It helps to enforce duty segregation and also makes fraud traceable.

Documentation
Document, keep duplicates, keep triplicates, but never get lost in the junks. Ensure that every employee keeps a proper record of inputs passed on to them as well as their outputs to other employees. Do not overlook this because the figures have been right for a while; you could just be brewing another unpleasant recipe.

Reshuffling and redeployment of employees
This helps to combat collusion. It also does not afford the dubious employee sufficient time to beat the system. A good approach is to work this into your staff promotion scheme, so as to prepare the staff for the process.

Know your employee
Where do they live? What do they do after work? What are their domestic responsibilities? You need to know your employees, but be subtle in your approach. You should also keep your eyes open for red flags; employees who live beyond their means, employees who always go broke, employees who seldom go on leave and many more.

Remember, trust is not always a good reason to neglect your due diligence. Before the dishonest worker is caught your investment might be gone.

How do you prevent employee theft in your organisation? Follow us on Twitter @excellaid to share your tips.

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