Employee theft, fraud and embezzlement can cause serious financial and reputation damage to your company. Implement several safety measures as you prevent employee theft and protect your business.
Review Your Hiring Practices
Start with honest employees, and you could reduce your theft risk. Consider implementing the following pre-employment checks for all employees, particularly those who work with finances, confidential data or inventory.
- Criminal history of theft, fraud or violence.
- Civil history of fraud, collections or restraining orders.
- Driver’s license report of serious or numerous violations.
- Education verification of degrees and certifications from accredited institutions.
- Employment verification of positions, length, performance, reasons for leaving, and eligibility for rehire.
Utilize Internal Controls
Prepare for the possibility of theft with policies and procedures that limit this risk.
- Separate duties – Place different employees in charge of transaction processing and recording.
- Control access – Only authorized employees should have access to accounting systems and physical and financial information and assets.
- Authorize control policies – Develop a secure process for initiating, authorizing, recording, and reviewing financial transactions and inventory.
- Update security – Install security cameras, engrave “do not duplicate” on keys to sensitive information, and change locks and security codes when cleared employees leave.
Perform Impartial Audits
In addition to regular audits, hire impartial parties to conduct random audits. Examine financial, inventory and other records as you encourage employees to resist temptation.
Create a Positive Work Environment
When your work environment supports collaboration, fairness, and recognition and implements clear policies, organizational structure, and communication, your employees will probably remain honest. They will feel goodwill toward the company and may be less likely to commit theft and jeopardize the supportive, friendly and healthy environment.
Educate Your Employees
Partner with your employees to avoid and prevent theft. They should know your company’s internal controls, conduct and ethics policy, and discipline process. Ask new employees to review these documents and sign a form indicating they’ve done so, and review the policies at least annually.
Use an Anonymous Reporting System
Equip employees, clients and vendors with the power to report suspicions or proof of theft, fraud or embezzlement. An anonymous reporting system protects your staff while giving you valuable information that protects your company.
Investigate all Theft Reports
Demonstrate that you take theft seriously when you investigate every theft report you receive. The investigation should be thorough, prompt and transparent.
Purchase Adequate Insurance
Commercial crime insurance protects your business as it covers financial losses and liability. Your insurance agent can help you purchase the right insurance coverage and adequate policy limits.
Protect your company from employee theft when you implement several security measures. They can reduce your theft, fraud and embezzlement risk.
Colorado State University’s Department of Atmospheric Science forecasts five hurricanes and 12 named storms for the 2018 Atlantic hurricane season. Natural disasters like hurricanes can wreak havoc on your company. Update your business insurance as you prepare for natural disasters.
Prepare for Wind and Hail Storms
Heavy storms that feature high winds or hail can damage your property or disrupt operations. Verify that your business insurance includes adequate commercial property and business interruption coverage.
You may also wish to check if your policy includes a separate property deductible that applies solely to wind or hail claims. Some insurance companies add a flat rate or percentage deductible to these policies, especially in areas that are susceptible to wind and hail storms.
Rising water can damage your buildings and property and affect business operations. While your mortgage lender or building manager may require you to purchase commercial flood insurance if your business operates in a flood zone, flood insurance is also important if you operate in a location that doesn’t traditionally flood. That’s because you still could experience high water due to heavy rains, storm surges, melting snow, or broken levees.
Talk to your insurance agent about purchasing flood insurance coverage through the National Flood Insurance Program (NFIP). Because this valuable coverage includes a 30-day waiting period, be sure to purchase flood insurance before you need it.
Purchase Adequate Coverage
If you purchased your business insurance longer than a year ago, schedule a checkup. Your company’s needs may change over time, and you want to update your business insurance coverage, too. For example, if you added expensive equipment to your operation or moved to a different location, verify that your current policy covers these changes.
Check the property value coverage on your policy also. When you purchased your business insurance policy, you may have chosen the cheaper actual cash value option that pays to replace covered property minus depreciation and wear and tear. However, replacement cost pays current market value rates and offers better protection, so consider this more expensive option now.
Finally, review your policy limits. Ensure you have enough coverage for your property, building contents, inventory, and business interruption needs.
Review your Policy Carefully
Insurance policies often include dry, boring language, but take time to review every word. You must know exactly what natural disasters your commercial policy covers. Also, be sure you understand details about the deductible and how to file a claim. Your insurance agent can answer any questions you have and help you purchase enough coverage for your specific needs.
Your business insurance gives your company valuable protection. Update your coverage today as you prepare for future natural disasters.
With some farmers struggling to find reliable farm labor, it is important to invest some thought in the hiring process. Here are some tips for finding the right help:
Examine your needs. You might have a general idea in your head of what work needs to be done, but it’s best to be specific. Narrow down broad processes into specific jobs so you can determine how much help you truly need.
Think about desired traits. Do you need someone to fill a temporary need, or are you hoping that person can go on to fill a managerial role? You’ll have to determine whether people skills are more important than manual labor or machinery skills, and list those traits in your job description.
Consider hiring for a trial period. If you’re hesitant about a candidate but need immediate help, consider hiring them for a short-term trial period. This saves you from high employee turnover while buying you time to recognize your needs. It allows both you and the worker to communicate any frustrations and expectations after the trial period before considering whether the working relationship is worth investing in long term.