Staying in business and of course, making a success of it, is all about making a profit.

But the harsh reality is that millions of dollars are lost to theft every year and businesses -and ultimately consumers - end up paying for it.

The amounts involved are staggering.

The Global Retail Theft Barometer for 2015/15, an extensive study conducted in 24 countries around the world, found that ‘shrink’ which comprised shoplifting, employee or supplier fraud and administrative errors, cost the global retail industry more than USD128 billion. Other alarming figures from the study showed that in Australia, shoplifting accounted for 39% while employee theft was the second-largest contributor at 25%.

This theft takes many forms including retail shrinkage, shoplifting, internal theft and supplier fraud and businesses have to find ways of making up their lost revenues - and inevitably, it costs businesses more. It also costs consumers more.

According to the Australian Retail Association, retail theft costs the industry up to $9.3 billion annually and averages between 1 and 3% of a retailer’s gross profit, so managing the problem is crucial because it directly impacts a business’s bottom line and its profitability.

Whilst it is important to understand that people’s reasons for stealing from a business or from their employer are varied and often very complex, the facts remain that business theft is a growing and costly problem and multi-pronged strategies are required to combat it. Businesses need to have the right technologies, deterrents, people and processes in place and these have to be supported by effective training, communication and education strategies.

Let’s unpack some of the key things that businesses can do to minimise lost and theft.

Have reliable and thorough recruitment processes. Obviously no process is going to be foolproof, but stringent recruitment procedures which ensure thorough background checks and legitimate references will go a long way to ensure a loyal and trustworthy workforce.

Create a positive work environment. Treating staff well (and that doesn’t necessarily mean offering higher than average remuneration), valuing them and creating a culture of openness, trust, loyalty and commitment can deter employees from stealing.

Traditional technologies such as surveillance cameras are still very effective in tackling the problem, and huge advances in the field of data analytics and the ability to integrate and use information from multiple devices and systems (such as access control, point-of-sale, CCT cameras etc), are making technology even more valuable.

Maintain a strong culture of awareness. Employees are more likely to be vigilant and are more likely not to transgress if there are constant reminders and ongoing education about the seriousness of shrinkage and fraud, what the company’s policies and procedures are, what the effects are for the business (jobs could even be lost as a result of lost revenues) and the consequences for offenders. Even old-fashioned posters and anti-theft signage which promotes a ‘no-tolerance’ approach can make a difference.

Educate staff and provide them with appropriate training. If employees know what to look for, they can be important eyes and ears in the fight against crime. At the same time, whistleblowers have to feel safe and protected and businesses may need to implement mechanisms for anonymous reporting. If people do report suspicious behaviour, their anonymity (if desired) has to be sacrosanct.

The business landscape is tough enough without having the added bottom-line pressures of losses from theft and fraud. If you have any concerns about security at your business in Perth, get in touch with a security systems expert too see how CCTV cameras, video surveillance and access control systems can be integrated to provide a robust commercial security solution.

Crown Security has a long-established reputation for high quality commercial security solutions and they work closely with loss prevention managers in many different organisations across the spectrum of industry. Find out more at https://www.crownsecurity.com.au/ or for an obligation-free quote or to speak to a Perth CCTV and commercial security expert, give them a call on 08 9400 6000.