Shoplifting: Employees Steal More Than Customers Do

Kathy might seem like the perfect employee, but she'll steal $855.00 from you this year.

In 2010, the National Retail Federation reported shoplifting nationwide increased to $3.6 billion, an 11% increase equaling $37 billion in loss from theft alone. More surprisingly, these figures were primarily from employees stealing on the job, not the customers we all assume shoplifting statistics come from.

Question: Why would an employee steal from their employer in such a fragile economy?

Answer: When employees feel undervalued, the risk of employee theft rises.

Employee theft, specifically in California, can range from potential felony charges of embezzlement and grand theft (over $400); to simple petty theft of miscellaneous store merchandise. Aside from retail theft, corporations are affected as well. Corporations are well known for issuing employees company credit cards and fuel cards for job related expenses. These “access cards” carry a greater risk of being misused for personal use and even 3^rd party use (friend or relative), both considered fraud.

In July 2011, the LA Times ran an article about an LA County municipal chief who lost his job. It involved a government gas card tied to personal use of fuel purchases throughout the western United States. Whether it’s a government employee in an esteemed position or a summer intern working for free, employers should realize that internal theft can impact their bottom line and should implement measures to prevent or dissuade employee related theft.

In a difficult economy, a good chunk of employee theft may be due to the “I’ve earned it” or “I’m underpaid” or just simply “the company will hardly notice it” mentality.  Remember, one employee can greatly affect your business, especially if it’s a small business with less than 10 employees.

Keeping employees happy and eager to work for you can be an efficient and cost effective way to prevent internal theft. Employees that respect their workplace, feel valued and consider themselves an integral part of the business are often less likely to consider stealing.

Management’s ability to connect with employees on a personal level, yet maintain their supervisory respect can also minimize internal theft. When an employee steals, they are now dissolving the relationship with their manager as well as their employer. A “firm but fair” attitude is best practice in the retail industry, which is prone to higher turn over and historically shows employees being less committed to their employer.

Ryan Garrahy is a licensed private investigator specializing in civil, criminal and insurance related investigations. He is the owner and principal investigator for Orange Investigations.

Small Business Professionals: “We Can Get The Job Done”

Small Business Professionals To The Rescue!

As a customer, you want to see results. Moreover, you want to increase your profits and accomplish all your goals in a timely manner. With good quality services within customer’s timeline and budgets, small business professionals are a good alternative and often turn out to be a lot of more cost effective than hiring high-priced professionals from relatively larger businesses.

They say – “Bigger isn’t always better” and here’s the reason why…

Small business owners can achieve a taste of success just like bigger businesses do.

While it is challenging for small and private business professionals to compete against the large and global rivals, the more localized, innovative and customer-centric services by small business professionals gives them an edge over the competition.

The more service-oriented small business professionals ensure that the customer’s requirements are met and the business performance is achieved. No matter what!

But just how can small business professionals assist you better than the big guys?

Localized Services

Often, small businesses are localized and cater to customers in and around their office location. There are certain inherent advantages caused by this localization of business. Familiarity with nearby areas and people makes it easier for the professionals to get new contacts.

From the viewpoint of prospective customers, it is always easier to approach a known face than an unfamiliar entity. In field of private investigation, it is much easier to confide in a known individual than an unknown person from a big company.

Trained Small Business Professionals

The emergence of small businesses is complemented by the establishment of technical and vocational institutes offering job-oriented training programs. Candidates receive proper training and thereafter set up their independent businesses in various fields.

Some of the small businesses that require thorough training include security services, logistics, beauty treatment and allied activities, physiotherapy, automobile repairing, investigative services, and interior decorating. All these and many more services are undertaken by professionals who are adept and have proper infrastructure to offer support to their assignments.

However, you might want to check the qualifications and specific skill set of the small business professional you are working with.

Dennis Crowley co-founder and CEO Foursquare - Courtesy Entrepreneur

Informal yet Professional Approach

Difference in business approach is very distinctive between small business houses and the larger ones. As compared to the smooth and nearly informal approach in small business setups, the process is formal and time consuming in larger organizations. The formalities are limited and completed fast when dealing with small business professionals. Establishments being significantly small, you get the best attention while dealing with small business professionals.

• One important reason for this keen attention is the limited number of clients a small business professional has. Often, small business owners run their businesses on a higher risk level as their area of operation is not too well spread out.

• “A negative impact on the mind of a customer could lead to a bad reputation in the market.” To prevent this and to promote themselves as courteous organizations, small business professionals are usually amiable and helpful towards their customers.

• It is a known fact that a happy customer would bring in more customers, while an unhappy customer could completely destroy a professional’s growing business.

Private Investigator; Good Example of a Small Business Professional

You’ve seen it in the movies, the small business suite with the words “Private Investigator” etched in the window and in smaller fonts “By appointment only”. This is often cliché, but it’s true. Private investigators were meant to be small; meant to be niche.

Look at it from a government point of view. The State of California issues private investigators a personal license. This is not a company or corporation license, it’s specifically issued to that qualified person. The reason the State does this is to maintain the integrity in the service provided. The PI business was meant to be a small business operation, not some worldwide or nationwide conglomerate like some firms today. The intention of licensing one individual to one office location allows the public more specialized attention, keeping the investigator’s focus on local business, which in turn benefits the local private investigator and that community in which they serve.

For more information and statistics on small businesses, make sure to check out the Small Business Administration Office of Advocacy (a federal branch of government that represents small businesses here in America).

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Ryan Garrahy is a state licensed private investigator specializing in surveillance, background checks, locating individuals and workplace investigations. He is the owner & principal investigator for Orange Investigations.