Battling Employee Theft in UK Warehouses.
Strategies for a Secure Environment.
10.09.2023 | 5 min read
Warehouses serve as vital hubs for storing and managing goods, but they can also be susceptible to internal challenges, such as employee theft. No employer likes to think of their employees stealing from them, especially as employees are so integral to a business, but staff theft is responsible for significant losses across many industries in the UK .
Addressing this issue is essential to maintain operational integrity, protect assets, and foster a culture of trust within the workplace. In this article we'll explore effective strategies for tackling employee theft in UK warehouses.
Understanding the Scope of Employee Theft
Employee theft can encompass a range of activities, from stealing products and materials to manipulating inventory records. It's important to acknowledge that this issue not only affects a company's bottom line but also damages morale and erodes the sense of community within the workplace. It can be very difficult to detect and manage, which also means the impact of such theft is often realised when it has already caused huge losses.
In 2019, the Centre for Retail Research found that employee theft in stores accounted for 22%+ of retail shrinkage and showed that 18% of overall retail shrinkage came from crime targeting suppliers and warehouses. The same report also noted that both figures have risen compared to previous years, increasing by 1.2% for staff theft and 4.6% for supplier & warehouse crime in 2019. This accounted for an estimated £2.22bn of losses in the UK throughout the year.
Understanding why employees steal.
By knowing the motivations behind employee theft, an employer is better able to understand what is needed to prevent it. From minimising financial difficulties felt by your team, to looking into staff motivation and workplace culture. It is also important to be aware of seasonal risks and how these impact your employees. For example, in the UK, employee theft is found to be higher around Christmas time when more people feel pressure to provide financially.
Create a positive and safe work environment.
A positive and safe work environment can discourage employee theft. When employees feel valued, motivated, and safe, they are more likely to adhere to ethical standards. Encourage open communication, offer opportunities for professional growth, and recognise employees' contributions to build a culture of loyalty and honesty. Ensure security and safety practices create a safe working environment. This can also be supported by utilising your teams skills sets effectively.
Staff monitoring and surveillance.
Visible security measures, such as surveillance cameras, drone security technology and technology that has facial and audio recognition capabilities, act as deterrents for theft. A unified approach to asset protection strategically protects your business from internal and external theft, whilst helping your team to feel safe and protected in their workplace. Make sure employees are aware of the presence of these measures, as it can significantly reduce the likelihood of theft and improve working cultures.
Consider access control.
Sophisticated security systems, such as Soranet from Sorair, can limit access to sensitive areas by implementing access control systems. Only authorised personnel would have entry to areas where valuable inventory is stored or universal access isn’t necessary. This reduces the opportunities for theft and ensures that any unauthorised access is easily traceable. Access can be monitored using facial ID recognition, audio recognition and CCTV, working together to ensure that not only are only authorised ID cards in appropriate areas, but that the photos on the ID cards match those wearing them.
Unbiased security.
Whilst it is important to develop a team that works well together, this can cause a culture whereby staff cover for indiscretions of other team members. When wanting to monitor theft and staff safety, it is essential to have a truly unbiased system and operation in place; removing the possibilities and risk of internal pressures, and discrimination. By implementing autonomous security systems, you remove human bias from the process of security.
Audits.
Technology advancements allow for monitoring and stock control, utilising RFID tags, sensors and digital monitoring. Keeping an eye on stock levels enables management teams to notice unexpected loss of stock, and even see when stock is in incorrect areas of the warehouse.
Consequences and accountability.
Clearly communicate the consequences of theft and other unethical behaviours. Implement a progressive disciplinary system that outlines the steps taken in response to violations. Consistent enforcement of consequences underscores the seriousness of maintaining a theft-free environment.
How can employee theft be prevented?
How do you achieve what’s needed to reduce employee theft?
Tackling employee theft requires a multi-faceted and unified approach that combines preventive measures, surveillance, and a supportive work culture. By fostering an atmosphere of trust and transparency while implementing robust security protocols, UK warehouses can significantly reduce the risk of employee theft and create a safe, productive environment for all.
At Sorair, we have developed a unified approach to asset protection, preventing loss and employee theft for businesses across the UK. From analysis to software development and the very latest, innovative technology solutions to security, Soranet from Sorair is the perfect solution to preventing employee theft and protecting your warehouses.