3 Tips for Preventing and Protecting Against Employee Theft

 In Local Finance, News & Updates

All Risk Insurance Broker in Guelph, ON

No business owner likes to be in a position where they need to protect themselves from their employees, but unfortunately it’s sometimes the reality of running a business. That’s why we’ve written this blog: to help you identify strategies for proactively preventing employee theft and protecting yourself—in the rare cases where this happens. We hope you find it useful!

1. Hire Employees Carefully

When you hire someone, you entrust the well-being of your business to them. So if you have to be constantly watching for fingers in the cash register, you’re probably hiring the wrong people. Carefully vetting employees before you hire them is the first step in protecting yourself from theft.

Ask for at least 3 references and schedule a brief interview with each applicant. If you don’t have time to sit down with everyone, hold shorter phone interviews beforehand to determine the best candidates—then talk to them face-to-face. You will pick up on things in person that you wouldn’t notice over the phone, which is why this final step is so important!

2. Build a Great Company Culture

The best way to protect yourself from employee theft is to create an amazing company culture, where no one will have any reason to steal from you! Here are a number of ideas for how to do this:

  • Encourage open and honest communication within your company
  • Ensure your employees know their opinions are valued
  • Find way to show employee appreciation —fun office parties and leader building activities are good ideas!
  • Provide opportunities for career advancement

These are a few good places to start, but the Internet is full of great resources for building your company culture further!

3. Purchase Fidelity Bonds to Protect Your Business

If you are a larger business or one that experiences frequent employee turnover, it may be advisable to purchase fidelity bonds to protect your organization. Every so often you read about an employee who manages to take a large sum of money from their place of employment—this is where you need the coverage from a fidelity bond. This insurance policy is different than ordinary theft or burglary policies. It protects against losses resulting from employee embezzlement or other fraudulent activities. It is also advisable for organizations with many voluntary or honorary positions, such as an NPO, which may be exposed to frequent risks in this regard.

Visit our contact page to get in touch and learn more about fidelity bonds for your business or not-for-profit organization!

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