Author, Sam Brown, Vice President of Human Services, Rancho Mesa Insurance Services, Inc.

Crime insurance policies act as one line of defense against financial loss to an employer. At times, guarding against theft can feel like an uphill battle with many factors outside of our control. One common form of crime insurance claims may be more preventable than ever with some quick education. We are talking about employee theft.

Employee theft can come in the form of stolen petty cash, liberal use of gas cards, or payroll fraud. A review and understanding of the most common reasons why employees steal from their employer can help prevent such crimes.

1. Financial Need

Real or perceived, a financial crisis can drive an employee to steal. Examples include family illness, falling behind on bills, personal debts, or even the desire to have clothing or material possessions the employee cannot afford on their own.

2. Perceived Unfair Treatment

Employees justify stealing when they believe the employer has overworked and underpaid its employees. An employee may also blame management when job performance does not warrant a pay increase. Employees may feel the company owes them.

3. Opportunity

One theory suggests that even honest people will steal if there is ample opportunity. It would make sense then that the incidence of theft increases for employees near unsecured cash or valuable property. This is especially true for employees who understand the worth of company property.

4. Workplace Norms

Employees who see co-workers get away with stealing from the company are more likely to commit theft themselves. Conversely, a quick reminder to a new employee that theft of an any kind is not condoned can adequately communicate what is and what is not to be tolerated.

Understanding factors that drive an employee to steal from an employer can help organizational leaders identify suspicious behavior. This may also lead to management decisions made to influence company culture in a positive way.

Please contact Rancho Mesa Insurance if your private company or non-profit organization has questions about crime insurance and employee theft.