Our 34th Annual Retail Theft Survey showed an increase in 2021 in both dishonest employee apprehensions and recovery dollars, 6.0% and 29.8% respectively. Survey respondents noted additional focus, enhanced investigation methods/tools and less associate supervision as some of the reasons for the increase in apprehensions and recovery dollars of dishonest employees.
In addition, the average dishonest employee case value in 2021 was $1,188.46, an increase of 22.6% from 2020.
Survey participants noted the following reasons as to why their Dishonest Employee apprehensions and recovery dollars increased or decreased in 2021:
Increased:
. Additional focus/attention towards associate theft
. Enhanced investigation methods/ tools
. Less associate supervision created more opportunities for theft
. Increased store count/more stores open
. Increase in loyalty card fraud & discount abuse cases
Decreased:
. Updated POS software created less opportunities for theft
. Increased use of CCTV
. Less cash transactions
. Reduced LP staff/resources
. Better prevention with additional technology at POS
Employee Theft Prevention Tips
. Effective Pre-Employment Screening Process: The first step to controlling employee theft starts at the point-of-hire; do not hire the “bad apple”. A thorough pre-employment screening process is most important. Money spent up-front in the screening process to identify ‘quality’ associates will result in savings from reduced turnover and losses.
. POS Exception Monitoring: Use an up-to-date POS exception-based monitoring program to quickly identify possible fraudulent transactions at the point of sale (ie. excessive refunds (cash or credit); refunds or voids before or after store hours; too many voids, excessive reward credits, dummy SKU usage, price overrides, etc.).
. Confidential Reporting Line & Reward Program: Establish and promote a confidential line and reward program for associates to report acts of dishonesty, theft and abuse.
. Training & Awareness: Invest in a loss prevention training and awareness programs for both new-hires and current associates.
. Door Controls: Keep overhead doors closed/locked, and designated emergency exit doors alarmed to prohibit unauthorized use.
. Trash Controls: Supervised the trash removal process, use clear bags, flattened all cartons, and keep dumpsters locked where possible.
. Package/Bag Checks: Conduct a package/bag check whenever an associate exits the location.
. POS Controls: Two associates (one a manager/supervisor when possible) should witness and verify refunds, voids, price overrides, etc.)
. Sales Verifications: “Pass-outs” are an easy way to steal with friends/relatives, so have management conduct daily unannounced sales verifications to ensure all product sold was properly rung thru the POS register.
. Opening and Closing Coverage: Where possible, at least two associates (one a key-holder) should always be present at the opening and closing of the store. This is both a security and safety issue.
. Auditing for Compliance: Ensure consistent compliance to company policies and procedures by conducting unannounced loss prevention/shrink audits on a regular basis. Auditing not only helps keep awareness high, but by reducing the opportunity, you reduce the chance of theft/loss. $
