Dan Cosgrove
The holidays are upon us again--your most profitable time.
Well, maybe not. A big boost in business creates even bigger opportunities for employee theft - particularly as you increase your staff with seasonal hiring at precisely the time these untested staff will get the least amount of supervision from management. New employees who have little or no connection or loyalty to your establishment, combined with parties, banquets and a general increase in customer count that commands most of management's attention, add up to a situation that is ripe for workplace theft.
Over two decades of consulting with hospitality companies, I have observed up to a five-fold increase in employee stealing around the holidays. In one night of conducting surveys, I easily spotted theft in five out of six premises. One recent year, 50 percent of the surveys we conducted during the holidays had theft issues. During non-holiday times the average is ten to 20 percent.
Control employee theft now, before it snowballs
Unfortunately, losses from employee theft can never be eliminated - they are a fact of life. But they can be minimized. And they must be; because workplace theft will spread like a virus. Left unchecked, dishonest employees will increase the frequency and amounts they take—and formerly honest employees may be tempted to join in. Worse yet, your best employees may feel forced to flee a toxic work environment.
Ways to spot employee theft
I'm always surprised by how easy it is to spot theft. All you have to do is look for sales that aren't rung up, and for drinks and food being given away without management's knowledge. They're usually just the tip of the iceberg.
Here are some other things to look for:
Don't assume that your good employees will help you control employee theft. When they see colleagues stealing, they often struggle with the peer pressure and the social impact of "tattling." They may legitimately fear being asked to confront the accused employee, or having to work with them if they are not terminated immediately after the accusation.
How can you reduce employee theft?
These are a few of the things you can do to reduce employee theft during and after the holidays:
Finally, if you see a problem, consider hiring a professional who specializes in mystery shopping and/or Integrity Surveys. Their trained agents can visit your restaurant or bar anonymously to record how servers are handling cash transactions. They also can position themselves to observe what your employees are taking out the back door.
Mercantile Systems offers a range of services to help your company manage employee theft issues and improve your bottom line results: Mercantile System's Employee Theft Programs.
I am also happy to discuss possible solutions with you directly, contact me at 888-222-8301 or email us at info@mercsystems.com
For more pragmatic ideas on how you can manage employee theft and protect your business from controllable loses, we also offer:
