Student Name-……………………..

ID……………………

Read discussion material (in groups).

Read case: ‘When Employees Steal’, page 16, Fundamentals of Human
Resource Management, Noe, et.al, 2013, 5th edition, McGraw-Hill/Irwin,
New York.

When Employees Steal

Every year retailers lose billions of dollars to theft. A lot of
attention focuses on shoplifters; but while a shoplifter steals
$114 worth of merchandise on average, employees who steal
take over $900 worth of merchandise.
Strangely, retailers seem almost reluctant to tackle this
problem. Measures that help are easy to identify: surveillance
cameras near cash registers, active supervision in stores and
back rooms, routine background screening of job applicants
before they are hired, and database programs that mine sales
data for suspicious patterns.
 Q.01: Please prepare an anti-theft policy for the retailers.
Ans. Anti-theft policy for retailers:
Shoplifting is exceptionally problematic for businesses of all sizes,

Merchandise is a considerable investment and surrendering pieces without getting paid is

painful. Especially for small businesses with limited revenue to cover theft expenses and
inventory shrinkage.

All kinds of businesses face the potential for retail theft, but small businesses are exceptionally
vulnerable. Most thieves know national retail stores have the cash to invest in video surveillance,
closed-circuit television (CCTV), a security guard, and other anti-theft devices. The thieves also
know many mom-and-pop shops can’t afford these resources – making these kinds of properties
perfect targets.

Is it possible to completely prevent theft and shoplifting in retail stores? Unfortunately,

there’s no way to keep your shop 100% theft-free. However, there are plenty of measures you
can take now to reduce your risk of shoplifting as much as possible. These tips can help you
learn how to catch shoplifters and how to prevent shoplifting in retail.

1. Know Your Times

Did you know that certain times of day are more common than others for
shoplifting? Wednesday through Saturday are the most popular days for shoplifters, especially in
the afternoon and on weekends. Summers and holidays are often high-alert times for theft as
well.

2. Avoid Profiling
There are many stereotypes related to types of shoplifters, targeting both race and gender.
However, a study from the University of Florida found that many of these are untrue. In reality,
men steal more than women, and the majority of shoplifters are middle-aged and gainfully
employed. As such, it’s essential to treat all shoppers with the same levels of trust, respect, and
suspicion.

3. Keep It Clean

A messy, unorganized store makes it easier for shoplifters to steal from, especially when you’re
not sure what goes where, what’s selling, and what’s not. To increase your oversight and
minimize the likelihood of stolen items, keep merchandise clean and organized.

4. Build Relationships with Customers

Your customers are a big part of your business. The better you know them, the less likely they
are to steal from you. The ones you know by name are aware that you can pick them out of a
lineup, and your more honest shoppers won’t be afraid to report suspicious behavior to you.

5. Build Relationships with Employees

Relationship building goes for employees as well. Forge relationships with your employees and
let them know they’re valued and appreciated. Internal theft is as much of a problem as
shoplifting. In fact, probably more, with 75 percent of employees admitting to stealing from their
employer at least once.

If employees feel engaged with your business and the work they’re doing is valued, the happier
they’ll be — and less likely to exhibit malicious behavior like theft. In fact, the number one way
internal theft was detected was a tip from another employee.

6. Watch for Loiterers

Loiterers are often bad news for businesses and usually a tell-tale sign there might be trouble on
the horizon. With so many hands and so much activity, it’s relatively easy for a group to snag
items and wander out. Pay close attention to people who appear to be hanging around with no
intention of buying anything.

7. Run a Tight Ship

A well-oiled machine is much harder to steal from. When your employees are always at
attention, your business is far less likely to be a target. Share shoplifting prevention tips like this
with your employees to ensure they know how to prevent a potential crime. By showing your
customers you’re watching, they’ll know there’s no room for error in your store.

8. Watch for Shifty Behavior

Some shoplifters, especially those new to the process, may show warning signs before problems
arise. They may wear large sweatshirts, spend long periods of time in the same aisle, carry large
purses or bags, and continually check to see if you’re watching. Know the signs and trends, and
keep a close eye on customers exhibiting this type of behavior.

9. Take a Thief’s Perspective

If you were a thief, what would you target? Heavy items in the back of the store or small, or
easily pocketed items by the front? When arranging your store, think like a thief looking for a
five-finger discount – and do the opposite. One study found that putting easily stolen items, like
batteries, in a visible but hard-to-reach locations cut down on theft significantly.

10. Expand Your Team

Hiring more employees may seem like a costly solution, but putting an extra set of hands on the
floor can make a huge difference. Inevitably, there will be times when you’re with a customer, in
the back, or otherwise unable to watch the floor. In these moments, you’ll appreciate the
assistance another team member can provide.

SEE ALSO: How to Manage Retail Loss Prevention With Your POS

11. Employ Mirrors

If you have a large store and a small staff, it may seem impossible to watch every corner at all
times. With mirrors, surveillance becomes a whole lot easier. Many stores, from convenience
shops to high-end department stores, utilize rounded mirrors in the corners by the ceiling to
prevent theft. This provides a broader view, ensuring you can see every last detail on your floor
— even a blind spot.

12. Add Prevention Tactics

Electronic article surveillance, which refers to the tags that hang on clothing and other high-
value items to deter theft, may seem like an expense only big-box retailers can afford. , Offering
an easy way to ensure expensive items are protected at all times, the benefits of such tags
outweigh the cost of using them.

While these systems are not cheap (it will run you upwards of $3,000), it can prove to be an
extremely valuable method to prevent retail theft. Large retailers aren’t spending that kind of
money if it wasn’t providing them with a substantial ROI. A few tags and a little training result
in a store that’s much harder to rob.

13. Put up Signs

Theft prevention signs are common in stores across the country; they often advertise security
methods, fines imposed and maximum criminal shoplifting charge. While these signs may seem
like all bark and no bite, research shows that a store that emphasizes punishments for shoplifting
is far less likely to be robbed. To maximize effectiveness, hang signs near higher value items,
like jewelry and electronics.

14. Involve the Police

Calling the police for every little-attempted theft of a $5 lipstick or a $1 soda may sound like
overkill, but the more you do now, the better a precedent you set for the future. As one city in
Arizona demonstrated, partnering with local law enforcement resulted in a shoplifting decrease
of over 21 percent, helping businesses to stay safe from the antics of petty criminals.

15. Use a Point of Sale System (POS)

Do you know how many items you have on your shelves? Do you know the exact value of those
products? Does the inventory sold, match the revenue coming in? If not, a POS system can help
you better account for inventory shrinkage and spot potential issues before they get out of hand.

Strong inventory management techniques are a great way to help reduce retail loss. This also ties
back to our point about running a tight ship and being organized on the floor. A POS system not
only organizes inventory by tracking items by category and department, but to also tracks your
cost, margin, quantity on-hand, and even a reorder trigger and quantity.
Also, a point of sale system can help reduce your internal risk of theft. No business owner wants
to believe their employee is stealing from them, but unfortunately, it’s a reality for some.

A POS system will help track every single transaction and function that occurs at the point of
sale during an employee’s shift. You may start to notice an employee that always has a lot of
discounts or voids. The ‘no sale’ function is occurring too many times in one shift. These are all
insights you can gain from your POS system to help you define a pattern and act your findings
before it’s too late.

16. Manage Refunds and Returns

Shoplifting isn’t the only way criminals can target your store – fraudulent returns are another
easy way for thieves to squeeze money out of your business. If you’re lenient with returns,
allowing every little request to pass through your drawer, it’ll be easy for a professional
shoplifter to take advantage of you. Instead, develop a strict policy and stick with it.

17. Get Strict With Receipts

In the world of shoplifting, receipts are the best way to prove a legitimate sale versus a robbery.
Instead of letting customers walk out the door with a cheery wave, consider appointing someone
to check bags and receipts by the entrance. Even if checks are brief and hurried, the idea of
someone checking bags will make a difference.

18. Use Shorter Displays

Long aisles are the norm in many stores, but they can make it hard to keep an eye on what’s
going on with shoppers. Shorter displays make it easier to watch, allowing you to see how
customers move around the store and survey merchandise while identifying potential shoplifters.

19. Put Your Checkout by the Exit

A checkout in the back of the store may be convenient, especially when it comes to checking and
organizing the stockroom, but this strategy can be bad for business. When you want to watch
your store as efficiently as possible, a checkout in the front by the door makes it easy for you to
greet customers and make eye contact when they come in and acknowledge them when they
leave.
20. Install an Entrance Alert Sensor

The buzzers and bells that ring when individuals enter or exit your store may be annoying, but
they’re very handy, especially for smaller, low-volume businesses. These systems work in two
ways: notifying you when someone comes into your store, and letting shoppers know that you’re
watching. When you have a buzzer in place, there’s no way for a shoplifter to sneak past you
when you have your back turned.

21. Keep an Eye on Registers

Swiping cash out of the register is an easy way for thieves to steal from you without ever
disturbing the merchandise. When you’re working the register, never, ever leave it unattended.
Instead, let your team member on the floor handle customer disputes while you stay put.

22. Use Lockers

Banning the use of large bags, purses, and backpacks while shopping may seem paranoid, but
doing away with these items makes it much harder to steal high-value items. By employing a
locker system, you can be sure shoppers aren’t sneaking merchandise into their bags and running
away with your hard-earned cash.

23. Monitor Dressing Rooms

Dressing rooms provide a perfect way for unscrupulous customers to steal. Instead of allowing
them to wander in and out at will while trying on clothes, position an employee near the fitting
rooms and use a number system to track how many items enter and exit. This way, you’ll always
know if something is missing.

24. Install Security Cameras

Surveillance cameras are the single best way to prevent theft, allowing you to keep an eye on the
whole store and capture images of thieves in the act of committing a crime. Gone are the days of
grainy video, dark scenes, and faces you could only see in broad daylight. You can now see clear
images day or night, rain or shine.

A combination of advances in video technology and better lenses have made security cameras
and surveillance systems worth the investment. And let’s not forget the bonus of saving on your
insurance premiums by installing a surveillance system.
25. Have a Plan

When someone steals from you, how will you respond? Will you call the police? Will you
attempt to handle it in-house? Will you let it go? No matter what avenue you plan to take, a step-
by-step procedure is indispensable. With a game plan on the books, you can be ready to react
when a shoplifter does target the inventory you’ve invested so much to acquire.

There’s no way to shut down theft or shoplifters entirely, but the right tactics can provide the
ammo you need to fight back. With these tips, you can learn how to spot shoplifters, take
preventative action, learn how to reduce shoplifting while keeping your retail business safe.

Q.02 : What ethical considerations do retailers need to consider in

implementing the anti-theft measures described in the case?

Ans. Ethical consideration do retailers need to consider in implementing the anti-theft

measures described in that case:

Our first step to counter retail theft is being aware and having access to data. These technologies
below can allow you to immediately find inconsistencies in records and track labor productivity.

1. Review Employee Performances

Daily or weekly performance analysis will help you in reviewing the productivity level of the
employees. Moreover, it will help you identify the underperforming and suspicious ones, who
could be the reason behind the theft.

2. Limit Access to Inventory Data

The task for updating the inventory list or inventory management software should be restricted to
only trustworthy employees so that stocks cannot be manipulated in their absence.
3. Staff Inputs

Encourage your staff to keep an eye on their fellow staff members, which will keep them honest.
Also, you can acknowledge the employees for their contributions in stopping such theft attempts.

4. Caution in Hiring

During hirings, you can conduct a rigorous background check on applicants’ criminal records
and work ethics in their previous workplace.

5. Rotation Policy

Theft can be executed when devious staff members develop alliances. Rotating shifts and areas
can help prevent this.

6. Security Checks

Security personnel should be posted at all entry/exit points and adjoining areas within a
warehouse with the assistance of tools such as security scanners. Moreover, all inbound and
outbound trucks should be inspected and not allowed to move without receipts/checking.

7. Awareness of Policies

Educating your staff about the company’s zero-tolerance policies and consequences of breaching
them can result to less theft. Additionally, having them sign documents that state they have been
informed of all policies can help in ensuring awareness of consequences.

8. Fewer Doors

More doors can open more infiltration opportunities for thieves. If possible, try to use a single
door for entry and a single door for exit to limit and control human activity.

9. CCTV Surveillance

Installing CCTV cameras ensures full-time surveillance and can discourage theft attempts. It can
also provide definite proof during warehouse theft investigations.

10. Separate Receiving and Shipping Docks

Implementing this policy can reduce the chance for incoming stock to be transferred immediately
to an outbound truck.
11. Restrooms Near Doors

Among outsider actors, truck drivers pose the highest risk for cargo theft. Placing restrooms near
doors can restrict their access to the main premises and lessen the chance for theft.

12.Separate Parking for Visitors

A separate parking area that is located far away from operational spaces can limit the chances for
outsiders to steal.

13.Outdoor Security

Thieves often steal stocks by hiding it in the bushes or waste containers outside the warehouse.
Therefore, these things should not be too close to the warehouse doors, windows, and walls.

14.Well-Lit Facility

Adequate lighting at every corner is one of the key measures to prevent theft. It not only
increases visibility for CCTV cameras, but it also helps employees observe things more clearly.