Five Ways to Protect Your Company and Your Customers from Employee Dishonesty

One of the most damaging things that can happen to a company is for an employee to commit a dishonest act, whether it’s stealing from the company or a customer, deliberately lying, or doing something else that isn’t honest.

Here are five ways you protect your company from such conduct by employees:

1. Admit that it could happen. You may think you know your people, but how often have you seen news reports where someone was arrested and friends and family members expressed shock and disbelief? The reality is, we don’t always know people as well as we think we do. Also, circumstances can cause people to do things that are not in character. Admitting that it could happen is not saying that you don’t trust your employees; it’s simply recognizing that these things happen and your organization is not immune.

2. Screen your employees thoroughly. Conduct comprehensive background checks along with whole-person assessments so you have a thorough understanding to the character of the people you hire.

3. Understand your legal responsibilities. Consult with an attorney to be sure you understand exactly what you are and are not liable for when it comes to employee conduct. For example, if one employee steals something out of another employee’s locker, are you responsible for the loss? If an employee steals from a customer, are you legally liable to make restitution?

4. Have the right insurance in place. Talk to your insurance agent about the different types of insurance that can cover you for crimes committed by employees.

5. Put procedures and controls in place so that it isn’t easy for dishonesty to occur. These will vary tremendously depending on your type of business, but they can often be implemented easily and affordably. Make it clear to your employees that you don’t suspect them of any wrongdoing, but you are simply establishing systems that protect them as well as the company.