te when certain staff members have an extraordinary amount of over rings or other suspicious activity. If necessary, monitor the employee until his or her register counts reflect proper and honest work. In extreme cases, you may consider retraining the employee on how to ring special types of sales, for example. Hone in the problem and refer the employee's focus to the training manual until you see improvement. If your cash register is the type in which employees must enter their code in order to complete a transaction, this is a great way to monitor the production of each employee. Prohibit employees from using another employee's code or ID number for any purpose. Also, prohibit cashiers from taking a reading on their register. If there happens to be more cash in the drawer than the reading admits, the employee is tempted to balance the drawer for convenient self-profit. Require that all employees check out through a supervisor before finishing their shifts and exiting the store. This way you can be assured all employee information is correct and all duties are properly completed prior to leaving.

Employee purchases - Do not allow employees to take care of purchases for themselves, friends or relatives. If you reward your employees with a store discount, pay cl

According to a recent National Retail Survey, 46% of the industry's revenue loss was due to inventory shrinkage registered by employee theft. For independent retailers, this kind of internal loss can be a frightening number. Even more frightening, this number is still rising, up 2% from the previous year, accounting for nearly $15 billion annually. Retailers are rallying, however, to protect their businesses from such dramatic loss counts. Business owners and operators are uncovering more and more ways to safeguard their stores against inventory shrinkage and profit loss. The following tips are just a few of the ideas they're now applying in their retail stores.

Security - Keep perimeter doors locked with alarms engaged during the night shift or when your store is not open for business. Authorization must be required to engage the alarms, and only the owner or supervisor should disengage the alarms when the store opens for business. You may want to consider changing the locks on your doors if those individuals who possess keys to your store are terminated or no longer work there for any reason. Each key that you disseminate to your employees should clearly say, "Do not duplicate." You may even consider using a card access or code system rather than traditional keys. Cards aren't as easy to duplicate and certain models can even trace the card back to a specific individual. Installing a security camera or indoor observation system will deter any wrongdoings. A simulated security camera can also be intimidating to those considering store vandalism, and it costs less than an actual camera system.

Profit Protection -Take large bills out of your cash drawers and keep them in a safe place, like a cash drop box with a secure lock. Allow only a supervisor to make cash drops, and record each transaction in detail. Make bank deposits daily or every other day. All of your other efforts to protect your store against fraud will be null if you leave money in your store that curious employees may find. It only takes one employee to overhear mention of the "safe" or the "vault" for your store to experience significant setbacks. Protect yourself and get the money to the bank.

Stringent employee screening and training - When interviewing a potential employee, include questions regarding honesty and integrity to let prospective staff members know that these issues are very important to your business and will be enforced. If you decide to hire the employee, provide them with a detailed description of company policies and procedures, and the consequences of not following them. This is not to threaten the employee, but rather to supply them the information they need to make honest decisions should they be found in a compromising situation. Maintain that he or she understands the guidelines presented, and acknowledge this understanding with a signature from each of you.

It's very important never to treat your employees like they've done something wrong, even if you suspect them of wrongdoing. If they are in fact innocent, they'll feel wrongly accused, mistrusted and unappreciated, and you may wind up loosing a good employee. Let them know you trust them and treat them with respect.

Teach your employees the concept of preventative maintenance. It is far better to try and prevent an employee theft than try to catch someone after it's already happened. Explain to your staff the nature of employee theft, and the problems it causes for everyone in the store. Most importantly, make it easy for employees to detect and report suspicious activity. Tell them what to report, when to report and the various ways they can report the information. Making yourself accessible to employees is paramount in any situation, especially issue of security. They need to know you support the work they're doing for your business, and when they express concerns you should trust them and take action.

Make sure all employees have proper training before they are left alone or assigned a busy shift. Require a written okay from a supervisor before an employee leaves their training module. As employees learn about your business and become more comfortable, supply them with needed product and pricing information, along with company policies and guidelines for ready reference. This will help avoid mistakes on the selling floor that can also be the source of great monetary loss for you.

A valuable extension of employee training is an evaluation or review. Many companies like to wait six months to develop an understanding of the employee's work habits and accomplishments before the review period, but depending on the nature of your business it may be sooner. One-on-one interaction with your employees builds trust and opens communication, thus regularly scheduled reviews are highly recommended.

Sales Transactions - Ensure your employees are ringing sales correctly and coupons or other promotional offers are logged and discounted accordingly. Check your register tape and cash drawers for unauthorized checks, voids or refunds. Keep a file of employee transactions so you may note when certain staff members have an extraordinary amount of over rings or other suspicious activity. If necessary, monitor the employee until his or her register counts reflect proper and honest work. In extreme cases, you may consider retraining the employee on how to ring special types of sales, for example. Hone in the problem and refer the employee's focus to the training manual until you see improvement. If your cash register is the type in which employees must enter their code in order to complete a transaction, this is a great way to monitor the production of each employee. Prohibit employees from using another employee's code or ID number for any purpose. Also, prohibit cashiers from taking a reading on their register. If there happens to be more cash in the drawer than the reading admits, the employee is tempted to balance the drawer for convenient self-profit. Require that all employees check out through a supervisor before finishing their shifts and exiting the store. This way you can be assured all employee information is correct and all duties are properly completed prior to leaving.

Employee purchases - Do not allow employees to take care of purchases for themselves, friends or relatives. If you reward your employees with a store discount, pay clo

eys. Cards aren't as easy to duplicate and certain models can even trace the card back to a specific individual. Installing a security camera or indoor observation system will deter any wrongdoings. A simulated security camera can also be intimidating to those considering store vandalism, and it costs less than an actual camera system.

Profit Protection -Take large bills out of your cash drawers and keep them in a safe place, like a cash drop box with a secure lock. Allow only a supervisor to make cash drops, and record each transaction in detail. Make bank deposits daily or every other day. All of your other efforts to protect your store against fraud will be null if you leave money in your store that curious employees may find. It only takes one employee to overhear mention of the "safe" or the "vault" for your store to experience significant setbacks. Protect yourself and get the money to the bank.

Stringent employee screening and training - When interviewing a potential employee, include questions regarding honesty and integrity to let prospective staff members know that these issues are very important to your business and will be enforced. If you decide to hire the employee, provide them with a detailed description of company policies and procedures, and the consequences of not following them. This is not to threaten the employee, but rather to supply them the information they need to make honest decisions should they be found in a compromising situation. Maintain that he or she understands the guidelines presented, and acknowledge this understanding with a signature from each of you.

It's very important never to treat your employees like they've done something wrong, even if you suspect them of wrongdoing. If they are in fact innocent, they'll feel wrongly accused, mistrusted and unappreciated, and you may wind up loosing a good employee. Let them know you trust them and treat them with respect.

Teach your employees the concept of preventative maintenance. It is far better to try and prevent an employee theft than try to catch someone after it's already happened. Explain to your staff the nature of employee theft, and the problems it causes for everyone in the store. Most importantly, make it easy for employees to detect and report suspicious activity. Tell them what to report, when to report and the various ways they can report the information. Making yourself accessible to employees is paramount in any situation, especially issue of security. They need to know you support the work they're doing for your business, and when they express concerns you should trust them and take action.

Make sure all employees have proper training before they are left alone or assigned a busy shift. Require a written okay from a supervisor before an employee leaves their training module. As employees learn about your business and become more comfortable, supply them with needed product and pricing information, along with company policies and guidelines for ready reference. This will help avoid mistakes on the selling floor that can also be the source of great monetary loss for you.

A valuable extension of employee training is an evaluation or review. Many companies like to wait six months to develop an understanding of the employee's work habits and accomplishments before the review period, but depending on the nature of your business it may be sooner. One-on-one interaction with your employees builds trust and opens communication, thus regularly scheduled reviews are highly recommended.

Sales Transactions - Ensure your employees are ringing sales correctly and coupons or other promotional offers are logged and discounted accordingly. Check your register tape and cash drawers for unauthorized checks, voids or refunds. Keep a file of employee transactions so you may note when certain staff members have an extraordinary amount of over rings or other suspicious activity. If necessary, monitor the employee until his or her register counts reflect proper and honest work. In extreme cases, you may consider retraining the employee on how to ring special types of sales, for example. Hone in the problem and refer the employee's focus to the training manual until you see improvement. If your cash register is the type in which employees must enter their code in order to complete a transaction, this is a great way to monitor the production of each employee. Prohibit employees from using another employee's code or ID number for any purpose. Also, prohibit cashiers from taking a reading on their register. If there happens to be more cash in the drawer than the reading admits, the employee is tempted to balance the drawer for convenient self-profit. Require that all employees check out through a supervisor before finishing their shifts and exiting the store. This way you can be assured all employee information is correct and all duties are properly completed prior to leaving.

Employee purchases - Do not allow employees to take care of purchases for themselves, friends or relatives. If you reward your employees with a store discount, pay cl

and procedures, and the consequences of not following them. This is not to threaten the employee, but rather to supply them the information they need to make honest decisions should they be found in a compromising situation. Maintain that he or she understands the guidelines presented, and acknowledge this understanding with a signature from each of you.

It's very important never to treat your employees like they've done something wrong, even if you suspect them of wrongdoing. If they are in fact innocent, they'll feel wrongly accused, mistrusted and unappreciated, and you may wind up loosing a good employee. Let them know you trust them and treat them with respect.

Teach your employees the concept of preventative maintenance. It is far better to try and prevent an employee theft than try to catch someone after it's already happened. Explain to your staff the nature of employee theft, and the problems it causes for everyone in the store. Most importantly, make it easy for employees to detect and report suspicious activity. Tell them what to report, when to report and the various ways they can report the information. Making yourself accessible to employees is paramount in any situation, especially issue of security. They need to know you support the work they're doing for your business, and when they express concerns you should trust them and take action.

Make sure all employees have proper training before they are left alone or assigned a busy shift. Require a written okay from a supervisor before an employee leaves their training module. As employees learn about your business and become more comfortable, supply them with needed product and pricing information, along with company policies and guidelines for ready reference. This will help avoid mistakes on the selling floor that can also be the source of great monetary loss for you.

A valuable extension of employee training is an evaluation or review. Many companies like to wait six months to develop an understanding of the employee's work habits and accomplishments before the review period, but depending on the nature of your business it may be sooner. One-on-one interaction with your employees builds trust and opens communication, thus regularly scheduled reviews are highly recommended.

Sales Transactions - Ensure your employees are ringing sales correctly and coupons or other promotional offers are logged and discounted accordingly. Check your register tape and cash drawers for unauthorized checks, voids or refunds. Keep a file of employee transactions so you may note when certain staff members have an extraordinary amount of over rings or other suspicious activity. If necessary, monitor the employee until his or her register counts reflect proper and honest work. In extreme cases, you may consider retraining the employee on how to ring special types of sales, for example. Hone in the problem and refer the employee's focus to the training manual until you see improvement. If your cash register is the type in which employees must enter their code in order to complete a transaction, this is a great way to monitor the production of each employee. Prohibit employees from using another employee's code or ID number for any purpose. Also, prohibit cashiers from taking a reading on their register. If there happens to be more cash in the drawer than the reading admits, the employee is tempted to balance the drawer for convenient self-profit. Require that all employees check out through a supervisor before finishing their shifts and exiting the store. This way you can be assured all employee information is correct and all duties are properly completed prior to leaving.

Employee purchases - Do not allow employees to take care of purchases for themselves, friends or relatives. If you reward your employees with a store discount, pay cl

our business, and when they express concerns you should trust them and take action.

Make sure all employees have proper training before they are left alone or assigned a busy shift. Require a written okay from a supervisor before an employee leaves their training module. As employees learn about your business and become more comfortable, supply them with needed product and pricing information, along with company policies and guidelines for ready reference. This will help avoid mistakes on the selling floor that can also be the source of great monetary loss for you.

A valuable extension of employee training is an evaluation or review. Many companies like to wait six months to develop an understanding of the employee's work habits and accomplishments before the review period, but depending on the nature of your business it may be sooner. One-on-one interaction with your employees builds trust and opens communication, thus regularly scheduled reviews are highly recommended.

Sales Transactions - Ensure your employees are ringing sales correctly and coupons or other promotional offers are logged and discounted accordingly. Check your register tape and cash drawers for unauthorized checks, voids or refunds. Keep a file of employee transactions so you may note when certain staff members have an extraordinary amount of over rings or other suspicious activity. If necessary, monitor the employee until his or her register counts reflect proper and honest work. In extreme cases, you may consider retraining the employee on how to ring special types of sales, for example. Hone in the problem and refer the employee's focus to the training manual until you see improvement. If your cash register is the type in which employees must enter their code in order to complete a transaction, this is a great way to monitor the production of each employee. Prohibit employees from using another employee's code or ID number for any purpose. Also, prohibit cashiers from taking a reading on their register. If there happens to be more cash in the drawer than the reading admits, the employee is tempted to balance the drawer for convenient self-profit. Require that all employees check out through a supervisor before finishing their shifts and exiting the store. This way you can be assured all employee information is correct and all duties are properly completed prior to leaving.

Employee purchases - Do not allow employees to take care of purchases for themselves, friends or relatives. If you reward your employees with a store discount, pay cl

te when certain staff members have an extraordinary amount of over rings or other suspicious activity. If necessary, monitor the employee until his or her register counts reflect proper and honest work. In extreme cases, you may consider retraining the employee on how to ring special types of sales, for example. Hone in the problem and refer the employee's focus to the training manual until you see improvement. If your cash register is the type in which employees must enter their code in order to complete a transaction, this is a great way to monitor the production of each employee. Prohibit employees from using another employee's code or ID number for any purpose. Also, prohibit cashiers from taking a reading on their register. If there happens to be more cash in the drawer than the reading admits, the employee is tempted to balance the drawer for convenient self-profit. Require that all employees check out through a supervisor before finishing their shifts and exiting the store. This way you can be assured all employee information is correct and all duties are properly completed prior to leaving.

Employee purchases - Do not allow employees to take care of purchases for themselves, friends or relatives. If you reward your employees with a store discount, pay close attention that friends and relatives of employees are not also benefiting from your graciousness. You must require management authorization of all purchases made by employees. Staff members receiving a discount must pay for the merchandise before their shifts are completed. Require employees to keep the receipt for merchandise they purchase or consume for review at shift's end. Never allow your employees to wear or use your merchandise "on loan" or "on good faith." Don't set yourself up for risk. Every piece of merchandise that leaves your store must first be purchased. If your products require occasional cleaning or alteration, or are used for trade shows or some other purpose, make sure each piece is authorized and signed out at the door and organized in a log that's accessible only by a supervisor.

Teamwork concept - Payroll can be somewhat cumbersome on your budget during slow times, but many store managers are finding it beneficial to keep at least two employees on staff at all times. Schedule carefully. Make sure the employees on duty will hold one another accountable rather than serve as an accomplice to the other. Never allow one person to take care of the entire sale from start to finish. Another person should at least be present at the point of sale if possible to keep actions honest.

Prohibiting hide-and-sneak - Make sure your sales staff maintains a tidy register and they're not hiding merchandise in seemingly inconspicuous areas. Provide employees with lockers or a secure place for their personal belongings. An employee's bag or jacket is a perfect place for a small pair of earrings, golf balls, or other trinkets-even CD's, which can be a high dollar loss for the independent retailer. Keep back areas neat and clean so that store managers can easily detect irregularities or suspicious activity.

Vendor and inventory control - Require back doors for receiving be closed immediately after a delivery is made. These doors should be locked at all times and new shipments should not be housed on your shelves until they are properly checked-in and marked. To ensure that all shipments are correctly logged and organized into your existing inventory, accept only one freight delivery at a time unless adequate personnel can assist the receiving agent. These individuals must understand that a thorough inspection of the delivery regarding content and quality, and recording the freight properly is their ultimate charge. Be cautious of vendor theft. Delivery shortages are common, so make sure your employees count every item delivered.

Just to be safe, let's review:
- Install proper security devices to protect your merchandise and drive away potential thieves.
- Protect your profits. Don't leave excessive amounts of money or large bills in your cash drawers.
- Get the money out of your store and into the bank immediately.
- Choose your employees carefully and train them thoroughly.
- Monitor sales transactions and address any discrepancies.
- Maintain strict standards on employee purchases.
- Enforce teamwork and accountability whenever possible.
- Tidy all areas to prohibit one hiding merchandise they don't intend to purchase.
- Control shipments to your store and closely track inventory.

These are of course just the basics, and if you haven't already, you will soon develop your own best methods for protecting your store against employee theft. Exercising preventative maintenance and taking proper precautions will protect your property and your bottom line for the successful life of your business.