|
Not all crooks roam the streets of the nation's cities. Many spend their time in the manufacturing plants of companies. There, disguised as honest citizens, they pilfer whatever comes to hand, often tampering with records to cover up their thefts.
To prevent theft, an owner-manager must recognize that some staff cannot be trusted and make all employees aware that he or she is taking steps to thwart dishonest personnel. Such steps include setting up a system of loss prevention (devices and procedures), administering the system rigidly, and auditing it often to discourage dishonest staff who try to bypass the system.
That is the question facing staff in offices and factories. Many staff answer that question almost unconsciously. They see items lying around and pick them up for their own use. They slip small hand tools into their pockets. Or they dip into the bin for a fistful of nuts and bolts or snip off a few feet of wire for a home repair job. But not all staff who pilfer are nickel-and-dime thieves. Some are professionals who carry off thousands of dollars worth of equipment and materials.
One reason for pilferage is misplaced trust. Many owner-managers of small companies feel close to their staff. Some regard their staff as partners. These owner-managers trust their people with keys, a safe combination, cash, and records.
Thus, these staff have at hand the tools which a thief or embezzler needs for a successful crime. Unfortunately, some of the "trusted" staff in many small businesses are larger partners than their bosses anticipate. Unless you're taking active steps to prevent loss from pilferage, some are probably trying to steal your business, little by little, right from under your nose.
One of the first steps in preventing pilferage is for the owner-manager to examine the trust he or she puts in staff. Is it blind trust that grew from close friendships? Or is it trust that is built on an accountability that reduces opportunities for thefts?
In addition to misplacing trust, it is easy for an owner-manager to create an environment in which dishonesty takes root and thrives. Just relax your accounting and inventory control procedures. Nothing deters would-be thieves like the knowledge that inventory is so closely controlled that stolen goods will be missed quickly.
Similarly, the owner-manager who does not exercise tight control over invoices, purchase orders, removals (for example, for tools, materials, and finished goods), and credits is asking for embezzlement, fraud, and unbridled theft. Crooked office workers and production and maintenance personnel dream about sloppily kept records and un-watched inventory. Why make their dreams come true?
One shipping platform employee's dream came true to the tune of $30,000 - the amount of goods he stole from his company. When caught, he said, "It was so easy, I really didn't think anyone cared." Let people know you care. Make them aware of the stress you place on loss-prevention.
Also high on the list of invitations to theft is haphazard physical security. Owner-managers who are casual about issuing keys, locking doors, and changing locks are, in effect, inviting the dishonest employee into the warehouse or office after work. But intelligent key control and installation of timelocks and alarms are ways of serving notice to crooked workers to play it straight.
The warehouse that's designed for maximum security will have a minimum number of active doors and a supervisor or guard, if warranted, stationed near each door. Moreover, a supervisor should be present when materials or finished goods are being received or shipped and when rubbish is being removed. As long as a door stays open, a responsible employee, supervisor, or a guard should be there.
Central station alarm systems should be used to protect a warehouse after hours. Their purpose is to record door openings and closings and to investigate unexpected openings. Timelocks are also designed to record all openings.
A record of door openings can be important because the dishonest employee is often a specialist at "breaking out" (hiding and leaving the warehouse after closing hours). If your warehouse is not protected against break-out, you can be hurt badly because this method of operation allows a thief to work pretty much at his or her own speed. After-hours thieves put out of commission the alarm system that works beautifully against break-in. They can often leave by doors equipped with snap-type locks-doors that do not require keys from the insides. Quickly and easily, they can pass goods outside and then snap doors closed behind them. Thus, they leave no evidence.
A motion detector, electric eye, or central station alarm will deter such thieves. You can also discourage break-outs with locks that need keys on both sides, provided that fire regulations do not prohibit such locks. When goods, materials, or money are missing and evidence of forced entry is lacking, begin to look immediately for the inside thief, the dishonest employee.
You should never underestimate your ability to influence your employees in the direction of honesty. Your use of good controls, stiff loss-prevention procedures, and cleverly located physical security devices are powerful reminders to staff that the boss does indeed care.
But controls and devices can be wasted if the owner-manager fails to set a personal example of honesty and conscientiousness. Such an example includes following the same loss prevention rules that apply to employees. For instance, the owner-manager should sign for items he or she takes from the stockroom just like any other person.
- Staff who are caught stealing will be prosecuted. (Settling for restitution and an apology is inviting theft to continue.)
- Rotate security guards. (Rotation discourages fraternizing with other staff who may turn out to be dishonest. Rotation also prevents monotony from reducing the alertness of guards.)
- Never assign two or more members of the same family to work in the same area. (You can expect blood to be thicker than company loyalty.)
- Key employees will be kept informed about the activities and findings of the person who is in charge of security. (Thus weak points in security can be strengthened without delay.)
- Make a dependable second check of incoming materials to rule out the possibility of collusive theft between drivers and staff who handle the receiving.
- No truck shall approach the loading platform until it is ready to load or unload.
- Drivers will not be allowed behind the receiving fence
- At the loading platform, drivers will not be permitted to load their own trucks, especially by taking goods from stock.
- Every lunchbox, tool box, bag, or package must be inspected by a supervisor or guard as staff leave the warehouse or factory.
- All padlocks must be snapped shut on hasps when not in use to prevent the switching of locks.
- Keys to padlocks must be controlled. Never leave the key hanging on a nail near the lock where a crooked worker can "borrow" it and have a duplicate made while he or she is away from work.
- Rubbish must not be allowed to accumulate in, or be picked up from, an area near storage sites of valuable materials or finished goods.
- Inspect disposal locations and rubbish trucks at irregular intervals for the presence of saleable items when you have the slightest reason to suspect collusion between staff and rubbish collectors.
- Rubbish pickups must be supervised. (Companies have been systematically drained over long periods by alliance between crooked employees and rubbish collectors.)
- Control receiving reports and shipping orders (preferably by numbers in sequence) to prevent duplication of fraudulent payment of invoices and the padding or destruction of shipping orders.
- Receiving reports must be prepared immediately upon receiving a shipment. (Delay in making out such reports can be an invitation to theft or, at best, result in recordkeeping errors.)
Back to Home Page
|
