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Theft in the Workplace: Practical Tips for Preventing Disaster
 
An employee of an aerospace company charged with 16 counts of computer trespass for the theft of 320,000 files.  A former Dupont employee sentenced to 18 months in prison after being convicted for theft of trade secrets. Eighteen employees of an electronics company accused of stealing technology and leaking it to the competition.
 
These real-life examples are sobering. The U.S. Chamber of Commerce estimates that 75% of employees steal from the workplace, and that half of these offenders do so repeatedly. The Chamber also reports that one out of three corporate bankruptcies is the direct result of employee theft. These staggering statistics will likely increase as technology facilitates ever more sophisticated methods of theft.
 
At some point, most employers, both small and large alike, face an incident of employee theft. Employees are often inadequately supervised, and employers lack internal controls to prevent theft. Fortunately, employers have a variety of tools at their disposal to take a proactive approach to theft.
 
Conduct Thorough Screening: Examine applications for work history gaps and reasons given for leaving jobs. Check references and if possible, go beyond those provided by the applicant.  Consider background checks and pre-employment testing, such as honesty and drug tests.  Before screening, however, consult legal counsel.  Certain laws, such as the Federal Fair Credit Reporting Act, apply, and screening methods can be challenged as unlawful discrimination, even absent evidence of discriminatory intent.

Enforce a Zero-Tolerance Theft Policy: Have a policy prohibiting misconduct, including theft, and consistently apply it. If a popular supervisor takes office supplies home, or expenses personal meals, and is not disciplined, other employees will receive the message that the employer tolerates violations. Serious violations are more common when minor violations go unpunished. 

Monitor the Workplace: The employee handbook should make it clear that the employer can inspect property, including workstations, desks, files, lockers, computers, emails, voicemails, and items brought to or removed from employer property, for any legitimate business purpose, without notice or employee consent.  It should also indicate that employees can have no expectation of privacy in the workplace, and that passwords and login devices do not create a privacy right.  In addition, it should make it clear that all information pertaining to the employer and its members is strictly confidential.  Employees should be cautioned about disclosing member information on social networking websites. 

Use The Power of IT: Information technology provides employers with a host of options to detect misconduct.  For example, computer screens can be monitored remotely.  In addition, employees often forget that email communications can be retrieved, even after they have been deleted.  And, by setting computer backup systems to preserve information, employers can often quickly obtain "smoking gun" evidence.  Work with an IT professional to develop procedures that make sense for your environment. 

Develop An Investigation Protocol: A procedure for prompt and thorough workplace investigations must be established.  It should identify the person responsible for investigating. In addition, it should explain how to gather information, interview witnesses, preserve evidence, maintain confidentiality, evaluate credibility, reach conclusions, and take action. 
 
Encourage Reporting: Employers should encourage reports of misconduct.  It is better to confront problems head on, even those later found to be unsubstantiated, than to learn about an issue after it has spiralled out of control.  Employees, however, are understandably reluctant to report supervisor misconduct, especially when they lack hard evidence.  Thus, the employee handbook should set forth guidelines on how to report suspected impropriety.  Consider using an anonymous reporting service, such as an (800) hotline, and designating an ombudsperson to receive complaints confidentially.  Assure employees, through a written policy, that the employer will not retaliate against them for good faith reports of misconduct, regardless of the outcome of the investigation.  

Increase Security: By increasing security staff and improving lighting in high-risk areas, employers communicate an enhanced commitment to security, which deters theft.  Posting emergency contact information and reporting procedures improves communication and response time.  In addition, surveillance cameras are a powerful deterrent, and often prove invaluable in investigations. 

Prepare for Public Communications: The public may learn about matters the employer would like to keep confidential.  When information becomes public, employers can exacerbate the problem by appearing defensive, secretive, confused, or uncaring.  Moreover, they risk defamation suits if communications are not vetted.  When issues become public, management must develop a clear, consistent message.  In addition, using the proper tone when communicating is critical.  Consider training a spokesperson in advance.  For particularly sensitive situations, or if media scrutiny is an issue, retaining a consulting firm that specializes in crisis management often makes sense. 
 
Conduct Self-Audits: Regular audits to identify and evaluate risk, hazards, and employee attitudes are critical.  Whether conducted internally or by an outside consultant, audits identify problems before they occur, and convey the message that the employer cares about the safety and security of its employees. 
Taking practical steps to prevent theft raises a variety of legal issues under federal and local laws, and legal counsel should be consulted in advance.  Nevertheless, employers that take the initiative with preventative tactics will be in a better position than those that wait for a crisis to occur.