Attacking Fraud & Theft at the Point of Sale
Employee theft accounts for the highest percentage of retail shrink in North America — more than the percentage of theft from traditional shoplifters or outside organized retail criminals. In the rest of the world, it’s a close second to shoplifting. The latest statistics indicate employee theft is growing annually by 5.5%. 1 Assuming a bottom line profit of 5%, retailers would have to sell $2,000 in merchandise to make up for every $100 stolen by an employee. (5% of $2,000 = $100) Clearly, employee theft impacts the bottom line.
Getting What You Paid For
The American Payroll association states that 5% of payroll is fraudulent. This is the result of one employee clocking in for a fellow employee that has not arrived at work or they could be clocking out for an employee who left work hours ago. Paying an employee when they are not at work is a very real expense. Not providing service to demanding customers can result in immediate lost sales and customers not returning to a store in the future due to poor service levels. Employee payroll fraud and poor service levels will have a negative impact to payroll expenses, customer sales and service levels.