How to Handle Employees Who Steal and Give Away Product

Theft should be dealt with quickly and fairly.

Employee theft can be a serious problem if not handled appropriately. It is important that management stay calm when handling the situation and ensure that they take the appropriate steps so as to not cause additional problems. A business should consider who is involved as well as workplace policies and procedures. The business should be absolutely sure the employee is stealing before taking severe action. Taking the time to thoroughly investigate may save a business money in the long run.

Instructions

1. Investigate the accusation, assumption or suspicion of an employee stealing product and giving it away. Instead of immediately firing the employee, remove the employee from the workplace. Take the time to think strategically about next steps. Some businesses hire an investigator to ensure that this accusation is accurate. Also check security equipment and cameras for evidence. If the workplace is unionized, review collective bargaining agreements for compliance.

2. Determine whether a criminal investigation is appropriate for your workplace. Sometimes it is simpler to just terminate the employee. Consider the impacts of media coverage and impact on the morale of the other employees. Talk with local law enforcement and prosecuting authorities to determine whether the employee’s acts warrant criminal prosecution for workplace theft.

3. Document your encounters with other staff as well as any warnings that are given to an employee. Write down the facts, and if you decide to investigate, it should be done thoroughly. Accusations toward employees can damage relationships with those with whom the accused worked closely. Be sure the employee is guilty by having facts and the investigation documented before making your suspicions known to the employee.

4. Confront the employee. Be straightforward and terminate the employee. Do not include personal feelings, but only state factual information. Also document the encounter. If your company chooses to press charges, it is probably best to be transparent with coworkers and let them know what happened. If you have not chosen to press charges, you may choose not to share this information with the other employees. Consulting a human resources professional and attorney may be necessary to ensure you take the appropriate steps and procedures to ensure the employee does not have grounds to sue your company.

5. Create future policies that have consistent checks and balances. Although theft can occur at any workplace, ensuring that there are policies in place to make sure employees know they are accountable can prevent future theft. Conduct background checks on future prospective employees. Also model the behavior you wish to see in your employees. Theft should be dealt with quickly and fairly.

References

• Minnesota Labor and Employment: Employee Theft and How to Handle It; Tiffany Schmidt; November 2009
• U.S. Small Business Administration: 6 Tips for Preventing Employee Theft and Fraud in the Workplace; Caron Beesley; December 2010
• Missouri Small Business & Technology Development Centers; The Problem of Employee Theft; Mary Paulsell; October 2007
• CNN Money; Arresting Employee Theft; Margaret Nowak; November 1997