Many entrepreneurs are not aware that embezzlement exists in their businesses. However embezzlement is common in most workplaces and you should accept that your office is probably no exception. Instead of having parasites eat into your business, you should take steps to save your firm.
Reasons for embezzlement
Studies show that embezzlers are usually long-term employees who do not begin with their crime until they have been with a company for several years. Typically, employers do not suspect these workers of this behavior. What causes this sudden need to steal from the company? Sometimes it is the financial crisis of a person that makes him steal. But often, it is a combination of employee discontentment with the opportunity to steal that causes the crime. The embezzlers feel there is a wide gap between their interests and the interests of their employers.
Preventive and corrective measures
Since theft is common in most companies, business owners must know how to handle this problem. First, try taking corrective measures to check the theft occurring in your workplace. However, when these fail, realize you may have to fire the employee involved.
The first step to avoid this situation is careful recruitment procedures. Not only should you should hire the right person after a thorough interview, but make sure you check the applicant’s background. In the hiring process, stress the morality and nature of the candidate as well as their skills.
As already mentioned, employee dissatisfaction often leads to embezzlement. It is therefore important for the employer to boost the morale of the employee. It is easier to keep track of your employees in a small business. Whenever you notice the first signs of a looming problem make sure you solve it immediately. Also, the management should always set a standard for good ethics through their own professionalism and moral behavior.
You may have a tricky time dealing with employees who handle financial data. Your company should have a system in place to confirm the accuracy of the company’s accounts. This may include having an independent third-party come in and regularly review all finances. This reduces the chances of embezzlement. If you are the owner, you should also sign all checks, examine your bank account on your own and verify your bank statements. Finally you should avoid giving the entire financial responsibility to one individual. Dividing various tasks among several employees will give them less control over the company finance and prevent embezzlement.
Last but not the least, there is no substitute for alertness. Be observant about incidents in the workplace and be on guard for anything that looks like embezzlement. These are ways and methods to save your business and keep your employees from going astray. You must remember embezzlement is a serious offense and firing that individual is usually the only move you can make.