What steps should a supervisor take in confronting an apparently troubled employee?
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Published: August 28, 2017 Updated: November 9, 2022 What to Do When You Suspect an Employee May Be Stealing From YouThe Association of Certified Fraud Examiners, estimates that organizations lose 5% of revenue to occupational fraud each year. In fact, 86% of occupational fraud involved stealing. Given the likelihood that you will confront employee theft as a small business owner, you should consider preparing how to respond. Missteps can disrupt your workplace and lead to lawsuits, compounding an already difficult situation. Tips on Detecting and Handling Employee TheftThese guidelines can help you take wise and prudent action when you believe an employee has stolen from your business. Know the SignsEmployee theft can take many forms—from stealing cash and merchandise to padding time and committing fraud—and may be difficult to detect. Your first step is to be alert to telltale signs, such as:
Also beware of employees who work late and never take time off. They may be the workplace ideal (as opposed to those who always call in sick), but could be the perpetrators of theft along with those whose lifestyle and income don’t match. Evaluate the SituationUnless you catch an employee red-handed, it’s important to not jump to any conclusions about a suspected theft and who’s responsible. An employee who is falsely accused could sue you for defamation. Begin by taking stock of the specifics:
(Listen to the Podcast discussion: What to Do When You Suspect an Employee May Be Stealing from You) Conduct a Thorough InvestigationIf you’re convinced that theft has occurred, conduct a thorough investigation to gather the evidence you need to prove your case beyond a reasonable doubt. Consult your attorney for guidance, and take these steps without delay:
Know the LawWhen investigating employee theft or employee fraud, always bear in mind these legal constraints regarding employee privacy:
Other legal considerations apply to the manner in which you conduct your investigation. If you use an overly aggressive approach, an employee can claim that you intentionally inflicted emotional distress. If you suspect, accuse or fire an employee based on the suspicion of theft without clear-cut evidence, you can be sued for defamation. Mete Out the Proper ConsequenceOnce you have evidence of the theft, its extent and the wrongdoer, determine the punishment that suits the crime. For serious offenses, such as employee fraud with a high dollar value, termination may be your only option. Just be sure to follow all regulations governing employee dismissal. You may also choose to report the matter to law enforcement and press criminal charges. For petty theft, a written warning, probationary period and restitution may be sufficient. Present the evidence and disciplinary measures to the employee in a confidential meeting. Have one other person in the room to deter any aggression that may arise. Prevent Employee TheftThe best way to respond to employee theft is to prevent it from occurring in the first place:
Employee theft can be a significant drain on your business. Preventive measures, ongoing vigilance, and a prompt and thorough response to any suspected incidents can help you keep your business resilient and your employees honest. Next Steps: By signing up for the weekly Small Biz Ahead Newsletter, you’ll receive hand-picked articles, How-Tos and videos covering the latest in small biz tools and trends. We’ll do the research while you spend your time where it counts: managing and growing your business. What are your thoughts? Let us know in the comments! How does a supervisor deal with a difficult employee?Start by bringing it to their attention in a non-confrontational way. Assume good intentions if at all possible. Remember that not all difficult employees intend to be difficult. Then, give them specific examples of their negative behavior to help them understand the problem.
What is a best practice when first encountering a serious problem with an employee?It is tempting to rush in once someone reports an employee. However, taking time to observe issues first hand allows you verify claims and determine the best course of action. Once you assess the situation, create a plan of action. Never surreptitiously haul the employee into a meeting and have a stern word.
How can you help your employees with their problems?Here are some insights and tips for helping employees cope:. Make Sure the Issue Isn't Work-Related. ... . Maintain the Line Separating Boss from Friend. ... . Explore and Promote Available Community Resources. ... . Cultivate a Supportive Work Culture. ... . Stay in Touch with Employees.. |