Do You Really Know Your Employees?

By Jeanmarie Traversi

Employee theft is much more common than one may think. Many employers depend on their own people- reading skills to hire employees, but this can be a big mistake.

Most hiring experts agree that criminal background checks are essential for all employees. For example, some bookkeepers go from employer to employer embezzling money, sometimes working at one firm for several years. They can be so skillful at it, the theft is not discovered until after the employee is long gone.

Skimming money from a small business is not that difficult if an employee has full control of billing, deposits, accounts receivable and accounts payable. This is the case in many doctor’s offices.

If an employer has the same person doing all of these tasks, the employer is in a perfect position to be embezzled. An accountant can help employers separate jobs so it is more difficult to embezzle.

Many employees don’t think they are stealing when in fact they are.

Employees have been known to “borrow” office supplies, petty cash, paper, ink cartridges and postage stamps. Watch your Scotch tape supply dwindle around the holidays, if you think your employees wouldn’t do such a thing.

Banks and businesses that handle cash or stock transactions always insist on squeaky clean credit reports. Why? Because time and experience indicate that financial problems are often the cause of stealing.

Sometimes employees feel it is their right to occasionally help themselves to a few postage stamps or office supplies. The actual cost of four or five stamps a week for a year is almost $100. Add personal long distance phone calls, faxes, paper goods and other supplies that find their way into the employee’s home, and it can add up to $500 to $1000 every year, per employee.

It is important that you always check criminal backgrounds and continuously monitor your finances. You must be sure to put checks and balances in the process.

The BCMS Staffing Service offers background checks as a very inexpensive service to you. At only $20 a person for members, it’s a steal.

Call (210) 301-4302 for more information.

 

 

 

 

 

 

 

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