Employee Theft, Fraud and Waste

Employee Theft, Fraud and Waste

Employee theft, fraud as well as waste are of major concern for organizations today. Any organization that wishes to remain relevant in today's highly competitive business environment must not only enhance its profitability but it must also facilitate the efficient use of its resources. Employee theft, fraud and waste could impact negatively on both an entity's fair utilization of resources and profitability. With that in mind, the relevance of implementing deliberate measures aimed at reducing as well as averting instances of employee theft, fraud and waste cannot be overstated.

Employee Theft, Fraud and Waste: An Overview

Employee theft, fraud as well as waste are some of the more serious issues organizations have to contend with today. Siegel (2010) points out that in a recent survey conducted by an outfit that concerns itself with loss prevention, "the number of employees involved in pilferage is on the rise and so too is the value of the merchandise being stolen." But what exactly motivates employees to engage in theft and/or fraud? According to Siegel (2012), employees are motivated to steal by a number of factors. It is important to note that more often than not, employers or business owners wrongly attribute employee fraud to problems or conditions of an economic nature (Siegel, 2012). To effectively combat employee theft and fraud, there is a need to identify some of the actual factors that motivate such a behavior. Instances of wastage are also in most cases motivated by some of the same factors that motivate employee theft and fraud. Some of the factors that motivate employees to steal in the opinion of Siegel (2012) include "job dissatisfaction and the workers' belief that they are being exploited by employers or supervisors…"

Combating Employee Theft, Fraud and Waste

Given that cases of theft and fraud are clandestine in nature; both the prevention as well as detection of the same may prove to be an uphill task. Wastage of organizational resources is also in most cases disguised. In their own words, Bologna and Shaw (1997) note that "to avoid or prevent employee theft, fraud, and embezzlement, a climate of trust, honesty, and cooperation should be established." This assertion seems to support a view highlighted earlier on in this text that economic problems are not largely to blame for instances of theft as well as fraud in the workplace. Indeed, if economic problems did have a prominent role to play in motivating employee theft, fraud and waste; most of the recommended approaches to address the vices would not work.

It should be noted that the relevance of pre-hiring background checks cannot be overstated when it comes to the prevention of employee theft, fraud as well as waste. According to Beesley (2011), this should indeed be taken as one of the very first steps towards the prevention of employee fraud. In basic terms, chances of an employee engaging in theft and/or fraud remain high if such an employee has engaged in a similar behavior in the past. Without proper background checks prior to making the hiring decision, an organization can find itself employing individuals who have recently been fired elsewhere for fraud or theft.

An organization can also seek to prevent employee fraud as well as theft by developing well drafted and concise guidelines in regard to acceptable standards of conduct. In the opinion of Beesley (2011), there is an existing need for each and every business to have in place "an employee code of ethics and conduct." The author in this case points out that although such a document cannot entirety prevent instances of fraud; it does make a contribution to the promotion of lawful and ethical conduct.

Beesley (2011) also reaffirms Siegel's assertion as highlighted earlier on in this text that employee fraud largely has little or nothing at all to do with economic problems or conditions. As the author points out, studies have in the past demonstrated that employees are more likely than not to engage in fraudulent behavior if they feel under-appreciated, happen to be under pressure or perceive management conduct as being either unfair or unethical (Beesley, 2011). With than in mind, it does make great sense to put measures in place to ensure that employees feel that their contributions at the workplace are regarded highly. It would also be prudent for an organization to ensure that fairness is observed across the board.