Received
a memo a month or so back warning about this, then an event of this past week
brought this issue into focus.
Received a memo a month or so back warning about this, then an event of this past week brought this issue into focus.
The declining economy brings with it some unfortunate side effects. Less work and declining overtime lead to lower paychecks. Rising unemployment may result in the loss of one spouse’s income, and sometimes the loss of earned income for the entire family. The opportunity to steal is present nearly every day and it is being met with the motive to replace lost income. It is a sad fact of life and business people of all stripes need to pay attention to this emerging problem.
The event I refer to involved the theft of a quantity of diesel fuel. You may think that a strange occurrence, but this particular theft involved what really amounts to a $400 loss. Back when the price of diesel really began to spike we thought this was going to be problem, but the motive seemed to be restricted to some desperate independent truckers. Now that the price of diesel has begun to fall, a diesel theft would seem to contradict that prediction. The idea that the “motive” has now joined the “opportunity” seems to be the logical explanation for this occurrence.
So it is a good time for any enterprise to review all manners of security precautions. A lot of dollars go through even a small roof-contracting business. This would be a good time to reel in any “loose” practices involving employees spending company money to make purchases, especially those made on out-of-town work. Review business practices around the office. The term “segregation of duties” comes to mind. Call your accountant and make sure you have the procedures in place to secure all the cash coming and going across your books.
As much as I hate it, most shrinkage that I have ever encountered in the building materials distribution business or in my years in retail were primarily “inside.” Your trusted employees must continue to be trusted, but you must keep everyone on track. Notify your key folks to be on the lookout, and let them know that you are as well. The motive is bad enough; do not set yourself up by “enhancing” opportunity with lax business practices.
Received a memo a month or so back warning about this, then an event of this past week brought this issue into focus.
The declining economy brings with it some unfortunate side effects. Less work and declining overtime lead to lower paychecks. Rising unemployment may result in the loss of one spouse’s income, and sometimes the loss of earned income for the entire family. The opportunity to steal is present nearly every day and it is being met with the motive to replace lost income. It is a sad fact of life and business people of all stripes need to pay attention to this emerging problem.
The event I refer to involved the theft of a quantity of diesel fuel. You may think that a strange occurrence, but this particular theft involved what really amounts to a $400 loss. Back when the price of diesel really began to spike we thought this was going to be problem, but the motive seemed to be restricted to some desperate independent truckers. Now that the price of diesel has begun to fall, a diesel theft would seem to contradict that prediction. The idea that the “motive” has now joined the “opportunity” seems to be the logical explanation for this occurrence.
So it is a good time for any enterprise to review all manners of security precautions. A lot of dollars go through even a small roof-contracting business. This would be a good time to reel in any “loose” practices involving employees spending company money to make purchases, especially those made on out-of-town work. Review business practices around the office. The term “segregation of duties” comes to mind. Call your accountant and make sure you have the procedures in place to secure all the cash coming and going across your books.
As much as I hate it, most shrinkage that I have ever encountered in the building materials distribution business or in my years in retail were primarily “inside.” Your trusted employees must continue to be trusted, but you must keep everyone on track. Notify your key folks to be on the lookout, and let them know that you are as well. The motive is bad enough; do not set yourself up by “enhancing” opportunity with lax business practices.