I was a police officer in the Minneapolis area for over 33 years. I spent many of those years working as a Detective investigating theft in the workplace.
I was shocked at the number of police reports we received from small businesses reporting theft. By default, investigating theft in the workplace became one of my primary roles as a Detective.
These types of crimes often have two common denominators, with the first being a trusted employee, or business partner, committing the crime. The second trait included the suspect having a history of similar behavior. Often, investigations will reveal that the suspect (employee) has stolen from a prior employer, yet it’s rarely reported.
Victimized businesses will either craft a legal agreement for repayment or will simply let the employee go without calling the police. If repayment is part of the separation agreement, it will include a clause that the employer will not interfere with that employee getting hired elsewhere.
A University of Cincinnati study found that 64 percent of small businesses had experienced employee theft, yet only 16 percent of small business owners had reported that theft to the police.
The betrayal that small business owners feel is often tragic, both personally and financially. According to the US Chamber of Commerce, 30% of business failures are caused by employee theft or embezzlement.
At Hanover Consulting Group we have shifted the focus of a reactive model that law enforcement reports create to being proactive in order to help our clients prevent theft before it occurs.
A pre-employment background investigation could uncover these unreported thefts and save small business owners thousands of dollars. Or in the case of a business merger or business deal, a due diligence investigation will provide you with the information you need to make an informed decision.
Finally, employers need to trust their gut instinct. Remember, good people sometimes do bad things. Whether it’s unexpected bills, expensive repairs, divorce, or a gambling habit, employees often see their employer as an easy target. A good rule to follow is this; if you are bothered enough to think something is happening, it probably is.
Investigating theft in the workplace has uncovered a loss of 50 billion dollars a year and theft costs are rising at a rate of 15% per year. If you would like more information on how to protect your business from theft, please reach out to us for a free consultation at https://twincitiespi.com/contact/ .