Video surveillance helps reduce shrinkage, but it’s only part of a comprehensive plan.
While many, if not most businesses focus on reducing theft and loss from outside sources, a 2014 study shows that American businesses have a problem that lies a little closer to home.
Employees account for a higher percentage of theft than shoplifters, but it’s a problem that can be managed more closely with the right approach. And with a Sonitrol security system, you can help keep honest employees honest while keeping shoplifting risks under better control.
American Business Suffer More from Employee Theft
While the global numbers aren’t great for any business, American businesses suffer even more from employee theft than any other country in the world except for Argentina. The Global Retail Theft Barometer shows that around the globe, shoplifters account for 38 percent of shrinkage while employees make up 28 percent of total loss. But in America, employee theft ranks at 43 percent of total lost revenue and shoplifters make up about 37 percent.
Check out this overview of the study’s findings:
Combined, employee theft and shoplifting account for 64 percent of the $128.5 billion in annual losses around the world. Other factors that rank much lower include supplier fraud and accidental administrative errors.
Small overages on time cards add up to major company losses at year’s end.
Which Area Pose a Higher Risk
It’s probably no secret that smaller items, especially expensive ones, are at a higher risk of being stolen. The study showed that makeup products rank highest among the most commonly stolen items, with fashion accessories, power tools, mobile device accessories and wine and liquor products topping the list.
According to the study, wage theft is an especially challenging problem that costs businesses dearly. The Economic Policy Institute prepared a report on wage theft, and by their estimation it costs employers not just millions, but billions annually.
Measures to Keep Your Company Safer
The survey stresses several different loss prevention measures that are starting to reap good results for business owners. Inventory and asset monitoring helps reveal a company’s unique loss metrics so you can pinpoint which areas need tighter focus. Employee education and public awareness also help.
In conjunction with good business practices, a comprehensive security system gives you the most well-rounded advantage. Video surveillance can capture shoplifting as well as dishonest employee activity, and it can also help you and the authorities identify guilty parties. And with a Sonitrol Managed Access system tracking employee hours automatically, wage theft could be dramatically reduced.
Loss prevention is a growing concern, but fortunately new security devices and methods keep emerging to help combat it. Education combined with security tools that help you monitor inside and outside potential sources of theft gives the best results, and Sonitrol of Louisville can help.
Give us a call at (502) 966-8999 to learn more about our unique approach to security and how the right system can save you money in the long run.