What is Employee Theft? how it become a costly problem for any organization?

An employee theft is any intentional misappropriation of employer property, including fraud, embezzlement or forgery.

Theft is due to bad economy or personal hardships. It is driven by bad people. It results in loss of profitability and reduced compensation.

Good Day!!!

I will not go into the details of FRAUDS and property stealing by the employees....... I would rather like to mention here about the more UNNOTICED STEALS of employees that needs to addressed in almost every industry.......

Time killing Factors: Almost75% of all employees waste their25% of working time in not doing anything......... means2hrs in every8hrs.

Work Performance standards: Most of the employees don't complete their scheduled work in time because there are no set standards of performance in most of the departments. (* except labour class ...... on which management becomes more vigilant to have a check)

Intellectual property stealing: Employees knowingly or unknowingly shared confidential info. of their company with others (friends, acquaintances & hiring managers of other companies) 

THAT'S HOW AN EMPLOYEE BECOME MORE EXPENSIVE FOR THE ORGANIZATIONS...... EVEN BECOMES A LIABILITY OR A THREAT TO GET RID OF IMMEDIATELY.

an employee theft is considered a big problem in any organization . In terms of economic , it  causes  dissipation of an organization budget . In terms of security , it  causes  unsafe feelings inside the organization .  In terms of  an organization reputation , it leads the organization to the worst reputation.

As hard as it is to believe that someone you hire to fill a trusted position in your company would actually take from you, it happens every day in all kinds of businesses and in a variety of ways. And it is estimated that up to75 percent of all employee theft goes unnoticed. We have seen the workplace mentality of some employees shift from one of responsibility to one of entitlement. When an employee feels like he/she is not paid enough, or is over-worked, or the job is beneath their level of skills, they empower themselves with an attitude of “I deserve this,” for whatever it is they plan to steal. Conducting regular check-ins with your employees, asking them about their job satisfaction, can help.  

The relationship between business ethics and values refers to the manner in which good ethics can be applied toward the attainment of the values of a company.

Sure Employee Theft  becomes a costly problem for any organization, so that we have to look for the issue itself and How to Avoid Employee Theft?.

companies have to Set up a system to control all employees!

Hi,

Misuse of company assets by employee is called employee theft. First we should classify in immateriality and materiality with relation of risk. Means cash and cash equivalent items are most risky items in company and should put strong internal control on it. Question is arises what is company risk appetite? First we will have to identify the company risk appetite and then put inter control to reduce the  employee theft within company risk appetite. Company can control the risk level up to systemic risk only which may not within company risk appetite policy. Cost and benefit analysis keep in view in controlling the employee theft

There is not scale for measurement of ethical level of any employee because it vary person to person. According to Gerry Jhonson culture web, some nations are at4 level of ethics and some are still at1st stage, employee theft can be reduced but not eliminated through training. 

Internal Controls

This is one of the easiest way to get a job position filled where a skill and expertise join together in an employee.  There is an ethical aspect in this.  When more importance is  given for money values, a human in the employee will be at a miss and in future it may end with a tough time for the employee that he may not be able to approach a good employer.  On the other hand, as an employer is concerned he gives more value to his immediate business prospects by adopting such techniques, it may also end up with him a costly affair because if some employees are with him so trained and nurtured with all the necessary skills in them, he may also face a potential migration at any point of time.  

In general the practice is not a business or employment ethics otherwise through a proper manner and generally accepted practices. 

  In one word , he is that a person who doesn't fell his responsibility ,

of course it cost much for him not for the organization

Agree with the friends answers and would like to add that it is not necessary that if employee give monetary loss, take bribery , stole some thing will consider under employee theft but also if he is only come office for time pass and not sharing ideas and values and give proper attention to his job that he should give are also employee theft.

Managers and management may adopt different SOP's for every task to avoid these practices.

When an Employee start to STEAL things that belongs to the organization that he working for , is what called Employee theft.

Employee theft results lack of productivity in one way or other thus results business bankruptcies and end of business, HUGE LOSS or SMALL GROWTH each year