According to Statistics Canada , 15% of all company fraud can be attributed to employees. Small businesses have it tough as they often lack the resources to implement control systems, and with limited staff accounting duties are not segregated.
Albeit, there is never a surefire way to completely guarantee theft will never happen, there are a few ways small businesses can protect their workplace from theft while ensuring the privacy of your employees:
- Employee Screening: Pre-screening candidates is one of the most effective ways to prevent workplace theft. Background checks can help you determine whether an individual has a clean record and if he or she would be a good fit for your company. In addition, require all applicants to provide you with references from former employers during the interview process. This will give you valuable insight into how they conduct themselves in the workplace
- Set Clear Policies: Creating clear standards for what is and is not allowed in the workplace is important for all employees. Review these guidelines each year to ensure they are up to date and that they adhere to your standards.
- Perform Audits: Audits can be effective in detecting and deterring fraud. Businesses should conduct a thorough audit every six months, focusing on high-risk areas
- There are a number of red flags to be mindful of when it comes to workplace theft. Take unexplained company debt and missing financial records seriously, as they are major warning signs.
Even the most cautious businesses are at risk for workplace theft. For added protection, talk to us about fidelity and crime coverage. These coverages help organizations re coup financial losses resulting from crimes.