Yes, Your Employees Might Try to Steal from You

A Cautionary Tale

A few years ago, I had an office assistant who handled basic accounting tasks like writing invoices and paying bills. We used QuickBooks, and I always signed the checks. This setup worked well for years, until I encountered a problem with my latest assistant.

The Incident

• Performance Issues: I had been considering letting her go due to repeated performance issues. After several chances, I decided it was time for her to leave.
• Termination: I arrived early one morning to inform her of my decision. She seemed to take it well and mentioned she was thinking of leaving anyway. I gave her a final paycheck, and she left.

Discovery of Theft

• Missing Check: Later that day, I noticed a check was missing from the sequence. I immediately suspected foul play.
• Bank Alert: I contacted my bank to stop payment on the missing check. A few days later, the check surfaced, written for $5,000 to her mother and deposited in her mother's account.
• Bank Hold: Her mother's bank held the check, preventing any withdrawal until my bank cleared it.

Lessons Learned

• Internal Controls: This incident underscored the need for strict internal controls. Business owners must be cautious about whom they trust with financial responsibilities.
• Trust and Verification: It's crucial to verify the integrity of employees, especially those handling sensitive tasks.

Perspectives on Employee Theft

Business Owner's View

• Trust Issues: Business owners often face challenges in trusting employees with financial tasks. Implementing checks and balances can mitigate risks.
• Financial Impact: Employee theft can have significant financial repercussions, affecting cash flow and profitability.

Employee's View

• Pressure and Temptation: Some employees may feel pressured or tempted to commit theft due to personal financial struggles or perceived opportunities.
• Consequences: The consequences of theft can be severe, including legal action and damage to one's reputation.

Statistics and Insights

• Prevalence: According to the U.S. Chamber of Commerce, 75% of employees have stolen at least once from their employer (source).
• Cost: Employee theft costs U.S. businesses $50 billion annually (source).

Conclusion

Employee theft is a risk every business faces. By implementing strong internal controls and fostering a culture of trust and accountability, businesses can protect themselves from potential losses. Always be vigilant and proactive in safeguarding your company's assets.

For more insights on preventing employee theft, check out resources from the U.S. Small Business Administration and Forbes.