Since the recession, there has been an increase in the number of employees theft cases being reported in the news media. In general, these cases stem from long term employees finding themselves in tight financial circumstances taking advantage of trusting employers and absentee business owners.

In hind sight, it is often apparent that something was amiss, but the symptoms of theft were unwittingly brushed aside, along with the opportunity to prevent the theft.

To steal from an employer, the employees needs:-

•   MEANS - Access to both the accounting system, and banking systems.
•   OPPORTUNITY - Lack of supervision of duties and separation of duties.
•   MOTIVE - Under financial pressure at home.

The first two MEANS and OPPORTUNITY , are completely within the control of the employer.

1.     BANKING

a.     Separate employees' duties, banking and mail opening and receipting should be done by two people.

b.     Electronic payment of bills from the internet, should not be made without two peoples' passwords into the computer, one of these people should be and owner of the business if possible.   Cheques need to be signed by two people.   Never sign a blank cheque.

2.     ANNUAL LEAVE

a.     Do you have a staff member who has not taken annual leave or sick leave?   Some personnel are genuinely dedicated to their work, but in thieves cannot afford to leave their post in case they are found out.   Also, its' not good for your business' future cash flow to have too much annual leave outstanding.

b.     Insist that any person over whom you have doubts take annual leave over the Christmas holidays.

3.     STAFF WHO LIVE BEYOND THEIR MEANS

a.     People do have windfalls throughout their lives; win lotto; inherit money; make a good decision on an investment and make a capital gain.   But take note of people who appear to live constantly beyond their means.

b.     Staff who have no or little alternative forms of income, but seem to have it all, all of the time might be under financial stress.   Also, look out for good people who are facing unrealistic pressures from home, leaky buildings, serious family health issues.   Family issues can impact an otherwise sound persons' judgment, especially when they believe they can put the money back before you notice.