Theft In Small Business
- Home
- Blog
By Omolola Olakunri
In the midst of running a successful business, it’s easy to take for granted the blessing of having honest and diligent staff. When Lady Luck smiles upon you, providing employees who are committed to your business’s success, you might not realize the rare alignment of stars that has brought you this fortune. You travel abroad or take a break from your shop, return and find everything intact – the brick and mortar, the inventory, and the trust you’ve placed in your staff. But this is a rare luxury in today’s times.
The caliber of people seeking employment has shifted, and many are out to exploit and ruin their employers. From the moment they’re hired, they’re on the lookout for vulnerabilities in the system, waiting to strike with cold-hearted precision. They’re unrepentant and remorseless, viewing their employment as an opportunity to plunder rather than contribute.
This pandemic of theft has infiltrated various businesses. A young man working at a law bookshop, for instance, exploited his position by removing original copies of certain books and creating artificial scarcity. He then sold photocopies to students, reaping a hefty profit. His scheme went undetected for a while, and he even started a building project in his hometown. However, his luck ran out when the owner’s daughter stumbled upon a photocopy and traced it back to the bookshop.
As the police escorted the young man out, his face remained impassive, and he showed no remorse. This lack of accountability is a hallmark of the pandemic we’re facing.
Pharmacists are aware of the clandestine deals between some staff members and marketers, where fake products are showcased, and the owner’s consignment gathers dust. The profit is split, leaving the business owner vulnerable.
In some eateries, the account number is posted on the wall because many waiters have been known to use their personal point of sale machines (POS) for payments, lying about ‘network failures’ to cover their tracks.
Every business, from supermarkets to boutique hotels, factors in a certain percentage for losses due to theft, known as shrinkage. While some industries expect shrinkages of up to 5-10%, many businesses are now experiencing losses as high as 30%. Theft has upgraded and is unrelenting. With new and more creative ways to dupe. The haul is bigger. The audacity is unprecedented. It does not stop until it is stopped in its tracks.
Supermarkets wake up to empty cartons with the goods inside missing. They are carted away at night. Thrown out with the trash. Have an accomplice. Hidden on the body. The list is endless. One tailor befriended the security guard, and systematically stole fabrics, zips and lining from the shop she worked in. Enough to start her own shop.
A multifaceted approach is needed to reduce this very significant theft concern in many businesses, and the first is to be hands on. Be involved.. Don’t open a multi million naira shop and leave the day to day running entirely to staff. That’s an accident waiting to happen. Employees may take advantage of weak internal controls or lack of oversight. Audit books regularly.
Take stock. Visit the shop often and be unpredictable.
Implementing robust internal controls . All CCTV feed can be linked to owners phone, so 24/7, the shop is being monitored.
Conduct thorough background security checks. Open a file. Let there be documentation, especially that of the next of kin. With an address. Referees should be visited.
‘It’s important to be fair to all staff. Treat them decently and encourage them as much as possible, because they are the face of the business. And the ones the public will relate to, first. It’s important, therefore, to build on their self-esteem. And lastly. Pray!!!
Subscribe
Login
0 Comments
Oldest
About Us
Write Affairs was created in June 2024 as an extension of Quintessential Strategies Limited (QSL) to meet the growing demand for expert writing services.