The holidays represent a time of increased hiring for any small retailer. The hiring spree required to keep a business properly staffed through the winter months can be a positive for a business, as the holiday rush boosts revenue, but it can also present its own problems in the form of theft and shrink. This year’s Global Retail Theft Barometer from Checkpoint Systems discovered employee theft was actually a bigger threat to U.S. retailers than shoplifting as 42.9 percent of shrink was attributable to employee theft.
The risk for employee theft increases with the temporary employment provided by holiday hiring, and owners need to take steps to limit their risk of theft and fraud. Critically, Insurance Journal advised small-business owners to provide full training on theft policies to all new employees. While the holidays are a busy time, failing to provide employees with an accurate understanding of workplace theft policies could lead to painful losses. An environment in which all employees are knowledgeable about polices creates accountability and can lead to employees reporting any problems they see.
It may also be time for small-business owners to add replacement-cost property insurance to their existing small-business insurance policy. This could help to cover the cost of any losses and can provide a business owner with peace of mind.
