No-one likes to think that someone they employ and trust could break that trust by acting dishonestly, but unfortunately it can and does happen. You may not think of employee theft as a big threat, but there are several risks you should take into account. Consider how easy it would be for an employee to commit fraud or steal materials, tools or other equipment and the impact this could have on your business.
To prevent theft at your organisation, it’s worth considering the following:
- Educate your employees about what is considered fraud and the consequences associated with it, and emphasise that the company has a zero tolerance policy
- Deposit cash and reconcile all bank statements immediately
- Consider using a payroll service to ensure accuracy
- Regarding financial tasks, give different employees different jobs. Small companies often have one person as the sole bookkeeper, but this makes it easy for that individual to embezzle funds
- Conduct internal audits of your books periodically and randomly, to ensure that everything adds up
- Conduct thorough background checks on all your new employees
- Have an inventory for your tools and equipment, and check to make sure everything is accounted for on a regular basis
- Train site foremen to monitor employees and watch for suspicious behaviour. Any suspicious behaviour should be reported and further investigated
For more information or to discuss your insurance requirements please contact HETAS Insurance Services on 01905 886462 to see how they can help you.
Source: Zywave Risk Insights Construction: Preventing Employee Theft
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