Employee Theft II

In the master’s thesis “Dishonest Associates in the Workplace: The Correlation between Motivation and Opportunity in Retail among Employee Theft” written in May 2009 by Edith M. Fikes some interesting factors were uncovered about internal theft from a retail store. This paper reviewed employees who were fired for stealing from a retailer who remained anonymous. Fikes had access to the files of about 500 employees caught stealing in a years’ time. The average theft was just over $500.00 She reports that the most common employee caught:

• White male (59%)
• Between the ages of 18 to 22 years old (48%)
• Hourly Worker (88%) •Worked at the store for less than six months (36%).
• It surprised me that nearly 90% (87% to be exact) were fired and no criminal charges were filed. She found that employee theft increased when:
• Returned/Damaged merchandise case not secured
• Failure to check returns for contents
• Trash not being inspected. 
• Return processes not being followed.
• Manager failing to review the return reports. 
• Products not being scanned at the register. 
• Customer credit card information not secured. 
• Improper register security.
• No bag or employee locker checks.

When it comes down to it, employees steal because of two main reasons: 

• Job dissatisfaction and a negative workplace environment. Focus on increasing job satisfaction and making a positive workplace environment. Not only will this go a long way to reducing shrinkage, you will increase customer service and profit.

I suggest reading the article How to Improve Job Satisfaction and Increase Employee Engagement from Chart Your Course International. There are plenty of resources available to employers on how to make your store a positive place to work. If you make your store a fun place to work and show your employees that you value them that will go a long way.

Bonus Tip: “Wisdom cannot be stolen - it can only be shared.” - Jefferson Smith

-Mark Turner