Most business owners have an implicit trust in their employees. When you hire a worker, you are doing so with the expectation that they’ll work hard, that they’ll be professional while on the clock, and that they won’t do anything to harm your business – for example, stealing from the workplace.
However, workplace theft is more common than you might think; according to the Statistic Brain Research Institute, about 75% of employees have stolen at least once from their employer. In fact, employee theft costs American businesses nearly $50 billion in losses each year! If you want your business to thrive, you need to take workplace theft seriously.
When you discover that an employee might be stealing from your business, it is critical to investigate – and it’s even more important that you investigate properly. Here are the steps you should follow to investigate theft in the workplace.
Follow Company Policies
If you discover that workplace theft might be occurring in your business, the first thing to do is consult your company policies. Every business should have a policy in place for handling these issues, from the proper way to investigate to any consequences the accused worker should expect (if they’re found guilty).
Consulting company policies is essential if you want to have a smooth investigation. If you misstep in the investigation process and deviate from your company’s established policies, you could be vulnerable to complicated and frustrating litigation! Don’t be so quick to investigate (and discipline) that you forget to do things by the book – trust us, your business will thank you.
Assign an Investigator
One of the most difficult things about investigating workplace theft – especially in a small business environment – is the emotions tied up with your workers. You might really like the accused person. In every other regard, they may be a stellar employee. Your personal opinions can get in the way of a clear and straightforward investigation…which is why sometimes you need outside help.
Before you begin your investigation, assign an unbiased person to take the lead. They may be someone from another department of your company, or even a third-party vendor you’ve hired just for this occasion. These individuals should have little to no personal relationship with the accused employee, so you can be certain that no biases are interfering with your findings.
Emphasize Confidentiality
It will be nearly impossible to investigate workplace theft without help from at least some of your employees. You’ll need to conduct interviews, gather evidence, and look through records to determine just how much has been stolen. However, some employees may be afraid to cooperate if they believe they’ll face repercussions – even something as small as disdain from their co-workers.
As you begin your investigation, make sure that everyone knows that this process is COMPLETELY confidential. Anything that a worker, manager, or investigator says or does during the investigation process will remain private. If you can promise a confidential investigation, you are much more likely to get truthful responses from your workforce.
Begin the Investigation ASAP
From the moment you find out that someone in your workplace is stealing, the clock begins ticking on the statute of limitations. The statute of limitations is the maximum amount of time that can elapse between the commission of a crime and being charged for it. This time limit varies based on the state you live in and the severity of the crime, but in some cases (for example, a minor misdemeanor charge of less than $1,000 stolen) the statute of limitations can be as little as six months!
For workplace theft, the statute of limitations typically begins from the time the theft was discovered (although the rules may be different in your state; check your local laws when you check your company’s theft policies). This means you need to work as quickly as possible to conduct your investigation in a timely manner.
Gather Evidence, Conduct Interviews, and Trace Assets
Your investigator can begin working in earnest as soon as you’ve clarified company policy and explained the situation to your employees. During this time, your investigator needs to gather as much information as possible about the alleged theft.
He or she should conduct interviews or hire an unbiased third-party to conduct interviews with workers who have pertinent information about the theft (again, confidentially) and collect any evidence (security camera footage, expense reports, etc.) that might point to any wrongdoing. Even if you’re not sure whether a document will be helpful, it’s best to pass it on to the investigator – the more information they have, the more likely they’ll be to create a complete picture of the situation.
Notify the Police
I know what you’re thinking: “The police? Doesn’t that seem a bit extreme?” While some business owners may not feel comfortable calling the cops on their own employees, it is actually an important part of handling workplace theft. Without a police report, your business insurance policy is unlikely to cover your losses for the theft – which means you’ll be left to eat the loss.
Notify the police during the investigation process so they can write a report for your insurance claim. This covers your losses, and the police are unlikely to take your employee down to the station (unless they’ve stolen a significant amount).
Discipline or Terminate the Employee
You’ve completed your investigation, looked at all the evidence, and determined that your employee did in fact steal from your business. You’re probably angry, overwhelmed, and feeling betrayed. What do you do? The answer depends on many things, from what exactly was stolen (and how much of it) to your company policies on theft (remember, go by the book).
Your employee’s behavior may merit a suspension without pay, a demotion, or a demand for restitution. In more extreme cases, their behavior could merit termination. Whatever you decide to do, make the decision with conviction – and don’t be afraid to have security (or the police) escort the employee out of the office if necessary.
Recover Losses
The final step in this process is working to recover your losses. There are two main ways to do this: get restitution from your employee (through a civil suit if necessary) or recoup losses through your business insurance.
The route you take will depend on your insurance policy, the amount your employee stole, and many other factors that are unique to your business. Discuss your options with your investigator, your fellow owners (if any), and any legal professionals familiar with your case.
Smoothing Out a Complex Investigating Process
Investigating workplace theft is a complicated and often frustrating process – which is why it can be so helpful to have third-party vendors on your side. With ComplianceLine, you can establish an anonymous helpline where employees can report tips related to the investigation, and our team or external counsel will conduct thorough, professional, and confidential interviews to get to the bottom of the situation quickly.
