Employee Theft

In 2001, retailers lost more than $29 billion to theft (Vargas 2001). Ironically, the majority of such theft does not stem from customers often referred to as shoplifters. In fact, the biggest cause of loss among retailers with respect to theft is employees. According to the National Retail Security Survey (NRSS), the following categories demonstrate the sources of inventory shrinkage for retailers:

Employee theft has risen two percent since the last survey by NRSS. One of the biggest reasons for employee theft stems from the tight labor market. Because of such a market, employers are often short-staffed, leaving them more vulnerable to all kinds of retail theft. Further, such a labor market often allows dishonest employees to be hired by employers desperate to cover shifts and positions. Despite such negative trends, overall a positive statistic is the fact that total inventory shrinkage is down slightly to 1.69 percent of sales in 2001 from the 1.72 percent in the 1998 survey (Vargas 2001, 1).

Other organizations devoted to retail security and retail theft support the above statistics that employee theft is the largest cause of inventory shrinkage and retailer losses. However, such reports of employee theft in retail vary as to the amount of damage. While Hayes (2002) argues that retailers lost only $4.7 billion to theft in 2002,

Related Essays

Employee Theft Employee theft costs the US an estimated $5-$10 billion annually. It is so common in the US that it is described as "one of the .... (2156 9 )

Analysis of An Argument The presenting issue is prevention of employee theft. .... Therefore it was recommended that these badges be used to prevent employee theft. .... (627 3 )

Embezzlement .... Still, experts say the following five prevention methods will help prevent employee theft: Maintain a culture of honesty. Define .... (1370 5 )

Deviant Behavior .... 17. Shrinkage percentages for employee theft are 80%, for bookkeeping errors are less than half, maybe one-fifth. Reports state .... (1276 5 )

Sales Force Training at Mervyn's INTRODUCTION .... Asset control (the control of shoplifting and employee theft) is also a major concern at Mervyn's (Mervyn's Department Stores, 1988b). .... (3575 14 )

erated. However, failing to establish such a zero tolerance policy can encourage theft among retail employees. According to Kessler (2002), statistics show "that 66% of employees will steal if they see that others do it without consequence" (1). Therefore, implementing such a zero tolerance policy can greatly reduce inventory shrinkage from employee theft. Hiring, training, and recruiting practices are also a good way to help minimize employee theft. Such practices include things like systematic background checks that include checking former employer references and screening for prior arrests related to shoplifting or other dishonorable behavior. Training employees must incorporate a clear definition of expectations with respect to theft. Kessler (2002) maintains that employees should be trained about job procedures and expectations: "Let employees know that they are accountable for their actions. Set realistic rules and enforce them every time. Selective enforcement encourages dishonesty" (1). Job redesign and workplace improvements can also help attract and retain more dedicated employees. According to the NRSS, a dishonest employee typically works only nine months or less for an employer on average (Vargas 2001). By

Category: Business - E