Keep The Hay!

REDUCING EMPLOYEE THEFT
          IS THE FASTEST WAY TO
          INCREASE PROFITS.

     SAVINGS FLOW STRAIGHT
   THROUGH TO THE BOTTOM LINE!

WHY YOU NEED THIS PROGRAM:

Q: Why would I need this program?
A: Only 2% of all employees who steal in a year are caught. And that low total does not even include theft by vendors, guests and scam artists.

Q: Are Small Businesses Really MORE vulnerable?

A: Security experts advise that small business enterprises may be particularly vulnerable to internal theft. Smaller firms often include employees with multiple responsibilities that provide greater opportunity to commit theft and greater means to conceal such actions.

Q: What is the "real" rate of employee theft?
A: Approximately 40% of employees steal at least one item per year. Inventory loss through theft exceeds 5% of the cost of goods sold. 75% of business losses are a result of employees. The average dollar loss per employee theft case is $1,762. Employee theft losses, passed on to the the consumer, cost each American $400 annually. The U.S Chamber of Commerce reports that an employee is 15 times more likely than a non employee to steal from a business.

Q: Why such a focus on employee theft?
A: Internal theft of money or goods from employees is a primary cause of a significant percentage of small business failures. The Department of Commerce estimates that employee theft and embezzlement activities accounted for one out of five business failures, many of which were smaller firms that were unable to weather the erosion that those activities brought to their bottom lines.

Q: We have NEVER had an employee theft!!! I don't need this!!
A: REALLY?! Don't bet on it: 75% of employee-related crimes go unnoticed. 60% of all employee theft is for non-cash items. There are over 400 known ways that employees can steal from their employers, and new ways are constantly being discovered.

"Keep The Hay In The Barn"

Thieves are everywhere.

Some of them work for you.

Most of them for too long...

"Keep the hay in the barn." I have an old boss to thank for that phrase. A few decades ago he used it to summarize all the things that a business owner or manager must do to prevent inventory, cash and property theft. Since then, my career has given me almost every opportunity to see what he meant.

Again: reducing employee theft is the fastest way to increase profit because the dollars saved flow straight through to the bottom line.

An overwhelming 79 percent of workers admit they have or would consider stealing from their employer:

21% Will never steal
13% Will Steal
66% Will steal if others around them do it
8% Steal out of need
43% Steal out of vindictiveness
49% Steal out of greed
(source: Michael G. Kessler & Associates)

Hiding product in the bottom of garbage cans is a big, common technique. Many people think this is gross, so they never investigate it. Here is how the scam works: your employees take out the garbage during their shifts. They put pre-packaged items in the bottom of the can, put in a new garbage bag, work the shift, take the garbage out at the end of the shift, pull the items out of the bottom of the can and take it to their car while you are finishing up the closing paperwork.
          Thieves.


Vendor theft – Mysteriously the big semi-trucks full of food leave the docks full and return empty but whatever is left at the end of the last drop goes in the back seat of your driver’s car. ALWAYS check your orders in. Some of he best delivery/service vendors in America pride themselves on an error rate that is >0.5%. In other words, on that delivery of 200 cases, there one thing missing. Fix it now or pay later. And NEVER, EVER have them do "key" drops when you are not in the building. Ever! Look: Do you trust your plumber to give him the keys to do a 2 a.m. repair while you are on vacation? I didn't think so.
          Thieves.

These are just a few of the over 400 ways a thief can steal your profits!

Plus, theives can enter the building while a lone delivery driver is doing his job. WATCH below as the open door from the key drop vendor allows a supervisor to come back after hours and take money from the restaurant's safe:


The "numbers" and "data" around internal theft are almost incomprehensible:
An overwhelming 79 percent of workers admit they have or would consider stealing from their employers

43 percent of thieves said they do it to get back at their employer

Cameras are unlikely to pick up on theft since would-be thieves can stay out of their range

75 percent of all employees steal from their employers at least once throughout their careers

At least half of these 75 percent steal multiple times

Employee theft accounted for one out of five business failures, many of which were smaller firms that were unable to weather the erosion that those activities brought to their bottom lines

Employee theft is estimated to be responsible for 47 percent of store inventory shrinkage

The average dollar loss per employee theft case is $1,762

Twenty percent of your employees will steal from you no matter how well you treat them

Sixty percent of all employee theft is for non-cash item

In most cases, employees fail to report thefts by their fellow workers. Most workers who do report illegal activity do so after the suspect is no longer an employee.

Seventy five percent of lost small busines profits are a result of employees

Small business losses due to theft are equal to 3 percent of total sales

Less than 10 percent of the employee population is responsible for more than 95 percent of total losses from theft

Nearly every business experiences some degree of employee theft

Nearly one-third of all bankruptcies are caused by employee theft

I help you keep the money your business makes by keying in on five areas of immediate impact:

First: "Forewarned is forearmed."

I'll focus mainly on "internal" theft and loss, as opposed to robbery, for a simple reason: it's the most common and most costly. According to a University of Florida 2005 survey, the average dollar loss per internal theft case was $1,762 compared to $265 for the average robbery incident.

We will review many classic examples of theft types: employee, vendor, guests, invoicing, scams. Some examples you may have seen or head of before. Others are so unexpected and brazen, they will shock you.

Whenever possible, actual video from undercover and security cameras will be used. Seeing it happen is much more powerful than being told "this could happen to you.."

Oh, and "Yes, it could..."

Second: "The help."

Employees who steal from their bosses share a few traits. Ironically, one suspect trait is overzealous work habits. I've found that someone who seems like a fantastic, almost over cooperative, worker is really just putting on a good show. They are stealing from you.

It frequently happens in smaller operations. They have fewer managers. Often, just one very overworked owner. Their security systems (and I do not mean just the "cameras"; I mean systems and habits...), are not as developed.

Trust in long term, high output employees helps the day-to-day operations. It also tempts honest people into dishonesty. We'll set responsibility limits that work for your operation.

We'll also review hiring. They can't steal your hay from you if you don't hire them.

Third: "Systems and Habits"

Systems are great.

Habits are better.

"Keep the safe locked unless you are in it." "Never leave the office door open." Great systems. Common sense. Right?

Case Scenario (and be honest, here...): What will you do (or your managers or supervisors do), when you in the back, counting the safe and the office is 95 degrees, so the door is open and you hear shouting coming from the front? Did you remember to close the safe door? Is the money back inside of it? Did you spin the dial? The office door did close behind you, right? Be honest with yourself.

The unexpected is the rule of small business life.   If you make a habit of turning around and checking that the office door closed properly, you would know the answer. It's sort of like getting into the habit of putting on your seat belt. You just "do it".

Keep the barn door locked.

Fourth: "Spending to Save"

My wife came home once with the newest iPod on the market. She was so excited to show it to me and told me she saved us $40. It cost $349 with accessories. She only paid $309. Maybe I just don't get it...

Google "small business security". You'll see software, cameras, security systems, alarms, cash registers, consulting firms, IT groups, and that doesn't include the sidebar ads!

There's almost no practical advice to help you keep the hay in the barn.

And they all want your money.

The point is to keep the hay in the barn, not give it out for what you don't need.

I'll review the benefits versus costs of various theft deterrents. From video systems to a $9.67 sign. You will have to decide what is right for your business and what you can afford.

Fifth: "Tools, Tips and Tricks"

I'll provide you with the tools to keep the hay in the barn.

We'll review many details together. Remember, the difference between you versus the owner/manager who looses his shirt will be one thing: action. You will be shown how to take immediate action with what you've learned.

The book and worksheets are on CD in "pdf" format. The DVD includes some revealing footage of real crimes as they happened.

Forms, checklists, posters, reminders and everything you need to plan and implement new security habits will be provided. Use what works best for you and your business. Keep the rest "just in case". No sense going out next year and buying something similar to what you just threw out.

Keep The Hay In The Barn.

After almost 30 years in restaurant, bar and hotel management, from dishwasher to operations director, I have seen more than I care to of theft. And I want to help others avoid it.

I'll show you how to get both security and safety, without excessive time consumption or expensive, gee-whiz hardware.

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