Employee Theft – Protecting your Law Firm
Employee Theft & Employee Dishonesty is something that every law firm should be aware of. Your employees’ things may negatively affect your revenue or cause losses due to theft of money, securities, or property. This workplace crime also includes burglary and destruction. Here are five things you can do to protect your business from potential theft.
Protecting your law firm from employee theft.
- Surveillance Systems – A surveillance system offers security for your business & security for your employees. Keep backup copies of your surveillance video footage to ensure that you are covered in case of theft, whether that is due to an employee or not – Another good idea is to store the footage offsite in case of a fire, flood, theft, or another disaster – How many people have the keys to your office space?
- Get Employee Dishonesty Insurance – (Also known as a Fidelity Bond) Protect your business from financial loss due to fraud committed by an employee or even a group of employees. People often ask what is covered by employee dishonesty insurance, and here are the basics:
- Alteration or Forgery
- Transfer Fraud
- Computer Fraud
- Credit Card Fraud
- Money Order or Counterfeit Fraud
- Stolen Goods/Property
- Remote Access Fraud
- Track petty cash & items that are commonly stolen – Keeping track of your assets (big or small) is important, as is knowing where/how your petty cash is being spent. Let’s take a look at the top 8 most commonly stolen office items:
- Pens, pencils, and highlighters. According to Boston.com, 82% of employees have admitted to stealing these items.
- Paper products. Think of notebooks, sticky notes, and printing paper. 35% of employees admit these items randomly disappear from the office.
- Paper or Binder Clips. Surveys show 28% of workers noticed these items getting pinched.
- Printer Ink
- Check The References – This is an easy and obvious solution to understanding your potential employee’s history & character. Ask specific questions, such as the person’s tardiness, social skills, or any issues with the employee. Other questions include: How did the employee handle conflict/stress? Would you rehire the employee? And Were they promoted during his employment?
- Reward System – Offer rewards for the employee who turn-in other employees who have stolen goods, cash, or other items. One thing to convey to employees is that stealing a pen, stamp, or a few paper clips shouldn’t be an issue (unless done on a large scale). Things such as giving items/food away for free (such as a family member or friend), stealing key products, or even using company items specifically for personal use fall under this reward system.