Everyone has known an Eric. He was the person who could join a crowd and seem to know everyone moments later. Walk with him into a crowded pub, and in minutes he would be laughing and moving from person to person as if he had been a regular there for Read More
Employee Theft in the retail industry, also commonly referred to as internal theft, occurs when an individual steals from the company where they are currently employed. While other types of retail theft often garner more attention, employee theft typically causes the most damage to retailers on an annual basis, carrying the greatest financial loss and a substantial impact on the business.
In most situations, retail customers only have access to merchandise on the selling floor—which is protected by the sales team, loss prevention personnel, and various anti-theft systems and controls. Employees, however, have greater access to more systems, more products and more areas of the store than customers. They have access to merchandise in the stockrooms, receiving, or shipping areas where CCTV surveillance, EAS tags and other anti-theft devices may be less effective.
Find out where the real threat to your company lies by reading this FREE Special Report, Employee Theft: Statistics, Interviewing Techniques and Tips to Optimize your Employee Theft Policy.
They may also have access to cash from customers, register drawers, or the cash office. Those with access to the POS register system may be provided with ample means for other theft and fraud issues. Employees know the store team members, learn their habits, follow their schedules, and can take additional measures to avoid detection. Simply stated, employees have a much greater opportunity to steal. As a result, employee theft can affect a business much more quickly and to a significantly greater extent than most external theft incidents.
Employee theft incidents can occur in a variety of different ways. Theft of merchandise, cash and cash equivalents, product consumption, theft of equipment and theft of services are some of the more common issues. Yet as varied as the types of theft may be, there are even more different methods of theft that can used by employees to steal from their companies; only limited by the creativity of the individual and the opportunities that are presented. There are also a variety of reasons that can lead employees to make the ill-advised decision to steal. Personal issues, financial problems, peer pressure, drug and related dependencies, and coercion are just a few.
Most employees are honest and hard-working people with honorable intentions. However, when employee theft issues occur, it can lead to significant concerns that can impact the store in many ways, reaching far beyond the financial losses caused to the company. It impacts retail sales. It impacts retail shrink. It impacts the company brand and reputation. It also impacts all of the hard working associates who give their best each and every day.
Nike has prevailed in a class action lawsuit filed by hourly retail workers demanding that the company pay them for the time they spent waiting for loss prevention inspections after clocking out and before leaving stores.
According to Seyfarth Shaw LLP, Nike’s attorneys in Rodriguez v. Nike Retail Services, the court Read More
February 7, 2018 | Christopher P. Norris, CFI, and Frank Borecki, CFI | Employee Theft
A few years back, I was asked to conduct my first telephone-based loss prevention interview with an hourly employee. He was suspected of merchandise theft, and my supervisor insisted that I conduct the interview over the phone as the suspect was 800 miles away in another state, and the case Read More
When it comes employee investigations, sometimes the “smell test” will not let you rest. You know, those situations when you listen to a story or a business practice, and something just plain stinks. On the surface, nothing appears to be wrong, but there is a smell just below the surface Read More
Many people believe when an individual refuses to make eye contact there is a strong indication the person is being deceptive. People also believe the gestures of the hands and arms while telling a story is an indication of a lie being told.
Academic researchers have spent a considerable amount of Read More
January 30, 2018 | David E. Zulawski, CFI, CFE, and Shane G. Sturman, CFI, CPP | Employee Theft
As most of you know, we have been actively recording our interviews since we opened our doors as Wicklander-Zulawski in 1982. While we use the recorded interviews to illustrate the techniques in our training sessions, we also use them as a means to monitor and measure our investigators. If a Read More
I have frequently heard managers conveying the wrong message when addressing associates about employee theft consequences. These managers say things like “Don’t steal, or you will get caught” or “We have a good loss prevention guy and he catches everything, so don’t steal.” “Don’t steal because it is not worth Read More
This week’s International Association of Interviewers interview and interrogation training tip, provided by Wicklander-Zulawski, has Wayne Hoover, CFI, looking at the soft accusation assumptive question during an interview.
“What was the most amount of…” is the structure of this interviewing question. When you ask a suspect this question, you can expect Read More
January 16, 2018 | David E. Zulawski, CFI, CFE, and Shane G. Sturman, CFI, CPP | Employee Theft
The truth can be an elusive thing. Determining the truth can often be problematic even when there may be audiovisual evidence of what happened. Four cameras covered the slide of the runner as the third baseman took the throw and swung his mitt to touch the advancing runner. The umpire Read More
In this week’s International Association of Interviewers interview and interrogation training tip provided by Wicklander-Zulawski, Brett Ward, CFI, divisional vice president of client relations and business development for WZ, asks, “How important is the development of the behavioral norm?” Read More