5 Warning Signs an Employee is Stealing

There is no foolproof way to determine if an employee is stealing until they are caught in the act. However, there are some signs of employee theft that you can watch out for. While these signs alone are not proof that an employee is stealing, they can indicate the need for closer oversight to determine if there’s actually any misconduct or theft occurring before it becomes a larger issue. 

1. Cash and Inventory Shortages

This one should be obvious. If cash, inventory, or even supplies start going missing at a regular rate, it is probably time to start asking the hard questions. These things don’t just get up and walk out the door. You’ll want to review financial records, inventory logs, and surveillance footage to uncover the cause of the shortages. By launching a proper investigation, you’ll likely expose some unchecked theft. You may find that the cause of these shortages is due to simple mistakes by employees. If this is the case, you’ve now found an opportunity for enhanced training to ensure that these errors don’t keep happening. 

2. Point-of-Sale Irregularities

One of the most common ways employees steal is through point-of-sale transactions. Warning signs of employee theft at the register include frequent voids or refunds, unusually low average ticket values, and customer counts that don’t seem to match the foot traffic. It’s important to note that voids or refunds can be legitimate, but if there is a significant increase in them, especially when tied to the same employee or shift, it may indicate that closer review is necessary. Similar to the point above, if this is due to employee error, more training may be beneficial. 

3. Shifts in Lifestyle

Another tell-tale sign that something may be amiss is a drastic shift in lifestyle. If an employee starts showing up with luxury goods or going on lavish vacations, it should at least raise a couple of eyebrows. If their lifestyle change was funded by money stolen from your company, they will continue to steal, as they’ve already adjusted their habits to their new income. There could be a legitimate explanation for it, but more often than not, the answer isn’t the one we want to hear. Monitoring that employee or reviewing their past shifts via POS transactions and surveillance footage can reveal whether their abrupt change in lifestyle was due to stealing from your business.  

4. Changes in Behavior

Shifts in an employee’s demeanor may indicate that they are hiding something. An employee who is stealing may suddenly become unusually friendly, such as going out of their way to greet management out of the blue. They might also be overly eager to appear on their best behavior, using it to hide the fact that they are taking from your company.

5. Shift Patterns

This one may not be something that comes to mind right away, but employees who either never take time off or who always cover others’ shifts may be stealing. Taking time off carries a risk for employees engaged in misconduct, as it increases the chance that another employee will uncover their schemes. By consistently covering shifts for other employees, they will also have more opportunities to steal.  

With these signs in mind, it becomes easier to catch employees who may be stealing. In any of these scenarios, it is not guaranteed to uncover theft, but it can at least lead to proper training and elimination of potentially problematic behaviors. There are also some effective theft prevention strategies that businesses can proactively implement to minimize risk.